Georgia and Moldova signed a number of agreements with international financial institutions on the financing of electric transmission development.
On December 22, Giorgi Chikovani, the Deputy Minister of Economy and Sustainable Development of Georgia, Sulkhan Zumburidze, General Director of Georgian State Electrosystem and Hans Rieck, KfW representative signed a Financing and Project Implementing Agreement on the “Extension of the Georgian Transmission Network”. The EU through its Neighbourhood Investment Facility allocated a grant of 9.9 million euro to support the program, co-financed by German KfW as a delegated body to EU NIF. It’s planned that a program will contribute to the improvement of the secure energy supply of Georgia. “We are confident that the extended electricity grid will ensure more reliable supply, creating better business and investment opportunities, thus strengthening Georgia’s role as a regional energy hub. This clearly has the potential of generating more and better job opportunities for many people. We wish success to the parties in making this project a reality.”, stressed Janos Herman, Ambassador of the European Union to Georgia.
On December 20, Moldova signed agreements with the European Bank for Reconstruction and Development and European Investment Bank on financial support of the interconnection of the Moldovan electricity networks with Romania. EBRD and EIB will provide loans of 80 million euros in total.
Particular attention was paid to the issue of energy security. Octavian Calmic, Minister of Economy and Infrastructure of Moldova stressed that a project is aimed at enhancing Moldova’s energy security and giving a real alternative to the present electric energy system based on the Soviet one. In turn, Peter Michalko, EU’s Representative in Moldova noted that a project will connect Moldova to the European Union’s power market. The agreement will also support the construction and development of the infrastructure needed for the permanent interconnection of the power transportation networks from Romania and Moldova. In particular, allocated funds will be used for the construction of a back-to-back station in Vulcanesti and a 400KV transport line between Vulcanesti and Chisinau.
During the next year, the financing contracts will undergo the procedures of ratification and the implementation will start. Moreover, Moldova is also to sign a grant agreement worth 40 million euros with EU Neighbourhood Investment Facility.
The agreements on joint projects lead to the improvement of the power market’s competitiveness and enhancing energy security in the post-Soviet countries.