Government of the Republic of MoldovaMinistry of Transports and Road Infrastructure

FOREIGN AID IN ROAD INFRASTRUCTURE SECTOR

Chisinau 2012

1.Road Condition

2.Strategy

3.Support Projects

4.Investment Projects

5.Implementation Procedures

6.Surveys and Examples

Public RoadsPublic Roads 10537 km10537 km,, including: including:

National Roads 3670 km, Including:Asphalt Concrete 2973

kmCement Concrete 437 kmGravel 261

km

Local Roads 6867 km,Asphalt Concrete 3064

kmCement Concrete 46 kmGravel 3756 km

1. Road Condition

1.1 Road Sector Funding in 1994-2012, MIL. MDL

215 270116 63 63 84 94 130 150 170 185 259 241

583788

1025

44 2 16 15 81.4 416 200

269

328

875

377

10

6320

0

200

400

600

800

10001200

1400

1600

1800

2000

1994 1996 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

MAINTENANCE REHABILITATION, CONSTRUCTION

1.2 Condition of National Roads Network

Condition of Roads 1992 1994 1996 1998 2001 2006 2008 2010 2011

Good or Fair 70 60 50 45 30 7 10 20 25

Poor or Extremely Poor 30 40 50 55 70 93 90 80 75

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1992 1994 1996 1998 2001 2006 2008 2010 2011

Good or fair poor or extremely poor

2. Land Transport Infrastructure Strategy for 2008-2017

Approved through the Government Decision no.85 of February 1, 2008

Developed in line with: - General Government Activity Plan and 2008-2011 National

Development Strategy (successor of EGPRS); - Moldova-EU Action Plan through the implementation of the

Financing Agreement (Road Sector Program Support Project) signed between Moldova and International Development Association.

2.1 Strategy Objectives

Design of an efficient system to meet the mobility need of the citizens and facilitate trade on domestic and international markets given the role that Moldova could have as a bridge between the EU and the Community of Independent States (CIS). This objective can be achieved by:

• rehabilitating the road infrastructure by creating acceptable traffic conditions for passengers and goods transport;

• developing a sustainable and transparent legislative platform for funding the road works;

• making institutional arrangements that provide a stable framework for rehabilitation and ongoing maintenance of roads;

• improving the road infrastructure maintenance procedures to put in place an efficient and sustainable maintenance and management system;

• developing road infrastructure and integrating into the European transport networks.

3. Road Sector Support Programs

1. Financing Agreement no. 4283-MD between the Republic of Moldova and the International Development Association (IDA) of May 3, 2007

2. Financing Contract no. 2006 0485 between the Republic of Moldova and European Investment Bank (EIB) of June 28, 2007

3. Loan Agreement no. 37631 between the Republic of Moldova and European Bank for Reconstruction and Development (EBRD) of June 28, 2007

4. Financing Agreement no. ENPI/2007/19549-MD-02 between the Government of the Republic of Moldova and European Commission (EC) of December 3, 2008 (NIF grant managed by EBRD)

5. Financing Agreement no. TF094952 between the Republic of Moldova and the International Development Association of May 3, 2007 (CE grant through IDA - managed Trust Fund)

6. U.S. Government grant (MCC) signed between the Republic of Moldova and Millennium Challenge Corporation (MCC) on January 22, 2010.

4. Investment Projects for Rehabilitation of National Roads in 2011-2013

1. M3 Chisinau- Cimislia – Vulcanesti – Giurgiulesti -border with Romania

2. M2 Chisinau- Soroca -border with Ukraine 3. R14 Balti-Sarateni-M2 4. R1 Chisinau- Ungheni – Sculeni -border with

Romania5. R3 Chisinau- Hincesti -Cimislia- Basarabeasca

4.1 M3 Chisinau–Cimislia -Vulcanesti-Giurgiulesti-border with Romania

- Comrat-Ciumai segment, km 96 - 151, funded by EBRD Agreement 2, tranche 1, cost 25,19 million Euros. Works to start in June, 2012;- Ciumai - Vulcanesti and Vulcanesti- Cismichioi segments, km 151 - 171, and km 179 – 192 accordingly, funded by EBRD Agreement 2, tranche 2, cost 25 million Euros. Bidding is drawing to its close; works expected to start this year;- Bypass in Vulcanesti town, km 0+00-8+400, funded from EC grant, cost 7,9 million Euros. Design and bidding documents at final stage of development. Bidding expected to be launched in 2013.

