The European Bank for Reconstruction and Development has announced a EUR 10 million loan to Moldova to develop a regional water supply system in the country’s north, including the country’s second largest city of Balti.
The loan, to be split in two tranches of EUR 6 million and EUR 4 million, is part of a financing package of EUR 30 million, which also includes a EUR 10 million loan from the European Investment Bank and an expected EUR 10 million capital grant from the European Union’s Neighborhood Investment Facility.
According to an EBRD statement: "The financing will enable the municipality of Balti and six districts – Floresti, Soroca, Sangerei, Telenesti, Rascani, and Drochia – as well as the Ministry of Environment to consolidate their water and wastewater infrastructure into a joint operating company. The newly created regional operator will then develop the Soroca-Balti water pipeline into a more integrated water supply system, which is expected to improve the quality and efficiency of water and wastewater services across Moldova’s northern region. The investment should help rehabilitate the Soroca-Balti pipeline and other water networks in the region, increase the number of new connections to the pipeline and within the districts, reduce water losses and increase energy efficiency. The project also aims to attract a private operator to manage the water and wastewater services on behalf of the joint operating company, which will result in more efficient services."
Anatol Arapu, the Moldovan Finance Minister, said: “All towns and villages in northern Moldova, apart from Soroca and Balti, only have access to poor quality water. The EBRD, EIB and NIF financing will help modernize the existing Soroca-Balti pipeline built back in 1980s and will expand and rehabilitate the water infrastructure networks in the project districts, which will improve the standard of living in the region by providing residents with access to safe water and wastewater services. We are pleased that the loan agreement signed today will also pave the way for a viable regional operator in the north of Moldova.”
As with all sovereign loans from the EBRD, standard terms & conditions were used, and the Bank worked directly with the ministers from the Moldovan government, without engaging external or local counsel for the deal documentation. EBRD Senior Counsel Markus Renfert provided legal supervision and management on the deal.
The EBRD is the largest foreign investor in Moldova. To date, the Bank has invested about EUR 900 million in over 100 successful projects, covering the energy, transport, agribusiness, general industry and banking sectors.