BUCHAREST, Dec. 14 (Xinhua) -- The Moldovan government on Wednesday approved the loan agreement with the European Investment Bank (EIB) for a project of gas pipeline connecting the country's capital city with neighboring Romania, aimed at ensure the country with an alternative energy source.
Moldova will receive 41 million euros (43.64 million U.S. dollars) from the EIB for the construction of a 120 km pipeline connecting Chisinau, Moldova's capital and largest gas consumer, to the Romanian gas network via Ungheni (Moldova)-Iasi (Romania) interconnection that was completed in late 2014.
According to provisional calculations, the total costs are estimated at about 113 million euros.
In addition to the EIB loan, another loan of 41 million euros will be offered by the European Bank for Reconstruction and Development, while the rest will be mainly covered by grants from the European Union and Romania.
The previously built pipeline of 43 km was from the Romanian city of Iasi to the Moldovan northwestern border city of Ungheni.
The new pipeline would allow Moldova to import more natural gas from Romania, thus enhancing the security of energy supply. (1 euro = 1.06 U.S. dollars)
