According to the Bank’s website, the project consists of the provision of a sovereign loan of up to EUR 344 million to the Republic of Moldova.  The loan will be structured in two tranches and will finance the rehabilitation, widening and construction of the M3 and R7 road sections. It is expected to be co-financed by two investment grants, up to EUR 11.4 million from the Neighbourhood Investment Platform ("NIP") and up to EUR 7.7 million from Connecting Europe Facility ("CEF"), and also by the Government`s contribution of up to EUR 34.0 million from the Moldova Growth Plan ("MGP").

The Borrower is the Republic of Moldova, represented by the Ministry of Finance.
The Project will be implemented by the Ministry of Infrastructure and Regional Development through the NRA.

Categorised A (ESP 2019). Tranche 1 (rehabilitation of R7 road sections) was categorised as B and Tranche 2 (rehabilitation of M3 road sections) as A due to the 19 km expansion from 2 to 4 lanes for Lot 2.

The ESDD and ESIA confirmed that potential E&S impacts are expected to be site-specific, readily identifiable, and manageable through mitigation measures. Broader environmental impacts will be mainly construction-related, including air emissions, dust, noise, waste generation (including construction and demolition waste).

The biodiversity assessment confirmed that impacts related to the rehabilitation will be temporary and localised within the existing road footprint and will not lead to increased environmental impact. A high-level critical habitat screening concluded that critical habitat criteria are not triggered, with critical habitat assessment verifying these conclusions prior to construction to ensure accuracy, but it is not anticipated to identify material changes in project sensitivity. Planting of trees to compensate any losses will be provided in accordance with the environmental restoration requirements and the Project will require engagement of a specialist for pre- and during- construction monitoring and strict adherence to seasonal restrictions during bird nesting and breeding periods.

Occupational Health and Safety risks are mainly associated with the construction phase and will be addressed through a Construction ESMP to be prepared by the contractor. Noise-sensitive receptors, including residents and public institutions located near the road alignment, have been identified for both tranches and appropriate mitigation measures have been proposed, including the installation of noise protection panels at selected locations.

Key social impacts and risks identified by the ESIA include land acquisition. The Project has implemented measures to avoid displacement and land acquisition as much as possible; however, some economic displacement was unavoidable. The ESDD and ESIA confirmed that both tranche components do not trigger any physical resettlement.

There are no cultural heritage sites affected by the Project development, all cultural heritage sites and objects were avoided through design-based solutions. A change find procedure is foreseen in the Environmental and Social Management Plan.

A sovereign loan of up to EUR 344.0 million is to be provided in two tranches.

EBRD Loan - EUR 344.0 million
Government`s contribution from MGP - EUR 34.2 million
EU NIP CapEx Grant - EUR 11.4 million
CEF Grant - EUR 7.7 million

Virginia Mandalac
virginia.mandalac@andsa.md
(+373) 22 75 18 79
www.andsa.md

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