Moldova and the EBRD signed an agreement on a loan of 30.8 million euros to co-finance the construction of the 400 kV transmission line Balti-Suceava.
In particular, the loan agreement between Moldova and the European Bank for Reconstruction and Development for the implementation of the project “Connection of electrical networks of Moldova and Romania, stage II” was signed on March 13 in Chisinau by the Minister of Energy Victor Parlicov and the head of the EBRD representative office in Moldova Catarina Bjorlin Hansen. The length of the new 400 kV transmission line will be 142 km, of which 49 km of the network will be laid on the territory of Moldova. The project will also include the reconstruction of the 400 kV power plant in Balti. At the same time, part of the funding will be used to restore certain sections of the power grid, including replacing switching and protection elements, as well as transformers at power plants. The total cost of the project is estimated at 77 million euros. The EBRD will provide a loan of 30.8 million euros for its implementation, which is 40% of the total cost of the project. A further 40% (€30.8 million) of loan funding will be provided by the European Investment Bank and the EU, while the remaining €15.4 million will be provided by the EU as a grant through the Neighborhood Investment Platform. Thus, the EBRD will provide financing for a number of project components: the construction of the 400 kV transmission line Balti-Suceava; construction of 400 kV station Balti; rehabilitation of internal power transmission networks in Moldova; consulting support during project implementation and related supervisory and design work. Also, part of the investment will go to strengthening the internal electricity transmission networks of the state enterprise Moldelectrica. The project “Connecting the Electricity Grid of Moldova and Romania, Phase II” will be financed by loans from the EBRD and EIB and an EU grant, and its main goal is to complete another energy connection between Moldova and Romania by the end of 2027 with commissioning in 2028. The implementation of this investment project will contribute to the integration of Moldova's grid into the EU market through connections with the European ENTSO-E network, increasing the efficiency of the national energy sector, improving the stability and reliability of the local and regional electricity system, as well as increasing development opportunities from other energy sources, including from renewable energy sources//13.03.2024 — InfoMarket.
