Moldova signs three agreements worth 100 million euros on modernizing energy system

Chisinau, 26 September /MOLDPRES/- Moldova signed on 26 September three important agreements worth 100 million euros with the European Bank for Reconstruction and Development (EBRD) and the International Development Association (IDA) on modernizing the Moldovan energy system and interconnecting it to the European energy system.

The International Development Association will provide Moldova with two grants of 47.9 million euros and 13.1 million euros to develop the energy system in Moldova. The EBRD will provide a grant worth 40 million euros for the Project Interconnection of electricity networks between Moldova and Romania, Phase I.

The money will be used for construction of the back-to-back station in Vulcanesti and a 400 kV air transport line that will interconnect southern Moldova with Chisinau.

"There are three financing agreements for a very important project to reduce the energy dependency of the Republic of Moldova and to ensure the energy security of the country," said Finance Minister Natalia Gavrilița. The official added that this project is jointly worked out by the government, the EBRD, the European Investment Bank, the World Bank and the European Union. "It is a strategic project for the Republic of Moldova," said the Minister of Finance.

Minister of Economy and Infrastructure Vadim Brânzan appreciated the project on energy interconnection with Romania as a project of paramount importance "which will increase the competitiveness of the electricity market by building Vulcanesti station, which will interconnect the networks in the Republic of Moldova with those of the European Union".

"It is a step forward in connecting the energy system with the networks in Europe and will make an extraordinary contribution to the energy security of the Republic of Moldova. I am glad that the EU is also a partner in supporting this project, which is important for the country and people, ” the head of the EU Delegation in Chisinau, Peter Michalko, said.

The head of the EBRD office in Moldova, Angela Sax, pointed out that by signing the agreements the Moldovan authorities can be convinced of the support by the development partners of the reform process in Moldova.

Arina Akhalkatsi, country manager of the World Bank in Moldova, said that the signing of the three agreements lays the foundation for greater assurance of Moldova's energy security. The WB official hopes the work will be carried out quickly, so that the citizens of the Republic of Moldova can truly feel the impact of this project, including through tariffs.

The total cost of the interconnection project is 270 million euros, which consists of two back-to-back configuration conversion modules with a total installed capacity of 600 MW located in Vulcanesti and a 400 kV electricity transmission line between the stations Vulcanesti and Chisinau, including expansion of 400 kV station in Vulcanesti and modernisation of 330 kV station in Chisinau. Preliminarily, it was agreed that the World Bank will finance the internal consolidation: the extension of Vulcanesti station, the modernization of Chisinau station and the construction of 400 kV Vulcanesti - Chisinau air line, and the construction of Vulcanesti station will be co-financed by the European Bank for Reconstruction and Development, European Investment Bank and the European Union.