November 3 (SeeNews) - The United States plans to provide over $49.5 million (48.9 million euro) in aid to Moldova to help it enhance its energy security and diversify supply sources, Moldova's finance ministry announced.
The financing will be granted under the financial assistance agreement concluded between Moldova and the US administration in 2016, the finance ministry said in a press release on Wednesday.
The Moldovan government approved the 14th amendment to the financing agreement, bringing the total amount of non-refundable assistance under the deal to approximately $172.7 million.
Some $19.5 million will contribute to connecting the key elements of the energy sector in Moldova with European systems, attracting investments in local energy production, diversifying natural gas supply and increasing energy efficiency.
The amendment also provides for the establishment of the terms and conditions to receive a further non-reimbursable $30 million aid from the United States Agency for International Development (USAID). The money will be used to manage the crisis in the electricity segment.
On Wdnesday, the finance ministry announced that the European Commission will grant Moldova a non-reimbursable financial support of 52 million euro ($51.5 million).
On October 23, Moldovan deputy prime minister Andrei Spinu said that the country is facing power shortages as a result of Russia's attacks on Ukraine's energy system and cutbacks in gas volumes delivered by Russia's Gazprom, prompting the government to implement power saving measures. The government is looking to sign contracts with other electricity suppliers, and will adopt measures to save electricity, Spinu said at the time.
($= 0.9897 euro)