EU, EIB, EBRD and World Bank finance Republic of Moldova-Romania power linkStaff Writer | December 20, 2017
The European Union (EU), the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and the World Bank are providing a EUR 270m package to finance a permanent interconnection between the electrical networks of Moldova and Romania.
Europe The interconnection of critical importance
The link to the Romanian electrical network will considerably enhance the stability and reliability of its power supply - a prerequisite for the country’s economic development.
Diversification of electricity resources will open up Moldova’s electricity market to increased competition, with the enhanced access to the European market generating economic benefits for both companies and citizens.
The project will ultimately pave the way towards Moldova’s integration into the European electricity grid, ENTSO-E.
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.
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. ■