Page 11 - FSUOGM Week 11 2022

FSUOGM POLICY FSUOGM

Moldova secures $300mn EBRD loan to

buy gas from alternative sources

MOLDOVA THE government of Moldova has applied for this spring — or the contract may be cancelled.
a $300mn loan from the European Bank for Moldova’s government has taken steps to select
Moldova has been Reconstruction and Development (EBRD) and a consultant for the audit, but Gazprom has
struggling to pay for intends to put part of the proceeds towards the already objected, claiming that it should have
Russian gas for months. cost of natural gas (including transport and been part of the selection process.
storage fees), announced state-owned energy According to the prequalification document
trader Energocom, which is going to handle the published by Energocom with the aim of secur-
operation. ing alternative gas supplies to be used under
The government explained that such a emergency situation, the prequalification doc-
mechanism is needed in order to address uments must be duly completed and submitted
Moldova’s vulnerability to the supplies from electronically on or before April 5, 2022.
Gazprom via its subsidiary Moldovagaz. The To be prequalified to tender for the contracts,
vulnerability was demonstrated last October the applicant must demonstrate that it substan-
when Gazprom cut the gas supplies to Mol- tially satisfies several requirements.
dova by one third, as well as in two subsequent Firstly, it must demonstrate the ability to
situations when Gazprom warned it would cut transport and supply sufficient volumes of gas
supplies during the cold winter season unless required, on a yearly and monthly basis. This
bills were paid promptly. must be done by evidencing supply of a mini-
The price for the gas purchased in emergency mum of 150mn cubic metres or equivalent per
situations under the mechanism financed by the annum in the past three years and a minimum
EBRD will likely be higher than the one paid to of 50mn cubic metres or equivalent in a single
Gazprom under the long-term contract. month in the past three years.
Moldovagaz, controlled by Gazprom, signed The bidders also need to demonstrate the
a new contract with Gazprom last autumn. ability to supply at named delivery points in
But under a separate memorandum, the two Romania and/or Ukraine (Moldova's two neigh-
sides and Moldovan authorities must carry out bours), including necessary licenses, registra-
an audit and settle the issue of historic debt by tions and actual trades conducted. ™

Week 11 16•March•2022 www. NEWSBASE .com P11