New opportunities for financing energy and environmental projects to be set in Moldova

Chisinau, 30 August /MOLDPRES/ – The Executive approved a draft law to ratify the Framework Agreement between Moldova and the Nordic Environmental Finance Corporation Organisation (NEFCO) today, signed in Chisinau on 21 July 2017. Thus, there will be created new opportunities to finance projects with a beneficial impact on the environment, the government's communication and protocol department has reported.

The funds are intended to implement projects in the field of energy efficiency, renewable energy and environment: building rehabilitation, centralized heat supply systems, renewing and modernizing fleets, solving problems related to wastewater management and municipal waste. The projects will be implemented at municipal/city level, including through public-private partnerships. At the same time, municipal enterprises, those with majority state capital, which proposed to rationalize their own energy consumption, may also be eligible.

The funding shall be in the form of loans of up to €5 million under market or preferential terms, which shall contain, where appropriate, a grant component.

It is worth to be noted that NEFCO is also one of the international financial institutions that acts as Agency for the implementation of projects funded by the Eastern Partnership for Energy Efficiency and Environment (E5P) Regional Fund, to which Moldova participates and has access to resources worth €150 million, of which about €30 million is a grant.

The Nordic Environmental Finance Corporation was set up in 1990 by Denmark, Iceland, Norway, Finland and Sweden.