• Moldova Negotiated with the World Bank a €92 Million Loan to Modernize the Chișinău’s Heating Company

    Moldova Negotiated with the World Bank a €92 Million Loan to Modernize the Chișinău’s Heating Company
    31 May 2020 | 16:19

    Moldova’s government negotiated a €92 million loan with the World Bank to improve the efficiency of Termoelectrica, Chisinau’s heating company. The loan agreement will enter into force after all the necessary procedures have been completed, including signing and ratification.

    On May 26, the representatives of the Ministry of Finance, Ministry of Economy, Termoelectrica company, and the World Bank negotiated the draft Loan Agreement between Moldova and the International Bank for Reconstruction and Development (IBRD) on the second project to improve the efficiency of centralized power system with thermal energy.

    The total cost of the project to be financed from the IBRD’s credit resources is €92 million, which aims to continue the efforts to modernize Termoelectrica’s thermal energy infrastructure, started within the Moldova District Heating Efficiency Improvement Project from 2015.

    The beneficiary of the Project is the Termoelectrica company. The project supports investments in the central heating system infrastructure and the capacity of the Termoelectrica, thus increasing the operational and financial viability, efficiency, and sustainability of the enterprise. 

    The project will achieve these objectives by addressing the issue of obsolete equipment, thus increasing the efficiency and reliability of sources.

    At the same time, the final beneficiary of the Project represents the population of Chișinău, living in blocks of flats and connected houses or to be connected to the central heating system and/or public and administrative buildings, including kindergartens, schools, and hospitals, as well as industrial and commercial buildings. People will benefit from improved reliability of heat supply, a better quality of district heating services, better control of heat consumption, and a higher level of comfort. Improved district heating services will benefit in particular: (a) low-income households that cannot otherwise afford a quality district heating service; (b) women who work or stay at home more often than men; (c) the elderly and (d) children and staff employed in kindergartens, schools, other educational institutions, and medical institutions.

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