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One million Euro are provided by the European Union for the purchase of biomass fuel production equipment through the leasing mechanism.

One million Euro are provided by the European Union for the purchase of biomass fuel production equipment through the leasing mechanism.

Chisinau: Today, Deputy Prime Minister Valeriu Lazar, Minister of Economy, jointly with the Deputy Resident Representative of UNDP in Moldova, Narine Sahakyan, have signed the document aimed at launching a new Programme, totalling EUR1 million, provided for lease purchase, by instalment, of biomass fuel production equipment. The money is provided by the European Union, through the Energy and Biomass Project, financed by the EU and co-financed and implemented by UNDP Moldova.

The Programme aims at fostering the biofuel production market in the Republic of Moldova, and is intended to facilitate the procurement of a wide range of biomass briquetting equipment by private sector entities. The equipment will be sold under favourable conditions for a three-year period, with no commission, no interest and 0% VAT. It is expected that 200-250 new jobs will be created by the leasing mechanism.

"Through this Programme we pursue the goal to set incentives aimed at encouraging and developing the biofuel production market in the Republic of Moldova, having launched a whole industry in this area, which would use the agricultural wastes in an efficient manner. From the other hand, we shall take care to ensure the demand for such products from the public sector side by having biomass boilers installed in schools, hospitals and other public institutions in each District, Valeriu Lazar has stated at a briefing held after having signed the Programme documents.

The three-year leasing period is of great importance. Thus, the first down-payment, worth 20 % of the equipment cost, shall be settled within five working days following the conclusion of the Agreement of Intent to purchase the industrial equipment. The second instalment, worth 20 % of the equipment cost, shall be settled during the first contract year, i.e. within 360 days following the conclusion of the Leasing Contract. The third and the fourth instalments, totalling 30% each, shall be settled by the end of the second and, respectively, the third year following the conclusion of the Leasing Contract.

The launch of this Programme serves as an example of comprehensive approach applied by the Energy and Biomass Project, which along with the installation of modern biomass heating systems within public institutions, intends to involve the private sector to develop the production of biofuels, so that the latter are readily available for all users. I am sure that the launch of this Programme will have a great impact on the development of rural communities, having brought new opportunities for both men and women, such as new jobs, cleaner environment, savings to be invested in community development, Narine Sahakyan, Deputy Resident Representative of UNDP in Moldova, has pointed out.

Any private entity working in the rural area and capable to manage and operate biomass briquetting equipment may become a Programme recipient. Applications to participate to this Programme shall target the maximum value of 750,000 MDL, comprising the cost of equipment, its shipping and handling, insurance, inspection and other equipment purchase related expenses. It is envisaged to purchase new low-energy equipment with improved performance only. No technical units and agricultural machinery such as combines, tractors, seeders, transportation means, including the specialised ones, shall be accepted for procurement.

The potential recipient shall be registered pursuant to the requirements of the legislation in force, six months at latest prior to lodging the application to participate to this Programme, having no outstanding liabilities towards financial and banking and/or non-banking institutions or fiscal liabilities towards the budget. Should the entity have any fiscal liability, it shall settle it voluntarily within 30 days following the date of lodging the application to participate to the Programme. Another requirement in this regard states that the potential recipient shall not be under any of the following statuses: insolvency, bankruptcy, reorganisation or legal proceedings, while its business shall be located on the territory of the Republic of Moldova.

The suppliers of briquetting equipment may be national or international private companies working in the area of manufacturing and marketing of such equipment. Priority shall be given to undertakings, which have implemented the quality management system (ISO 9001:9002).

It is worthy to mention that the Leasing Programme will be financed by the EU through the Energy and Biomass Project implemented during 2011-2014. The Project total budget amounts to 14.56 Million EUR, provided by the European Union (EUR 14 Million) and by UNDP Moldova (EUR 560,000).

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