The MPs adopted a bill to ratify the framework agreement between Moldova and the Nordic Environment Finance Corporation (NEFCO) that was signed in Chisinau on June 21 this year. The document was adjusted to the objectives of the Eastern Europe Energy Efficiency and Environmental Partnership (E5P), IPN reports.
Sergiu Bucataru, secretary of state at the Ministry of Economy and Infrastructure, said in Parliament that the financing from NEFCO is comes in the form of investments, loans and guarantees intended mainly for projects that have a beneficial impact on the environment. The agreement is intended for promoting investments in energy efficiency in the public sector. This will create new opportunities for the local and municipal authorities.
The NEFCO financing will supplement the other available financial resources. NEFCO will assist in distributing the advantageous financing for appropriate investments through co-financing, together with other international financial institutions, state and private financial institutions from contracting member states and other chosen institutions.
The Nordic Environment Finance Corporation (NEFCO) is an International Financial Institution established by the Nordic Governments in 1990. NEFCO provides results-based green financing. All projects to be financed by NEFCO need to be able to demonstrate that they will benefit the environment/climate in a cost-effective way. To ensure that these benefits will in fact materialize, financing is released in tranches against monitored milestone results.
