The Republic of Moldova will take out a loan of €7 million for modernizing the thermoelectric plant CET-Nord. The decision on the signing of the financing agreement was approved in the October 20 meeting of the Government, IPN reports.

The cost of the project is €10 million, €3 million of which is a grant provided by the Eastern Europe Energy Efficiency and the Environment Partnership Fund. The EBRD’s loan is repayable in 15 years, with a grace period of two years, at the LIBOR (London interbank offered rate) rate + a margin of 1-2% a year.

It is anticipated that the project will enable to increase the production of electric power and electricity savings to 52 million lei a year. Also, the carbon emissions will be reduced.

CET-Nord provides services to 80% of the apartment buildings in the municipality of Balti or to about 770,000 end-users.