China Eximbank pledges RMB 447 million loan for Strategic Road Modernization Project

In March 2012, the Government of Moldova approved the opening of the negotiations on an RMB 427 million loan agreement between China Eximbank and the Moldovan Ministry of Transportation. A framework agreement for this project was signed on July 20, 2012. The borrowing terms under the terms of the framework agreement were as follows: 20-year maturity, 5-year grace period, and a 2% interest rate. At least 50% of the loan proceeds were to be used for the procurement of good and services from China. The project was to be implemented by Sinohydro Corporation Limited. The Strategic Road Modernization Project involved the modernization 48 km of roads in two segments: a 39 km segment from Chisinau to Basarabeasca via Hincesti and Cimislia and a 9 km segment Chisinau from to Dubosari. The planned works included the reconstruction of the basic gravel layer, an extension of the roads, asphalting of the upper layer of the roads, construction of a bridge, and rehabilitation of 28 bridges, construction and repair of 116 drainage channels, and other works. The project was to be fully implemented within 2.5 years. However, it does not appear that a loan agreement with China Eximbank was ever finalized.

Additional details

According to the article "" issued by Chinese Ministry of Commerce, the transaction amount of the loan that Chinese government pledged was RMB 427 million.

Number of official sources

4

Number of total sources

12