The Cabinet approved the ratification of a loan agreement between Moldova and the European Bank for Reconstruction and Development for the implementation of the Moldova Roads Rehabilitation V project. Under the agreement, a loan of €150 million will be provided in two tranches. The amount represents 50% of the co-financing for the project. The other part of the amount is allocated by the European Investment Bank, IPN reports.

Within the project, the M2 road, the Chisinau ring road, sector 2, will be rehabilitated and modernized by extending it to four traffic lanes, with an estimated length of 7 km. Also, about 85 km of the M1 road, the border with Romania – Leușeni – Chișinău – Dubăsari – the border with Ukraine, will be rehabilitated.

The two national roads that are part of the Trans-European Transport Network (TEN-T) create connections with Romania and directly with the European Union, develop trade and allow citizens to move faster and safer anywhere.

The loan will be granted in two tranches, of €90 million and €60 million, respectively. Each of the two tranches will be repaid in 28 equal half-yearly instalments. The loan has a variable interest rate. The commitment fee is 0.5% per annum.