The district of Leova will create a service for supplying the public institutions with heat based on biomass within a public-private partnership project implemented with European funds. The partnership launch agreement was signed on December 18, IPN reports.

The head of Leova district Eufrosinia Gretu said that five biomass heating stations had been built within another project, while the 16 new stations will help extend the district’s heating system. Under the public-private partnership agreement, the economic entity that will be selected by the Leova District Council will construct the 16 heating stations that will supply heat to the district’s kindergartens and schools that are attended by about 3,000 children.

The heating stations will be the property of the Leova District Council, but will be managed by the economic entity during 11 years. The heat tariff is set by the company, in accordance with the regulations of the National Agency for Energy Regulation.

The public-private partnership is launched with the support of the EU – UNDP Energy and Biomass Project. The investments in the partnership wall total €100,000, while the selected company will have to contribute minim 6 million lei.

UNDP Deputy Resident Representative in Moldova Narine Sahakyan said it is the first large-scale project of the kind, supported financially by UNDP in Moldova, which aims not only to supply heat, but also to create new workplaces and to develop the thermoelectric infrastructure. ”I’m convinced that this example will serve as a replication model for other districts,” said Narine Sahakyan.

The Moldova Energy and Biomass Project is a four- year project implemented during 2011-2014. The total project budget is €14.56 million, granted by the European Union (€14 million) and UNDP Moldova (€560,000).