The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), European Union (EU) and the World Bank are providing a €270 million package to finance a permanent interconnection between the electrical networks of Moldova and Romania. The package includes EIB and EBRD loans of EUR 80m each, a EUR 70m loan from the World Bank and a EUR 40m investment grant from EU funds. Funding agreements to this effect were signed today in Chisinau.
The investment covers the construction of a new 400 kV high-voltage overhead line between Vulcanesti, in the south of Moldova, and the capital Chisinau, the upgrading and expansion of the substations in Chisinau and Vulcanesti and the construction of a 600 MW back-to-back converter substation in Vulcanesti.
The interconnections will be built by Moldova’s public electricity utility Moldelectrica over three years, between 2019 and 2022.
“The implementation of investment projects to develop the electricity interconnection between Moldova and Romania is a strategic objective aimed at achieving a more efficient and competitive energy system that will ensure the country’s energy security, the modernisation of existing energy infrastructure and integration into the EU energy market. Not only will this project provide a higher level of energy security, it will also contribute to competitive prices on the domestic electricity market, permanent access to the regional electricity market and, as a result, an energy price that is less burdensome for consumers”, stated the outgoing Economy Minister Octavian Calmic.
“The partnership between the EU, the EBRD, the EIB and the World Bank in support of this project will increase competitiveness on the energy market for the benefit of the citizens of the Republic of Moldova”, said EU Ambassador to Moldova Peter Michalko.
The projects will be launched as soon as ratification procedures for the funding agreements are completed.