The World Bank
Sustainable Transition to Energy Efficiency in Moldova [STEEM)(P500560)
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Project Information Document (PID)
Concept Stage | Date Prepared/Updated: 20-Jul-2023 | Report No: PID151
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The World Bank
Sustainable Transition to Energy Efficiency in Moldova [STEEM)(P500560)
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BASIC INFORMATION
A. Basic Project Data
Project Beneficiary(ies) Operation ID Operation Name
Moldova, Moldova P500560 Sustainable Transition to Energy Efficiency in Moldova
[STEEM)
Region Estimated Appraisal Date Estimated Approval Date Practice Area (Lead)
EUROPE AND CENTRAL 16-Apr-2024 30-May-2024 Energy & Extractives
ASIA
Financing Instrument Borrower(s) Implementing Agency
Investment Project Ministry of Energy Moldova Project
Financing (IPF) Implementation Unit
(MPIU)
Proposed Development Objective(s)
To mitigate energy security and affordability risks through energy efficiency investments for public buildings and
sustainable heating technologies
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PROJECT FINANCING DATA (US$, Millions)
Maximizing Finance for Development
Is this an MFD-Enabling Project (MFD-EP)?
Is this project Private Capital Enabling (PCE)?
SUMMARY
Total Operation Cost 50.00
Total Financing 50.00
of which IBRD/IDA 50.00
Financing Gap 0.00
DETAILS
World Bank Group Financing
International Bank for Reconstruction and Development (IBRD) 50.00
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The World Bank
Sustainable Transition to Energy Efficiency in Moldova [STEEM)(P500560)
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Environmental and Social Risk Classification Concept Review Decision
Moderate The review did authorize the preparation to continue
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Other Decision (as needed)
B. Introduction and Context
Country Context
Sectoral and Institutional Context
Relationship to CPF
C. Proposed Development Objective(s)
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To mitigate energy security and affordability risks through energy efficiency investments for public buildings and
sustainable heating technologies
Key Results (From PCN)
D. Concept Description
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The World Bank
Sustainable Transition to Energy Efficiency in Moldova [STEEM)(P500560)
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Legal Operational Policies Triggered?
Projects on International Waterways OP 7.50 No
Projects in Disputed Area OP 7.60 No
Summary of Screening of Environmental and Social Risks and Impacts
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the text provided by E&S specialist. If it is revised after the initial download the task team must manually update the
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The environmental risk of the project is assessed as Moderate. Overall, the project is likely to generate some
environmental impacts related to the energy efficiency (EE) investments, but also to bring positive impacts in terms of
energy conservation and reduction of GHG emissions and air pollution. The environmental impacts related to the project
activities, mainly under Phase 1 and Phase 2, are expected to be predictable, temporary, low in magnitude, and site
specific without likelihood of impacts beyond the actual footprint of the project, reversible, and manageable in a
predictable manner through the implementation of cost-effective mitigation measures in line with the national laws as
well as the use of the World Bank Environmental & Social Standards (ESS), Environmental, Health, and Safety Guidelines
(EHSG) and Good International Industrial Practices (GIIP). However, considering the project description and the planned
activities primarily associated with small-scale EE civil works, key environmental issues will be related to (a) waste
management including hazardous waste (potentially of asbestos containing material) during construction works; (b)
occupational health and safety of workers; (c) community health and safety of residential population, staff and
personnel as well as visitors during construction works; (d) disruption of regular activities as a result of construction
noise pollution; (e) traffic disruption in residential areas (depending upon specific location), transport and traffic safety
at construction sites; (f) old electrical appliances; etc. Other proposed project activities under Phase 2 involve the
rehabilitation of district heating networks by replacement of old pipes with new pre-insulated ones, and conversion of
old gas-fired heat-only boilers with smaller size but more energy-efficient biomass-fired boilers, and will require low to
medium scale civil works for rehabilitation of the existing premises. These will also generate moderate environmental
risks and impacts such as soil and air pollution; generation of noise and construction wastes, labor safety, etc. and will
be addressed with good engineering and construction practices as well as by preparing and implementing adequate
