The U.S. will provide an additional $220 million grant to Moldova to strengthen the country's energy security and reduce dependence on Russia.
The U.S. will also provide a $76.8 million grant to the Moldovan government through the U.S. Agency for International Development (USAID) through the World Bank (Multi-donor Trust Fund) to co-finance the Development Policy Program. These funds are intended to reimburse payments for electricity purchases from Ukrainian suppliers and ENTSO-E member countries for the period from September 2022 to March 2023. In particular, the 15th Amendment to the Development Assistance Agreement between the governments of the Republic of Moldova and the United States for Sustainable Economic Growth based on European Integration, concluded on September 28, 2016, which was approved by the Moldovan government at Wednesday's meeting, will provide for this. In particular, it stipulates a new grant of $220 million directly to Moldova under the aforementioned agreement with the U.S. to strengthen Moldova's energy security and reduce dependence on Russia by connecting key elements of Moldova's energy sector to European systems. The 15th Amendment to the above mentioned agreement creates conditions for the USAID to pay the second installment of the $76.8 million non-reimbursable budget support to the Moldovan government through the World Bank (Multi-donor Trust Fund) to co-finance the Development Policy Program. It is agreed that the Moldovan government commits to adhere to the EU Energy Agenda and undertake any actions for full integration with EU energy markets as soon as possible. To this end, the government will take actions/measures to harmonize Moldova's legal framework with EU legislation and will provide supporting documents for each action taken. The total amount of non-refundable aid as a result of the 15th Amendment to the aforementioned agreement will increase from about $172.73 million to $392.73 million. A separate agreement between the Moldovan government and the World Bank will be signed for a grant of $76.8 million. Accordingly, this funding does not increase the total amount of assistance under the Development Assistance Agreement between the Moldovan and U.S. governments for sustainable economic growth based on European integration, concluded on September 28, 2016. It is agreed that $76.8 million represents budget support/grant and $220 million, which will not be channelled through the national treasury system, will be used for the implementation of energy investment projects in Moldova. It should be noted that on December 30, 2022, the U.S. government (through USAID) disbursed to Moldova through the World Bank the first grant of $30 million to reimburse payments for electricity purchases from Ukrainian suppliers in May-September 2022. // 17.05.2023 – InfoMarket
