The United States to provide Moldova with an additional $220 million grant to implement investment projects in the energy sector
This is stipulated by the 15th Amendment to the Development Assistance Agreement between the Governments of Moldova and the United States for Sustainable Economic Growth Anchored in the European Integration, concluded on September 28, 2016, ratified by the Moldovan Parliament on Monday. The amendment provides for an additional $220 million in grant financial assistance to strengthen Moldova's energy security and reduce dependence on the Russian Federation by connecting key elements of the energy sector to European systems. The respective amount will be directed to the realization of investment projects in the energy sector. According to the agreement, the Moldovan government undertakes to adhere to the European Union's Energy Agenda. In this context, the authorities will continue the process of harmonizing Moldova's legal framework with the EU legislation. According to the Finance Ministry, after the additional allocations, the total amount of the U.S. government's non-refundable assistance provided under the agreement will rise from $172.73 million to $392.73 million, of which more than $80 million has already been disbursed. At the same time, the 15th Amendment signed by the parties establishes the terms of the $76.8 million in grant budget support to be offered by USAID through the Multi-Donor Trust Fund established by the World Bank. This budget support will provide reimbursement of electricity procurement costs from suppliers in Ukraine and ENTSO-E member countries for the period from September 2022 through March 2023. A separate agreement between the Moldovan government and the World Bank will be signed for its disbursement. It is agreed that $76.8 million represents budget support/grant, while $220 million, which will not be channeled through the national treasury system, will be spent on the implementation of energy investment projects in Moldova. It should be noted that on December 30, 2022, through the World Bank, the U.S. government disbursed to Moldova through USAID the first $30 million in non-reimbursable budget support/grant to reimburse payments for the purchase of electricity from Ukrainian suppliers in May-September 2022. // 31.07.2023 - InfoMarket.
