- The EIB and the Government of the Republic of Moldova have agreed on a €150 million loan for the reconstruction of major highways in Moldova.
- The operation will support the construction and rehabilitation of roads between Moldova and the European Union, accelerating the country`s integration into the TEN-T network and the EU.
- The EIB loan will allow Moldova to introduce international road quality and safety standards, as well as to achieve capacity improvements according to the traffic demand on particular sections of the national road network.
- The EIB loan supports the goals of the EU Economic and Investment Plan for the Eastern Neighbourhood.
The European Investment Bank (EIB), the bank of the European Union, will invest an additional €150 million in the modernisation of highways in the Republic of Moldova and improved road safety in the country. Under the loan agreed with the Government of Moldova, the EIB will finance the reconstruction and modernisation of the Balti-Criva section of the M5 national road, and the Chisinau Bypass on the M2 road.
The investment will cut travel times in the country, reduce vehicle operating and maintenance costs, and increase the economic and territorial cohesion of Moldova, as well as accelerate the integration of the Republic of Moldova into the Trans-European Network for Transport (TEN-T), in line with the EU Flagship Initiative for Moldova dedicated to transport connectivity. The EIB loan supports the goals of the EU Economic and Investment Plan for Moldova in the transport sector.
EIB President Werner Hoyer said: “This operation marks an important step for building an ever closer partnership between the European Union and Moldova. We are investing in a modern transport link with the EU and an efficient, modern and safe road network. This is a key precondition for faster economic development, improved quality of life, and safer traveling on Moldova’s key transport corridors. At the EIB, we are looking forward to expanding our partnership with the Government of Moldova and investing together in quality projects.”
Prime Minister of the Republic of Moldova Natalia Gavrilița said: “Despite this difficult period, the Government continues to work towards the development of the country and increasing the well-being of its citizens. Several important decisions are being made in each of these directions, and we are very grateful that we have development partners who provide us with important support and solidarity in this process.”
Ambassador of the European Union to the Republic of Moldova Jānis Mažeiks said: “The new investment in road rehabilitation programme will result in improved and safer driving conditions in the country and a better physical connection between the Republic of Moldova and the European Union, for increased passenger and trade volumes. These connections are particularly important today, when we face a very challenging regional situation. The EU, together with the EIB, in the spirit of Team Europe, are committed to providing assistance to the people of Moldova in the framework of the ambitious EU Economic Investment Plan, which aims to support energy, transport, logistics, education and private sectors.”
Deputy Prime-Minister of Moldova and Minister of Infrastructure and Regional Development, Andrei Spînu, said: “Moldova needs to be closer to the European Union through a people-oriented mobility strategy, ensuring modern transport, quality roads and traffic safety. It is our role, as decision makers, to bring these transformations of the country through as many and qualitative investments as possible. This loan is dedicated to the construction and repair of 150 km of national road. I will make sure that this money is spent efficiently on quality and safe roads.”
Since 2007, the European Investment Bank has invested €255 million in the modernisation of Moldova’s roads within the TEN-T network. These loans are all covered by EU guarantees under the EU External Lending Mandate.
In response to the Russian invasion of Ukraine, the EIB is currently working on further strengthening and expanding its support for the Republic of Moldova. The Bank is working with Team Europe on mechanisms to support Moldova in coping with the influx of refugees from Ukraine and to increase Moldova’s social and economic resilience.
Team Europe supports sustainable, green development in Moldova
The EIB loan falls under Global Europe, a €79.5 billion neighbourhood, development and international cooperation instrument of the European Union. The instrument covers EU cooperation with all third countries except for pre-accession beneficiaries and the overseas countries and territories covered by geographic programmes.
Global Europe helps countries outside the European Union (like Moldova) to overcome long-term developmental challenges, and contributes to achieving the international commitments and objectives that the EU has agreed to, in particular the 2030 Agenda and its Sustainable Development Goals and the Paris Agreement.
The EU Economic and Investment Plan offers €2.3 billion of EU grants to Eastern Partnership countries, with the potential to mobilise up to €17 billion in public and private investments for the economies of the region. The plan is supporting the recovery from the effects of the coronavirus pandemic and a sustainable transformation of the economies of the Eastern Partnership countries to make them more resilient.
The plan contains a set of flagship initiatives for each of the countries in the Eastern Neighbourhood, namely Ukraine, Moldova, Georgia, Armenia and Azerbaijan. In Moldova, the Economic and Investment Plan has four flagship initiatives including improving connectivity and connecting Moldova to the TEN-T network of roads.
About the EIB in Moldova:
The European Investment Bank has been active in Moldova since 2007. To date the EIB has invested close to €850 million in 25 projects across the country supporting EU policy priorities including projects in the transport, energy, small and medium-sized enterprises (SMEs), agriculture, municipal infrastructure (solid waste, water and wastewater) and services sectors of Moldovan economy.
In response to the COVID-19 crisis, the EIB provided €20 million to ProCredit bank to support a faster recovery of Moldova’s SMEs from the pandemic. The operation supported Moldova by reinforcing the national financial sector, and unlocked new sources of affordable financing for SMEs to sustain jobs, maintain liquidity and operations, and continue fuelling the economic recovery. The loan was part of Team Europe’s COVID-19 emergency response.