The loan proceeds will be used to partly finance the design and rehabilitation of a number of substations, transformers and transmission lines, which will enable Moldelectrica to improve the efficiency and reliability of its transmission network.

EBRD noted the project will benefit the Moldovan transmission network’s existing interconnections with Romania and help create the necessary infrastructure for future potential interconnection to the European network.

The project is also expected to be co-financed by a €8m grant provided by EU NIF.

EBRD director for Caucasus, Moldova and Belarus Paul Henri Forestier said, "The EBRD financing will help Moldelectrica to increase security, stability and efficiency of its power transmission network and will enable the company to prepare for future integration into European network."