EBRD to lend Moldova 138 mln euros to boost energy efficiency

CHISINAU. Sept 20 (Interfax) - The European Bank for Reconstruction and Development (EBRD) will grant Moldova a sovereign loan of 138 million euros to increase energy efficiency.

The EBRD's board approved the concept and general structure of the project, including its financing, on Tuesday, the bank's office in Chisinau told Interfax.

The loan will be the latest investment as part of an approved project to increase energy efficiency in Chisinau and will be provided for the benefit of state utility Termoelectrica to finance demand side measures, such as construction of horizontal networks in buildings; supply and installation of individual heating substations; rehabilitation of district heating network; and construction of a pumping station.

The overall cost of the project is 326 million euros. The loan is expected to be supplemented by a concessional loan and an investment grant, as well as by financing to be provided by other international financial institutions.

The project will primarily help to promote the Green transition quality via the installation of individual heating substations and horizontal networks, the EBRD said. It is expected to enable energy savings and reduce net CO2 emissions as a result of avoided gas and electricity consumption from individual boilers and optimised operation of the district heating system.

The EBRD provided a record 525 million euros of financial support to Moldova in 2022, including a revolving loan of 300 million euros to buy natural gas from alternative sources.

The EBRD is the largest institutional investor in Moldova and has financed over 100 projects with a combined cost of more than 2 billion euros. The EBRD is a shareholder of a number of Moldovan commercial banks and in 2021 became the sole owner of the company that operates the Port of Giurgiulesti, which gives the country access to the sea via the Danube River.