mitigation measures and applying best housekeeping practices. During the project operational phase expected
environmental risks and impacts will be associated with noise, vibration some local air pollution, solid waste and
wastewater generated mainly by the biochemical processes for converting biomass materials to fuel; housing and roof-
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The World Bank
Sustainable Transition to Energy Efficiency in Moldova [STEEM)(P500560)
top solar projects will generate some minor quantities of electronic and hazardous waste. However, it is expected that
the proposed energy efficiency and conservation activities will contribute to GHGs emission reduction. The social risk of
the project is assessed as moderate. Social risks associated with the rehabilitation of public sector buildings and
commercial buildings as well as private residences (multi-family apartments and single-family homes) are likely to be low
magnitude with no great potential for harming people and located away from sensitive areas. Civil works are temporary
and isolated to specific compound, household and apartment refurbishments. Extension and rehabilitation of existing
pipelines for the district heating network in Chisinau and Balti is expected to involve some minor disruption to traffic and
road access but does not require land acquisition. The rehabilitation of public buildings may involve very minor
temporary disruption to services and on-site relocation (hot water turned off for a number of hours) and does not pose
any significant community health and safety concerns for building inhabitants. Significant resources and time will be
required to manage community and beneficiary engagement to ensure that participation of vulnerable households is
maximized and historical concerns about quality of district services (versus private natural gas connections) are resolved
particularly for refurbishment of multi-family apartments. Failure to achieve agreement may be compounded by lack of
awareness of the potential benefits of energy efficiency, lack of information about how to implement the measures, and
limited information on options for financing the various materials and appliances. Engagement with Home Owner
Associations is required to achieve a consensus to proceed with investment and to find solutions for including poor
apartment owners (women-headed, the elderly, persons with disabilities). Provision of financial alternatives should be
considered for those with low repayment capacity in order to maximize participation and prevent exclusion and conflict.
The project is exploring new models for utility companies to finance the high up-front investment costs and include
them in regular utility payments with any increase in tariffs offset by energy cost savings. Further assessment is required
to understand the impact of a scale up in transition to biomass energy generation on agricultural resources in order to
ensure that commercial production of energy plants does not displace food supplies. The project is unlikely to involve
large-scale labor forces. Small groups of qualified technicians are required for installing thermal insulation, high-quality
energy efficient windows, and advanced equipment. Civil works should be isolated and safe separation controls
provided for workforces and affected stakeholders. Forced labor in the global supply chain is an indirect risk associated
with the solar panels and components procured and deployed for renewable energy generation under the project,
specifically production of the key raw material polysilicon, which may be linked to work camps in third countries. Further
assessment and applicable provisions and Forced Labor Performance Declarations will be included in procurement
documentation for suppliers bidding for these components in order to mitigate this risk. While the risk of sexual
exploitation and abuse/sexual harassment (SEA/SH) associated with project activities is assessed as low, preventative
measures are required including labor codes of conduct and a grievance mechanism with measures for referral to
specialized service providers.
Note: To view the Environmental and Social Risks and Impacts, refer to the Concept Stage ESRS Document. Delete
this note when finalizing the document.
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CONTACT POINT
World Bank
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The World Bank
Sustainable Transition to Energy Efficiency in Moldova [STEEM)(P500560)
Roger Coma Cunill
Senior Energy Specialist
Silvia Martinez Romero
Lead Energy Specialist
Borrower/Client/Recipient
Ministry of Energy
Implementing Agencies
Moldova Project Implementation Unit (MPIU)
Ruslan Surugiu, MPIU Director, Ruslan.Surugiu@mepiu.md
FOR MORE INFORMATION CONTACT
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 473-1000
Web: http://www.worldbank.org/projects
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APPROVAL
Task Team Leader(s): Roger Coma Cunill, Silvia Martinez Romero
Approved By
Practice Manager/Manager:
Country Director: Inguna Dobraja 15-Sep-2023
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