Citizens of Balti, Moldova’s second-largest city, will benefit from more efficient district heating thanks to a new €15 million loan from the European Bank for Reconstruction and Development (EBRD) to state-owned company CET Nord JSC, IPN reports, quoting a press release of the Bank.
The EBRD will provide a €14 million loan, alongside Green Climate Fund (GCF) financing of €1 million. The loan will be complemented by a €2 million grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P) fund.
Octavian Costas, EBRD Associate Director, Senior Banker, and Andrei Spinu, Deputy Prime Minister and Minister of Infrastructure and Regional Development of Moldova, signed the agreement in the capital, Chisinau, today.
The project is a follow-on investment in Balti’s district heating system under the flagship urban sustainability program, EBRD Green Cities. It addresses the city’s key environmental challenges, including air quality and climate change, exacerbated by the underperforming energy distribution network and the low level of investment in building energy efficiency. These elements were identified in Balti’s Green City Action Plan, completed and approved by the city council in November 2021 and funded by the government of Sweden.
The investment will help alleviate legacy infrastructural issues and promote systemic decarbonisation. It will encourage a reduction in electricity imports, leading to better energy security and significant CO2 emission savings.
The €5 billion EBRD Green Cities program helps member cities identify, prioritize and tackle environmental issues by developing a tailor-made Green City Action Plan and making targeted investments to address each city’s urban challenges. Founded in 2016, it currently has 52 members. Balti joined the program in 2019.
