Moldova signs agreements with two top European banks on interconnection of electricity networks with Romania

Chisinau, 20 December /MOLDPRES/ - Moldova today signed agreements with the European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) on the financing of the interconnection of the Moldovan electricity networks with Romania. EBRD and EIB will provide loans worth 80 million euros in all.

‘’This is a historical moment for us, when we start a new project with the support of international financial institutions, of an investment in energy interconnection between Moldova and the European Union. This is an energy megaproject, meant to enhance Moldova’s energy security and give a real alternative to the present electric energy system based on the Soviet one,’’ Economics and Infrastructure Minister Octavian Calmic said.    

EU’s Representative in Moldova Peter Michalko described the project as ‘’major,’’ as it connects Moldova to the European Union’s power market. ‘’This is an example of excellent cooperation between the European Union, EBRD, EIB and the World Bank as to the materialization of a concrete project, which will bring a change for Moldova’s citizens,’’ the diplomat said. He noted that ‘’this project will provide Moldova with energy security and, at the same time, will lead to the improvement of the power market’s competitiveness.’’

The contracts provide for the construction and development of the infrastructure needed for the permanent interconnection of the power transportation networks from Romania and Moldova. The money will be used for the construction of a back-to-back station in Vulcanesti, a 400KV transport line between Vulcanesti and Chisinau, as well as for the extension of the Chisinau-based transformer station.  

During the next year, the financing contracts are to undergo the procedures of ratification and the implementation is to start. This means, in the first phase, the designing of this interconnection line, which has two aspects: overhead power line, as well as the back-to-back substation.

The overall cost of the project is estimated at 270 million euros. Moldova is also to sign agreements on loan with the World Bank worth 70 million euros and a grant agreement EU Neighbourhood Investment Facility (EU NIF) worth 40 million euros, which was agreed upon.   

(Reporter V. Bercu, editor A. Raileanu)