OREANDA-NEWS. November 26, 2014. The World Bank’s Board of Executive Directors in Washington approved a USD40.5 million loan to Moldova. With Moldova’s electricity and heat generation infrastructure being obsolete and deteriorating, inefficient energy use in Moldova is leading to higher energy costs for almost all dwellers of Chisinau, having an especially disproportionate impact on the low-income segment of the population of Chisinau.

As surveys show, heating expenses alone amount to more than 10% of monthly expenditure for all income groups. The poorest dwellers of Chisinau spend on heating up to 26% of their monthly expenditure. According to World Bank Country Manager for Moldova Alexander Kremer, for many years old infrastructure and heavy financial losses have hampered progress in the municipal heating sector. This project is a chance to develop a modern and efficient heat supply network for ordinary residents of Chisinau.

The restructuring plan includes the merger of Termocom, Heating Station 1 and Heating Station 2 into a new company that will provide district heating services in Chisinau. The project aims to improve the operational efficiency and financial viability of the new company by upgrading its infrastructure and management. It will enhance efficiency and reliability of the Chisinau heating sector.