The government today approved a decision on the signing of a contract with the European Investment Bank (EIB) on the inter-connection of power networks with Romania. The agreement provides for an EIB loan worth 80 million euros.    

The contract sees the construction and development of the infrastructure needed for the permanent interconnection of power transportation networks from Romania and Moldova. The money will be used to build a Back-to-Back station in southern Vulcanesti town, a 400 KV transport line between Vulcanesti and Chisinau, as well as to extend the Chisinau-based transformer station.

“Both the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank, at the board of directors, approved the financing of these inter-connections with 80 million euros each. We expect the signing of these financing contracts on 20 or 21 December,” Deputy Prime Minister, Economics and Infrastructure Minister Octavian Calmic said.

The official noted that, next year, the financing contracts are to undergo procedures of ratification and the implementation is to be started. This implies, in the first stage, the designing of this inter-connection line, which has two aspects: the overhead high-tension power line, as well as the Back-to-Back substation.

“This is a quite ambitious project, so that it is to be adjusted from the technical viewpoint, including through regional projects, due to be implemented starting from the next year, taking into account a joint agreement signed by all electric energy transportation companies from Europe, as well as the ones from the region, including Ukraine and Moldova, so that we are in synchronous regime with the European one in the next 5-6 years,” Octavian Calmic noted.

The interface between Moldova and Romania is made by an overhead power line of 400 KV Vulcanesti-Isaccea and four 110 KV overhead power lines. There is a critical need for other high-tension lines to meet the safety criteria and enhance the capacity of the interface, in an asynchronous regime, the Economics and Infrastructure Ministry said.

The overall cost of the project is estimated at 275 million euros. Moldova is to sign loan agreements with the European Bank for Reconstruction and Development worth 80 million euros and World Bank – 70 million euros and an EU Neighbourhood Investment Facility (NIF) grant agreement amounting to 40 million euros.

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