The Parliament ratified today the loan agreement between the Republic of Moldova and the European Bank for Reconstruction and Development (EBRD) on the realization of the project "Interconnection of electricity networks between the Republic of Moldova and Romania, phase II".

The project foresees the construction of the 400kV overhead power line, which will interconnect the municipality of Balti in the Republic of Moldova and the municipality of Suceava in Romania. The Balti-Suceava power line will strengthen the country's energy security, contribute to the integration of the national grid into the European Union market through connections with the European ENTSO-E grid, improve the stability and reliability of the power system, and bring new opportunities for the development of renewable energy sources. The Balti 400 kV substation will also be rebuilt.

The loan agreement, signed in March by Energy Minister Victor Parlicov and EBRD Country Director for Moldova Catarina Bjorlin Hansen, allows access to a loan of €30.8 million, about 40% of the total project value. The loan will be granted for a period of 18 years, with a 4-year grace period. A further €30.8 million will be allocated by the European Investment Bank (EIB), on the basis of a reallocation decision from the previously contracted Loan Agreement, for the implementation of the first phase of the project.

The Republic of Moldova will also benefit from a grant of €15.4 million allocated by the European Union through the Neighborhood Investment Platform.

The project "Interconnection of electricity networks between the Republic of Moldova and Romania, phase II" has a budget of €77 million.