In connection with the request to adjust the water tariffs, the public utility “Apa Canal-Chisinau” (ACC) specifies that two lending agreements to finance a broad investment program, to the value of €64.8 million, have been earlier signed with the EBRD and EIB. One of the main contract conditions is for the operator to submit new water supply and sewerage charges to the national energy regulator (ANRE) for approval, IPN reports.
In a communique, the ACC says that in order to monitor how “Apa Canal-Chisinau” fulfills this contract clause, representatives of the EBRD paid a working visit to the company on July 14. These warned about the possible consequences of the non-implementation of the clauses concerning the tariffs. If the tariffs are not adjusted, the loans will stop being disbursed and non-disbursement commissions will be charged. These costs will further worsen the financial situation of the company. If the lending conditions are broken and a decision is taken to terminate the international lending agreements, the Moldovan side will have to pay back the grants used for consultancy and the costs incurred by the EBRD and EIB for legal assistance and services.
Besides, the non-adjustment of tariffs in the shortest period of time will make the operator unable to fulfill its obligations to the suppliers and employees. This will affect the functioning of the municipal water supply and sewerage system.
On July 13, “Apa Canal-Chisinau” SA filed an application to the ANRE, asking reviewing the water tariffs. The last time these tariffs were adjusted in 2009. In the period, the cumulative inflation was 46%, while the electricity tariffs and the tariffs on other energy resources as well as the prices of pipes and equipment were repeatedly increased.
