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 WB ENERGY
PROJECTS
ENERGY II The Energy II Project is to be viewed in the context
of the broad energy sector reforms taking place in Moldova, the aim
of which is to commercialize the sector and provide reliable and affordable
energy supply to the economy and population. Its specific project development
objectives are to:
The sector issues that the project will address directly
include:
In conclusion, the Energy II Project is designed to support the transition of the electricity sector to a modern, commercially oriented industry, capable of financing itself and providing reliable and sustainable domestic electricity service, and enabling Moldova to play a role in the regional international energy markets and get closer to the eventual UCTE membership. The Project also supports the transition of the heating sector to a more economic, decentralized heating supply and more efficient use of energy. Through restructuring the debt arrears, the project will remove a major threat to fiscal stability, reliability of power supplies and to the sustainability of sector reforms in general. The total project cost, including financing from
the WB, co-financing from beneficiaries and other donors (SIDA, USAID)
is estimated at about US $ 40 million. The project has four components:
Electricity system upgrade (rehabilitation and upgrade of metering, dispatch, telecommunications, and transmission systems):
The project will contribute to:
The main benefits of the electricity component include:
a) reduced unserved energy; b) reduced transmission technical and commercial
losses; and c) improved security and reliability of electricity supply
and improved telecommunications. The benefits in the electricity sector
would be system-wide and, therefore, would accrue to all consumers,
including poor. The main benefits of the heating component include increased
efficiency of heat supply and heat consumption (better thermal efficiency,
reduced losses). Benefits from the heating component would accrue to
the public agencies operating the buildings included in the project
and to the users of the buildings (schools, kindergartens and hospitals).
Organizations
responsible for project implementation
Ministry of Industry and Infrastructure and the Moldova Energy Projects Implementation Unit (MEPIU). The Ministry of Industry and Infrastracture (MII, in charge of the energy policy implementation, is the chief Government agency responsible for Energy II Project implementation, which is expected to last for a period of 4 years. It will oversee implementation of the entire project and will be directly responsible for some technical assistance components. Its main role would be to ensure that the project is implemented in an efficient manner, consistent with project objectives and agreements signed with IDA. The Ministry, however, would not be involved in project's daily activities. The Government, under Decree no. 1276 as of December 21, 2000, established the Project Implementation Unit (PIU), as an independent legal entity, which reports to the MII and is responsible for coordinating the project activities on a daily basis. The PIU is supervised by a Supervisory Board, appointed by the Government. Board members are top representatives from the Ministries of Industry and Infrastructure, Economy and Trade, Finance, Environment and Territorial Development, and from the State Chancellery (Chief of Industry and Infrastructure Division). The Supervisory Board appoints the Executive Director of the PIU, whose qualifications and experience are acceptable to IDA. The PIU will, in particular, be responsible for procurement, contract administration, project financial management and accounting, and project reporting. It will work closely with project implementing agencies. The PIU will employ foreign consultants to assist in the day-to-day procurement, develop procurement management and supervision system, and train PIU staff. Moldelectrica. Moldelectrica (ME) is the beneficiary and the executing agency of the electricity project component. Moldelectrica is a state company, created by the Decree #1000 of the Government of Moldova as of October 2, 2000, by separating the transmission assets, central dispatch and a training center from the state company Moldtranselectro (MTE). Moldelectrica performs the functions of a transmission-and-dispatch system operator, maintains and operates 110-kV-400-kV transmission network (and the 35-kV network on the territory of the North and North-West distribution companies), manages international interconnections and acts as a training center for the energy sector employees. Moldelectrica does not engage in sales and purchases of electricity, which is the responsibility of distribution companies. Moldelectrica has 4 regional network departments and the central dispatch. Total number of employees is currently approximately 1,000. Moldelectrica holds licenses for transmission and dispatch, which were issued by the regulator, ANRE. Public Agencies. Municipalities of Ungheni, Cantemir, Chisinau, Falesti, Floresti, Ialoveni, Soroca, Straseni, Edinet and others, and the Central Government Ministries of Health and Education will be the beneficiary and executing agencies of the heating component. Investments in the heating systems of the municipalities would be owned and operated by the local administrations through their heating organizations or through other municipal bodies. Heating organizations are typically established as Municipal Enterprises, wholly owned by the local administration, and based on assets transferred to the municipality in the process of decentralization and dissolution of the former state enterprise Termocomenergo. The energy sector regulator
(ANRE) will be indirectly involved in the project launch and
its further successful and sustainable implementation. ANRE's decisions
regarding the approval of a cost recovery transmission tariff before
presentation of the project to the IDA Board of Directors and after
that on annual basis are crucial ones for the financial viability of
the main project beneficiary Moldelectrica and its ability to provide
adequate funding for capital replacement and system development, as
well as service the debt. Ministry of Finance.
