EU to grant three million euros to restore Moldovan combined heat, power plant

19:52 | 25.05.2016 Category: Official

Chisinau, 25 May /MOLDPRES/-The cabinet today approved a draft law on the ratification of a grant agreement between Moldova, CET-Nord (Northern Combined Heat and Power Plant) joint-stock company and European Bank for Reconstruction and Development (EBRD), to finance the restoration of the heat and power system of Balti municipality. The Eastern Europe Energy Efficiency and Environmental Partnership (E5P) will allot three million euros to this effect, the government’s communication and media relations department has reported.

The trilateral agreement between Moldova, represented by the Economics Ministry, CET-Nord and EBRD, in charge of the E5P fund, was signed on 1 April 2016.

The project provides for upgrading the heating plant and replace coal, which it is currently powered by, with biofuel. It also provides for the installation of three gas engines with a capacity of 4.4 MW each, each of them designed to generate heating and electricity simultaneously. Network pumps will be replaced and frequency converters of pumping installations will be installed. The project also provides for the installation of 169 individual heating points in residential buildings.

Almost 100,000 consumers from Balti municipality will benefit from lower heating tariffs due to the implementation of the modernization project. Balti residents will also enjoy a cleaner environment, with minimal carbon dioxide emissions and other greenhouse gases.

The modernization project of Balti municipality’s heating and power system has a total budget of 10 million euros. The E5P fund allotted three million euros, while the other seven million euros have been offered as a loan by EBRD to CER-Nord. It is the first project implemented in Moldova with the financial support of E5P fund, of which Moldova has recently become a member. The European Union, Sweden, Czech Republic, Denmark, Estonia, Germany, Lithuania, Moldova, Norway, Poland, Romania and Slovakia have contributed to this fund. E5P’s capital accounts to 180 million euros and is administered by EBRD.

(Editor L. Alcaza)

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