**MOLDOVA'S POWER SECTOR: CHALLENGES ANDOPPORTUNITIES**
** **DECEMBER 29, 1999
 
**~~MOLDOVA'S POWER SECTOR: CHALLENGES ANDOPPORTUNITIES~~**
**~~ ~~**
AUTHOR: VEACESLAV DODONU, BISNISREPRESENTATIVE IN MOLDOVA
 
Moldova is a small state about the size ofMaryland, wedged between Romania and Ukraine.  Itspopulation from both banks of Dniester River is 4.4 millionpeople, of which almost 1 million reside in Moldova's capital,Chisinau, and its vicinity.  Moldova's 1998 nominal Gross Domestic Product amounted ~~innominal terms~~ to ~~Lei 8.8billion~~1.89billion U.S. dollars, which~~,in real terms,~~ is only a fraction of the 1990 level.
 
Although economy-wide reforms started in theearly nineties, with privatization of state-owned assetsofficially commencing in 1994, it was not until 1997 that theMoldovan Government, prodded by the World Bank and otherinternational donors, turned its attention toward the powersector.  At that time, power generation, transmission anddistribution functions resided in a company called Moldenergo,the state monopoly.  Price-setting was more dependent onpolitical considerations with little regard to economicprinciples.  Cross-subsidies persisted and power tariffswere insufficient to cover true costs.  Enterprises and thepublic at large regarded electricity as a social entitlementrather than tradable merchandise.  And debts to gas andother suppliers kept building up.  What is most striking isthat this state of affairs sent improper signals to the rest ofthe economy, causing inefficiencies in energy use and badfinancial discipline.  As a result, energy costs accountedfor as much as 30 percent or more of the final cost of manyproducts, according to some estimates.  This made Moldovanproducts less competitive in the world market.
 
With the unbundling of the state monopolyMoldenergo into 16 functional and autonomous businesses and theircorporatization in 1997, a new stage was set for introducing freemarket-based principles.  Companies became legallyregistered as joint-stock companies, but were still in statehands.  Also in 1997, the National Energy Regulatory Agency(NERA) was set up with the aim to separate politics from soundeconomic decisions and to return the sector to reasonableprofitability.  NERA currently regulates power distribution,generation, and transmission and dispatch companies.  Theseand other developments that followed have formed Moldova's powersector of today.
 The Industry and the Players
Moldova's 1998 power consumption was 3.76billion kWh after transmission, but before commercial losses wereaccounted for, with a peak load of 1151 MW in January 1998 and aminimum load of 182 MW in August 1998.  For the ten monthsof 1999 kWh used were 2.74 billion, implying that on ayear-on-year basis the 1999 consumption figures will be lowerthan in 1998.  Compare this with the 1990 when GDP(Transnistria included) was at its highest level in Moldova'shistory with power consumption reaching 12.65 billion kWh. According to a strategic outlook for Moldova's power sectorissued by the Government in mid 1997, average increase in theannual consumption was estimated at 3 percent until 2005.
 
Moldova is able to produce only aboutone-third of the power it needs with the rest coming fromUkraine, Romania, independent power suppliers and MoldavskayaGRES, which is located in the breakaway region ofTransnistria.  Moldavskaya is by far the biggest powergenerating plant in the count (see Table 1).  Two, out ofthree combined heat and power plants, are located in Chisinau,the other one is situated in Balti.  Over 90 percent of fuelused at CHPs is gas, while the other fuel used is number sixoil.  Russia's Gazprom is the main supplier of gas toMoldova, while number six oil comes from Romania, Russia, Belarusand Ukraine.  According to press reports, a new gas supplierrecently made its way to Moldova with gas reportedly 25 percentcheaper compared with Gazprom's USD 60 per 1,000 cubicmeters~~ ~~accordingto the 1999 contract.  The press also reported that the gassupply agreement Moldova signed with Gazprom in late December1999 stipulates a price of USD 80 per 1,000 cubic meters. However, there is talk that the final price will be somewhatlower. 
 
Moldova's summer generating capacity deficitis estimated at 450 MW, while the winter deficit stands at 650MW.  The Government's strategic outlook issued in 1997envisaged an increase in generating capacities from 478 MW atpresent to 1,143 MW by 2005.
 
Power is transported and dispatched byMoldtranselectro, a state-owned company, which owns high-voltagetransmission lines.  The five distribution companies,Chisinau, North Western, Northern, Central and Southern, servecustomers at the level of 35kV and down to 0.4-10 kV acrossMoldova's right bank.  Of them, Chisinau Disco is thebiggest, serving 243,737 residential and non-residentialcustomers that use roughly 40 percent of the powerconsumed.  Northern Disco is the second largest in terms ofthe power delivered to customers with a share of about 20 percentand a customer base of 285,477.
 
All distribution and generating companies,including the transmission and dispatch company, are regulated byNERA which adopts its decisions through a majority vote taken byits three commissioners.  Given NERA's two-year experiencein energy regulation, some Western consultants believe that NERAis well prepared to conduct its legal responsibilities.
 
NERA sets the fee, which the transmissionand dispatch company charges from distribution companies. It also tells domestic generating companies subject to regulationwhat are the maximum prices they can charge.  A schedule ofprices set by NERA is shown in Annex 1.  Power prices ortariffs are set on a cost-plus basis allowing the regulatingentities to earn a reasonable profit margin.  Prices are setbased on a Tariff Calculation Methodology (TCM) developed andapproved by NERA on June 25, 1999.  In particular, theMethodology calls for tariff revision once a year.  Ifunforeseen changes take place, such as devaluation of theMoldovan currency, change in fuel cost or other changes in costthat may have an impact on the tariff of 3 percent and over, NERAmay adjust the tariffs accordingly.
 
