The heat production, distribution and supply facilities of SA “Termocom” will be transmitted to SA CET-2 based on a sale-purchase contract. This will happen when the 10-day period that will be given to the local public authorities expires. The local authorities will enjoy advantages when the given contract is signed. The Government assumed political responsibility before Parliament for this bill. The list of transferred property will be approved by the Creditors’ Committee, while its sale-purchase price will be equal to its market value, IPN reports.

Deputy Minister of Economy Octavian Calmac said the classical procedure for merging CET-1, CET-2 and  SA Termocom, which was proposed by the Ministry of Economy and approved by the Government on November 18, 2013, was challenged in court. That’s why the Ministry identified a new method given the stringent necessity of restructuring and modernizing the centralized heating system of Chisinau municipality. The World Bank promised to provide a loan of US$40 million to Moldova for the purpose.

Since March 2014, SA “Termocom” has been in the process of insolvency by liquidation. Earlier, it had been in the process of insolvency by plan procedure, which envisioned the restructuring and improvement of the company’s financial situation. When the property is transferred, the debts of 1.850 billion lei of SA “Termocom” to CET-2 will be liquidated, CET-2 being the largest creditor of SA Termocom.

The property will be transmitted without imposing VAT and the state tax. Payments for notarial authentication and registration of the sale-purchase contracts assessed at 400 million lei will also not be made. The transfer is to be completed by the end of this October or, more exactly, by the beginning of the heating season. The World Bank will provide the loan if the reorganization of the mentioned companies closes in 2014. In May, the Cabinet adopted a decision concerning the absorption of CET-1 by CET-2.