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EBRD's first energy efficiency loan will reduce heat loss in Moldova's district heating network
A loan from the European Bank for Reconstruction and Development (EBRD) will help Moldova reduce heat transfer losses in its district heating network, thus reducing the country's overall fuel consumption and fuel import costs. The loan will also support reforms for the commercialisation of the Chisinau district heating utility. The loan of US$ 11.6 million and DM 17.5 million (equivalent to ECU 18.6 million), signed today in London by Andrei Sangheli, the Prime Minister of Moldova, and Jacques de Larosière, President of the EBRD, will finance the first energy efficiency initiative in Moldova.
Mr de Larosière said: "EBRD's energy efficiency loan to Moldova will reduce energy waste by rehabilitating the rundown district heating system. This is the first project for the EBRD to tackle the energy efficiency problem in the district heating sector. By installing equipment such as meters and pumps, heat loss will be greatly reduced during transmission and distribution. This will enable Moldova to reduce its fuel import bill by ECU 4 million by 1998."
The EBRD loan will be made to S.A. Termocom, the district heating company in Chisinau. In general, losses in the district are as much as 58 per cent in the winter and 80 per cent in the summer months resulting mainly from inefficient boilers and substations, and poorly insulated transport and distribution piping. The project consists of providing equipment to correct the existing deficiencies in the network and strengthening Termocom's financial management and performance so that it can operate as a corporate entity.
Moldova is virtually entirely dependent on energy imports, of which district heating accounts for about 15 per cent. Reduction of fuel imports can therefore contribute significantly to the country's balance of payments and the Government's stabilisation programme.
This is the EBRD's second signed project in Moldova. The first loan of ECU 24.5 million is to Vininvest to improve the quality and packaging of Moldovan wines.
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