Moldova will receive 120 million euros in soft loans from the French Development Agency to support reforms and investments in the energy sector.
In particular, this is provided for by the relevant Memorandum of Understanding on reforming the energy sector of Moldova, which the government signed on June 23 with the French Development Agency. The document was signed by 4 ministries from the Moldovan side: energy, finance, environment, labor and social protection. The 6-year initiative provides an opportunity to advance the implementation of an energy policy-based lending program and aims to support Moldova's energy sector, taking into account the country's prospects for EU accession. In particular, the focus will be on investments in energy infrastructure, energy efficiency in buildings, renewable energy development, consumer protection, environment and climate. The program will start in 2023 and will be implemented over the next 6 years. Within its framework, Moldova will receive concession loans from the French Development Agency (FDA), the allocation of which will be linked to the implementation of the agreed reforms. At the same time, the first tranche of 40 million euros will be allocated in 2023. The Technical Assistance Program will be implemented, financed by a grant of 5 million euros, which will be allocated through the European Commission's Neighborhood Investment Platform. The purpose of this grant is to support the ministries and public institutions of Moldova in the implementation and monitoring of the reform. The Technical Assistance Program will be administered by Expertise France, a subsidiary of the FAA technical cooperation group. The program will provide: support in planning reforms in the energy sector; simplification of the process of attracting the technical expertise necessary for the implementation of reforms; helping to remove barriers to change through continuous and sustained political dialogue; concessional budgetary support following the successful implementation of the reform phase. The French Development Agency (FDA) will also collaborate with UNDP Moldova to evaluate the first phase of the Energy Vulnerability Reduction Facility. French Ambassador to Moldova Graeme Pohl said after signing the mentioned memorandum-agreement that this is a concrete example of deepening technical and financial cooperation between Moldova and France. According to him, by providing such short-term and medium-term assistance, France, as part of Team Europe, contributes to strengthening the energy security and stability of Moldova. Energy Minister Victor Parlicov noted that the long-term approach of this cooperation program is important, and technical support will help Moldova on its path to EU accession and in reforming the energy sector. According to him, concession loans from the French Development Agency in the amount of up to 120 million euros will support investments in the energy sector and other energy-related industries, and priorities will be accelerated carbonization, investments in energy efficiency of buildings, electrification of transport, the transition to electric transport, promotion of renewable energy sources. The French Development Agency's Executive Director Philippe Orliange said the Memorandum provides for concessional loans offered by FAD with a first tranche of €40 million in 2023, as well as a technical assistance program. He pointed out that in the energy sector, it is necessary to promote convergence with European standards, in which it is necessary to improve the security of supply, develop new sources of renewable energy and improve energy efficiency. “We are very pleased when EU states, such as France, join European institutions to support Moldova's European integration path and, above all, to help the country become greener. This Team Europe initiative aims to guide Moldova towards creating an enabling environment for investment in renewable energy reform,” said Magdalena Mueller-Uri, Head of the Cooperation Section of the EU Delegation to Moldova. //23.06.2023 — InfoMarket.
