The U.S. will provide Moldova with about $300 million in additional grants.
In particular, this is stipulated by the 15th Amendment to the Agreement on Assistance for Development Goals between the Governments of Moldova and the United States for Sustainable Economic Growth Based on European Integration, signed by the parties on September 28, 2016. The amendment was signed by Moldovan Finance Minister Veronica Sireteanu and John P. Riordan, Acting Chief of Mission of the United States Agency for International Development (USAID). The amendment provides for an additional $220 million in grant funding to strengthen Moldova's energy security and reduce dependence on Russia by connecting key elements of the energy sector to European systems. The respective amount will be used to implement investment projects in the energy sector. At the same time, the amendment establishes terms for non-refundable budget support in the amount of $76.8 million, to be provided by USAID through the Multi-Donor Trust Fund established by the World Bank. This budget support will provide reimbursement for the purchase of electricity from suppliers in Ukraine and ENTSO-E member countries for the period from September 2022 to March 2023. According to the Treasury Department, after the additional allocation, the total amount of non-refundable aid from the U.S. government provided under the mentioned agreement will increase from approximately $172.73 million to $392.73 million, of which over $80 million have already been allocated. The amendment must be ratified by the Moldovan parliament to take effect. The decision to start negotiations and sign the amendment was approved by the Government at a May 17 meeting. As InfoMarket previously reported, in order to receive the mentioned new grant assistance, the Moldovan Government has committed to adhere to the EU Energy Agenda and take any actions for full integration with the EU energy markets. For this purpose, the Government will take actions/activities to harmonize Moldova's legal framework with EU legislation and will submit supporting documents for each action taken. A separate agreement will be signed between the Moldovan Government and the World Bank for the disbursement of the $76.8 million grant. Accordingly, this funding does not increase the total amount of U.S. assistance to the RM under the Development Assistance Agreement between the RM and U.S. Governments for Sustainable Economic Growth based on European Integration, concluded on September 28, 2016. It is stipulated that $76.8 million represents budget support/grant, and $220 million, which will not be channeled through the national treasury system, will be spent on the implementation of investment projects in Moldova in the energy sector. It is notable that, on December 30, 2022, the U.S. Government paid Moldova through USAID the first $30 million non-reimbursable budget contribution/support to reimburse payments for electricity purchases from Ukrainian suppliers in May-September 2022. // 04.07.2023 - InfoMarket.
