WB will provide an additional $10m for Energy II Project

The World Bank will allocate 10 million dollars to Moldova in addition to the about 37 million dollars (25 special drawing rights) provided under the loan agreement signed with the International Development Association for financing the implementation of the Second Energy Project. On November 19, the Government approved the composition of the group that will negotiate the additional financing and empowered the Deputy Minister of Economy and Trade Tudor Copaci to sign the new agreement, Info-Prim Neo reports. The Second Energy Project has two major components - electricity system upgrade and heat supply and efficiency improvement. The project aims to improve the security and reliability of the electricity transmission system, create conditions for Moldova to play an important role on the regional and world power markets and offer the possibility of participating in the Union for the Coordination of Transmission of Electricity (UCTE). It also aims to improve the ability, quality, and efficiency of the heating sector, based on decentralization and efficient use of primary resources. The additional financing of 10 million dollars is designed for the heat supply component and is intended to strengthen the results achieved in the area during April 2006 – October 2008. Over 30 autonomous heating stations have been built during this period at hospitals, schools and other public institutions in Moldova’s districts. The heating system of the National Clinical Hospital was modernized. As a result, the heat and hot water supply costs at these institutions decreased and the treatment and education conditions improved. Together with Swedish experts, the Moldovan specialists selected 21 social facilities in different districts of the country, whose heating systems will be modernized from the additional financing. The Second Energy Project is one of the largest projects implemented in Moldova with the financial assistance of the World Bank. The additional financing for implementing the Second Energy Project is envisioned in the new World Bank Country Partnership Strategy for Moldova for 2009 – 2012, which is to be approved by the WB Board of Directors early next year. Some of the projects stipulated in the new strategy are already under implementation.