Luxembourg/Chişinău, 27 June 2012
Moldova’s Prime Minister Filat visits EIB to further mutual cooperation
The Prime Minister of the Republic of Moldova Vladimir Filat visited the European Investment Bank and signed with EIB Vice-President Wilhelm Molterer a loan contract of EUR 17 million to finance the rehabilitation of Moldova’s power transmission network.
EIB Vice-President Molterer commented: “The loan signed today is a good example of cooperation between the Republic of Moldova and the EIB. I very much welcome the fact that EIB funds will support the rehabilitation of electricity infrastructure which is crucial for the further development of Moldova’s economy. With PM Filat we have discussed the results achieved and new possibilities for project financing to support the government’s priorities, mainly in the areas of energy, transport, environmental infrastructure and agribusiness.”
The EIB loan will help increase the capacity and improve the reliability of the Moldovan electricity transmission system bringing it more closely into line with to the European Network of Transmission System Operators for Electricity standards (ENTSO-E). The project includes the rehabilitation of key transmission assets, such as substations, transmission lines and transformers which have reached the end of their technical life. It consists of a large number of individual schemes geographically dispersed throughout the country.
This is the ninth EIB loan in Moldova, bringing the EIB’s lending commitment in the country to EUR 272 million. To date, the EIB has provided funds for the development of the Moldova’s transport, energy and municipal infrastructure. It has also provided in Moldova credit lines to partner financial institutions for supporting indirectly smaller projects usually implemented by small and medium-sized companies in various sectors, including the wine sector focusing on the increase of wine quality.
The EIB – the European Union’s bank – finances projects in Moldova on the basis of an EU Council and European Parliament mandate for the Eastern Partner Countries (Ukraine, Moldova, Georgia, Armenia, Azerbaijan) and Russia of EUR 3.8 billion for the period 2007-2013. The current mandate provides for the financing of projects that contribute to (1) local private sector development, in particular support for SMEs, (2) development of social and economic infrastructure, and (3) climate change mitigation and adaptation.
The EIB has also set up at its own risk the Eastern Partners Facility (EPF) for an amount of EUR 1.5 billion, with a ceiling of EUR 500 million for loans in Russia. This facility enables the EIB to provide loans to support investment grade projects that sectorwise go beyond the scope of the mandate and helps support EU investment in the region, notably by European corporates.
Dušan Ondrejička, email@example.com, tel.: +352-4379-83334