The Cabinet approved the initiation of negotiations and the signing of the Grant Agreement for implementing the Transparent Energy Market Project between the Government of the Republic of Moldova and the International Bank for Reconstruction and Development that forms part of the World Bank Group, IPN reports.

“The agreement is topical given the necessity of preparing for the implementation of the project to interconnect the energy system of the Republic of Moldova with that of Romania, which will enable to create a transparent and competitive electrical energy market in the Republic of Moldova and to integrate it into the regional electrical energy market of the European Union,” Minister of Economy and Infrastructure Kiril Gaburici stated when presenting the draft agreement.

The total cost of the interconnection project is €270 million. The building of the Back to Back station in Vulcănești will be co-financed by the European Bank for Reconstruction and Development, the European Investment Bank and the European Union. The World Bank will finance the extension of the station in Vulcănești, the modernization of the station in Chisinau and the construction of the 400 kV Vulcănești-Chisinau aerial power line by providing a loan.

Also, the World Bank will offer US$ 410,000 worth of grants for taking measures to prepare the implementation of the electrical interconnection project. The grant will be divided into three main parts: for conducting a detailed feasibility study (US$ 351,000), for developing the capacities of IS Moldelectrica (US$41,000) and for grant management and audit (US$ 18,000).