In a joint effort to strengthen Moldova’s energy security, the European Union (EU), the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) are providing a EUR 92 million financing package for the construction of a natural gas pipeline from Romania to Chişinău.
The EIB and the EBRD are each lending EUR 41 million and the EU is providing a EUR 10 million grant. The funds will be extended to Î.S. Vestmoldtransgaz, a state-owned company which will build and operate the gas pipeline and the Romania – Moldova interconnector.
The project will complete the connection of the gas transmission systems of Romania and Republic Moldova by linking Chişinău, a major area of gas consumption in the country, to the interconnector between the eastern Romanian city of Iaşi and Ungheni, a Moldovan town on the Romanian border. It was built in 2014 to enable Republic of Moldova – a country which is more than 90 per cent dependent on energy imports – to diversify its energy sources. The EU provided a EUR 7 million grant for the interconnector.
As part of the new financing package, the Moldovan government has agreed to implement a comprehensive reform package to promote the liberalisation of the energy market and strengthen competition in the sector.