Leova District is leading in the number of public institutions heated with bioenergy

28 May 2014

imagePublic Private Partnership in Leova district. Photo: UNDP Moldova

25 schools, kindergartens and community centres of Leova District will switch to biomass-based heating during the next cold season and will benefit from a single service management unit. These are the key provisions of the first Bioenergy Sector Public-Private Partnership Model launched in Leova District today.

The Public-Private Partnership Agreement was signed by Leova District Council and Company “Green-Farm” SRL, winner of the tender organised by the local authority. ”We are the first district in Moldova to set up a public-private partnership between the District Council and an economic entity, promoting the development of biomass-based thermal power generation infrastructure and establishing integrated units for its management”, Eufrosinia Gretu, chairwoman of Leova District, said.

This year, “Green-Farm” Company will install modern pellet-fired heating plants at 17 public institutions of Leova District, the investment amounting for EUR 500,000. Thus, Leova District is leading in the number of public institutions heated with bioenergy, totalling 25 schools, kindergartens and community centres, including those installed with the financial support of the EU-UNDP funded Moldova Energy and Biomass Project and other partners.

”Our Company will be in charge for managing the supply of biomass heat, out of our resources, and for proper operation of biomass-fired heating plants installed at 17 public institutions connected to the biomass heating systems, as well as those six district plants already in place. We will hire and cover the remuneration of heating plant operators, and ensure the biofuel supply for the entire heating season”, Valeriu Plesca, Green-Farm Director, said.

The heating plants installed in those 25 public institutions will be managed by the economic entity for an eleven-year period, and the local authorities will pay MDL 997 for each GCal of energy produced out of biomass. Subsequently, Leova District Council will take over the ownership on heating plants.

The Public-Private Partnership was launched upon the initiative of Moldova Energy and Biomass Project (MEBP).  "One of the key objectives of the MEBP project is the development of a sustainable biomass market in the Republic of Moldova.  The Public-Private Partnership on Biomass-based Heat service can be a very efficient mechanism to ensure  reliability, quality and sustainability of  the new biomass heating system in the  Leova District”, Alexandre Darras, Attaché – Project Manager in  the EU Delegation to Moldova, stated.

The model piloted in Leova represents the first biomass heat supply service in the Republic of Moldova. Leova District has been selected to pilot such a Public-Private Partnership Model following an open tender conducted to this end and subscribed by 13 Districts that brought 15 Project Proposals. ”The Public-Private Partnership Model combines nicely the incentive for the private sector development to provide integrated energy services and meet the needs of beneficiary institutions, i.e. comfortable indoor climatic conditions and reliable heat supply”. Cooperation between local authorities and private companies serves as a catalyser of change and economic development by creating new opportunities, providing better services and ensuring higher standards of living”, Valeria Ieseanu, UNDP Moldova Programme Analyst, mentioned.

Moldova Energy and Biomass Project is a four-year project implemented during 2011-2014. The Project total budget equals to EUR 14.56 million, allocated by the EU (EUR 14 million) and UNDP Moldova (EUR 560,000).

Contact Information

Ina Prisăcaru-Zglavuţă, Media and Communication 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 69713636), nicolae.zaharia@undp.org