Switzerland supported energy vulnerability reduction fund

Chisinau, Dec. 19 /MOLDPRES/- Switzerland will contribute 6.67 million dollars to the Energy Vulnerability Reduction Fund of the Republic of Moldova, through an agreement signed with the United Nations Development Program (UNDP), which will allow the Chisinau Government to offer compensation directly in the invoice in November - December 2022 for at least one hundred thousand disadvantaged households.

"Switzerland was among the first countries that offered direct financial support to the Government of the Republic of Moldova, so that the country could strengthen its capacity to cover the costs and needs related to the response to the refugee crisis. Now, Switzerland is contributing to Moldova's effort to manage the energy crisis and limit the repercussions of high bills for people," said Guido Beltrani, director of the Swiss Cooperation Office in the Republic of Moldova.

The energy vulnerability reduction fund was established by the Government of the Republic of Moldova, with the financial support of the European Union and the Government of Slovakia. UNDP supported the creation of the fund, the development of the information system, the training of social workers, the creation and operation of the call center, as well as the implementation of the information campaign dedicated to the Energy Vulnerability Reduction Fund.

"I appreciate Switzerland's significant contribution to the Energy Vulnerability Reduction Fund, which comes at a critical time and will help reduce the burden of high energy costs on the most vulnerable population, including refugees," said Dima Al-Khatib, UNDP Resident Representative to Moldova.

At the current rate of inflation, there is a high risk that a quarter of the population will end up living in poverty (less than $1.5/day), according to UNDP estimates. If fully implemented, the Energy Vulnerability Reduction Fund could prevent this risk. At the same time, according to the preliminary analysis of the UNDP, thanks to the compensation of energy bills, about 160 thousand households could get out of poverty.

Photo: UNDP