The EBRD will provide CET-Nord with a 14 million euros loan for the implementation of Phase II of the thermal power system modernization project in Balti municipality.
This is stipulated in the relevant loan agreement, signed on Friday in Chisinau by Deputy Prime Minister and Minister of Infrastructure and Regional Development of Moldova Andrei Spinu and EBRD Senior Banker Octavian Costas. The money to modernize the central heating system in Balti will be allocated to CET-Nord as part of EBRD's Green Cities Programme. At the same time, the total cost of the second phase of the project "Thermal Energy System of Balti municipality (CET-Nord)" will amount to 17 million euros, and the EBRD loan of 14 million euros will be supplemented by 1 million euros from the Green Climate Fund and an investment grant of 2 million euros from the Eastern Europe Energy Efficiency and Environment Partnership Fund (E5P). CET-Nord provides district heating services to about 70% of the population in Balti municipality, as well as to many public buildings and commercial enterprises. As a result, thanks to the project, the residents of the northern capital of Moldova will have more efficient district heating. This project is the second investment in the district heating system in Balti under the EBRD Green Cities symbolic sustainable cities program. The program aims to address the city's main environmental problems, including air quality and climate change, which are exacerbated by poor performance of the energy distribution network and low investment in energy efficiency in buildings. These elements were identified in the Balti Green City Action Plan, which was finalized and approved by the local council in November 2021 and financed by the Swedish government. The investments will help to solve inherited infrastructure problems, promote systemic decarbonization, which will help to reduce electricity imports, increase energy security and significantly save CO2 emissions. By improving the operational and energy efficiency of the district heating system in Balti through better system control, the project will introduce apartment-level billing to consumers based on actual consumption and further optimize the use of a highly efficient cogeneration plant and electricity. The new EBRD investment builds on the improvements from the first phase of the project, completed in 2019, which resulted in significant reductions in natural gas consumption, CO2 emissions and improved district heating services. The EBRD's Green Cities Programme helps member cities identify, prioritize and address environmental challenges by developing an Action Plan and making concrete investments in response to urban challenges. Balti joined the Green City programme in 2019. The EBRD is one of the largest institutional investors in Moldova. To date, it has invested about 1.47 billion euros in more than 145 projects across the country to support private enterprises and key infrastructure, and build a greener and more sustainable economy. // 24.12.2021 - InfoMarket.
