Ministry of Energy Is Set to Sign a Contract for the Construction of the Balti-Suceava Power Line

Today, at the Government House, a contract will be signed for the design and construction of the Moldovan section of the 400 kV Balti-Suceava power line, the second of three lines connecting the country to the European ENTSO-E grid. Technical studies for this project have been under discussion since 2017, but it was only the EBRD loan, ratified in April 2024, that turned the plan into a construction site. Since then, the route has gone through the public utility recognition procedure, the reallocation of €30.8 million from the substation in Vulcanesti, which became redundant following full synchronization with the European grid, and an international tender completed last autumn, reports logos-pres.md Following the signing of the document, alongside a new technical assistance agreement from the EBRD, the appointed contractor will finally commence work on the project. The €77 million investment – comprising the power transmission line, a new 400 kV substation in Balti, the modernization of the existing 330 kV substation in Moldova’s northern capital, and a component for the restoration of the power transmission network – is funded entirely from external sources, without placing any direct strain on the state budget. The funding structure is mixed, comprising three equal tranches of 40-40-20%. The total budget also includes approximately €9.5 million for land expropriation and easements, allocated as follows: compensation to landowners (€5.2 million), cadastral valuation and documentation (€1.3 million), administrative and notarial costs (€0.8 million) and a contingency fund for legal proceedings or cost adjustments (€2.2 million). Payments are made via a special treasury account, and the process must be completed within 12 months of the adoption of the Public Utilities Act. Added to this is an indirect state contribution: the exemption from customs duties, excise duties and VAT on imports, adopted in October 2024, which reduces the actual cost of the project by more than €6 million without appearing as a budget expenditure item.