Nefco to finance a new energy-efficiency project in Moldova

A new agreement has been signed with the city of Căușeni in Moldova to implement energy-efficiency modernisations in one of the city’s largest day-care centres to reduce its energy usage and improve indoor comfort and temperatures for almost 400 children and staff. Implementing energy-efficiency measures and modernising public buildings is one of the most efficient ways of reducing greenhouse gas emissions and mitigating climate change.

The city of Căușeni is located in the south-east of Moldova and has some 18,000 inhabitants. Since its construction in 1976, day-care centre No. 2, which is one of the largest day-care centres in Căușeni and consists of several buildings, has not undergone any comprehensive renovations and therefore fails to meet current energy performance standards for public buildings in Moldova. Many other schools and day-care centres built during the Soviet era are facing the same problem of out-dated construction. A lack of thermal insulation results in significant heat losses and excessive energy usage, with indoor air temperatures of about 15–16°C.

“We are very glad to announce our collaboration with the city of Căușeni to support its green energy transition and finance an energy-efficiency modernisation project that will have important social benefits. The project design has already been completed and procurement is well under way. We estimate that a major part of the project will be implemented during 2024,” comments Vitaly Artyuschenko, Chief Investment Adviser at Nefco.

Several energy-efficiency measures will be implemented as part of the project, including thermally insulating the facades, attic and basement soffit as well as replacing the roof. The implemented measures will extend the life-cycle of the building, reducing the need for continued renovations.

“Partnering with international financial institutions such as Nefco is a priority for the city of Căușeni, particularly as we embark on our journey towards becoming a green economy. We are seeking guidance and support in developing and rolling out initiatives that will steer the development of a more environmentally friendly and modern city. The energy-efficiency project for our early childhood education institution promises not only immediate benefits for our community but also sets the stage for a brighter, cleaner future for coming generations,” says Ruslan Coroi, Deputy Mayor of the city of Căușeni.

The total project budget is EUR 756,000 (MDL 14.6 million), comprised of a Nefco loan of EUR 380,000 (MDL 7.33 million), financed under the Energy Saving Credits facility, and a local contribution from the city of EUR 376,000 (MDL 7.27 million).

Once the project has been implemented, it is estimated that it will provide annual heat savings of approx. 500 MWh, a 65% reduction compared to the situation prior to the project start and annual CO2 emission reductions of some 100 tonnes/year. This will result in some EUR 115,000 (MDL 2.2 million) in annual budgetary savings. In addition, the project is expected to improve the indoor climate of the facilities for some 320 children and 60 staff members.

The Energy Saving Credits (ESC) loan programme was launched in Moldova in 2019, supporting small-scale investments in projects related to energy-efficiency measures in social facilities such as day-care centres, schools and hospitals, as well as street lighting. Nefco has so far implemented two energy-efficiency projects in Moldova to modernise street lighting in the city of Ungheni and the village of Festelita. Currently, Nefco is financing the first joint energy-efficiency project in Moldova with the Eastern Europe Energy Efficiency and Environment Partnership (E5P) with the aim of supporting the refurbishment of healthcare institutions in four major districts: Floresti, Ialoveni, Nisporeni and Telenesti.

Learn more about Nefco’s activities in Moldova:

Read our case story about the implemented project in Ungheni

Watch a video about the implemented project in Festelita

For further information, please contact:

Vitaly Artyushchenko, Chief Investment Adviser at Nefco, +358 50 9112427

Photo: Day-care centre No. 2 in Causeni prior to the project start – Sinergetika for Nefco.

Photo: Day-care centre No. 2 in Causeni prior to the project start – Sinergetika for Nefco.

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