Post-Privatisation Power Distribution Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 13220

Status Complete

Location

Moldova

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 13220

Status Complete

Location

Moldova

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

28 Nov 2000

Disclosure date

09 Nov 2000

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

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.

Transition Impact

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.

The Client

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.

EBRD Finance

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.

Project Cost

US$ 78.0 million (€94.2 million).

Environmental Impact

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.

Technical Cooperation

None.

Transition impact

ETI Score:100

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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