The Ministry of Finance and the World Bank Office in Moldova have signed a lending agreement between Moldova and the International Bank for Reconstruction and Development concerning the second project to improve the efficiency of the centralized heating system.

The total cost of the project is €92 million. The goal of the project is to continue the efforts to modernize the thermoelectric infrastructure of Termoelectrica, which were started as part of the project to improve the efficiency of the centralized heating system of 2015, IPN reports, quoting a press release of the Ministry of Finance.

The implementing institutions are Termoelectrica SA and the consolidated unit for the implementation and monitoring of projects in the field of energy that is managed by the Ministry of Economy and Infrastructure. The implementation deadline is December 31, 2025.

The loan is repayable in 30 years, with a grace period of five year. The interest rate is floating.

To take effect, the lending agreement is to be ratified by Parliament. The preconditions stipulated in the agreement are to be fulfilled.