Luxembourg, 03/07/2007 (Agence Europe) - On 28 June, the European Investment Bank (EIB) signed a loan of €30 million with the Republic of Moldova, to support the rehabilitation of roads linking the capital Chisinau to the EU border. This is the first ever operation of the EIB in Moldova, a country which after Romania's accession to the EU in January 2007, has become a direct EU neighbour. In a press release, the EIB points out that it is “promoting European objectives, supports the European Neighbourhood Policy, which aims to strengthen the links between the enlarged EU and its neighbours and promote an area of prosperity, stability and security”.
This project, piloted by the World Bank (WB), is being co-financed by the WB, the EIB and the EBRD. The WB and the EBRD are providing loans of respectively $16 million and €30 million to rehabilitate the main North-South road axis in the country. In December 2006 the EIB, EBRD and the European Commission signed a protocol for an agreement to pool their resources in support of neighbouring countries from the East, Russia and Southern Caucasus.
Moldova is making significant efforts towards improving its macroeconomic situation and has achieved an average annual growth rate of 6-7% over the past six years. According to the EIB, improving road infrastructure is expected to boost Moldova's economic revival. The project will reduce transport costs and improve road safety, help secure access to EU markets and new trade opportunities, and encourage foreign direct investment into the country. (ol)