Leova District will have 16 new biomass heating plants and a service unit for their management

18 Dec 2013

imageThe Public-Private Partnership Model to be launched in Leova District aims to be a successful example in setting integrated services for heating plants management, including their construction, provision with biofuel and operation. Photo: UNDP

Leova District Council and the United Nations Development Programme signed today a Public-Private Partnership Agreement to build 16 new biomass heating plants in Leova District and to set, for the first time in the Republic of Moldova, a service unit for managing bioenergy-based heating plants.

Setting a service unit for managing biomass heating plants is one of the initiatives launched by the EU-UNDP funded Energy and Biomass Project with the aim to establish a reliable market of integrated services in the bioenergy sector. The Energy and Biomass Project investment made for setting the Public-Private Partnership in Leova District amounts to EUR 100,000, allocated at the expense of European funds, while the selected economic entity is expected to allocate at least MDL 6 million (EUR 350,000).

”This is a first-time experience for Leova District to set a Public-Private Partnership between a second-tier Local Government and an economic entity. We are glad to be the first district in the Republic of Moldova to promote biomass heating infrastructure, having established integrated services for its management. We would like our model to inspire other districts to follow our example”, Eufrosinia Gretu, Chairperson of Leova District, said.

This week, Leova District Council will launch the tender for selecting the economic entity – part of the Public-Private Partnership; the deadline for proposals is 60 days from the date the announcement is published by the Official Monitor. The selected economic entity is expected to invest at least EUR 350,000 in building 16 pellet-fired heating plants, and to provide them and other five heating plants already in place, with high-quality biofuel, having employed operators to manage these biomass heating plants.   

Leova District Council will be the owner of these heating plants, and the latter will be managed by the selected economic entity for 11 years.

The Public-Private Partnership Model to be launched in Leova District aims to be a successful example in setting integrated services for heating plants management, including their construction, provision with biofuel and operation.

”I am confident that this example will serve as a model to be followed by other districts. We do hope that the local market for biomass heating plant management services would evolve, resulting in reliable supply of biomass-based heating to public institutions and creation of new jobs, new businesses and, last but not least, in environment protection”, Narine Sahakyan, UNDP Deputy Resident Representative said.

Leova District has been selected to pilot such a Public-Private Partnership model following a public tender involving 13 Districts that brought 15 project proposals. The bids have been screened in two stages: proposal evaluation and site assessment of the first three finalists.

Moldova Energy and Biomass Project is a four-year project implemented during 2011-2014. The Project total budget amounts to EUR 14.56 Million, provided by the European Union (EUR 14 million) and UNDP Moldova (EUR 560 thousand). So far, five biomass heating plants have been installed in Leova District at the expense of European funds, and the Project investment amounted to $381 thousand.  

Contact Information

Ina Prisăcaru-Zglavuţă, Communication and Media Officer, Moldova Energy and Biomass Project, phone: (+373 69)141006, ina.zglavuta@undp.org

Nicolae Zaharia, Business Development Officer, Moldova Energy and Biomass Project, phone: (+373 69)713636, nicolae.zaharia@undp.org