Moldovan government launches programme on biomass fuel production

Deputy Prime Minister, Economics Minister Valeriu Lazar and the United Nations Development Programme /UNDP/ on October 25 signed an agreement on providing money to companies producing biomass fuel.

The briquettes produced from agricultural waste are already used for heating in some rural public institutions, and their managers report savings up to 50 per cent, compared to coal and natural gas.

The programme is part of the Energy and Biomass Project managed by the Economics Ministry and is financed by the European Union with 14 million euros for the period 2011-14. UNDP's contribution amounts up to 560,000 euros, with the body being in charge of implementing the project.

The agreement amounting to 1 million euros provides allocations of up to 750,000 lei to companies committed to purchase processing equipment. The programme provides fiscal privileges. The money shall be reimbursed within a three-year period without interest rate. The reimbursed money shall be given to other companies for the same purpose.

Lazar said that the government's intention is that as many local businessmen as possible benefit from the project and that monopoly development is prevented. UNDP representative Narine Sahakzan said that creating jobs for men and women from the villages is the programme's collateral benefit.

Adapted from Moldpres