The proceeds of the loan and the proposed capex grant from E5P will finance a Priority Investment Plan (“PIP”) to modernise and upgrade the DH services in the city of Balti. The investment aims to improve service levels, reduce consumption of natural gas and coal and help the Company maintain its customer base. The PIP is expected to result in significant energy efficiency improvements as a result of customer controlled heat supply, improved efficiency of generation capacity, increased electricity co-generation and reduced losses in the distribution network. After implementation of the Project the reduction in operating costs and improved energy efficiency is expected to lead to significantly lower tariffs compared to what they would be without the project.
The Project will have a significant demonstration effect in the region serving as an example of the introduction of innovative energy efficiency solutions with high environmental benefits. The Project will also contribute to consumer awareness, stakeholder engagement and transparency and will be an important component in the on-going policy dialogue with Moldovan authorities.
- CO2 savings
- Electricity savings
- Natural Gas savings
- Full cost recovery tariffs (including investment costs)
- Transparency in tariff setting
- Billing linked to actual consumption
- Transparent service agreement