The Cabinet approved the initiation of negotiations on the financing contract between the Republic of Moldova and the European Investment Bank (EIB) for the implementation of the project “Interconnection of electric power networks between the Republic of Moldova and Romania”. Currently, the interface between Moldova and Romania consists of the Vulcanesti–Isaccea aerial power line of 400 kV and four aerial power lines of 110 kV. The Government plans to extend the power network with other such lines, IPN reports.

The EIB is to lend Moldova €80 million. The money will be used to build a back-to-back station in Vulcanesti and a transport line of 400 kV between Vulcanesti and Chisinau and to extend the transformer stations in Chisinau and Vulcanesti. Thus, the construction and development of the infrastructure needed to permanently interconnect the electric power transport networks of Moldova and Romania will be ensured.

The EIB will disburse the money in 20 installments, when progress is made in the planned works. Interest rates will be calculated for each of these installments.

The project costs €275 million. €80 million will represent financing from the EBRD. The World Bank will invest €70 million, while the EU will provide €40 million in the form of grants.