Chisinau can miss the chance of rehabilitating the local wastewater treatment station if the condition to adjust the tariffs imposed by the EBRD and EIB is not met. Recently, the EBRD published an invitation for a new international tender contest for rehabilitating the Chisinau wastewater treatment station and building a new mud treatment line. This is the eighth tender contest within the Priority Investments Program that is financed by the EBRD and EIB. As a result of this, the works to modernize the treatment stations will be ultimately launched, IPN reports.
According to a press release of SA “Apa-Canal Chisinau” (ACC), the tender contest envisions the execution of a series of rehabilitation works by the winning company, related to the detailed designing. This is to also deliver and install new mechanical and electrical equipment for the wastewater treatment station and the equipment for the new mud treatment line. There will also be rehabilitated the buildings that will house the new mud treatment installations and tested all the delivered new equipment. The personnel of ACC will be trained to use and maintain the installed equipment. The deadline for submissions is August 9, 11am. The winning companies must complete the works within 900 calendar days, as stipulated in the contract.
ACC says the rehabilitation works could be blocked or even annulled. “Ultimately, after years of expectation, when the optimal solution to a long-term problem appeared, this can remain unsolved, if the last conditions stipulated in the international contracts is not satisfied. This condition is to adjust the public water supply and sewerage tariffs so that they enable to cover all the costs incurred,” it is said in the press release.
For this reason, the external donors blocked the disbursement of money, while SA “Apa-Canal Chisinau” already sustains penalties because the National Agency for Energy Regulation (NAER) does not fulfill its legal obligations. “The risk of fully missing the €48 million investment and the grant of €13.8 million is huge,” said ACC.
In July 2015, “Apa-Canal Chisinau” filed an application to the NAER, asking this to adjust the tariffs in accordance with Law No. 303 concerning the public water supply and sewerage service, but the adjustment didn’t take place. The legislation does not stipulate time limits for examining and approving the given tariffs.
In this connection, the public utility reminds that the financing agreement to the value of €61.8 million was signed in 2013. It envisions the implementation of a broad investment program to rehabilitate 190 km of water pipes, 3,270 water mains and about 15 km of sewer pipes, to modernize the wastewater treatment station, to repair the pumping stations, treatment installations and drinking water reservoirs, etc.
ACC also said that the public water supply and sewerage system is old. It is over 70% worn out and needs to be urgently rehabilitated. The delay in adjusting the tariffs will stop the process of modernizing the station and the end-users will be thus affected.
