Moldova will benefit from non-reimbursable financial assistance from Germany for SME development and urban infrastructure projects. The parliamentary commission for foreign policy and European integration approved the advisory opinion on the initiation of negotiations and approval of the signing of the draft agreement with the Government of the Federal Republic of Germany, IPN reports.

It goes to financing for the “Facilitating the Development of SMEs in Moldova Project”, “Facilitating the Development of SMEs in Moldova Project, Additional Measures”, “Open Moldova Urban Development Program” and “Open Moldova Urban Development Program, Additional Measures”.

The €24.7 million worth of funding will be provided by the Credit Institute for Reconstruction (KfW). Thus, the “Facilitating the Development of SMEs in Moldova Project”, which aims to extend the offer of affordable loans for Moldovan SMEs, will benefit from financing totaling up to €10 million. Also, up to €700,000 will be offered to finance the “Facilitating the Development of SMEs in Moldova Project, Additional Measures”.

The “Open Moldova Urban Development Program”, which is aimed at rehabilitating existing infrastructure, implementing new and environmentally sustainable infrastructure in the water and sewerage sectors, as well as energy efficient infrastructure, will benefit from financing of up to €13 million. Within the program, priority will be given to water supply and sewerage projects in the north of Moldova and to an energy efficiency project in Chisinau.

Funding of up to €1 million will be provided for the “Open Moldova Urban Development Program, Additional Measures”, which aims to strengthen the agency or agencies for the execution of maintenance and economic efficiency projects within the financial cooperation.