Moldova will receive a €25 million loan from the EBRD to expand and modernize its solid waste management infrastructure.
This is provided for by a loan agreement between Moldova and the European Bank for Reconstruction and Development, ratified by Parliament, for the implementation of the Solid Waste in Moldova project. In particular, the EBRD will provide a loan to the Government of Moldova to finance critical investments in solid waste management infrastructure and address urgent environmental issues. It is part of a larger financing package, with the European Investment Bank (EIB) providing Moldova with an additional loan of 25 million euros for the same purpose, and the country will also receive investment grants from international donors. It is agreed that the EBRD, under the Moldova Solid Waste Project, 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 objects for sorting and processing materials). The project will be implemented in 2023-2027. The EBRD 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 about 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. The construction of a regional municipal waste storage facility in line with EU standards will close non-compliant landfills and reduce illegal landfills, while investment in source-separated recycling, green waste and mixed waste recycling facilities will increase recycling and ensure environmentally 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 EBRD has invested more than EUR 2 billion in Moldova through 159 projects. // 02.02.2023 — InfoMarket
