The amount of the Financing Agreement is EUR 730 thousand to cover expenses for the services of a consultant (tender agent) responsible for the bidding aimed to select a Consultant, executor of the feasibility study.

At the signing ceremony of the Financing agreement, KfW (Credit Institute for Reconstructions, a German state-owned bank) was attended by experts of the Ministry of Environment and Thomas Weithöner, Head of Economic section, Embassy of Germany; Petar Gjorgjiev, Project Manager, KfW Frankfurt; Sergiu Gutu, the new head of KfW Office in Chisinau.

According to the project, a feasibility study will be developed in collaboration with international experts for the expansion of the water pipe, to be followed by the design and construction of networks for localities. Unification of water supply systems of Chisinau, Straseni and Calarasi, gradually connecting about 20 villages located along the water pipe, is a strategic element of infrastructure in the context of regionalization of utility services.

The Minister of Environment, Sergiu Palihovici, said that the provisions of the Financing Agreement were beneficial for solving problems in water supply in some localities of Moldova and that ‘creating a regional water supply system by connecting water supply systems of Chisinau, Straseni and Calarasi in a joint institutional and operational system will ensure access of the population of Straseni and Calarasi to drinking water in accordance with sanitary standards and increase the quality of water supply and sanitation in the localities concerned. Upon completion of construction of the main water pipe and connection of local water supply systems to it, a unique institutional structure for the management of water supply systems in Chisinau, Straseni and Calarasi will be created’.

German officials present at the signing ceremony, informed the audience that KfW Reconstruction Credit Institute (KfW German state-owned bank) within the Moldovan-German development, mainly finance projects in the areas of ‘social infrastructure’ and ‘financial sector development’.

The document signed today in Chisinau defines the tasks of stakeholders and outlines the tasks to be taken for the implementation of this project, which has been identified as a priority in the Strategy for water supply and sanitation (2014-2018). Also, the Government of the Republic of Moldova and the Government of the Federal Republic of Germany identified the project as a priority project of bilateral cooperation during the Moldovan-German negotiations held in June 2014 in Chisinau.

KfW Bank is one of the leaders in the German banking sector and one of the largest banks in Europe, regarded as the safest bank in the world. It provides support to both national economy, and the development of states in transition. The bank has been present in Moldova since 1999, especially in the segment of social infrastructure and promoting small and medium enterprises through the financial sector in Moldova.

During the recent years the German Bank has made more social investment in Moldova through successful projects. Given the intensification of its activities in Moldova, KfW opened an office in Chisinau. The Head of the Office in Moldova will be subordinated to the KfW Office in Kiev (Ukraine), its regional teams divided by sectors. In turn, Kiev office is subordinated to the Central Bureau of KfW Frankfurt am Main (Germany).