Russia to name strategic investor to build Giurgiulesti port

Russia will submit before July 15 a draft of an inter-governmental agreement with Moldavia, in which it will appoint a strategic investor for the construction of the port of Giurgiulesti, Vasile Iovv, Moldavia's First Deputy Prime Minister, said on Monday. The republic's Ministry of Transport and Communication, after the document is signed, will be able to start negotiations with the Russian investor on a concession treaty. It is for more than a year now that the Moldavian government has been casting about for a strategic investor to complete the building and start operating the oil terminal at Giurgiulesti, which has already absorbed about 25 million US dollars. It is also suggesting that investors should build a passenger and cargo port. Under the project Giurgiulesti will annually handle 500,000 tons of cargo, with the number of passengers expected to reach 10,000. The project is estimated to cost 14.6 million dollars. It is to be completed in 18 months, and recouped over a period of 10 years. The construction of the Giurgiulesti oil terminal was suspended in 2001 because the European Bank for Reconstruction and Development - the project's chief creditor - found it ineffective and filed a bankruptcy procedure against Terminal, the company which was building the project. The Moldavian government owns a 41 per cent stake in the company, Greek company Tehnovax 39 per cent, and the EBRD 20 per cent. Of almost 25 million dollars assigned for the implementation of the project before 2001, 18.6 million has been an EBRD credit.