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Germany is providing Moldova with a €38.7 million non-reimbursable grant: How will the funds be used

The Republic of Moldova will receive a non-reimbursable grant of €38.7 million from Germany. The agreement was signed on Tuesday, March 25, by Minister of Energy Dorin Junghietu, Veronica Garcia del Arco, Director for Eastern Europe, the Caucasus, and Central Asia at the German Development Bank KfW, and Ruslan Surugiu, Director of the Consolidated Unit for the Implementation and Monitoring of Energy Projects (UCIPE).

The funds will support the “Initiative for the Development of Sustainable Public Infrastructure through Energy Efficiency Renovations (INSPIREE).”

“The INSPIREE project aims to improve the energy efficiency of public buildings and strengthen Moldova’s energy security. It will focus on energy-efficient renovations of public buildings in the healthcare and higher education sectors, such as district hospitals and student dormitories,” the Ministry of Energy stated.

The project will upgrade up to 30 buildings across Moldova with energy efficiency improvements, renewable energy solutions, and structural and interior modernizations.

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These improvements will significantly reduce energy consumption and costs while enhancing comfort and usability for staff, patients, and students.

The Ministry of Energy stated that Germany and France are co-financing the project, which has a total budget of €73 million. In early March, officials signed a €30 million loan agreement with the French Development Agency (AFD) in Paris.

“Energy efficiency in buildings is a key priority for the Moldovan government. To achieve this goal, we are committed to improving the energy efficiency of 0.8% of the country’s building stock annually, thereby reducing financial pressures and energy security challenges while improving citizens’ comfort,” Minister Junghietu stated.

German Ambassador Margaret Uebber emphasized that this investment reflects Germany’s commitment to strengthening Moldova’s energy independence.

“By financing critical modernization measures for public buildings, we aim to reduce energy consumption, lower operational costs, and create more comfortable and sustainable environments for students, medical staff, and patients across Moldova,” Uebber added.

The INSPIREE project highlights strong donor coordination within the Joint European Financiers for International Cooperation (JEFIC) initiative, which promotes European cooperation and co-financing for sustainable development while reinforcing Moldova’s commitment to European integration.

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