WB will allocate EUR 92 million to Moldova for the second project to improve the efficiency of the district heating system in Chisinau (SACET II)
This is provided for by the corresponding loan agreement, ratified by the Moldovan Parliament on Thursday, which our country signed on September 30, 2020 with the International Bank for Reconstruction and Development, a member of the World Bank Group. The single loan fee will be 0.25% and the usage fee will be 0.25% per annum on the outstanding loan balance. The project, approved by the WB Board of Directors, will be implemented by the end of 2025 and will support investments in improving the efficiency of district heating services in Chisinau. Thanks to funding from the World Bank, Termoelectrica, the capital's district heating company, is expected to be able to provide more efficient services to the population. This will happen through the installation of new, energy efficient equipment for energy production, as well as through the repair and modernization of existing installations for the production of heat and power. In addition, the project will finance energy efficiency and energy conservation investments in selected public and residential buildings. WB experts note that Moldova remains highly dependent on imports to meet energy demand, and its inefficient use leads to higher energy costs in the industrial, commercial, public and residential sectors, which is a serious obstacle to economic growth and competitiveness. In addition, the infrastructure for heat and power generation is outdated and worn out, which makes it less reliable and more expensive, and the main heat and power plants are in the final stages of their operating cycle. The investments under the project will help maintain the reliability of heat supply in Chisinau and significantly increase the efficiency of the centralized energy supply system, which will lead to a significant reduction in CO2 emissions. Recall that the World Bank allocated a loan of $ 40.5 million for the implementation of the SACET I project. This project is considered the most successful project in the World Bank's portfolio for the energy sector among all the countries of Eastern Europe and Central Asia. It has improved the operational efficiency, quality and reliability of the district heating services provided by Termoelectrica. The main achievements of the project: reconstruction of 3 pumping stations and construction of a new pumping station, modernization of more than 40 km of insulated pipes, installation of more than 450 individual heating points, equipping with converters and replacement of network pumps at generation sources, etc.// 19.11.2020 — InfoMarket.
