Spokesman for Moldovan government says state guarantee provided for Energocom company strategic, responsible decision, to make ensure that enterprise purchases enough gas, at advantageous price

The state guarantee provided for the Energocom company is a strategic and responsible decision by the state, in order to make sure that the company purchases sufficient gas at advantageous prices and can access resources offered by the European Bank for Reconstruction and Development (EBRD). The spokesman for the government, Daniel Voda, today made statements to this effect, after the government had ruled to give state guarantees for Energocom to access a loan of 400 million euros from the EBRD.

‘’With any government action concerning the strengthening of Moldova's energy independence, especially after August 1, when Energocom is to become the gas supplier, taking over the public service obligation from Moldovagaz, we see that false narratives get activated, synchronized with a political calendar. But it's the government's responsibility to bring truth to light and clarify these aspects as clearly as possible,’’ said Daniel Voda.

He noted that the state guarantee was necessary, in order to ensure that   Energocom has the resources to purchase gas at advantageous prices.

‘’Giving the state guarantee is a responsible decision of the government, to ensure that Energocom has the liquidity to purchase gas at advantageous prices. Moreover, Energocom is the state-designated operator for energy security, and without this state guarantee, the company was not able to access the financial resources provided by the EBRD,’’ said Daniel Voda.

The government’s spokesperson also said that the EBRD’s loan was provided under particularly advantageous conditions and would be used specifically for strategic purchases of gas and electricity, creating reserves for the cold season and protecting citizens against energy crises.

‘’In simple terms, for Energocom to access the EBRD loan to buy gas, this state guarantee is needed to ensure that Energocom will fulfill its payment obligations to the EBRD. The payment by the state would only be applied in the extreme case, if   Energocom does not meet these obligations, a likelihood considered insignificant by financial experts and the EBRD. Also, the contract is structured in installments, based on real needs, to prevent over-indebtedness in a hypothetical scenario,’’ said Daniel Voda.

Voda also said noted that, in this decision, ‘’there are no dubious commercial parties, no guarantees of private credits to obscure companies, no hidden transactions or lack of transparency.’’ At the same time, the loan is contracted from an international financial institution that enforces strict verification standards, Voda noted.

According to him, the legal exceptions invoked are public, reasoned, and justified. ‘’Derogations from certain articles in the law regarding risk payment were introduced precisely to protect citizens from all kinds of price increases and speculations. Had this derogation not been made and the existing norms enforced, there could have been risks that the authorities wanted to avoid,’’ informed the government spokesperson.

Daniel Voda assured that the procedure by which the decision had been approved was transparent, the project has gone through all stages of public consultation, anti-corruption expertise, interministerial endorsement, including consultation with the Competition Council, which confirmed that there were no deficiencies.

The government decided today that Energocom would receive state guarantees to access a credit line of up to 400 million euros from the EBRD, in order to ensure the security of electricity and natural gas supply. The funds will be used to implement the Strengthening the Energy Security of Moldova project, aimed at ensuring uninterrupted supply of natural gas and electricity to end consumers.