Overview of our activities in Moldova
First Nefco projects have been fully implemented and an ongoing programme supports the refurbishment of healthcare institutions in four major districts of the country: Floresti, Ialoveni, Nisporeni and Telenesti. The modernisations are helping 11 healthcare institutions in these districts to keep patients and staff warm throughout winter. This is the first joint effort in Moldova between Nefco and the Eastern Europe Energy Efficiency and Environment Partnership (E5P). Read more about our available loan financing for energy-efficiency projects under our Georgia section.
In June 2017, Nefco and the Moldovan government signed a framework agreement. This acknowledges Nefco as an international financial institution in Moldova, enabling us to finance public energy-efficiency and renewable energy projects in the country. The agreement entered into force in April 2018, following ratification by the Moldovan parliament.
The Energy Saving Credits (ESC) facility was launched in Moldova in 2019 to finance municipal investments in energy-saving measures in social facilities such as day-care centres, schools, hospitals and street lighting. Since 2010, Nefco has financed over 80 projects through the ESC facility, of which 2 have so far been implemented in Moldova.
Energy-efficient street lighting in Moldova
The first Nefco-financed project in Moldova was modernising street lighting in the village of Feștelița with 3,000 inhabitants. The installed measures have resulted in 52% savings in annual electricity usage and improved safety for the local people.
Facility for Energy Saving Credits
The Energy Saving Credits (ESC) loan programme offers small scale financing to local governments in the Republic of Moldova.
The funding can be used for energy-saving measures in connection with the refurbishment of public buildings and modernising the street lighting. The energy-saving measures can include renovation of heat sub-centrals, installation of individual heat substations, thermal insulation of walls, ceilings and roofs, replacement of doors and windows to energy-efficient alternatives as well as replacement of fluorescent and mercury-vapour fixtures with environmentally friendly LED lights.
Focus is on:
- Renovation of social facilities to reduce energy consumption and increase the lifetime of the buildings
- Annual heat energy savings of approx. 30-45%
- Environmental savings, such as reduction of CO2, nitrogen oxide, sulphur dioxide and dust emissions
- Annual cost savings of approx. 25% of the investment
- Establishment of best practices in procurement and project implementation
The maximum loan amount granted from this Facility is the equivalent of EUR 500,000 in local currencies. Nefco can finance up to 90% of the project costs. The payback period of the investment is up to 5 years with an interest rate of 3%. Project payback is calculated by dividing the total project cost with the anticipated annual cost savings generated from the project.
The Energy Saving Credits loan programme is financed by the Nordic Environmental Development Fund, which includes contributions from all Nordic countries, Nefco and the Nordic Council of Ministers. Nefco acts as the implementing agency.