EIB lends EUR 25m to Moldova to improve 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priorities, in particular for social projects benefiting citizens – will help to reduce the negative impacts of the outdated solid waste facilities on the environment and public health.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 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 county'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priorities, in particular for social projects benefiting citizens – will help to reduce the negative impacts of the outdated solid waste facilities on the environment and public health.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, totaling 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of recyclable materials and bio-waste, the projects will reduce adverse environmental, health and climate impacts from out of date dumpsites, which will be closed or rehabilitated.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 the 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 throughout the entire country. The Government of Moldova will also contribute to its own resources. We would like to encourage other external development partners to join this initiative."