| Project Detail |
Location:
Moldova
Project number:
54567
Business sector:
Energy
Notice type:
State
Approval date:
13 Dec 2023
Status:
Exploratory
PSD disclosed:
02 Oct 2023
Project Description
Up to EUR 33.3 million sovereign loan to the Republic of Moldova, to be on-lent to Moldelectrica, for the (i) construction of a high-voltage electricity transmission line between the city of Balti on the Moldovan territory and the Romanian border, (ii) construction of Balti 400kV substation, (iii) rehabilitation of the existing domestic power transmission network of Moldova, and (iv) refinancing of the outstanding balance under the existing Moldova Romania Power Interconnection Phase I project after the cancellation of the unutilised portion of that loan (collectively, the "Project").
Total Project cost of EUR 81.3m will be co-financed by a parallel loan from the European Investment Bank ("EIB") of EUR 32 million and the EUR 16 million EU Neighbourhood Investment Platform ("EU NIP") grant. The EU NIP grant will be repurposed from the larger grant approved under the EBRDs Moldova Romania Power Interconnection Phase I following the cancellation of the undrawn amounts under the project.
Project Objectives
The Project will improve the energy security for Moldova by accelerating the ongoing integration with ENTSO-E and accelerate the development of regional integration as Moldova will introduce a new route for electricity exchange, potentially earning transit fees from transactions between Romania and Ukraine through constructing a new interconnection line with Romania. The Project will also lead to a reduction of losses in the electricity transmission network and increase the reliability of electricity supply through replacing and modernising the conceptually and physically outdated equipment.
Additionally, the Project will require the Republic of Moldova to continue implementing the Power Sector Reform Action Plan ("PowerSAP"), originally developed under the Moldova Romania Power Interconnection Phase I project and agreed in close collaboration among EBRD, European Union, European Investment Bank, World Bank, Energy Community Secretariat and the Republic of Moldova, to introduce a comprehensive reform package to implement EU Third Energy Package in Moldovas electricity market. |
