The Government of Moldova approved the ratification of a €25 million loan agreement with the EBRD to expand and modernize the solid waste management infrastructure.
An agreement on financing critical solid waste management infrastructure was signed on January 4 by the Government of Moldova and the European Bank for Reconstruction and Development. It is noted that the EBRD will finance the purchase of equipment for the collection and transport of waste (garbage containers and collection vehicles), as well as the construction of infrastructure for the disposal and treatment of solid waste (garbage storage (landfills) and facilities for sorting and processing materials). The project will be implemented in 2023-2027. The loan is provided for 15 years with a 4-year grace period at 0.5% per annum. The funds will be received in 4 tranches: the first (6.94 million euros) will be directed to the waste management zone, which includes the Ungheni, Nisporeni and Calarasi districts; the second (7.41 million euros) will be directed to the implementation of the project in the Edinet, Donduseni, Ocnita and Briceni districts; the third tranche (10.32 million euros) will be directed to the implementation of the project in Cahul, Cantemir, Taraclia districts, as well as in Gagauzia (Comrat, Vulcanesti, Ceadir-Lunga); the fourth tranche (0.6 million euros) will be used to pay the salaries of project workers. The first waste management area supported by the EBRD under the project includes the Ungheni, Nisporeni and Calarasi districts, with an estimated investment of around EUR 19.48 million. The work will be financed by the first tranche of the EBRD loan of 6.94 million euros, the same amount will be provided by the EIB. In addition, the Eastern European Energy Efficiency and Environment Partnership (E5P), of which the EU is the largest donor, will also provide an investment grant of up to 5.6 million euros. The EBRD investment will enable the Government of Moldova to improve the efficiency of household waste collection, extending beyond urban centers to rural areas. It is noted that the construction of a regional municipal waste storage facility in accordance with EU standards will close non-compliant landfills and reduce the number of illegal dumps, while investments in source separation recycling, green waste and mixed waste processing enterprises will increase the level of recycling and provide environmentally friendly safe disposal. It will also significantly reduce carbon dioxide and methane emissions associated with waste disposal, thus contributing to Moldova's decarbonization efforts in line with its commitments under the Paris Agreement on climate change. Recall that the EBRD is the leading institutional investor in Moldova. To date, the bank has invested more than 1.8 billion euros in the country in 158 projects. E5P is a €242 million multi-donor fund initiated by Sweden and operating throughout the Eastern Partnership region. The E5P fund in Moldova is 48 million euros and includes a contribution from Moldova of 1 million euros. The funds are intended to help Moldova improve energy efficiency by promoting energy security, economic competitiveness and political dialogue, while having a positive impact on the environment. The EBRD manages the E5P Fund by providing administrative support for the management of the fund on behalf of all stakeholders. // 01.02.2023 — InfoMarket
