The Cabinet approved the draft law on the ratification of Amendment No. 2 to the Framework Loan Agreement between the Republic of Moldova and the Council of Europe Development Bank for the implementation of the Chisinau Penitentiary Construction Project, which was signed in Chisinau on April 30, 2024. It is to be submitted to the Parliament for examination, IPN reports.

According to Minister of Justice Veronica Mihailov-Moraru, the draft law aims at the financial-administrative restructuring and the extension of the framework loan agreement and must be submitted to Parliament for ratification in order to ensure the implementation of the bill.

As a result of this amendment, the amount available for the loan does not change. Initially, in 2013, the total cost of the Chisinau Penitentiary Construction Project was estimated at €44.5 million (of which €39 million were loans, €1 million were grants from the CEB Social Dividend Account and €4.5 million were the Government’s contribution). According to the expenditure estimate updated in 2023, the total cost of the project increased to €75.9 million (of which €64.7 million represents the cost of construction, €3.3 million – the costs for building the photovoltaic park and energy efficiency systems). The UNOPS operational costs, for the technical supervision of the construction, including the management fee, are together estimated at €3.48 million. Under the framework loan agreement, in case of an increase in the costs of the project, the Republic of Moldova undertakes to cover the created shortage of funds so as to complete the penitentiary construction project.

The amendment also provides that the project will end on December 31, 2028.