EIB and EBRD will provide Moldova with a EUR 82 million loan for the construction of the 120-km-long Ungheni-Chisinau gas pipe.
This is stipulated by the financing contract Moldova and the European Investment Bank have signed. According to the press service of EIB, EIB and EBRD have assigned EUR 41 million each for the project. The European Commission is going to support the construction with a grant of EUR 10 million. Besides, the European Union is ready to provide one more grant, of EUR 20 million, for the second phase of the construction. According to EIB, this proves the willingness of the EU to back Moldova’s energy security.
Head of the EU Delegation in Moldova Pirkka Tapiola said the EU completely supported the construction of the gas pipe, which was meant to strengthen Moldova’s energy security and enhance the competitiveness of the energy market. EIB Vice-President Jan Vapaavuori pointed out the project would back liberalization of Moldova’s gas market and the integration of the country into the European energy system. In this connection, Managing Director for Eastern Europe and the Caucasus at EBRD Francis Malige added that the interconnection of the gas systems of Moldova and Romania would enable Moldova to diversify its energy sources and increase competition in the gas sector.
The responsibility to administrate the Ungheni-Chisinau gas pipe has been imposed on state-owned enterprise Vestmoldtrangaz. The pipe will be capable of transporting 1.5 billion cubic meters of gas a year. Earlier, Vice-premier, Economy Minister of Moldova Octavian Calmic said the Ungheni-Chisinau gas pipe must be put into operation at the beginning of 2019. Romania’s authorities reckon the pipe will be constructed and operated by Transgaz, which has rich experience in constructing gas pipelines and implementing large regional projects. According to Octavian Calmic, as the Ungheni-Iasi gas inter-connector is extended to Chisinau, the import of natural gas from Romania to Moldova will considerably increase. The 43-km-long Iasi-Ungheni gas pipeline was officially put into service on August 27, 2014. (InfoMarket/Business World Magazine)