CONSTRUCTION OF THE BYPASS OF 3 VILLAGES ALONG THE M3 NATIONAL ROAD CHISINAU- GIURGIULESTI

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1 TRACECA PROJECT FICHE CONSTRUCTION OF THE BYPASS OF 3 VILLAGES ALONG THE M3 NATIONAL ROAD CHISINAU- GIURGIULESTI 1. BASIC INFORMATION TITLE: Construction of the bypass of 3 villages along the M3 National Road Chisinau- Giurgiulesti SECTOR: Road LOCATION: Republic of Moldova 2. OBJECTIVES 2.1 OVERALL OBJECTIVES The project objective is to ensure regional economic development by: extending agricultural markets, extension, enhancing access to social services, reducing transportation costs and travel time for international and national operators and passengers. These developments will generate employment for a considerable number of the population. 2.2 PROJECT PURPOSE To ensure continuity of the M3 National Road, designated as the shortest link between the capital city Chisinau and Giurgiulesti International Free Port. This route constitutes the only access to the fluvial and maritime navigable ways. To develop transport infrastructure, improving the conditions for border crossing with Republic of Moldova, by alternatives to the existing infrastructure. 2.3 CONTRIBUTION TO NATIONAL DEVELOPMENT PLAN The Government of Moldova has prepared a comprehensive Transport Sector Program for the period with special focus on the road sector. It includes a Strategy for Road Infrastructure Recovery and a prioritized 10-year Road Sector Investment and Expenditure Plan, which will be the sole basis for decision-making on road investments. The Strategy addresses the underlying causes and issues of the road infrastructure crisis and proposes legal, institutional and physical measures to overcome this situation. The Strategy constitutes the framework for all actions, investments and expenditures in the Road Sector starting from 2008 onwards, including those to be financed by external donors. The proposed project is in line with the Transport Infrastructure Development Strategy for CROSS BORDER IMPACT The project as a part of the M3 national road ensures an important connection with Romania and Ukraine. The development of this cross-border road will have a positive effect on regional trade and will integrate Republic of Moldova in European Transport networks. The 1

2 development of the International Giurgiulesti Free Port road construction and cross border infrastructure developments will create an important increase in traffic flow, a reduction in transport costs and regional economic growth. 3. DESCRIPTION 3.1 BACKGROUND AND JUSTIFICATION The Moldovan M3 road provides the most important and shortest link between Chisinau and Giurgiulesti and provides access to the Danube and Black Sea. In addition, the M3 corridor is an integral part of the European Road E584 Poltava Kirovograd Chisinau Giurgiulesti Galati Slobozia. It provides a link between PanEuropean corridors IV and IX. Currently, the corridor has, in parts, a high level of deterioration and reduced bearing capacity, resulting in axle load restrictions, the diversion of freight traffic, high transportation costs and subsequently reduced local business opportunities and transit traffic. Construction of the proposed section ensures the continuity of the ongoing and planned projects along the M3 corridor, which is the highest priority project within the road network development policy. The construction and rehabilitation of the road M3 Chisinau-Giurgiulesti will improve transport links between Moldova, Ukraine and other TRACECA countries. The rehabilitation and partial realignment of the first section of the road (Chisinau-Cimislia) will improve transport connections, avoiding inhabited areas, and will substantially decrease transport costs. The rehabilitation of the second (existing) part of the road Cimislia-Giurgiulesti is very important since road conditions are poor for current traffic levels. The rehabilitation and reconstruction of the whole road will facilitate trade, transport, industry and tourism development, strengthen access to agricultural markets in the region and will be a prerequisite for securing transportation connections between the country's centre and its southern regions. 2

3.2 LESSON LEARNT Underappreciation of the land transport infrastructure in the national economy has lead to considerable losses for transport operators as well as for the national public budget.

3 3.2 LESSON LEARNT Underappreciation of the land transport infrastructure in the national economy has lead to considerable losses for transport operators as well as for the national public budget. Therefore, according to the most recent estimates, the transport operators incur losses of over 2 billion MDL due the bad condition of the roads. The national economy incurs losses of over 6-7 billion MDL. Lessons learnt include the fact that the lack of financing of roads has led to significant degradation of the public road network. This fact imposes the Government a financial effort 2-3 times higher than would be possible if sufficient funding during the previous year. The M3 national road represents the main axis that links to the south of the Republic. Currently, the traffic flow in this direction is much lower compared to that which would be in case of road construction. In this case the traffic diverts on other directions incurring additional expenses. 3.3 ACTIVITIES Activity 1 Tendering construction works Activity 2 Earthworks o Site clearance 3

