INVESTMENT PROJECT PROPOSAL

INVESTMENT PROJECT PROPOSALINVESTMENT PROJECT PROPOSAL

Construction of the Construction of the

railway line railway line

Marculesti-Soroca, and Marculesti-Soroca, and

the bridge over the the bridge over the

Nistru riverNistru river

Project objectives

The project main objectivesThe project main objectives•to create a prerequisite for regional economic

development trough agricultural markets extension;

•to reduce railway transportation costs and travel time for international and national operators, and passengers;

•to allow employment of population; •to enhance environmental quality;

Proposed project

Existing railway section

Note:Note:

The existing railway section: UngheniUngheni-ChisinauChisinau-

CuciurganCuciurgan-RazdelRazdel-Vapnearca Vapnearca is 450 km long

The proposed project: UngheniUngheni-BaltiBalti-MarculestiMarculesti-

SorocaSoroca-IampolIampol-VapniarcaVapniarca is 216 km long

Project location

Existent railway 9 corridor

Project description

The existing railway section that connects the Ungheni terminal(Republic of Moldova) and Vapniarca terminal(Ukraine) is 450km long.

The proposed project will reduce the travel distance from 450km to 216 km.

The implementation of this project will reduce considerable the travel costs and time that will attract transit traffic.

Regional Criteria Network description

The project gives direct access to Ukraine and links the both countries Moldova and Ukraine with EU.

Provides the important and shortest link between Moldova and Ukraine by railway, for international and national operators, and passengers

Technical Criteria

•The project represents new construction of a 48.4

km long railway section(Marculesti-Cosauti/Soroca

47.4km, the bridge over the Nistru river 1 km)

•The rehablitation of the Ukraine railway section

56km

•The proposed project ensures connection of

Ungheni terminal with the rail terminal Vapnearca

via the shortest railway section.

Technical Criteria

Cost savings Cost reduced by 50%

Time savings Travel time is reduced 2.2 times

Travel cost savingsTravel time savings

Economic Criteria

• Investment estimate cost – 74,8 m euro

•Estimated project repayment time- 5 years

•Forecast years- 20 years

•Economic Internal Rate of Return – 20%

•The national legal framework allows concession

and PPP

Political Criteria

•Government Support

The project has strong comitment from the

Government of Republic of Moldova

•Dependance on other step/project

Implementation of the proposed project doesn‘t

depend on other projects.