The European Bank for Reconstruction and Development (EBRD) will provide the Republic of Moldova with a €15.4 million grant for the construction of the 400 kV Bălți-Suceava overhead power line. The Foreign Policy and European Integration Committee has approved the advisory opinion for initiating negotiations and signing the Grant Agreement between the Republic of Moldova, the state-owned enterprise "Moldelectrica," and the EBRD for the implementation of the project "Interconnection of Electricity Networks between the Republic of Moldova and Romania, Phase II."

The project involves the construction of a 400 kV overhead power transmission line that will connect the municipality of Bălți in Moldova with the municipality of Suceava in Romania, as well as the reconstruction of the 400 kV Bălți electrical substation. Additionally, the funds will be used for the rehabilitation of certain segments of Moldova’s power transmission networks, including the replacement of switching and protection elements, as well as transformers in electrical substations.

According to the authorities, the implementation of this project will enhance the energy security of the Republic of Moldova, particularly in the northern region, which is among the most vulnerable. It is also expected to contribute to economic development by ensuring a reliable power supply. Another anticipated outcome is the increased flexibility of the power system, allowing for the integration of additional renewable energy generation capacity with intermittent operation.

The EBRD grant covers 20% of the project's total cost, which amounts to €77 million. Previously, in the context of implementing the "Interconnection of Electricity Networks between the Republic of Moldova and Romania, Phase II" project, the Parliament ratified a loan agreement between the EBRD and the Republic of Moldova, providing €30.8 million in repayable financing. Another €30.8 million was reallocated by the European Investment Bank.