Moldovan parliament has ratified an agreement with the EBRD on a loan of 30.8 million euros for the construction of the 400 kV Balti-Suceava power transmission line.
In particular, MPs approved the draft ratification of the loan agreement between Moldova and the European Bank for Reconstruction and Development (EBRD) for the implementation of the project "Moldova-Romania Power Interconnection, Phase II", signed on March 13 in Chisinau by Energy Minister Victor Parlicov and the head of the EBRD office in Moldova, Catarina Bjorlin Hansen. In addition to the new 400 kV overhead transmission line between Moldova and Romania, a 400 kV power plant will also be built in Balti. The total cost of the project is estimated at 77 million euros. The EBRD will provide a 30.8 million euros loan for the project implementation (40% of the total project cost). According to the terms of the signed agreement, the loan will be repaid in 28 equal semi-annual installments (or as equal as possible) on June 20 and December 20 of each year. The last repayment date is December 20, 2041. According to the agreement, the commitment fee is equal to 0.5% per annum; this loan has a floating interest rate - EURIBOR 6 months +1%. In addition, the borrower may, as an alternative to paying interest at a variable interest rate on the entire loan or any portion of the loan at that time, choose to pay interest at a fixed interest rate on that portion of the loan. A further 40% (30.8 million euros) of the financing will be provided by the European Investment Bank and the EU in a loan, with the remaining 15.4 million euros to be provided by the EU in a grant through the Neighborhood Investment Platform. Thus, the EBRD will finance a number of project components: construction of the 400 kV Balti-Suceava transmission line; construction of the Balti 400 kV station; rehabilitation of the internal transmission networks in Moldova; consultancy support for project implementation and related supervision and design works. Also, part of the investments will be used to strengthen the internal power transmission networks of Moldelectrica state enterprise. The main objective of the project "Moldova-Romania Power Interconnection, Phase II" is to complete another energy interconnection between Moldova and Romania by the end of 2027, with commissioning in 2028. The implementation of the mentioned investment project will contribute to the integration of the Moldovan network into the EU market through interconnections 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 the development opportunities by other countries. // 26.04.2024 - InfoMarket.