Ministry of Finance will act as the Borrower of IDA Credit and will oversee the execution of the Subsidiary Credit Agreements with the project beneficiaries. Also, in its capacity of a member of the Supervisory Board, it will be involved in monitoring the project activities, which deal especially with financing aspects, such as budget approval, amendments to Credit and Project agreements, disbursements & withdrawal applications, extension of closing dates, permissions for exemption from taxes addressed to the Customs Department etc. The World Bank plays and will play the leading role in the preparation
and implementation of the Energy II Project. All project-related
aspects, starting from technical specifications for procurements
of goods, works and Terms of Reference for consulting services till
procurement and disbursements made in accordance with concluded
contracts, have to be coordinated with and cleared by the Bank.
The Bank will supervise (i) physical implementation of the investment
components of the project and associated project management issues
(including procurement and financial management); and (ii) performance
of the sector and associated sector issues. The supervision effort
will need to be especially intensive during the first two years
of project implementation, which will be procurement-intensive and
are therefore critical for successful implementation.
DEVELOPMENTS 2009
March 16, 2009: after negotiations between the Moldovan Government and the World Bank, the Additional Financing Agreement has been signed by the two parties. June 12, 2009: the Parliament of Moldova ratified the Additional Financing Agreement from March 16, 2009. Through the signing and ratification of the Additional Financing Credit Agreement the Heating Component of the Moldova Energy Project has been extended, namely two sub-projects have been included in the implementation scheme:
The implementation of the referenced packages is ongoing (initial stage of procurement process). At the same time, through the signing on July 27, 2009 by the Moldovan Government and SIDA of the Specific Agreement for the Sida Energy Efficiency Project implementation, the Swedish Government continues (within the Component/Project 1 of the recently launched Sida-financed project) to provide Technical Assistance in the Implementation of the Energy II Project's Extended Heating Component. World Bank Approves US $10 Million in Additional Financing for Moldova’s Energy II Project WASHINGTON D.C., January 29, 2009 - The World Bank Board of Directors today approved an additional credit to the Republic of Moldova in the amount of US $10 million for the Energy II Project. The additional financing will complement the original credit of US $35 million and will be used for scaling-up heating supply and improving the efficiency of heating services in the country.
The Energy II Project was launched in March 2004. The project’s objectives are: To improve the security and reliability of the electricity transmission system and facilitate unimpeded commercial operation of the power system (electricity component); and To improve the availability, quality and efficiency of heating in selected buildings (heating component).
The US $10 million approved today will be directed towards scaling-up funding under the heating component. To date, the original credit enabled over 35 schools, hospitals, and kindergartens, in addition to 37 residential buildings, to renovate or install new heating systems. Over 8,000 students, approximately 1 million patients/staff/visitors and over 2000 families are benefiting from improved heating and hot water availability. Moreover, the reduction in greenhouse gas emissions achieved under the project, has meant that local authorities are now able to take advantage of carbon financing. For more information, please see the website: www.worldbank.org.md Permanent URL for this page: http://go.worldbank.org/AH9P9A93C0
Energy II Project is one of the winners at the annual contest organized by the World Bank “Improving the Lives of People in Europe and Central Asia” 2009 WASHINGTON, February 18, 2009 – The Energy II Project and the Social Investment Fund II Project in Moldova were named one of 13 winners Wednesday in the World Bank’s “Improving the Lives of People in Europe and Central Asia (ECA) 2009 – A Celebration of Learning and Innovation” competition.
The Moldova Social Investment Fund II project
was launched in August 2004. It aims to empower communities
and vulnerable population groups to manage their priority
development needs, through funding for community development
activities, social care services and capacity building at
the local level. The project has assisted over 250 localities
in addressing local development needs. It has provided access
to natural gas and funded major improvements in roads, schools,
kindergartens, cultural centers and other social institutions
across Moldova.
