OREANDA-NEWS. April 22, 2014. A resolution on the loan is expected to be adopted by the Board of Directors of the European Bank for Reconstruction and Development on July 9.

Heating Station Nord modernization program’s total value is estimated at EUR 10 million approximately. Besides EBRD, its implementation is going to be funded by the Eastern European Energy Efficiency and Environment Partnership with a grant of EUR 3 million.

The investment program stipulates installation of 3 gas turbines to raise power production by 60% (the investment required is estimated at EUR 6.1 million); replacement of obsolete pumps, fans and smoke exhauster (EUR 700,000); replacement of a coal boiler in Balti with a bio fuel one (EUR 150,000); construction of boiler rooms in 120 buildings in Balti in which about 28,000 people live (EUR 2.7 million).

Implementing the investment program will help raise efficiency of heating generating facilities, improve quality of heat supply to residential blocks, recommence the hot water supply in Balti, and reduce line losses and power costs.

The program provides for cost optimization and operating financial activity improvement of Heating Station Nord and will result in less company’s dependence on the fuel imported, including the gas imported from Russia. In general, the program is expected to be beneficial for Moldova's energy security and trade balance. Heating Station Nord is the provider of centralized heating to the municipality of Balti. It is completely owned by the government and managed by the Economy Ministry of Moldova.