Draft law on ratification of the Financing Contract between the Republic of Moldova and the European Investment Bank approved by the Government

On Friday, April 10, 2020, the Cabinet of Ministers approved the draft law on ratification of the Financing Contract between the Republic of Moldova and the European Investment Bank (EIB) regarding the implementation of the "Solid Waste in the Republic of Moldova" project.

The contract represents a framework loan for providing support in the implementation of the National Solid Waste Management Strategy, in a total amount of EUR 100 million, the first tranche of the loan being worth EUR 25 million.

Ratification of the Financing Contract will allow  the initiation of the process of accessing financing for the development of waste management infrastructure according to EU standards, which provides for the construction of landfills, transfer, sorting and composting stations of biodegradable waste, including other facilities as part of the integrated waste management system, in order to provide the population with modern services at regional level and to solve environmental problems.

The financial support will contribute to the creation of a modern infrastructure of integrated waste management, focused on the circular economy in order to return to the economic circuit of the waste that can create a secondary raw material market for the Republic of Moldova (fractional sorting of recyclable waste), including the growth of the national economy as a result of the development of the waste recycling and recovery sector, which will lead to an increase in the level of quality of environmental factors  (groundwater and surface water, soil and air), including the quality of life of the population as a result of the disposal of unauthorized landfills and the development of equitable waste collection services at regional level.

The investments of the first tranche will be oriented in Waste Management Regions no. 1, 5 and 8 (WMR 1 - Cantemir, Cahul, Taraclia, Comrat; WMR 5 - Ungheni, Nisporeni, Călărași; WMR 8 - Briceni, Ocnița, Edineț, Dondușeni ) of the 8 WMR that are ready for the launch of waste management infrastructure projects. For the first stage, as a pilot project, WMR 5 - Ungheni, Nisporeni, Călărași was selected, in order to start the actions of preparing the platform for accessing the investment.

Note: The Financing Contract between the Republic of Moldova and the European Investment Bank on the implementation of the project "Solid Waste in the Republic of Moldova" was signed in October 2019 (GD no. 475 of October 18, 2019). Ratification of the framework loan will also provide the grant component, which will be covered by grants from other external donors, and will be reflected in the state budget from 2021 onwards.