The Cabinet approved the ratification of the loan agreement with the European Bank for Reconstruction and Development on the construction of the Balti-Suceava overhead power line within the project “Moldova and Romania Power Interconnection, Phase II”, IPN reports.

In addition to the new high-voltage electricity transmission line between Moldova and Romania, which will interconnect Balti and Suceava, a 400 kV substation will also be built.

The document also includes an action plan aimed at reforming the energy sector, which concerns both aspects of updating the legal framework and aspects of operationalizing the electricity market, including the establishment of the electricity market operator.

A €30.8 million sovereign loan will be offered to the Republic of Moldova. The total Project cost of €77 million will be co-financed by a parallel loan from the European Investment Bank of €30.8 million and the €15.4 million EU Neighborhood Investment Platform grant.