Beneficiaries: Ministry of Economy and Infrastructure, final Beneficiary – SE Moldelectrica.

Financing: Project preparation costs - the grant funds under the Multi-donor Europe and Central Asia Capacity Development Trust Fund (ECAPDEV TF, equivalent of 0.41 mln USD). Project implementation costs: total cost of the project implementation -271.75 mln USD, from which (according to the approved Project Procurement Plan) EBRD loan – 80 mln, EBRD TC Fund – 0.35 mln, EIB Loan – 80 mln, EU/NIF funds – 40 mln, local and other financing - 1.4 mln USD.

Intended implementation period: Project preparation - 2018-2019, intended Project implementation - 2019 – 2022.

Main objective: The overall objective of the project is to support the connection of Ukraine and the Republic of Moldova electrical networks with the ENTSO-E Continental Europe, starting (due to the uncertainties regarding the realistic date of the synchronous interconnection induced by Ukraine) with asynchronous interconnection. The Project preparation through ECAPDEV shall ensure Technical Assistance for the Project launch, including development of technical design for the domestic transmission system reinforcement (overhead high voltage line from Vulcanesti to Chisinau substation and upgrade of two substations), including elaboration of Tender Documents, preparation of environmental and social studies/assessments.

Specific objectives:

In order to have the investment implemented, feasible and recovered before the deadline estimated for a possible synchronous interconnection of Ukraine and Moldova to ENTSO-E (6 to 8 years), the following actions are envisaged:

  • Construction of the Back-to-Back substation,
  • Construction of the power line Vulcanesti – Chisinau, and
  • Reconstruction of two substation

Main components:

  1. Construction of new 400 kV 158 km overhead high voltage line (OHVL) from Vulcanesti to Chisinau substation (SS), an extension of Vulcanesti SS, and an upgrade of Chisinau SS;
  2. Construction of ME’s new headquarter (HQ) building containing a new dispatch center, an upgrade of SCADA/Energy Management System (EMS), and an installation of Metering Management System (MMS);
  3. Construction of the new 2x300 MW Back-to-Back station.

Current situation:

  • The Financing Agreements with EBRD and EIB have been signed on December 20, 2017;
  • The Grant Agreement no. TF0A6821 for ECAPDEV has been signed on October 24, 2018;
  • The PIU has been PIU has been established based on Moldelectrica internal Order no. 494 of October 29, 2018;
  • The Project shall be submitted to the WB Board of Directors for approval of the Bank financing on April 30, 2019.

Main expected results:

This Project shall ensure the diversification of power supply sources, improve the security and reliability of the Moldova electricity transmission system through interconnections with Romania, thereby enabling the creation of a transparent and competitive electric power market and its integration into the regional electric power market.