At today's sitting, the Government approved the ratification of the loan agreement with the European Bank for Reconstruction and Development (EBRD) on the construction of the Balti-Suceava 400 kV overhead power line, realized within the framework of the project "Interconnection of electricity networks between the Republic of Moldova and Romania, Phase II".

In addition to the new overhead power line between the Republic of Moldova and Romania, with a nominal voltage of 400 kV, which will interconnect the Balti and Suceava substations, the Balti 400 kV substation will be extended.

The document also includes an Action Plan, aimed at reforming the energy sector, which covers both aspects of updating the legal framework and aspects of the operationalization of the electricity market, including the establishment of the Electricity Market Operator.

Under the agreement, a loan of EUR 30.8 million will be contracted, representing 40% co-financing of the Project. Another €30.8 million is to be contracted through the European Investment Bank under a Loan Agreement. The project also includes a grant component of €15.4 million to be provided by the European Union through the Neighborhood Investment Platform. The total value of the project is thus estimated at €77 million.

The agreement lays down the financial conditions for the allocation, utilization and repayment of the loan, including provisions on the currency of repayments, the date of availability of funds, the liability of the parties and the conditions for entry into force and amendment of the agreement. This agreement is an important step towards ensuring a more efficient and reliable energy system in the Republic of Moldova.

The realization of this investment project will contribute to the integration of the grid of the Republic of Moldova into the European Union (EU) market through connections with the European ENTSO-E grid, increase the efficiency of the national energy sector, improve the stability and reliability of the local and regional power system, and increase opportunities for the development of other energy sources, including renewable energy sources.