The Cabinet approved the initiation of negotiations and the signing of Addendum No.1 to the financing agreement between the Moldovan Government and the European Union concerning the rehabilitation of the electric transport networks of the state-run company IS “Moldelectrica”, which was signed in Chisinau on December 17, 2012, IPN reports.

By this agreement, the European Union, represented by the European Commission, commits itself to providing €8 million in the form of a grant for implementing the project to rehabilitate the electric transport networks of IS “Moldelectrica”, through the Neighborhood Investment Fund. The addendum specifies some aspects of the agreement, extending simultaneously the project implementation period from 54 to 66 months.

The grant provided by the EU was divided into two: €6 million for project works and €82 million in technical assistance. IS “Moldelectrică” was offered the first tranche of €3 million. A condition for disbursing the second tranche is to carry out 80% of the works planned with the first tranche. The company executed 30% of these works and the second tranche hasn’t been yet transferred by the European Commission.