CHISINAU (Moldova), December 22 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) and World Bank’s International Finance Corporation are lending $30 million (21 million euro) to the Moldovan unit of Spanish Gas Natural Group for distribution network upgrade, EBRD said on Tuesday.
EBRD and IFC will provide $15 million loan each to support the upgrade project with a total cost of $40 million, EBRD said in a statement, adding that the remainder will be covered by own funds of the unit, RED Union Fenosa Moldova.
"The proceeds of the loans will support Union Fenosa Moldova’s investments in upgrading and modernising its electricity network lines and substations, which will enable the company to increase efficiency, cut power losses and improve the safety and security of the network," EBRD said.
EBRD and IFC have previously supported the company with loans worth $50 million when it was privatized. EBRD holds a minority stake in RED Union Fenosa Moldova, which comprises three of Moldova's five power distributors and supplies electricity to the southern and central regions of the country, including the capital, Chisinau.
EBRD has committed over 340 million euro in various sectors of Moldova's economy so far. Since Moldova became a member in 1995, IFC,World Bank's private sector arm, has committed $87 million of its own funds and arranged $25 million in syndications for supporting infrastructure, telecommunications, agribusiness, and the financial sectors, the latest data from IFC's website showed.