Millions of Lei will be saved by the Moldovan companies which obtained loans and grants under the MoSEFF programme

Press Release 12.05.2011

Millions of Lei will be saved by the Moldovan companies which obtained loans and grants under the MoSEFF programme

In February 2010, the European Bank on Reconstruction and Development (EBRD) has launched the Moldovan Sustainable Energy Financing Facility (MoSEFF). Its main objective is financing of the private companies modernization for reducing energy cost and improving competitiveness of their production. The EBRD credit line provides 20 million Euros for such projects.

At present, the Moldovan companies are using 3 times more energy in average to produce the same output as companies in the EU. The cost of energy resources imported to Moldova is approaching to the European prices and has a tendency to permanent increase which reduces the competitiveness of the Moldovan production at both the internal and external markets.  Moldovan enterprises have difficulties to upgrade the outdated and inefficient equipment due to lack of capital after economic crisis and limitations in obtaining credits. That is why this kind of loans attracts their special interest.

During one year only, about 60 Moldovan companies intending to replace the outdated energy-consuming equipment by the modern energy efficient one, and to reduce the energy and production cost, have applied to this Programme. They were representing furniture manufacturing companies, food and wood-processing industries as well as construction, agro-industrial, IT and other sectors of industry. About 18 enterprises have already obtained loans that supported the implementation of approximately 35 projects. About 12 small and medium-size projects have already been completed in 2010 and early 2011. The amount of loans varies from a few thousands to 2 million Euros. The MoSEFF team has approved the loans for about 8 mln EUR and grants of about 1.26 mln EUR. The approved projects may result in energy savings of about 102,000 MWh of primary energy and 27,400 tons of CO₂. A ussual payback period for investments under MoSEFF is 3-7 years. Some project are able to recover the invested capital even in less than 2 years.

Among the companies, which already received loans under MoSEFF, are Covoare-Ungheni, Orhei-Vit, Moldagrotehnica, Ungheni-Vin, Stejaur, Coloteia, etc. After an independent audit of the completed projects performed by the Austrian Company ALLPLAN, such companies can receive grants amounting to 10%-20% of the MoSEFF loan. The actual percentage of grant depends on the volume of energy savings and CO₂ emissions reduction of a project.

Loans under the EBRD Financing Facility are issued through 3 partner banks of MoSEFF –

Moldova-Agroindbank, Moldindconbank and Banca Comercială Română. Free technical assistance and energy consulting to the companies is provided by the German Consulting Company Fichtner in cooperation with local experts. Co-financing for energy audits and detailed planning is possible within the ТАМ/BAS Programme of EBRD in Moldova.

Moldovan enterprises can apply for loans under MoSEFF for energy efficiency projects till September  2011.

Information about the Case Studies in Moldova and other countries is provided by the MoSEFF Website – www.moseff.org.

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