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On June 23rd, four ministries (Energy, Finance, Environment and Labour & Social Protection) of the government of the Republic of Moldova and Agence Française de Développement (AFD) signed a Memorandum of Understanding to support the Republic of Moldova’s energy sector reform.

This 6-year program is an opportunity to foster the implementation of an Energy Policy-based Loan Program which aims at supporting the Republic of Moldova’s energy sector reform in the perspective of European Union accession, particularly the efforts regarding energy infrastructure investments, energy efficiency in buildings, development of renewable energy, consumer protection, environment and climate.

The program will start in 2023 and will run for the next 6 years. It will combine:

  • concessional loans provided by AFD (a first tranche of 40 M EUR in 2023), the disbursements of which are tied to the implementation of agreed reforms,
  • a Technical Assistance program funded through a 5M EUR grant provided through the Neighborhood Investment Platform of the European Union. This grant aims at supporting Moldovan ministries and public institutions in the implementation and monitoring of the reform. The technical assistance program will be managed by Expertise France, AFD Group subsidiary for technical cooperation.

Through this combination, the program allows to:

  • Support reform planning and sequencing in the energy sector;
  • Facilitate the mobilization of the technical expertise required to implement the reform;
  • Unlock barriers to change through sustained policy dialogue;
  • Provide concessional budget support following successful implementation of a reform phase.

AFD Group’s broad support to the energy sector in Moldova had started in 2022 with the financing of technical cooperation between Moldelectrica and France’s transmission system operator RTE, to accompany the integration to the European electricity network. AFD will also join forces with UNDP in the evaluation of the first phase of the Energy Vulnerability Reduction Fund, allowing analysis and improvement for future winters.

The French ambassador to the Republic of Moldova Mr. Graham PAUL said: “This operation is a concrete example of the deepening of technical and financial cooperation between France and the Republic of Moldova. By providing support in the short and medium terms, France, as part of Team Europe, is contributing to Moldova’s energy security and resilience”.

“The long-term approach of this cooperation project is valuable, and technical assistance will support the Republic of Moldova in its path towards EU accession and reform in the energy sector” added Mr. Victor PARLICOV, Minister of Energy.

Ms Magdalena MUELLER-URI, Head of Cooperation, Delegation of European Union in the Republic of Moldova: “We are very pleased when Member States, such as la France, join forces with European Institutions to strengthen support for Moldova’s European pathway, and above all, towards a carbon free Moldova. This is a Team Europe effort to move Moldova towards an enabling environment for investments in green energy reform”.

AFD Group has a recent yet fruitful relationship with the Republic of Moldova. Since the opening of an office in February 2022 in Chisinau, AFD supports the convergence towards European Union and has become one of the first bilateral creditor to the Republic of Moldova. Overall, the Group has financed studies and technical assistances through grants, provided budget-supports related to energy, environment, transportation and supported civil society organizations. Proparco, its subsidiary dedicated to the private sector, supports the development of small businesses while Expertise France, AFD Group’s technical cooperation agency works on the anti-laundering, transparency and access of the judicial system.

Aside the signature, bilateral meetings on the energy, afforestation and irrigation have been held to deepen the collaboration between the Republic of Moldova and AFD.

About Agence Française de Développement Group

AFD Group contributes to the implementation of France’s policies for sustainable development and international solidarity. The Group includes Agence Française de Développement (AFD), which finances the public sector, NGOs, research and training; its subsidiary Proparco, which is dedicated to the private sector; and Expertise France, a technical cooperation agency. The Group finances, supports and accelerates the transitions needed for a fairer, more resilient world.

With our partners, we are building shared solutions with and for the people in more than 150 countries, as well as in 11 French Overseas Departments and Territories. As part of the commitment of France and the French people to achieving the Sustainable Development Goals, our teams are at work on more than 4,800 projects in the field. Our objective is to reconcile economic development with the preservation of common goods, from peace, the climate and biodiversity to health, education and gender equality. Towards a world in common.

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