Prime Minister of the Republic of Moldova Dorin Recean
As the head of the Cabinet of Ministers noted, these funds are intended for investments in two key areas – the Energy Package and the Economic Development Package. The money will be included in the state budget for 2025 during its adjustment.
In particular, the Energy Package provides for compensations in electricity bills for the first 110 kWh; cash compensations for heating; support for agro-industrial enterprises; financial assistance to local authorities for hospitals, kindergartens, schools and other social institutions; improvement of energy efficiency; additional assistance to families for Easter.
At the same time, the Economic Development Package provides for strategic investments in projects that contribute to economic growth. In particular, the budget will envisage an additional 1 billion lei for the repair of local roads in 100 localities, implementation of 230 regional and local projects across the country, improvement of courtyards in Chisinau and modernization of agricultural markets in Edinet, Balti, Ungheni, Comrat and Cahul.
Also, 1 billion lei will be allocated to repair 200 kilometers of regional and district roads. At the same time, 200 million lei will be allocated for schools to modernize canteens, in order to ensure free meals in gymnasiums starting from 1 September.
Another 200 million lei will be allocated to 700 entrepreneurs, in order to help them invest and create new jobs. The same amount will be allocated for agricultural producers.
At the same time, an additional 60 million lei will be allocated for young specialists, which means that their salary at their first job in Moldova will increase by another 3,000 lei. Another 100 million lei will be allocated for important environmental projects, including for 130 localities, which will be able to buy equipment for waste collection.
85 million lei will be allocated to repair the access roads from Cantemir to the Falciu railroad bridge and to restore the railroad section in Valeni. This will make it possible to resume freight traffic on the Giurgiulesti-Cahul-Chisinau route, which will increase the trade turnover by 300,000 tons a year.
“This budget package was made possible thanks to unprecedented support from European countries and the EU. It is the EU grant aid that allows us to provide significant compensations for electricity and heating,” Dorin Recean said.
The money for the implementation of the PLUS Budget is allocated by the EU, and half of them are grants. The prime minister said that the EU provides this assistance to Moldova in order to modernize the economy, to launch as soon as possible and to implement the planned investment projects, which are to be implemented by the end of this year.
At the beginning of March, the European Parliament approved a growth plan for Moldova, financed with 1.9 billion euros. This is the largest allocation of funds by the EU since independence and will support Moldova in 2025-2027.
The EU is expected to provide up to €385 million in grants and €1.5 billion in loans. These loans will be concessional, with long repayment periods and favorable interest rates. Disbursements will be subject to strict conditions in terms of achieving the reforms set out in the agreed Reform Program. The funds will be disbursed twice a year, based on requests from the Moldovan government and after verification by the European Commission that all relevant conditions set out in the Reform Program have been met.