4 o General excavation o Preparation of sub-grade o Embankments Activity 3 Drainage o Pipe culverts o Drainage channels (including underground) o Manholes, chambers, catchpits, oil separators o Channels, chutes, rip rap protection Activity 4 Bridge structures Activity 5 Roadworks o Wearing course o Binder course o Base course o Sub-base Activity 6 Ancillary works o Slope protection/rockfall protection o Barriers and guardrails o Traffic signs o Pavement markings o Accesses / side and service roads o Junctions Activity 7 Landscaping 3.4 RESULTS/DELIVERABLES Evaluation Criteria Results 1 Length of new road 20,5 km 2 Travel time in minutes 23 min 3 Traffic in 2011 in (000) average Improved regional circulation Continuous M3 Corridor Chisinau Giurgiulesti 5 Improved local circulation Inter-regional traffic diverted from local road network 6 Congestion 2 lane construction on 4 Lane Right-of Way 7 Type of Improvement New alignment 4

5 4. PROJECT ORGANISATION 4.1 INSTITUTIONAL FRAMEWORK The project is a part of public road network which has as its beneficiaries all categories of road users. The owner of the project will be the Ministry of Transport and Road Infrastructure. The Ministry will also act as the Contracting Authority. The Implementing Party will be the State Road Administration under the Ministry of Transport and Road Infrastructure. 4.2 OWNERSHIP/IMPLEMENTING PARTY Name of the Project Owner: Ministry of Transport and Road Infrastructure Address: 162, Stefan cel Mare ave, MD2004, Chisinau, Moldova Telephone: andrei.cuculescu@mtid.gov.md Name of Implementing partner: State Road Administration (SRA) Address: 12 a, Bucuriei str, MD2004, Chisinau, Moldova Telephone: asd@asd.md 4.3 ORGANISATION STRUCTURE Ministry of Transport and Road Infrastructure ownership State Road Administration management Road Assets Structure and Responsibilities of the Implementing Party within State Road Administration (SRA). 5

6 Role Organisation Resource Name Responsibilities Project manager SRA Road Fund Coordinates the project activities among the Ministry, SRA and Investor manager SRA Road Fund Manages and coordinates the team activities related to the project SRA Road Fund Procurement, contract management member SRA Road Fund Financial management activities member member SRA Road Fund Environmental management activities. 5. DETAILED BUDGET (IN EUR/USD) No. Description Investment Financing Co-Financing Total Total % RISK ASSUMPTIONS AND CONSTRAINTS Risk Risk description Likelihood (*) Impact (*) Land acquisition The land acquisition process in Moldova can take up to 1 year. The State road administration is planning to start the land acquisition at the end of M L VL= Very Low, L = Low, M = Medium, H = High, VH = Very High 7. IMPLEMENTATION SCHEDULE 7.1 TENDERING CONSTRUCTION AND SUPERVISION WORKS: 8 months 7.2 EARTHWORKS, DRAINAGE, RETAINING WALLS: 14 months 7.3 BRIDGE STRUCTURES, ROADWORKS: 14 months 7.4 ANCILLARY WORKS, LANDSCAPING: 3 months 8. ENVIRONMENT The impacts foreseen after the project implementation are: Pollution The environmental impact will be a bare minimum as the proposed alignment will not cross any settlements, the vehicles engine work will be optimum and the pollutant emissions will decrease. Noise Sensitive receptors are the residential areas within villages and towns. Because the project avoids traversing any settlement area impact of this project is considered as low. Energy consumption After project implementation the energy consumption will considerably decrease due the smoother engine function. 6

7 9. RATES OF RETURN ECONOMIC INTERNAL RATE OF RETURN (30 YEARS): 12,2% HAVE THE FEASIBILITY STUDIES BEEN COMPLETED AND WHEN: The Feasibility Study was completed in June, 2009 THE DISCOUNT RATE APPLIED IN THE PROJECT: 12%. 10. INVESTMENT CRITERIA 10.1 SOURCES OF FINANCING The sources of financing of this project could be: International Financial Institutions, Donor Governments, State Budget, and PPP s CO-FINANCING The co-financing of the project is possible in all the cases stated above PROJECT READINESS AND SIZE The capacities of the Republic of Moldova allow implementation of the project without any risks and it is ready to be started immediately SUSTAINABILITY The presented project is a high priority one and it is in line with the national development plans and government policies and strategies. It represents a strategic link for the Republic of Moldova in this connection to the only port of the country. 11. CONDITIONALITY AND SEQUENCING 7

Energy Efficiency Fund of the Republic of Moldova. 22 April 2014, Minsk, Belarus

Energy Efficiency Fund of the Republic of Moldova 22 April 2014, Minsk, Belarus Geographical position GENERAL DATA population 3 559 500 Total area 33 846 km 2 GDP (nominal) 7.252 b USD. Total energy consumption