The EBRD will provide a €25 million loan to Moldova to expand and modernize its solid waste management infrastructure.
This is provided for by the Agreement on Financing Critical Solid Waste Management Infrastructure, which was signed on January 4-th by the Government of Moldova and the European Bank for Reconstruction and Development. According to the Ministry of the Environment, a €25 million EBRD loan to the Government of Moldova to finance critical investments in solid waste management infrastructure and address urgent environmental issues is part of a larger financing package, with an additional €25 million loan from the European Investment Bank (EIB), as well as investment grants from international donors. This project is the first large scale solid waste management event in Moldova involving a number of regions and an important step towards a sustainable solution for solid waste management services. The EBRD will finance the purchase of equipment for the collection and transport of waste (garbage containers and collection vehicles) and the construction of infrastructure for the disposal and treatment of solid waste (garbage storage (landfills) and facilities for sorting and processing materials). 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. 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 for the implementation of the project, which will also receive support through technical cooperation funded by Sweden. The project provides an opportunity to expand, regionalize and create a consolidated regional solid waste management system in the participating zones. The EBRD investment will enable the Government of Moldova to improve and increase the efficiency of household waste collection, extending beyond urban centers to rural areas. According to the Moldovan government and the EBRD, the construction of a regional municipal waste storage facility in accordance with EU standards, the closure of inappropriate landfills and many small unauthorized dumps will reduce the number of illegal landfills, while investments in source-separated recycling, green waste and recycling of mixed waste will increase the level of recycling and ensure environmentally sound 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. 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 EU is the largest donor with €28.95 million. Other donors include the Czech Republic, Denmark, Estonia, Finland, Germany, Lithuania, Norway, Poland, Romania, Slovakia and Sweden. 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 interested parties // 04.01.2023 — InfoMarket.