The Moldova Energy II project was launched in March 2004. The project aims to improve the security and reliability of the electricity transmission system and improve the availability, quality and efficiency of heating in selected buildings. To date over 35 schools, hospitals and kindergartens, in addition to 37 residential buildings have been able to renovate or install new heating systems. Over 8,000 students, approximately 1 million patients/staff/visitors and over 2000 families are benefiting from improved heating and hot water availability.
The two-day “Improving the Lives of People in ECA” learning event, February 18 – 19, with the participation of external participants, aims to share knowledge, experiences, and information among World Bank staff and its counterparts. The event will showcase the cutting-edge work the World Bank is doing in the Europe and Central Asia countries. The 13 winning submissions fit into four strategic pillars: International Development Association (IDA) at Work, Making a Difference in Middle-Income Countries, Addressing Global Challenges, and Innovation through Knowledge and Learning. For more information, please visit http://www.worldbank.org/eca/results to view winning submissions’ profiles, videos and slideshows.
Proiectul Energetic II este unul din câstigatorii concursului anual organizat de Banca Mondiala “ Îmbunatatind vietile oamenilor din Europa si Asia Centrala” 2009 WASHINGTON, 18 februarie 2009 – Proiectul Energetic II si Proiectul Fondul de Investitii Sociale II din Moldova au fost declarate premiante, împreuna cu alti 11 câstigatori, ai concursului Bancii Mondiale “Îmbunatatind vietile oamenilor din Europa si Asia Centrala (EAC) 2009 – O sarbatoare a cunostintelor si spiritului inovator”.
Proiectul Energetic II a fost lansat în martie 2004. Proiectul are ca obiectiv îmbunatatirea sigurantei si fiabilitatii sistemului de transmisie a energiei electrice si ameliorarea disponibilitatii, calitatii si eficientei agentului termic în cladiri selectate. Pâna în prezent, mai mult de 35 de scoli si gradinite, si un numar de 37 de blocuri locative au putut sa-si renoveze sistemele de încalzire sau sa instaleze sisteme noi. Mai mult de 8000 de elevi, peste 1 milion de personal medical, pacienti si vizitatori, cât si peste 2000 de familii au acces la servicii mai bune de aprovizionare cu caldura si apa calda.
Evenimentul “Îmbunatatind vietile oamenilor din EAC”, care se desfasoara în perioada 18-19 februarie cu participarea partenerilor externi, are ca scop împartasirea cunostintelor, experientelor si informatiei în rândul personalului Bancii Mondiale si invitatilor externi. Evenimentul va prezenta activitatile de succes ale Bancii Mondiale din tarile Europei si Asiei Centrale. Cele 13 proiecte câstigatoare se încadreaza în patru piloni strategici: Asociatia Internationala pentru Dezvoltare (AID) în actiune, Agentul schimbarii în tarile cu venituri medii, Solutionarea provocarilor globale si Inovare prin cunostinte si instruire. Permanent URL for this page: http://go.worldbank.org/JRK71LJPV0 A Project Story about the Energy II Project and the extension of the Heating Component has been published on the web site of the World Bank Keeping Warm with the Lights On The Moldovan government is making public buildings more energy efficient,with support from the World Bank In Orhei, a town in Moldova , the maternity ward in the regional hospital is as dreary as it is drafty. The chill in the building is the result of a 30 year-old soviet-era heating system that has been poorly maintained and was only meant Ito supply heat to part of the hospital even when it was brand new. The poor heating makes things more difficult for the whole hospital, and for the 130 000 people in the county that rely on the facility when they are sick.
The hospital tries to make up for the lack of heat with electric space heaters, which are costly and inefficient, and mean that there is not money for other things that are important for new mothers and new babies.
Through the Energy II Project , the Moldovan Government, supported by the World Bank, is working to improve heating and lighting systems in public buildings across the country. Among other results, so far the project has improved heating in 23 schools and 12 medical institutions, benefiting 8,399 students and about 1 million patients, staff and visitors.
The project has benefits for the environment, as well. Greenhouse gas emissions were reduced with the switch from oil or coal to gas and the participating municipalities now receive carbon credits (about $10,000 per municipality). But for Moldovan students, teachers, doctors and patients, the real benefit is that it means there is more money for other important priorities, and that the project is literally helping to keep the lights on and the rooms warm. Permanent URL for this page: http://go.worldbank.org/R7OVFMH8F0
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