October 23, 2024, Chisinau – The goods, services and works necessary for the implementation of the project for the interconnection of electricity networks between the Republic of Moldova and Romania – Phase II, will benefit from tax and customs facilities, according to a Regulation approved today by the Cabinet of Ministers.

The Regulation provides for exemptions from the payment of VAT without the right to deduct, excise duties, customs duties and other taxes applicable to goods and services imported for the implementation of the project. Thus, the introduced facilities will contribute to reducing the costs of implementing the project by over 6 million euros.

The project “Interconnection of electricity networks between the Republic of Moldova and Romania, phase II” provides for the construction of the 400 kV Balti - Suceava overhead power line, the expansion of the Balti 400 kV power station and the modernization of all power stations of the State Enterprise “Moldelectrica”, with a total budget of 77 million euros. The project is financed by the European Bank for Reconstruction and Development, the European Investment Bank and the European Union.

The project will strengthen the energy security of our country, contribute to the integration of the national grid into the single energy market of the European Union by increasing connections with the European ENTSO-E network and will lead to improved stability and reliability of the national electricity system, increase the import and export capacity of electricity. At the same time, due to the modernization of power stations, the absorption capacity of renewable energy sources in the grid will increase.