Contacts: In Chisinau: Slavian Gutu (373-22) 200-706, sgutu@worldbank.org In Washington: Steven Jouy (202) 473-4215, sjouy@worldbank.org WASHINGTON, March 29, 2007 – The World Bank today approved a US$16.0 million Road Sector Program Support Project for Moldova under IDA credit terms. The project will assist the Government in reducing road transport costs for road users in Moldova by improving the condition and quality of its road network and the way it is managed. Moldova’s road network totals about 16,800 km, of which 3,666 km are classified as national roads and the remainder as local roads. Considering the size of the country and its population, the road network size is mostly adequate. However, about 67 percent of national roads and more than 75 percent of local roads are in poor condition. This is the direct result of insufficient maintenance and rehabilitation of the road network during the past 15 years when very little resources were spent on roads. In this context and according to objectives outlined in the Moldova Economic Growth and Poverty Reduction Strategy Paper, the Government decided to develop an ambitious Transport Sector Program with special focus on the road sector. The Road Sector Program Support Project addresses the most important challenges of the road sector by targeting road network recovery and effective road asset management. "The World Bank is helping the Government of Moldova to first define a coherent Road Sector Program and then to provide funding for specific road rehabilitation investments and technical support”, said Andreas Schliessler, World Bank Task Team Leader for the Project. “The project places much emphasis on good and transparent management of road investments and it should be seen as the first step of a larger effort by the international community to help in the recovery of the Moldovan road network over the coming years”. The Road Sector Program Support Project has two components. The first component, Road Network Recovery, is focused on rehabilitation of about 400 lane-km of main roads. It consists of physical road works, consulting and other services that are directly related to the works, including feasibility studies (technical and economic), detailed engineering design, preparation of bidding documents and supervision of works. This component will absorb about 90 percent of total project resources. The second component, Institutional Strengthening, is aimed at improving the capacity of the State Road Administration to manage effectively the road network under its responsibility, and to carry out road maintenance, rehabilitation, and investment programs in an efficient and transparent manner. The project will lead to economic growth and will have a positive impact on the living standards of Moldova’s population. The population will benefit from a reduction in travel times and transport costs, and improvements in the quality of road passenger and cargo transport. It is also expected that the project will create significant employment opportunities for Moldovan workers, mostly in the road construction industry. The total cost of the Road Sector Program Support Project is close to US$50.0 million. In addition to World Bank financing of US$16.0 million, the project will be co-financed by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). EBRD and EIB will each contribute €12.5 million. The project will be executed over a four-year period, from mid-2007 to mid-2011. The project implementing agency is the State Road Administration, which is under the control of the Ministry of Transport and Road Industry. Since Moldova joined the World Bank in 1992, commitments to the country total approximately US$656.4 million for 40 operations. ### For more information on the World Bank’s work in Moldova, please visit http://www.worldbank.org.md |
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