INVESTMENT PROJECT PROPOSAL Construction of the railway line Marculesti-Soroca, and the bridge over the Nistru river Construction of the railway line Marculesti-Soroca, and the bridge over the Nistru river

Project objectives The 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: UngheniChisinau CuciurganRazdelVapnearca The existing railway section: Ungheni-Chisinau- Cuciurgan-Razdel-Vapnearca is 450 km long UngheniBaltiMarculesti SorocaIampolVapniarca The proposed project: Ungheni-Balti-Marculesti- Soroca-Iampol-Vapniarca 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 savingsCost reduced by 50% Time savingsTravel time is reduced 2.2 times Travel cost savings Travel 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.