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Offers regarding increase of efficiency of heat power sector of Kishinau

Seminar "Study of the ways of the institutional and financial restructuring of the system for heat and electricity of Kishinau” has been presented at 23 May 2011 in the representation of the World Bank (Pushkin street 20 / 1, Kishinau, Moldova).Basic report has been prepared by a team of experts from the Economic Consalting Associates Limited (EAC) under the range of the project funded by the International Bank.

Between seminar participants there were: First Vice-Minister, Minister of Ministry of Economic Affairs Valery Lazar, Chairman of the Parliamentary Commission for Budget and Finance of the Parliament of the Republic of Moldova Vyacheslav Ionita, Acting Mayor of Kishinau Dr.Nistor Grozavu, collaborators of the Ministry of Economy (Deputy Minister I.Popa, V.Cheban, P.Parsian), Director of the AEE M.Stratan, CEO ANRE B.Parlicov, representatives of energy sector (M.Cherney - CEO Termocom; M.Sorbale - CTO TPP 2, A.Gusev - CEO Moldovagaz, etc.), representatives of science (Prof.Dr.Hab.V.Arion – TUM, Dr.Hab.V.Berzan - director of IE ASM), etc.

Analysis of situation in the thermal power sector of Kishinau has been provided in the report of experts, and the following conclusions have been made:

1.Liquidation of the “Termocom” is not possible nowadays;

2.It is not possible also further increasing of tariffs for heat power;

3.It has been proposed to provide vertical integration of the TermoPowerPlants (TPPs) and “Termocom” under government ownership;

4.It has been proposed to improve “Termocom” management by the corresponding government reforms under new ownership.

Between the main ways to improve the situation in the thermal power sector two possibilities have been considered: a) vertical integration of existing TPPs and “Termocom” which can provide better coordination of their activities, and b) the development of joint investment plan to increase of energy efficiency of existing TPPs, which can be based, for example, on their modernization by means of new technologies of cogeneration.In particular, this part can be named as construction of virtual TPP-3, with a view to raising interest for investment by private investors, preserving the independence of “Termocom”, which remains in control of the state, but TPP-3 will has self-management and coordination between energy producers and distributors.And, in particular, regarding part b), also vertical integration of enterprises can be in the future in the case of necessarily.

Repayment of debts owed to creditors (Moldovagaz) is a complicated problem, and it is necessary to provide special analysis for solution of this problem.One of the possible solutions might be in the transfer of creditor assets or part of creditors assets in order to pay off these historic debts.

It is necessary also to formulate a clear vision for restructuring and ways of realization of this restructuring, which can lead to solution of the complicated problem of increasing of energy efficiency in thermal power sector of Kishinau.

V.Berzan, Dr.Habilitat