A new company will be created as a result of the merger between SA Termocom and the two Thermoelectric Plants of Chisinau, IPN reports, quoting a relevant decision approved by the Government. Deputy Prime Minister and Minister of Economy Valeriu Lazar said this is the final stage in the implementation of the project to corporately, financially and institutionally restructure the centralized heating system of Chisinau municipality.
“The merger will enable to reduce the management costs and to improve the efficiency of the centralized heating system of Chisinau municipality,” said Valeriu Lazar.
According to the estimates of the consultancy company Price Waterhouse, the shares of the new company will be distributed as follows: the Public Property Agency will own 96.83% of the shares, the Chisinau Municipal Council – 2.25%, while private individuals – 0.92%.
Valeriu Lazar said that this decision must be approved by the Chisinau Municipal Council as soon as possible. Otherwise, Moldova may fail to take out a loan of up to US$40 million from the World Bank. The loan will be provided in preferential IDA conditions. It will be repayable in 40 years at an interest rate of 0.75%.
According to the Deputy Prime Minister, the money will be used to rehabilitate underground segments of the heating networks, to modernize pumping stations and to set up several hundred new individual heating points. A part of the loan will go to provide guarantees for settling the newly created enterprise’s historical debt of US$139 million to the gas supplier.
