Moldova and World Bank signed US$1.7 million grant agreement to prepare modernization of Chișinău’s heating system

The Ministry of Energy and the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group, have signed a Grant Agreement for a non‑reimbursable financing of up to US$1.7 million to prepare the project for constructing new high‑efficiency thermal and power generation capacities for Termoelectrica company.

The support is provided through the Project Preparation Grant Facility and will finance the development of technical documentation, specialized studies, environmental and social assessments, as well as other activities necessary for preparing the strategic investment included in the Resilient, Efficient, Secure Combined Heat and Power Program (RESHAPE‑Moldova).

The document is based on the conclusions of the feasibility study developed under the Second District Heating Efficiency Improvement Project (DHEIP‑2), financed by the World Bank. The study recommends the development of a new high‑efficiency combined‑cycle cogeneration plant, which will contribute to modernizing the energy infrastructure of the municipality of Chișinău and strengthening the energy security of the Republic of Moldova.

The construction of a new high‑efficiency cogeneration plant with an electric capacity of approximately 250 MW and a thermal capacity of approximately 180 MW will allow the simultaneous production of electricity and heat with lower fuel consumption compared to conventional technologies, which will lead to reduced energy production costs and more efficient use of energy resources.

The new investment will create the conditions for the gradual replacement of outdated generation capacities, increased energy efficiency, reduced fuel consumption, and lower greenhouse gas emissions. At the same time, the project will facilitate the integration of renewable energy sources and contribute to the development of a more resilient and flexible energy system.

Implementation of the grant will be ensured through the Consolidated Unit for the Implementation and Monitoring of Energy Projects (UCIPE), in cooperation with Termoelectrica and the World Bank.

The grant is non‑reimbursable and does not create repayment obligations for the Republic of Moldova. The funds will be used for preparing the investment project, and the financed activities are to be implemented by the end of 2027.