Moldovan cabinet gives positive note to ratification of agreement between Moldova, top European bank for modernizing centralized heating system in Balti city
Chisinau, 30 March /MOLDPRES/ - The cabinet of ministers, at a today’s meeting, approved a draft law for the ratification of the agreement on loan between Moldova and the European Bank for Reconstruction and Development (EBRD) for carrying out the project titled, The thermal and energy system of the Balti city – Phase II. The document was signed in Chisinau on 24 December 2021, the government’s communication and protocol department has reported.
To carry out the project, Moldova borrowed a loan worth 15 million euros from EBRD, of which 14 million euros – sovereign loan on behalf of EBRD and 1 million euros – concession loan on behalf of the Green Climate Fund, meant for the carrying out of the investment component - 8.5 million euros and for refinancing the historical debt – 5.5 million euros.
Also, the project is to benefit from a grant worth 2 million euros, provided by the Eastern Europe Energy Efficiency and Environment Partnership (E5P).
The agreement on loan is an inter-state treaty; its validity term is of 15 years and includes a grace period of 3 years.
The project’s priorities were identified based on a feasibility study financed by EBRD.
The project’s goal is to ensure the access of the Balti city’s residents to quality services, through the reestablishment of the system of supply of domestic hot water, implementing the system of horizontal distribution inside the apartment block, ensuring the technical comfort in buildings, optimizing the operational costs, centralized/distance control and monitoring, increase in the duration of exploitation of equipment, reducing the losses of thermal energy.
Photo: Government
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