Moldovan households and businesses will be able to cut their energy bills thanks to two EBRD loans of €10 million in total to Moldova-Agroindbank for on-lending to homeowners and private enterprises.
The loans are extended under the Moldovan Residential Energy Efficiency Financing Facility* (MoREEFF) and Moldovan Sustainable Energy Efficiency Financing Facility II (MoSEEFF II**) and will enable Moldova-Agroindbank to provide long-term funding to industrial and residential clients implementing energy saving projects.
Moldova relies heavily on imports to satisfy its energy needs. High energy costs and energy losses, coupled with outdated equipment and obsolete energy infrastructure make Moldova one of the most carbon intensive countries in Europe. This is harmful to the environment and results in high energy bills for individuals and businesses. With the EBRD financing, clients in Moldova will be able to invest in energy efficient appliances and materials for their properties and industries. This will help to significantly reduce energy consumption. Lower costs for enterprises will lead to increased competitiveness and benefit economic development.
Announcing the new loans, Henry Russell, EBRD Director for Financial Institutions in Western Balkans, Croatia, Belarus and Moldova, said: “By providing Moldova-Agroindbank with two credit lines the EBRD is helping citizens, families, housing associations and businesses in Moldova to invest in energy efficiency projects. In challenging economic times, when energy prices are rising and people and private companies are struggling to pay their bills, energy efficient solutions are becoming more attractive and, with EBRD funding, more accessible.”
“We are pleased to be expanding our long-term cooperation with the EBRD and continue to drive our clients towards the most cost-effective solutions. The EBRD’s credit lines will ease the burden of the immediate costs of energy saving investments, which in the long run will allow our clients to considerably decrease energy expenses thanks to efficiency gains.
Our participation in this project demonstrates once again our responsiveness and expertise in providing the most relevant and useful financial solutions for our clients.” said the President of Moldova-Agroindbank, Natalia Vrabie.
With 21 years of experience, Moldova-Agroindbank is the leading bank in Moldova, with a strong commitment to financing energy efficiency projects for both industrial and residential clients, from its own and third party sources. The two new credit lines build on the successful implementation by Moldova-Agroindbank of numerous EBRD credit lines since 1995.
The EBRD will also provide technical assistance funded by the European Union and Sweden to help Moldova-Agroindbank to further build up its expertise and marketing strategies in financing energy efficiency investments.
Since the beginning of its operations in Moldova, the EBRD has signed 88 investment projects in the country, covering energy, transport, agribusiness, general industry and banking sectors, for a cumulative amount of almost €711 million. The EBRD’s energy efficiency activities in Moldova are part of a greater effort to help Moldova increase its energy security.
*MoREEFF is a recently launched €35 million credit line framework developed to encourage Moldovan households to make better use of the country’s energy resources and to invest in energy efficient housing solutions. This includes thermal insulation of walls, roofs, floors, installation of boilers, heat pumps and other energy saving measures. In addition to the EBRD credit facility, more than €11 million has been earmarked by Sweden and the European Union for grant support and technical cooperation to stimulate these residential sector investments. Further information about MoREEFF can be found at http://moreeff.info.
**MoSEFF II follows the first Sustainable Energy Finance Facility in Moldova and helps further expansion of a very limited market for energy efficiency lending in the country. In addition to the previous project categories, the extended MoSEFF facility will now finance wind, small hydro and photovoltaic electricity generating projects among others. MoSEFF II will enable MAIB to provide loans to private Moldovan companies for financing energy efficiency and renewable energy projects. Sub-borrowers undertaking sustainable energy investments will benefit from incentive payments granted by the European Union in the range of 10-20 per cent of a loan, depending on the technology and energy savings/CO2 reduction achieved. In addition, businesses will benefit from free technical assistance in assessing energy saving potential and project implementation. Further information about MoSEFF can be found at www.moseff.org.