Moldova Plans to Take Loans from EBRD and EIB

Home / Economy / Moldova Plans to Take Loans from EBRD and EIB
The Republic of Moldova intends to take a loan of 30 million euros from the European Investment Bank (EIB) and another loan of the same amount from the European Bank for Reconstruction and Development (EBRD). Moldova also expects to receive a grant of 15 million euros, provided by the European Commission's Neighborhood Investment Platform to implement an energy efficiency project. The Ministry of Infrastructure and Regional Development (MIRD) has proposed a draft government decree on initiating negotiations on financing agreements for public consultation, reports. The main category of beneficiaries of the energy efficiency project will be government institutions - social institutions such as republican hospitals, as well as kindergartens, schools, municipal and district hospitals. “As a result of the implementation of the project, citizens will have access to quality services in better conditions, given that the main categories of buildings to be rehabilitated are social. Thus, just by rehabilitating the hospital facilities included in the project's shortlist, about 250,000 patients will receive better services every year (given that energy efficiency interventions in buildings imply providing thermal comfort in them),” the authors of the draft clarify. The project envisages the improvement/rehabilitation of building walls, heating, ventilation and air conditioning systems, the introduction of lighting systems, heat distribution and the integration of renewable energy sources where technical conditions permit. “In addition, the interior comfort of buildings will be improved, CO2 emissions will be reduced, which will mitigate the impact on climate change. ” According to the preliminary feasibility study developed by MIRD, the simple payback period of the loan is 15.3 years. The duration of the return on investment in terms of monetizing all the benefits provided by energy efficiency projects (increasing disposable income, reducing drug costs, improving tax and budgetary payments due to the project, increasing the value of real estate and the service life of buildings) is 3.7-4.1 years. The total project budget is 75 million euros with a four-year implementation period (2022 - 2025).