News Column

Balti District Heating Project

May 10, 2014

Project Reference Number:46112 Project Status: Active Project Phase: Planning Project Value: 10 million.(13.75 USD) Project Location:Moldova Scope of Work: The EBRD is considering a sovereign loan of up to 7 million to the Government of Moldova. The proceeds of the loan will be used to finance a Priority Investment Programme to modernise and upgrade the district heating services in the municipality of Balti. The investment is expected to reduce coal and gas consumption, reduce CO2 emissions, help CET-Nord JSC (the Company) maintain its customer base and ensure sustainability of its services. The Programme is expected to result in significant energy efficiency improvements and water savings as a result of customer controlled heat supply, improved efficiency of generation capacity, electricity co-generation and reduced losses in the distribution network. The Project is expected to have a positive impact on Moldova s energy security and balance of trade. It will also be the first project expected to make use of the Eastern Europe Energy Efficiency and Environmental Partnership (E5P) facility. Status: Passed concept review, Pending final review Transition Impact The project will be the Bank s first district heating project in the Balti municipality and the first one outside Moldova s capital city focusing on less developed regions. The Transition Impact will primarily be derived from: (i) Demonstration effect of successful restructuring. The project, focused on energy efficiency, is expected to optimise operating costs and improve the Company s financial performance, and through demand-side investments to further reduce the use of imported fuels namely gas. A production facility will be converted to use biomass fuel which will have a positive demonstration effect on the use of new and sustainable technologies. A Corporate Development Support Programme is also envisaged to provide substantial training for key staff enabling commercial skills transfer. (ii) Framework for markets: The project will help strengthen commercial operating principles and strengthen the governance of the Company through the introduction of key performance indicators for the Company s management to promote a more consumer-oriented operating model in line with best industry practices. The project will further promote tariff reform, with the aim of achieving full cost recovery tariffs.

Project completion date : 2015-12-31 12:00:00

Major organization : MINISTRY OF FINANCE.

Address : 7 Cosmonautilor street, office 323 Chisinau, MD 2005

Country :Moldova, Republic of

Email :

Financier : European Bank for Reconstruction and Development (EBRD),

Financier address : European Bank for Reconstruction and Development (EBRD) One Exchange Square London EC2A 2JN United Kingdom Website :

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: TendersInfo (India)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters