Moldova will receive a EUR 143.5 million loan from the EBRD to optimize Chisinau's heat and power system
This is stipulated by the government-approved draft ratification of the relevant loan agreement between Moldova and the European Bank for Reconstruction and Development (EBRD), which the parties signed on November 29, 2024. The EBRD loan will complement the financing of Moldova's other external partners for a large project with a total budget of EUR 326.5 million. In particular, the EBRD and the European Investment Bank (EIB) will provide loans of EUR 143.5 million each for the implementation of the project. The Eastern Europe Energy Efficiency and Environment Partnership (E5P) will provide a grant of EUR 15 million, while the EU Neighborhood Investment Platform (EU NIP) will provide a grant of EUR4.5 million. These grants are intended for investments in energy efficiency improvements in the residential buildings sector. It is agreed that the EBRD will provide the loan in three tranches: EUR 52.4 million, EUR 60.2 million and EUR 30.9 million, respectively. The commitment fee will be 0.5% per annum. A variable interest rate has been agreed: EURIBOR 6 months +1%. In general, within the framework of the project on optimization of the heating system of Chisinau with the total cost of EUR 326.5 million, it is planned to install 2510 individual heating points in the capital of Moldova and to transfer 1665 apartment buildings to the horizontal system of heat carrier distribution. As a result, consumers will be able to independently regulate their energy consumption and turn on or off heating in their apartments. These measures will help reduce heat losses by up to 30%, lower costs for consumers, and by reducing carbon dioxide emissions, the negative impact on the environment will be reduced. It is also planned to use these funds to insulate buildings, reconstruct primary heating networks and construct two pumping stations. All the envisaged measures are aimed at improving the efficiency, reliability and quality of heating and hot water supply services. The most important component of the project is the transition to a horizontal system of heat carrier distribution, which will play a significant role in improving energy efficiency and optimizing heat consumption. The Ministry of Energy notes that the buildings sector accounts for about 50% of final energy consumption, so energy efficiency is a national priority. Termoelectrica CEO Iurie Razlovan said that the mentioned project for the optimization of Chisinau's thermal energy system represents an important step towards modernizing Chisinau's thermal infrastructure and bringing it in line with European standards. “We are pleased with the support of international partners and the commitment of the Moldovan Government and Ministry of Energy to realize this important initiative for our city. Termoelectrica, along with the partners involved, is committed to the successful implementation of this project, bringing tangible benefits to all consumers in Chisinau,” he emphasized. // 15.01.2025 - InfoMarket.
