A groundbreaking joint visit by EIB President Werner Hoyer and EBRD President Sir Suma Chakrabarti to Moldova from 5 to 7 February has proved fruitful. Separate agreements to support water and agriculture schemes have been reached.

Improving water supply

The European Union, European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD) announced on 7 February that they are joining forces to support the modernisation of water and waste water infrastructure in Chisinau, capital of Moldova.

The announcement comes on the occasion of the first ever joint official visit by the Presidents of the two institutions to a country of operation.

The Banks will each provide loans of EUR 24m, with the EU contributing a grant of EUR 11m, to the city’s water and waste water utility S.A. Apa Canal Chisinau.

The existing water network in Chisinau can no longer adequately meet the needs of the 800 000 inhabitants, and the funds will finance the extension, rehabilitation and modernisation of the infrastructure. This will improve efficiency, save energy and contribute towards future compliance with relevant EU directives.

Historic agreement in agriculture

Separately, a further strengthening of EIB operations in Moldova was secured as the Bank increased its engagement to support agriculture and horticulture in the country.

A declaration of intent, outlining key areas of future cooperation was signed between EIB Vice President Wilhelm Molterer and Vasile Bumacov, Moldova’s Minister of Agriculture.

It is the first ever engagement of this type by the EIB in the Eastern Partnership, and under the agreement the Bank will consider loans for eligible investment in public and private sector projects. Up to 50% of the financing in such agricultural projects could be provided by the EIB, with the remainder coming from local sources or other international financial institutions.