Mariy El II

completed

The proposed Project envisages a 3-year program of financial support to the Republic of Mariy El (“the Republic”) in Russian Federation (“RF”) of up to RUR1.515 billion (approximately US$50 million) over a period of 2010-2012. This multi-year engagement is aimed at helping the Republic to make meaningful progress on the road sector reforms agreed under the first IFC loan (RUR450 million / US$15 million that was fully disbursed in June 2009). The proposed Project consists of RUR1.125 billion (US$37 million) investment in the Republic’s core road network and RUR390 million (US$13 million) refinancing of the Republic’s short term debt taken by the Republic to finance its 2009-2010 capital investment program.The first phase of the 3-year program in the amount of RUR600 million (US$19.8 million) will be implemented in 2010. RUR300 million (US$10 million) will be used for resurfacing, strengthening and reconstruction of about 30 km of the Republic’s core road network and RUR300 million (US$10 million) for refinancing a portion of the Republic’s debt taken during 2009 to finance its capital investment program. As envisaged under the current loan, the Republic plans to progressively increase its annual allocations for road network conservation from RUR250 million (US$8.3 million) in 2009 to RUR450 million (US$15 million) by 2012.