Technical studies for this project had been under discussion since 2017, but it was only the EBRD loan, ratified in April 2024, that turned the plan into a construction site. Since then, the project has gone through the public utility recognition process, involving the reallocation of 30.8 million euros from the substation in Vulcanesti—which became unnecessary after full synchronization with the European grid— and an international tender completed last fall.
Following the signing of the document, along with a new technical assistance agreement from the EBRD, the selected contractor will finally begin work on the project.
What exactly will be signed
The event, which will take place at 1:00 p.m., will combine two separate documents, both related to the umbrella project “Interconnection of the Electricity Grids of the Republic of Moldova and Romania, Phase II.”
The first is a contract for the design and construction of the Moldovan section of the 400 kV Bălți–Suceava overhead power line — the result of an international tender announced by the state-owned enterprise “Moldelectrica” on the EBRD’s procurement platform, which was conducted from July 31 to September 15, 2025, in accordance with the bank’s procurement rules and the EIB’s technical report. The exact identity of the winning bidder and the final contract value will be confirmed upon signing.
The second document is a separate grant agreement concluded between the Ministry of Energy, “Moldelectrica,” and the EBRD for the technical assistance required to implement the entire Phase II—funded by the EBRD Shareholders’ Special Fund (EBRD-SSF) and the Sustainable Infrastructure Fund. This is a separate component, unrelated to the €15.4 million grant already signed in February 2025 for the actual construction: it generally covers the costs of supervision, technical consulting, and updating environmental documentation, which have driven the project forward over the past year—from the revision of the environmental agreement requested by “Moldelectrica” in July 2025 to optimize the route, to the coordination of tender documentation with the two funding organizations.
Financial Structure
Investments totaling 77 million euros—including the power transmission line, a new 400 kV substation in Bălți, the modernization of the existing 330 kV substation in Moldova’s northern capital, and a component for the restoration of the power transmission grid—are funded entirely from external sources, without placing any direct burden on the state budget. The structure is mixed, divided into three equal tranches of 40-40-20%.
The total budget also includes approximately 9.5 million euros for land expropriation and easements, which are allocated as follows: compensation to landowners (5.2 million euros), cadastral valuation and documentation (1.3 million euros), administrative and notary fees (0.8 million euros), and a reserve fund for litigation or cost adjustments (2.2 million euros).
Payments are made through a special treasury account, and the process must be completed within 12 months of the adoption of the law on public utilities. Added to this is an indirect government contribution: an exemption from customs duties, excise taxes, and VAT on imports, adopted in October 2024, which reduces the actual cost of the project by more than 6 million euros without appearing as a budget expenditure item.
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