World Bank to provide Moldova with grant for Transparent Energy Market project

Chisinau, 17 October /MOLDPRES/ - The International Development Association (IDA), part of the World Bank Group, will provide Moldova with non-refundable financing worth 410,000 dollars, to carry out preparatory measures for the implementation of the project on electric inter-connection with Romania. The cabinet of ministers today approved a decision on starting negotiations and approving the signing of the agreement on grant to carry out the Transparent Energy Market project.  

The grant will be used for preparing a feasibility study in the perspective of working out a technical project for internal strengthening of the system of transport and developing the capacities of the state enterprise Moldelectrica.   

The up-to-dateness of the agreement is determined to the need to implement the project on inter-connection of Moldova’s energy system to the one of Romania. This will allow setting up a transparent and competitive electric energy market in Moldova and integrating it into the regional electric energy market of EU, the Economics and Infrastructure Ministry has said.  

IDA’s assistance project proposed for implementation fits one of the priority directions of development, provided for in the energy strategy of Moldova till 2030 and is part of a new World Bank’s Country Partnership Framework for Moldova.  

The overall cost of the inter-connection project is 270 million euros, which consists of two conversion modules of back-to-back configuration with a total capacity of 600 MW, placed in the southern Vulcanesti town, and an electric energy transportation line of 400 KV between the electric stations from Vulcanesti and Chisinau, including the extension of the 400-KV station from Vulcanesti and modernization of the 330-KV station from Chisinau. Preliminarily, decision-makers agreed that that World Bank will finance the internal consolidation: extension of the Vulcanesti station, modernization of the Chisinau-based station and construction of an overhead power line of 400 KV Vulcanesti – Chisinau and the construction of the Vulcanesti station will be co-financed by the European Bank for Reconstruction and Development, European Investment Bank and European Union.   

Thus, to carry out preparatory measures for the implementation of the electric interconnection project, based on which the World Bank is to provide a loan in dollars, the value of which will not exceed the equivalent of 70 million euros, IDA will provide the grant worth 410,000 dollars.

(Reporter V. Bercu, editor A. Raileanu)