Top European bank to support heating system renovation in northern Moldovan municipality

Chisinau, 30 October /MOLDPRES/ - Prime Minister Iurie Leanca and European Bank for Reconstruction and Development (EBRD) Deputy Director for Municipal and Environmental Infrastructure Lin O'Grady signed an agreement to this effect in Balti today. The agreement provides for the modernisation of the Balti-based thermal system, CET-Nord Joint stock Company, the government’s communication and media relations department has reported.

The prime minister said that the project would bring significant economic and social benefits for the residents in northern Moldova, Balti being an important regional centre, where over 150,000 people live. At the same time, the prime minister noted the environmental aspect of the project, saying that new technologies would allow to reduce carbon dioxide concentration in the air.

"By signing this agreement, the authorities set up the legal basis necessary for making major investments in modernising infrastructure and services provided to the population and public institutions in Balti, including improving the activity in educational institutions. Thus, we will continue to invest in our future, throughout the country, so that we can build Europe at home and become members of the European community", said Iurie Leanca.

For her part, Deputy Director for Municipal and Environmental Infrastructure Lin O'Grady said that the purpose of the Agreement was funding a major project to improve the heating system in the area and provide quality services to the population. "This is the second project funded by the EBRD, which will be conducted in the Balti municipality, and this shows that we can efficiently collaborate with the Moldovan authorities outside the capital city," said Lin O'Grady.

The EBRD official added that the renewed equipment would provide more efficient services, a better control by the heating service beneficiaries, and considerable energy savings. Lin O'Grady reiterated EBRD's willingness to continue supporting Moldova in projects to modernise the country.

The total project value amounts to ten million euros, of which three million will be granted by the Eastern Europe Energy Efficiency and Environmental Partnership (E5P), and seven million euros will represent EBRD investments, offered under favourable terms for a 15-year period, with a grace period of 2-3 years, and LIBOR interest rate, plus a 1-2 per cent margin.

Following the implementation of the Agreement, sides expect for an increase in the production of heat by about 60 per cent, reducing electricity consumption by 30 per cent, as well as the improvement of the quality of the environment in Balti due to the enterprise's technological modernisation. Specialised equipment will be replaced providing heating, including the coal-fired boiler which will be substituted by a biomass one. Another measure will be installing individual thermal units in the Balti-based buildings, which will enable an efficient control of heat consumption.