EBRD, IDA to offer almost €100 mln for modernisation of energy system of Moldova
11:12 | 12.11.2019 Category: Economic
Chisinau, 12 November /MOLDPRES/ – The Cabinet of Ministers approved, at its today meeting, on 12 November, the draft law on the ratification of three important agreements totalling about €100 mln with the European Bank for Reconstruction and Development (EBRD) and the International Development Association (IDA) on modernisation of the Moldovan energy system and its interconnection with the European energy system.
The International Development Association will grant to Moldova two grants of 47.9 million euros and 13.1 million euros for the development of the energy system in Moldova. The EBRD will provide a 39.9 million euro grant for the implementation of project: Interconnection of electricity networks between Moldova and Romania, Phase I, a project to be carried out by the state – owned enterprise Moldelectrica.
According to the Agreement, the EBRD will grant a grant of not more than 39.9 million euros from the European Union contribution for the first phase of the project for the construction of the back – to – back station in Vulcanesti.
The loan of 47.9 million euros offered by IDA will be used for the extension of the Vulcanesti station, the modernisation of the Chisinau station and the construction of the 400 kV LEA Vulcanesti – Chisinau air line, the construction of a building for the new headquarters of Moldelectrica, including a new dispatch centre.
The executive also approved the draft law on the ratification of the Financing Agreement between Moldova and the International Development Association on the development project of the 13.1 million euro electricity system.
The total cost of the interconnection project constitutes €261 mln, 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 power stations, including the extension of the 400 kV station in Vulcanesti and modernisation of the 330 kV station in Chisinau. Preliminarily, it has been agreed that the World Bank will finance the internal consolidation: the extension of the Vulcanesti station, the modernisation of the Chisinau station and the construction of the 400 kV Vulcanesti – Chisinau air line, and the construction of the Vulcanesti station will be cofinanced by the European Bank for Reconstruction and Development Commission for Investment and the European Union.
In December 2017, there were signed 02 loan agreements (of €80 mln) between Moldova and the European Bank for Reconstruction and Development (EBRD) and, respectively, the European Investment Bank (EIB), concerning the interconnection of electricity networks between Moldova and Romania. The World Bank (WB) throughout the International Development Agency (IDA) is to grant Moldova a loan worth $70 mln to implement the project.
The project is expected to be implemented by 2024.
