The French Development Agency will allocate 60 million euros for the energy sustainability and the railway sector modernization in Moldova.
A corresponding loan agreement signed in Chisinau on October 28 by Minister of Finance Dumitru Budianschi and Cécile Couprie, regional director for Eurasia of the French Development Agency (AFD) includes this. The document was signed under a commitment made by France within the Moldova Support Platform launched in Berlin on April 5. According to the Ministry of Finance, the funds allocated to Moldova will help the country promote renewable energy sources, increase the sustainability of the railway sector and mitigate the impact of the energy crisis on low-income families. In the short term, this budget support for policy implementation is a response to Moldova's urgent financing needs in the context of the Ukrainian crisis (rising energy prices, influx of refugees). In the medium term, this program will support regulatory reforms that promote convergence with EU standards and norms, diversification of energy sources and decarbonization of Moldova's economy. The Ministry of Finance emphasized that, being present in Moldova since February 2022, AFD is fully mobilized to support the country's aspirations for a more sustainable and inclusive development in line with EU standards. Technical cooperation has already been initiated with Moldelectrica and Railways of Moldova company (CFM). In the current context of the conflict in Ukraine and serious budgetary and energy problems faced by Moldova, this financing worth 60 million euros lays the foundation for a long-term partnership, which combines investments and public policy reforms in support of the decarbonization of the economy. Cécile Couprie said that the signed loan agreement marks an acceleration and strengthening of cooperation between the parties. She said that support for Moldova and its European trajectory in the current context is of paramount importance, and will be on the agenda of the forthcoming conference in Paris to support Moldova. Dumitru Budianschi, for his part, said the AFD program, in parallel with the World Bank's Development Policy Operations Program, will help Moldova cope with the budget and energy crisis. In the longer run, this financing for state policies will support the implementation of reforms aimed at enhancing the competitiveness of rail transport (as compared to car transport) and the development of renewable energy sources (as compared to gas). The AFD Group implements France's policy of international development and solidarity. In order to strengthen its activity in Moldova, AFD opened a representative office in Chisinau in February 2022. // 31.10.2022 – InfoMarket
