Forty-six schools in the country and other public institutions will benefit from investments for energy efficiency following the raising of a $50 million loan from the International Bank for Reconstruction and Development. According to the authorities, the money will be repaid from energy savings, IPN reports.

The Cabinet on Wednesday approved the opening of negotiations. “The total amount of $50 million is the loan, plus $4.5 million the grant part. It is a multidimensional project. It comes to support, on the one hand, the quality of the education system because 46 schools in the country will benefit from investments in energy efficiency. Also, other public buildings will also benefit from investments in energy efficiency,” said Minister of Energy Victor Parlicov.

In addition, the authorities want to test mechanisms whereby such loans repaid from savings made when consuming energy as a result of investments. “We want to pilot these mechanisms and to somehow put them in place so that we can give a very clear message to the people: loans and investments in energy efficiency are repaid from the investment. So, it does not put pressure on the budget,” stated Victor Parlicov.

According to the project, the largest part of the amount, $35 million, will be used to renovate the 46 schools. $15 million will be allocated for the modernization of the centralized heat supply system of Chisinau. More specifically, up to 250 individual thermal points will be installed in buildings and the district heat supply networks will be reconfigured.

The project will be implemented until 2029. The loan’s repayment period, grace period and interest rate will be variable and will be agreed a result of negotiations.