Moldovan cabinet approves draft on amendment to financing contract with European Investment Bank

Chisinau, 31 July /MOLDPRES/ - The cabinet of ministers, at a today’s meeting, approved a decision on starting negotiations and approving the signing of the Amendment No 13 to the contract on financing between Moldova and the European Investment Bank (EIB) for the carrying out of the project on roads’ restoration in Moldova, signed on 23 November 2010.  

Under the cabinet decision, Deputy Prime Minister, Finance Minister Serghei Puscuta was empowered to sign this amendment. The Moldovan cabinet approved a similar decision on the Amendment No 2 in December 2017.

As a result of the approval of this government decision, decision-makers will have to adopt the law on initiating talks and approving the signing of the Amendment No 3 to the financing contract between Moldova and EIB for the carrying out of the project on roads’ restoration in Moldova, signed on 23 November 2010.

The Contract with EIB, worth 75 million euros in all, was signed in Chisinau on 23 November 2010. Under the contract, the works were to begin in early 2011 and to be completed in 2013. Yet, the works evolved slowly, because of entrepreneurs’ financial incapacity. Subsequently, on 5 December 2015, the final date of the money’s disbursement was extended till 31 December 2016 and the margin was set for the installments allocated of the loan from 0.68 to 0.98 per cent.  

Nevertheless, after December 2015, the restoration of roads was procrastinated much too. In these conditions, the cabinet ruled to start negotiations on extending by two years the loan’s validity period, as well as making of amendments to the conditions of financing, including an additional commitment for the extended period, which implies additional costs.    

The resources provided by EIB are meant for financing works of restoration of national roads, providing consultancy services for the implementation of projects on technical supervision of the rehabilitation works.