TRACECA PROJECT EVALUATION

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

Project objectives The 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; and to 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 of TRACECA E584 AGR Access to TEN Corridors 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 Existing alignment 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 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.

Travel cost savings Travel time savings Technical Criteria Travel cost savings Travel time savings Cost savings Cost reduced by 35% Time savings Travel time reduced by 42%

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 Pollution The 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 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.

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.