The aim of the money is to increase electricity distribution capacity. According to a communiqué to the international institution mentioned above, the decision to grant the loan was approved yesterday by the World Bank Board of Directors.
A new high-voltage 400 kV line will be built from the WB money between Vulcanesti, in the south of Moldova and Chisinau. Also, the modernization and extension of substations in Chisinau and Vulcanesti are envisaged, as well as strengthening the energy transmission and metering system.
“The project will strengthen the capacity and reliability of local energy distribution in Moldova and will support the future interconnection of Moldova’s electricity system to the European electricity grid through Romania. This will be vital for the diversification of Moldova’s electricity supply, which will allow electricity to be supplied at competitive and transparent prices,” says the communiqué.
Over the last 27 years, the World Bank has granted the Republic of Moldova loans totaling over $1,000,000,000 for about 60 projects.
Currently, the World Bank portfolio includes ten active projects with a total commitment of $391.300,000. The areas of support include regulatory reform and business development, education, eGovernment, healthcare, agriculture, local roads, the environment, and others.
The commitment portfolio of the International Financial Corporation in Moldova includes five projects amounting to $17,000,000 (69% loans and 31% equity). The Multilateral Investment Guarantee Agency provided $95,000,000. Both institutions are members of the World Bank Group.
Published by “Moldova Org”