Moldova Support Platform: the European Investment Bank (EIB) to continue investing in Moldova
The European Investment Bank (EIB), the bank of the European Union, is continuing to provide financial and technical support to the Republic of Moldova by investing almost €280 million in loans and mobilising some €16 million in grants for the public and private sectors in 2022.
EIB Vice-President Teresa Czerwińska announced on 21 November 2022 new investments for 2023 in key sectors of the Moldovan economy at the third ministerial conference of the Moldova Support Platform, including investments in transport, energy and healthcare projects across the country. These investments will help Moldova mitigate the economic and social effects of Russia’s invasion of Ukraine, and support Moldova’s accession to the European Union.
EIB Vice-President Teresa Czerwińska, who is in charge of operations in Moldova, said: “The EIB will continue to contribute towards an economically strong, energy-independent and green Moldova. So far, we have done this by investing €280 million and mobilising a further €16 million in grants for projects in the public and private sectors in 2022 alone. Next year, our priority will be investments in the energy and transport sectors, which will help Moldova achieve energy independence and integrate further with the European Union. We also plan to support healthcare projects that aim to ensure access to high-quality medical services. Our investments can bring tangible improvements to the lives of people in Moldova, establishing the EIB as a reliable partner for the country. Today, at the Moldova Support Platform in Paris, we informed our partners of these plans and sent a very clear message — Moldova can continue to count on the EIB.”
Jānis Mažeiks, Ambassador of the European Union to the Republic of Moldova, said: “The European Union is pleased to have joined forces with the EIB in assisting Moldova during the present energy crisis. To date, the EU contributed non-reimbursable funds of €64 million to joined EU-EIB initiatives. For the future, the EU already announced €250 million, of which €50 million is assisting the Country’s budgetary needs to overcome this winter period. Furthermore, the European Union is committed to support Moldova in connecting its transport infrastructure to the TEN-T. In the immediate future the EU will provide €20 million grant for the rehabilitation of railways, will facilitate Moldova’s participation in the Transport Community Treaty and will assist the country to develop its national mobility strategy. As such, we remain committed to an effective and continued dialogue in this direction.”
Additional EIB financing for Moldova in 2023
In line with EU and Moldova’s priorities, the EIB confirmed its readiness to continue its engagement in the country, in particular to help Moldova overcome the significant challenges it currently faces in the energy sector and the economy generally.
In 2023, the EIB expects to provide loans, blended with grants and technical assistance, of approximately €150 million to €170 million. The funding is expected to cover a wide range of projects focusing on energy efficiency and climate mitigation in line with the European Green Deal initiative in the region, responding to the country’s needs in the health and digitalisation sectors, and investing in Moldova’s agri-food sector.
EIB and Team Europe to invest in energy, transport and healthcare infrastructure
Russia’s war against neighbouring Ukraine poses complex economic and social challenges for Moldova. These include a dramatic increase in energy prices, high inflation, disrupted supply chains, lost trade opportunities, and the humanitarian emergency triggered by the large inflow of war refugees from Ukraine. The Moldovan government and the EIB have been working together throughout 2022 to mitigate these negative effects on the national economy.
Thus, the EIB has provided a €150 million loan for the reconstruction of major highways, accelerating Moldova’s integration into the trans-European transport network and the European Union. It plans to provide an additional €100 million to Moldova by the end of 2022 to restore and upgrade other key national roads.
The EIB has announced upcoming investments to improve energy efficiency, energy security and the diversification of energy supplies in the Republic of Moldova, which are key to energy independence from fossil fuels. It has also announced plans to provide some €30 million to a privately owned electricity distribution system operator in Moldova to finance the modernisation, digitalisation and expansion of the electricity distribution grid covering the central and southern part of the country, including the capital, Chişinău. In addition, a €12.4 million EU investment grant signed in 2022 will help the country implement an EIB project to improve the energy efficiency of public buildings, including hospitals, schools, kindergartens and other public institutions in Moldova.
Together with the European Commission, the EIB has launched a pre-feasibility study to assess how to better connect the Ukrainian and Moldovan railway networks with the European Union. It is a strategic investment for sustainable, green economic growth and to improve global food security. In 2022 year, the EIB has also been working with the Moldovan government on a project to support the modernisation and expansion of the public healthcare sector, improving its resilience to major crises such as the COVID-19 pandemic and the war in Ukraine. Earlier this year, the EIB-managed Eastern Partnership Technical Assistance Trust Fund (EPTATF) and Swedfund jointly provided €1.5 million in grants to prepare a project for the construction of two hospitals in Moldova, which the EIB and the Council of Europe Development Bank are currently considering co-financing in 2023.
