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EU, EIB, EBRD and World Bank to finance Moldova-Romania power link

CTBR Staff Writer Published 22 December 2017

The European Union (EU), the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and the World Bank have jointly provided €270m of finance to Moldova-Romania to construct electrical interconnection.

The finance will be used for the construction a permanent interconnection between the electrical networks of Moldova and Romania. 

EIB and EBRD will provide loans of €80m each, while the World Bank will provide a loan of €70m. The EU will provide an investment grant of €40m from its funds.

The investment will result in the construction of a new 400 kV high-voltage overhead line between Vulcanesti, in the south of Moldova, and the capital Chisinau. 

It will also cover 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.

Moldova’s public electricity utility Moldelectrica will carry out the construction of the interconnections  over three years, between 2019 and 2022.

Presently, the country is dependent on a single plant powered by natural gas, oil and coal and imports around 80% of its electricity from Ukraine. By linking with Romanian electrical network, the country is expected to enhance the stability and reliability of its electrical supply.

The project is expected pave the way towards Moldova’s integration into the European electricity grid, ENTSO-E.

Moldova Deputy Prime Minister Octavian Calmic said: “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."

Image: EU, EIB, EBRD and World Bank offer loan to Moldova. Photo: Courtesy of EIB.