Moldova will receive an additional $220 million grant from the United States to implement investment projects in the energy sector.
This is stipulated by the draft law on ratification of the 15th amendment to the Agreement on Assistance for Development Goals between the Governments of Moldova and the United States for Sustainable Economic Growth Based on European Integration, concluded on September 28, 2016, which was adopted by the Parliament on Thursday in the first reading. The amendment provides for an additional allocation of $220 million as grant financial assistance to strengthen Moldova's energy security and reduce dependence on the Russian Federation by connecting key elements of the energy sector to European systems. The respective amount will be directed to the realization of investment projects in the energy sector. According to the agreement, the Moldovan government undertakes to adhere to the European Union's Energy Agenda. In this context, the authorities will continue the process of harmonizing Moldova's legal framework with the EU legislation. According to the Finance Ministry, after the additional allocations, the total amount of the U.S. government's non-refundable assistance, provided within the framework of the agreement, will rise from $172.73 million to $392.73 million, of which more than $80 million has already been allocated. At the same time, the 15th Amendment signed by the parties establishes the terms of the $76.8 million in grant budget support to be offered by USAID through the Multi-Donor Trust Fund established by the World Bank. This budget support will provide reimbursement of electricity procurement costs from suppliers in Ukraine and ENTSO-E member countries for the period from September 2022 through March 2023. A separate agreement between the Moldovan government and the World Bank will be signed to allocate this assistance. It is agreed that $76.8 million represents budget support/grant and $220 million, which will not be channeled through the national treasury system, will be spent on the implementation of energy investment projects in Moldova. It should be noted that on December 30, 2022, through the World Bank, the U.S. government allocated to Moldova, through USAID, the first non-reimbursable budget contribution/support of $30 million to reimburse payments for the purchase of electricity from Ukrainian suppliers in May-September 2022. //20.07.2023 - InfoMarket.
