Moldova to receive 120 million euros for reforming energy sector

Chisinau, 23 June /MOLDPRES/ - Moldova will receive a loan worth 120 million euros on behalf of the French Development Agency (AFD) for the implementation of projects on reform in the energy sector. The first installment of 40 million euros of this loan will be disbursed till the end of this year. A memorandum of understanding to this effect was signed in Chisinau today.

Besides the loan of 120 million euros, Moldova will benefit also from a programme on technical assistance, financed through a donation of five million euros, provided through the European Commission’s Neighbourhood Investment Platform.

After the Memorandum’s signing, Energy Minister Victor Parlicov said the document regarded the speeding up of the processes of Moldova’s integration into the European Union on the energy dimension. The financing got will be used for the implementation, in the next five years, of more projects in the various sectors concerning the energy. They will be focused on more priorities, including the accelerated de-carbonization through buildings’ energy optimization, switch to the electric public transport and a better integration of renewable energies in the network.

Ambassador of France to Moldova Graham Paul said the energy sector was quite important for Moldova. According to the diplomat, on the last period, significant progress has been made; yet, there are still more actions to be implemented, in order to improve the energy resilience and security and to adapt it to the European norms and standards.

The AFD executive director, Philippe Orliange, said the Memorandum envisaged concessional loans provided by AFD, with a first installment of 40 million euros in 2023 and a technical assistance programme. The official noted that the energy sector was one where it was necessary to favour a convergence to the European standards, a sector in which the improvement of the security of supply, development of new sources of renewable energy and promotion of energy efficiency is indispensable.

The memorandum of understanding for the reformation of the energy sector was signed between AFD and the Energy, Finance, Environment and Labour and Social Protection Ministries.

Photo: Energy Ministry