The Cabinet on July 11 approved the draft laws on the ratifications of the lending agreements with the European Bank for Reconstruction and Development and the European Investment Bank for the interconnection of the electric power networks of Moldova and Romania. The EBRD and EIB provide by a loan of €80 million each, IPN reports.

The project includes the construction, equipment and placing into operation of the electricity interconnections between Moldova and Romania, which consist of a Back-to-Back station in Vulcanesti, a 400kV power transportation line between Vulcanesti and Chisinau, the extension of the station in Chisinau and of the station in Vulcanesti, of 400kV.

The initiative was put forward by the Ministry of Economy and Infrastructure and is in strict compliance with the measures stipulated in the 2030 Energy Strategy and the commitments assumed by Moldova within the Energy Community.

“The project will help to increase the security level and to ensure favorable prices on the national electric power market, to have permanent access to the regional power market and, consequently, to have a final power price that will be less burdensome for the consumers,” said Minister of Economy and Infrastructure Kiril Gaburici, adding the project will enable to choose the power purchase source, from the East or from the West, without constraints.

The total cost of the project “Construction, equipment and placing into operation of the electricity interconnections between the Republic of Moldova and Romania” is €270 million. The amount includes the loans from the EBRD and EIB, €70 million in financing from the World Bank and a grant of €40 million from the EU.