The Moldovan ministry of finance has stated that the United States intends to grant about $49.5 million (48.9 million euros) in aid to help the nation strengthen its energy security, as well as to broaden its supply sources.
The funding will be released in accordance with the financial assistance agreement reached between Moldova and the government of the United States in 2016, the finance ministry stated in a media brief.
The finance agreement’s fourteenth amendment was authorized by the government of Moldova, increasing the total amount of non-refundable aid provided by the agreement’s terms to almost $172.7 million.
A total of $19.5 million will go toward bridging Moldova’s essential energy infrastructure with the continent’s systems, luring capital into the country’s energy industry, diversifying natural gas supplies, and boosting energy efficiency.
The amendment also establishes the terms and circumstances for receiving an additional $30 million in non-reimbursable assistance from the US Agency for International Development (USAID). The funds will be utilized to address the issue in the electrical industry.
The European Commission will provide non-reimbursable financial support to Moldova in the amount of 52 million euros ($51.5 million), the finance minister stated on Wednesday. Additionally, Moldova was also granted financial aid by France to repair energy infrastructure and railways.
Due to the attacks of Russia on the energy infrastructure in Ukraine, in addition to reductions in the amount of gas sent by Russia’s Gazprom, deputy prime minister of Moldova Andrei Spinu says that the country is experiencing power shortages, which has prompted the government to put in place power-saving measures.
According to Spinu’s statement, Moldova is seeking to establish contracts with more electricity providers and would implement energy-saving measures.
