Chisinau's heating utility and cogeneration plants will merge

The Government is launching an ample project to reorganize the cogeneration complex in Chisinau municipality by merging the heating utility Termocom together with the cogeneration plants CET-1 and CET-2, Info-Prim Neo reports. A resolution on the corporate, institutional and financial reorganization of the centralized heat supply system in Chisinau was adopted at the Government's meeting on Friday, November 25. The resolution includes the reorganization concept and an action plan. Economy Minister Valeriu Lazar informed the Government that Termocom's equipment and networks were 80% worn out and its internal loss represented 22%. “Historical debts owed by Termocom until 2002 and currently frozen amount to over 1 billion lei. Over 2002-2009, the company accumulated further debts of over 1.5 billion lei, chiefly due to the failure to timely adjust heating rates”, said the minister. Asked whether this merger would make bills cheaper, Lazar said that for the effects of the reorganization to be felt it was necessary to take a host of measures, some short-term and some long-term. “First of all, it is important to pay off debts so that we can attract investors. The rest, including higher quality of services and cheaper bills, will come with time”. Valeriu Lazar further said that it was agreed that, while being among the shareholders, neither the Government, in particular the Ministry of Economy, nor the Chisinau Municipality would interfere in the operations of the merged utility. Energy Agency director Victor Parlicov, however, said he doubted the merger could lead to the reduction of heating bills.