Signing of the Grant Agreement – Balti District Heating Project
Date : 01-04-2016
E5P Grant Agreement between Republic of Moldova, Cet-Nord JSC and EBRD in its capacity as Fund Manager to E5P was signed on Friday, 1st April 2016, in connection with the Balti District Heating Project. The project includes a loan amount of EUR 7 million and an E5P grant of EUR 3 million. The grant will co-finance the overall project in order to improve district heating services, reduce consumption of natural gas as well as invest in an increase of biomass use. The E5P grant is mainly allocated to Individual Heating Stations (HIS) and will as such directly benefit consumers and pave the way for changing consumption behaviour patterns. It also provides investment in biomass which has great potential for the heating sector in Moldova. The Balti DH Project is the first E5P project in Moldova and is expected to lead to substantial gas utilisation (8.7 Nm3 pa ) and introduction of the use of biomass at the same time as coal is discontinued as a source. The CO2 reduction is expected to be appr 20,000 tonnes p a and the project will benefit appr 70% of the inhabitants in Balti, the second city of Moldova.
The E5P Grant Agreement was signed by the Deputy Prime Minister, Minister of Economy Octavian Calmîc, Deputy Director of Municipal and Environmental Infrastructure Department at EBRD, Lin O’Grady, E5P Fund Manager, Anders Lund, and Director of “Cet-Nord” JSC, Ion Galagan. The signing ceremony was attended by representatives from Ministry of Economy, main contributors to E5P Moldova including EU Delegation, Sweden and Romania.