• EUR 25m loan to implement waste management projects across Moldova
• The loan will contribute to new collection systems, material and bio-waste treatment facilities and regional sanitary landfills
• First step towards the transposition of the EU legislation in the waste management sector

The European Investment Bank (EIB) is lending EUR 25m – the first tranche of an approved loan of EUR 100m – to the Republic of Moldova to finance improvements to the country’s municipal solid waste management services. The EIB support – which is in line with the government’s priorities, in particular for social projects benefiting citizens – will help to reduce the negative impacts of the outdated solid waste facilities on the environment and public health. 

The EIB loan will help to implement the 2013-2027 Waste Management Strategy of the Republic of Moldova, involving projects aimed at upgrading and developing solid waste management systems and facilities in eight regions across the country. The projects will provide new collection systems, material and bio-waste treatment facilities and new regional sanitary landfills for all the urban population and part of the rural population, totalling approximately 3 million people.

Based on upgrades to the waste collection systems and introduction of separate collection and treatment of recyclable materials and bio-waste, the projects will reduce adverse environmental, health and climate impacts from out of date dumpsites, which will be closed or rehabilitated. The loan will thus provide timely investment support for the transposition of the EU legislation in the waste management sector as stipulated by the Moldova-EU Association Agreement.

The EIB loan will finance up to 50% of the total costs of the different components. The remaining funds will be provided by the European Bank for Reconstruction and Development (EBRD), The national authorities and final beneficiaries will also contribute with their own funds. Additional technical assistance has been provided by other international donors, such as the German Society for International Cooperation (GIZ) and the Czech Development Agency.

EIB representative Antonio Castillo commented: “This is the first EU bank operation contributing to the upgrade of Moldova's solid waste infrastructure. It will improve living conditions for the people of the country by ensuring better public health and a cleaner environment via improved waste management services. It will bring Moldova closer to European standards in line with the Government Waste Management Strategy.”

Minister of Agriculture, Regional Development and Environment Georgeta Mincu stated: “This financing represents the first injection of funds in the complex programme to upgrade solid waste management facilities in accordance with the EU best practices through the entire country. The Government of Moldova will also contribute with its own resources. We would like to encourage other external development partners to joint this initiative.”

Background information:

About the EIB:

The EIB is committed to supporting the Republic of Moldova following the June 2014 signature of the EU-Moldova Association Agreement, which includes a Deep and Comprehensive Free Trade Agreement (AA/DCFTA). This agreement will lead to much closer political and economic ties with the EU within the framework of the Eastern Partnership.