Joint Statement on the District Heating Situation in Chisinau

We are concerned about the district heating sector in Chisinau. We believe it is critical to work towards a sustainable solution, including: 1) establishing and implementing a cost-recovery heating tariff, 2) providing targeted social assistance subsidies to vulnerable consumers, and 3) addressing Termocom’s debt situation.

At the request of the Ministry of Economy and Trade, the Chisinau Municipality and Termocom, the World Bank and IMF, through SIDA, commissioned an independent study to help determine cost-recovery heating tariffs of Termocom that could facilitate the way forward.

We are confident that finding a sustainable solution for Termocom, including tariffs, social assistance and debt resolution, will pave the way for future investments and facilitate modernization to achieve greater energy efficiency and better service to consumers. In this regard, we invite the authorities to a joint donors and International Financial Institutions energy meeting next week for further consultations on this matter.

 

We stand ready to support all parties concerned in identifying a sustainable solution.

 

European Bank for Reconstruction and Development (EBRD)

 

Swedish International Development Agency (SIDA)

 

The World Bank

 

The International Monetary Fund (IMF)

 

United Nations Development Programme (UNDP)

 

 

Chişinău, November 7, 2008