The European Bank for Reconstruction and development (EBRD) is providing a €25 million sovereign loan to the government of Moldova to finance critical investments in its solid waste management infrastructure.
The loan is part of a wider financing package, with the European Investment Bank (EIB) providing an additional €25 million sovereign loan as well as investment grants from international donors.
The project is the first large-scale undertaking in the solid waste management sector in Moldova involving multiple regions. The EBRD’s investment will support improvements in the solid waste management system of three Waste Management Zones under Moldova’s Solid Waste Management Strategy. It will finance the purchase of waste collection and transfer assets, such as containers and collection vehicles, as well as the construction of solid waste disposal and treatment infrastructure, such as landfills and material sorting and treatment facilities.
The first Waste Management Zone to benefit from the EBRD’s support under the project includes Ungheni, Nisporeni and Calarasi districts. It requires an estimated investment of around €19.48 million. This will be financed by the first tranche of €6.94 million of the EBRD’s loan, with a similar amount provided by the EIB. The Eastern Europe Energy Efficiency and Environment Partnership (E5P), to which the EU is the largest donor, will also provide an investment grant of up to €5.6 million for its rehabilitation.
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