Moldova to borrow preferential loans, grants for energy efficiency, filling stocks of gas

Chisinau, 17 October /MOLDPRES/ - Moldova will access preferential loans and grants for the implementation of energy efficiency projects and filling of the gas stocks. Energy Minister Victor Parlicov today signed agreements to this effect, on the sidelines of the fourth meeting of the Moldova Support Platform.  

Thus, Victor Parlicov signed a memorandum of understanding with the French Development Agency (AFD) and the KfW German Development Bank on the extension of cooperation in the field of energy efficiency of public buildings. The signatory sides committed to invest 68.7 million euros, of which 38.7 million euros represents a grant provided by the government of Germany, based on an agreement signed with the Moldovan cabinet. Thirty million euros represents a long-term concessional loan provided by the French government. One quarter of the sum will be used for the thermal rehabilitation of social buildings, including hospitals and schools. At the same time, the government will provide its contribution for improving the energy efficiency of public buildings. The projects’ implementation will start in 2024.      

Another document signed regards an addendum to the agreement on loan worth 300 million euros, provided in two installments, by the European Bank for Reconstruction and Development (EBRD) within the Moldova Gas Security Supply project, signed on 23 June 2021. The amendment regards the inclusion in the project of a grant component  worth 400 million Norwegian krones (about 34 million euros), provided by the government of Norway. This distribution through EBRD is the quickest solution identified, so that Moldova can benefit from the grant made available for purchasing and stocking natural gas needed in the cold season.   

The grant component is conditioned by the accessing of a new additional installment worth 165 million euros, provided by EBRD.

Another memorandum signed today by the European Investment Bank (EIB) with Moldova’s government is aimed including at the institutional strengthening in the energy sector, as well as the stimulation of investments in the sectors of transport, energy, environment and small- and medium-sized enterprises.  

The Moldova Support Platform was launched in April 2022, at an initiative by Romania, Germany and France. The previous meetings, held in Berlin, Paris and Bucharest, helped Moldova mobilize international financial support for the compensation of the expenses in invoice, providing assistance to farmers and carrying out of infrastructure projects.    

Photo: Energy Ministry