M3 Chisinau-Cimislia-Vulcanesti-Giurgiulesti-border with Romania

The 34 km Chisinau-Porumbrei segment and the 30 km Cimislia- Comrat segment (of total 215 km) are in good condition and don’t require rehabilitation.3 bypasses have no financial coverage:- Porumbrei -Cimislia – 19 km, cost - 22 mln. Euros;- Bypass Comrat town – 17 km, cost - 16 mln. Euros;- Bypass in Slobozia Mare, Cislita-Prut and Giurgiulesti villages– 22 km, cost - 21,5 mln. Euros.

M2 Chisinau-Soroca-border with Ukraine - Chisinau- Peresecina segment, km 5 - 26,

funded by EIB Agreement 2, tranche 1, cost 9,5 million Euros. Works started in April 2012;

- Peresecina- Cismea segment, km 26-54, funded by EBRD Agreement 1, tranche 2, cost 13 million Euros. Works started in August 2011;

- Cismea- Sarateni segment, km 54-71, funded by EIB Agreement 1, tranche 2, cost 5,1 million Euros. Works started in August 2011;

- Sarateni -Soroca segment, km 71-164, funded by U.S. Government through MCC, cost 132 million USD. Bidding is at its final stage; rehabilitation works expected to start this year.

- Balti -Singerei segment, km 10-26, funded from EC grant, cost 8,7 million Euros. Contractor selected. Works started in August 2011;

- Copaceni -Cliscauti segment, km 38-43, funded from EC grant, cost 2,8 million Euros. Contractor selected. Works started in August 2011;

- Cliscauti-Sarateni segment, km 43-67, funded by EIB Agreement 2, cost 13 million Euros. Project documents are under development.

R14 Balti-Sarateni-M2

- Chisinau-Sculeni segment, km 6 - 24, km 24 - 68 funded by EIB Agreement 2, tranches 2 and 3, cost ???77,1 million Euros. Bidding at its final stage, works expected to start in 2012;

- Bypass of Ungheni town, km 96 – 109, funded from EC grant, cost 14,1 million Euros. Bidding at its final stage, works expected to start in 2012;

- Bypass in Bahmut village, km 68 - 73 funded by EIB Agreement 2, tranches 2 and 3, cost 7,1 million Euros. Design and bidding documents are at final stage of development. Bidding expected to be announced by the end of 2012.

R1 Chisinau-Ungheni-Sculeni-border with Romania

R3 Chisinau-Hincesti-Cimislia-Basarabeasca

- Chisinau – Hincesti segment, km 22 – 29, funded by EIB Agreement 2, tranche 3, cost 8,3 million Euros. Works started in May 2011.

5. Project Implementation Procedure

5.1 Bidding

The biddings are held in compliance with the strict EBRD requirements and rules. The object of bidding is rehabilitation and/or construction of roads and bridges and supervision of construction / rehabilitation works.

5.2 Selection of winner in bidding

The winner is selected in a rigorous evaluation of all the proposals submitted regulated by the technical task developed in compliance with the EBRD requirements and rules. The decision of the evaluation panel will be based on the evaluation of the technical and financial proposals, availability of necessary equipment for performance of works laid down in the technical task and, last but not least, qualified human resources that will perform construction, rehabilitation and supervision works.

5. Project Implementation Procedure

5.3 Signing of execution contracts and project supervisionAfter the evaluation negotiations on contract for rehabilitation/construction or technical supervision of works start with the company that submitted the best technical and financial bid. The contracts are developed in compliance with FIDIC requirements and rules (International Federation of Consulting Engineers) 5.4 Technical supervisionAfter signing the contract the winning company takes all the responsibility for the technical supervision and all works performed. The object of the technical supervision is Quality Control of construction materials used to carry out the works, Quality control of works performed, accuracy of works performed in compliance with the projects and contract requirements.Payment of works will be made based on the reports (daily, weekly, monthly, hidden works etc.) delivered by the supervising engineers of the company.

6. Rehabilitation of the network of national and local roads

Under the cooperation with the World Bank and road infrastructure support agreements of the Republic of Moldova, feasibility studies and rehabilitation and construction designs were developed for more than 100 national and local roads regarded by the ministry as national priorities.

7. Successful projects implemented with foreign aidRehabilitation of the national road R3 Chisinau-Hincesti-Cimislia-Basarabeasca on km 8 – 22 segment, funded by EIB Agreement 1, tranche 1, cost 13 million Euros.Implemented in 2009- 2010 by „Leminkainen”,Finland, and supervised by „Luis Berger”, France.The works were successfully received by the Ministry at the beginning of 2011.

Thank you for your attention!

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boris.gherasim@mtid.gov.md