Moldova to benefit 92 mln euros for Ungheni-Chisinau gas pipeline construction

Chisinau, 19 December /MOLDPRES/ – European Union, European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) will provide a funding package of 92 million euros for the construction of Ungheni – Chisinau gas pipeline. The EIB and EBRD will grant a loan of 41 mln euros each and EU – a grant of 10 million euros. The funds will be forwarded to the State Enterprise "Vestmoldtransgaz" that will build the pipeline and operate interconnector between Romania and Moldova.

Loan agreements offering were signed today in Chisinau by Deputy Prime Minister Octavian Calmic, Minister of Economy of the Republic of Moldova, and Dimitri Gvindadze, EBRD Head of Office, and Jan Vapaavuori, EIB Vice-President.

Deputy Octavian Calmic said that the decision of partners from the EBRD, the EIB and the EU to support the Moldovan Government in the project of construction of gas pipeline Ungheni-Chisinau was very important for Moldova because it represented an important step in the implementation of projects ensuring energy security of the state and overcome when we were dependent on a single source of assurance to the population energy sources.

"Moreover, this project will allow us to connect to Community electricity system, which besides the fact that we can ensure a stable energy over a long period of time, ensure free competition on Moldovan market," the economy minister said.

Dimitri Gvindadze, head of the EBRD office in Chisinau, said that "the pipeline will allow Moldova to purchase gas on EU markets and thus be promoted measures that will help foreign gas suppliers to enter the market of Moldova. This will allow the country to diversify its energy sources and will strengthen competition in the sector," said the source.

"I welcome very much that EIB contributes to diversifying energy for Moldova, which is a dependent country on imported energy. This will contribute to enhancing energy security and will support both the natural gas market liberalization in the country and its integration into the European energy system", said EIB Vice-President Jan Vapaavuori. He also said that "while this project is a good example of successful cooperation between the EIB, the financing institution partner EBRD and the European Union co-financing this strategic commitment."

In turn, Pirkka Tapiola, Head of EU Delegation in Moldova, said: "I am pleased that EU, EIB and EBRD are contributing to construction of Ungheni-Chisinau gas pipeline. European Union fully supports this project, which is of strategic interest for Moldova, as it will enhance energy security of the country and also contribute to increasing the competitiveness of the Moldovan energy market for the benefit of all citizens," stated the European official.

The new pipeline will finish connecting gas transportation systems from Romania to Moldova, as a continuity of the first part of Iasi-Ungheni connection, put into operation in 2014. For the first phase, EU came with a contribution of 7 mln euros.

Moldova is one of the countries that benefited most from the EIB loans per capita in the Eastern Partnership region. The EIB loan portfolio is well balanced, covering all major sectors of its economy reached almost 700 million euros from EIB loan signing of the first country, in 2007 the gas interconnection project is another example of success cooperation between Moldova, EU, EIB and EBRD, which together have supported numerous projects such as road rehabilitation program in Moldova, trolleybuses in Chisinau and rehabilitation of Chisinau water supply systems.

The EBRD is the largest institutional investor in Moldova, with over €1.1 billion, cumulative investments in over 110 projects in the agribusiness, energy, finance, infrastructure and manufacturing.

(Reporter A. Mardare, editor M. Jantovan)