Project description
and objectives:
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The proposed EBRD financing consists of a loan to three power distribution
companies owned by a strategic investor, Union Fenosa Internacional of Spain
(UFISA), and located in Chisinau and the central and southern regions of
Moldova. The financing will enable the companies to renovate, modernise and
provide working capital for their power distribution networks with the aim to
reduce losses, increase collections and increase reliability and efficiency of
electricity distribution in their respective service areas.
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Transition impact:
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The project supports the continuing privatisation of the electricity sector in
Moldova and the development of management know-how and technology, which
should lead to collection and performance improvements.
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The client:
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S.A. Retele Electrice Municipiu Chisinau, S.A. Retele Electrice de Distributie
Centru, and Retele Electrice de Distributie Sud (the companies), three
electricity distribution companies recently privatised to Spanish sponsor
UFISA and incorporated in Moldova. UFASA (Spain), the sponsor, is a wholly
owned subsidiary of Union Electrica Fenosa S.A., a major private Spanish
utility with electricity distribution experience in emerging markets.
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EBRD finance:
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US$ 25.0 million loan to the companies (€30.2 million). The IFC is also
proposing to a make a US$ 25.0 million loan.
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Total project cost:
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US$ 78.0 million (€94.2 million).
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Environmental impact:
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The project was screened C/1, requiring an environmental audit of the three
regional electricity distribution companies (REDs). The audit, carried out by
independent consultants, did not reveal any major environmental, health and
safety concerns. The issues identified included possible PCB use, safety
upgrades of the sites, improvements to fuel storage areas, hazardous waste
handling and "housekeeping". Measures have been included in Environmental
Action Plans (EAPs) for the REDs to address these issues. In addition,
recommendations were made regarding general environmental management at the
REDs. The EAPs have been agreed with UFISA.
The project offers the opportunity to steer the companies towards
environmental management practices in line with western standards. This
includes, over and above compliance issues, improved resource use, energy
efficiency at facilities, reduction of distribution losses and improved
materials and waste management.
The implementation of the project would result in the reduction of carbon
dioxide emissions by approximately 30,000 tons per annum after 2005.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Philip Lam, Operation Leader: lamp@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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