TRACECA PROJECT EVALUATION

TRACECA PROJECT EVALUATION

Construction of the bypass of 3 villages along the M3 National Road Chisinau- Giurgiulesti

Project objectivesThe project main objectives to create a prerequisite for regional economic

development trough agricultural markets extension, enhancing access to social services;

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

to allow employment of population; to direct heavy traffic out of the residential areas;to enhance environmental quality; andto enhance traffic safety on the corridor.

Project location

Regional Criteria Network description

One of the main roads giving direct access to EU and Ukraine.

Provides the most important and shortest link between Chisinau and Giurgiulesti International Free Port – giving access to the Danube and the Black Sea.

The M3 corridor is an integral part of theTRACECA Network and European Road E584 Poltava – Kirovograd – Chisinau –Giurgiulesti – Galati – Slobozia.

It provides a link between TEN corridors IV and IX.

Regional Criteria

Part ofTRACECAE584 AGR

Access to TENCorridors VII

and IX

Interconnects Moldova, Romania and Ucraine

Regional Criteria

Giurgiulesti International Free Port

• Moldova's only port accessible to sea-going vessels,

• situated on the River Danube in the South of Moldova.

• benefits from its location on international trade and transportation routes - Rhine-Main-Danube waterway corridor which connects the Black Sea, 14 European countries and the North Sea;

• European standard and Russian railway systems as well as the international road network.

Regional Criteria Alternatives

Alternatives comparison

Existing alignment

Proposed alignment

Necessary works

maintenance New construction

Length, km 28 20.5

Cost, m Euro 12 15.6

EIRR, %Discount rate–12%

4.1 12.2

Existing alignment

Proposed alignment

Technical Criteria• The project represents new construction of a 20.5

km long road section along the M3 Corridor. • As a section of the M3 corridor, the proposed

project ensures connection with the International Free Port Giurgiulesti and rail terminals.

• Beginning spring 2011 the Port will beneficiate from the dry cargo terminal, including a dedicated container terminal. This will allow intermodal freight transport.

• The geometrical parameters and location conditions of the project will allow essential improvement of the traffic safety and security.

Technical Criteria

Cost savings Cost reduced by 35%

Time savings Travel time reduced by 42%

Travel cost savingsTravel time savings

Economic Criteria• Feasibility study in place. • Detailed design and bidding documents ready at

the end of June 2011. • Estimated project repayment time 9.5 years• Forecast years 20 years• Investment costs 15.6 m euro • Economic Internal Rate of Return 12.2% • At this stage no private investors interest in the

project showed. After traffic flow will exceed 10000 aadt, concession or PPP will be possible.

• The national legal framework allows concession and PPP

Environmental Criteria

• PollutionThe environmental impact will be insignificant because

the proposed alignment will not cross any settlements, the vehicles engine work will be optimum and the pollutant emissions will decrease.

Environmental Criteria

• NoiseSensitive 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.

Environmental Criteria

• Energy consumption

After the project implementation the energy consumption will considerably decrease due the smoother engine function.

Environmental Criteria

• Diversion from sensible areas (living areas, preserving natural resources, others)

The project will not cross resident areas.Impact on soils, fauna, flora and vegetation, is

considered high.Impact on ground and surface water is considered

medium.

Political Criteria• When to start?

The anticipated begin of construction works in 2013/14.

• Government Support

The project is policy supported through the Land Transport Infrastructure Strategy for 2008-2017.

• Dependance on other step/project

Implementation of the proposed project doesn‘t depend on other projects.