Moldovan cabinet approves draft law on ratification of amendment to financing contract with top European bank

Chisinau,, 20 December /MOLDPRES/ - The government today approved a draft law on the ratification of the amendment No 2 to the contract on financing between Moldova and the European Investment Bank (EIB) for the carrying out of the project on restoration of roads from Moldova. The amendment sees extension of the term of providing investments means till 31 December 2018 and was signed in Luxembourg on 11 December 2017.

An additional commitment commission of about 67.8 thousand euros or 1.43 million lei, the equivalent sum in Moldovan currency, will be paid for the extended period. Respectively, additional costs will appear, varying between 151.6 thousand and 194.7 thousand euros. The extension of the deadline for providing the investment means will ‘’leave enough time for completing the project,’’ the Economics and Infrastructure Ministry said.

The contract with EIB, worth 75 million euros, was signed in Chisinau on 23 November 2010. Under the contract, the works were to start in early 2011 and to be completed in 2013. Yet, the works developed slowly, in general, as a result of entrepreneurs’ financial incapacity. Subsequently, on 5 December 2015, the final date for making the money available was extended till 31 December.  

Yet, after December 2015, the roads’ restoration was much procrastinated too. In these conditions, the cabinet ruled to initiate talks on the extension by another two years of the loan’s validity period, as well as to make amendments to the conditions of financings, including an additional commitment for the extended period, which implies additional costs.  

The resources provided by EIB are meant for financings works of national roads’ restoration, providing consultancy services for implementing projects and technical supervision of the rehabilitation works.

(Reporter V. Bercu, editor A. Raileanu)