| Project Detail |
The EBRD stands ready to issue, on-demand, a one-year letter of credit (LC) in favour of Naftogaz of Ukraine as a payment guarantee of obligations of Moldovan natural gas supplier Energocom JSC under an agency agreement with Naftogaz for back up natural gas procurement for the Republic of Moldova.
Project Objectives
The purpose of the transaction is to allow Moldova to procure one month of natural gas to back up potential supply disruption during winter 2019-2020.
Transition Impact
ETI score: 64
The transition impact of the project will stem from the following transition impact qualities:
(i) Resilient Transition Quality by financing a mechanism to mitigate the risk of disruption in the Moldovan gas sector in 2019/2020 winter and supporting diversification of natural gas suppliers and delivery routes; and
(ii) Well-Governed Transition Quality by initiating the work on improving corporate governance of Energocom, and increasing transparency and standardisation of procurement practices.
The project will also entail a policy dialogue with the Government of Moldova to support the institutional reform process for the gas sector.
Client Information
MOLDOVA SOVEREIGN
The project will be implemented by Energocom, a 100 per cent state-owned enterprise established by the Moldovan government in 2005 as an electricity importer and domestic electricity supplier. Energocom has a licence to supply natural gas.
EBRD Finance Summary
USD 50,000,000.00
USD 50 million LC in favour of Naftogaz. The LC will benefit from a sovereign guarantee by Moldova.
Total Project Cost
USD 50,000,000.00 |
