Moldova to borrow €200 million to expand forests, rehabilitate forest strips

Chisinau, Dec. 19 /MOLDPRES/- About 200 million euros will be invested in forest growth and strengthening the resilience of forest ecosystems in different regions of Moldova. MPs today ratified the financing contract between the Republic of Moldova and the European Investment Bank for the implementation of Moldova Forest Development Programme.

Moldova will benefit from a €200 million loan to expand forests and rehabilitate degraded forest areas totaling 63,200 hectares. Over the next 30 years, this will generate reductions of some 12 million tons of carbon dioxide.

The money will also be used to strengthen the forest infrastructure for the transportation of timber and the creation of forest depots and forest access roads.

The project's implementation will result in the creation of more than nine thousand permanent or temporary jobs.

The loan will be granted for 30 years, including a grace period of up to eight years.