Moldova to cut energy system project funding by €3.5 million

Funding for the electricity system development project has been reduced by 3.5 million euros

The government is set to adjust the framework for implementing and financing the electricity system development project by restructuring it and partially cancelling €3.5 million in funding for components that are no longer to be built.

Dorin Junghietu

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The Minister for Energy, Dorin Junghietu, presented to the Government meeting the draft decision on the approval of the bill to ratify the amendment signed on 7 September 2026 to the financing agreements between the Republic of Moldova and the International Development Association.

According to the minister, the amendment aims to adjust the framework for the implementation and financing of the project to the activities to be carried out. Accordingly, it is proposed to partially cancel funding amounting to 3.5 million euros, relating to components that are no longer to be implemented, including those concerning IT systems for monitoring and managing the electricity system and the functioning of the electricity market.

At the same time, funding and implementation efforts will be focused on the project’s essential components, including the completion and commissioning of the 400 kV Vulcănești–Chișinău transmission line, the Chișinău substation and the Vulcănești substation.

The project has a total value of 61 million euros, of which over 42.77 million euros have already been utilised.

“No new institutions or mechanisms are required; the changes will be implemented through the existing framework for project implementation and monitoring. Approval of the amendment will enable the funding to be adapted to the project’s current status and resources to be focused on priority electricity infrastructure, helping to increase the reliability and security of the electricity supply,” said Dorin Junghietu.

The draft is to be submitted to Parliament for consideration.

It should be noted that the total value of the project is approximately 138 million euros, and the implementation period is 2020–2027. The project involves the construction of the Vulcănești–Chișinău overhead power lines, approximately 158 km long, and the Bălți–Suceava overhead power lines, 138 km long, both operating at 400 kV. The project also provides for the modernisation of the Chișinău (330 kV), Vulcănești (400 kV) and Bălți (330 kV) substations.

This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.

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