A loan of 143.5 million euros is intended for the modernization of Chisinau’s district heating network. Another loan for 101 million euros will be spent on the construction of a medical center for the residents of Cahul and neighboring districts in southern Moldova.
A press release from the EU Delegation to Moldova notes that the largest heat supplier Termoelectrica S.A. will implement the district heating project, which includes replacing outdated vertical systems in apartment buildings with horizontal pipelines, installing individual substations and improving the distribution networks of buildings.
These steps are expected to reduce energy consumption by 25%, lower heating bills and reduce greenhouse gas emissions by 7% over the next two decades.
The Moldovan Ministry of Health will be responsible for the construction of the new hospital in Cahul. The medical facility will become a regional center to serve about 300,000 people in southern Moldova, including the districts of Comrat, Leova, Ceadir-Lunga, Taraclia, Cantemir and Vulcanesti.
The centralized heating works in Chisinau, home to about 750,000 people, should be completed within seven years. The project will also reduce heating costs for consumers, improve access to hot water for homes connected to the network, and help reduce pollution and emissions.
The hospital in Kahul is scheduled to be completed by 2030.
Both EIB Global loans are complemented by financing from other sources. The district heating project is co-financed by the EBRD and grants from the EU and the multi-donor fund Eastern Europe Energy Efficiency and Environment Partnership (E5P).
The hospital project receives technical assistance from EU contributions, the EIB initiative called the Eastern Partnership Technical Assistance Trust Fund (EPTATF), the Swedish financial institution Swedfund and the EU’s own Advisory Program for Ukraine.