 Contractual Arrangements
Starting with October 1998, distributioncompanies are allowed to sign bilateral contracts with localpower generators bypassing Moldtranselectro. Moldtranselectro sells power to distribution companies when thelatter's portfolio of suppliers is not enough to cover the powerneeds of its customers.  In the past, Moldtranselectropurchased power from local and foreign generators and suppliersand resold it to distribution companies.  In 1999, NERA madea decision to apportion the output of domestic generators in sucha way that retail prices at all the five distribution companies,taking into account foreign sources of power, are approximatelythe same ensuring uniform tariffs across the economy.  Forexample, CHP-1's output goes integrally to Chisinau Disco. CHP-2's output, being competitively priced, is allocated amongall the five distribution companies with each receiving a fixedpercentage of CHP-2's output.  All output of CHP-Balti,Costesti Hydro and a part of sugar plants' CHPs goes to NorthernDisco.  Until November 1, 1999, Chisinau Disco supplied gasto Moldavskaya GRES in exchange for power.  It is yetunclear what, and if, the gas-for-power arrangement will be inthe future.   The unwillingness of Moldavskaya GRES to supplypower to Chisinau Disco under the existing arrangements causedMoldtranselectro to exceed the power usage set forth in thecontract with Ukraine by a significant margin.  At the sametime, all distribution companies contract power fromMoldtranselectro, which acts as a power dealer between Romaniaand Ukraine, on one hand, and domestic distribution companies onthe other. According to Mr. Anatol Saracuta, General Director ofNERA, after CHPs are privatized they will continue to beregulated, possibly having the option of selling power at marketprices in wintertime only.
 
“Of the fourteen independent powersuppliers at non-regulated tariffs licensed by NERA, only two areactive in the Moldovan power market,' says Mr. Saracuta. For example, Energo Montage is the most active independent powersupplier, providing Chisinau and Southern discos with about 52 MWof capacity at unregulated tariffs.  According to the TariffMethodology, distribution companies, which also act as powersuppliers at regulated tariffs, have an incentive to contractpower at lower prices.  This is because they are permittedto keep half of the incremental profits resulting from anadvantageous deal.  The reason independent suppliers are notactive is that power sales are monopolized in Romania andUkraine, where, with a few exceptions, a single state entity isallowed to export electricity.  Such arrangements keepindependent suppliers away from scouting for better deals.
 
It is clear that the market has yet toevolve to using better mechanisms, which would ensure itsefficiency and transparency.  NERA, with the advice ofHagler Bailly Services, Inc., a US-based energy consulting firmworking in Moldova under a U.S. Government-financed assistanceproject, prepared a set of market rules for the powersector.  These rules, when adopted, will introduce freemarket-based mechanisms for trading power and for its economicdispatch.  Currently, interested parties whose feedback willbe incorporated in the rules are reviewing the document. Mr. Saracuta believes that NERA will finally adopt the marketrules in early 2000.  Generally, the rules will provide forthe institution of a so-called 'power balancing market', whereby,in addition to the existing bilateral contracts, excess anddeficit of power will be traded allowing for a more efficientallocation of resources.
 
In the opinion of Mr. James Tasillo, aWestern veteran of Moldova's power market reform and projectmanager at Hagler Bailly's Chisinau office, the goals of thePower Market are to provide adequate, safe, reliable energy toMoldova's consumers at competitive prices.  This, he argues,will encourage power suppliers (power distribution companies) toseek low cost supplies, while the power supply system willoperate more efficiently and consumers will benefit from lowercost supplies
 
According to the Electricity Act (availableonline at www.bisnis.doc.gov), until the end of the year 2000distribution companies have the exclusive right to supply powerto customers located within the boundaries of the area specifiedin the license.  According to some experts,NERA willextendthisdeadline until2005.  Upon a decision which is yet to be issued byNERA, after ~~2000~~thedeadline customers will have the right to choose their ownpower supplier.
 Customers
At present, residential customers connectedto the grid through 1.14 million meters use over 40 percent ofpower compared with just 10 percent in 1990.  This says alot about power usage by industrial and other non-residentialcustomers (connected through a little over 15,000 meters), someof whom are barely surviving.
 
Statistics for 1997, the latest year forwhich this information is available, shows that the combined peakload of 65 Moldovan non-residential customers is 188 MW. This is roughly 16 percent of the country's peak winterload.  Some of these customers are: Rezina Cement Factory(28 MW peak load), Soroca Water Utility (12 MW), the ChisinauGlass Works (7.5 MW), Briceni Sugar Refinery (6.3 MW) and thetractor-manufacturer Traco~~n~~m (5.9MW).
 Quality of Service
Given Moldova's enormous debts for gas andpower supplies, periodic power outages occur.  As recent asNovember ~~of this year~~1999, selectedareas of Moldova's capital were shut down for an average of sixhours per day.  In one particular day, even the PresidentialPalace and the Parliament building, which are normally notaffected by blackouts, were shut down for a short while. But the problem is much bigger.  Outside Chisinau, manylocalities have power for only several hours a day over a longperiod now.  Publicly available reports abound in evidencethat companies are not only experiencing power deficiency, butthat power is being shut down without any advance warningwhatsoever.  The paradox is that even paying customerssuffer blackouts, which are being disconnected along withnon-paying ones.  Says Mr. Saracuta, “Everyoneunderstands that it is very hard to disconnect each customerindividually, so mass interruptions are practiced.  Few ifany of these customers have taken the distribution companies tocourt.   But normally, a customer contract will say that suchpower interruptions may occur under a ‘force majeureclause', where, for example, there is not enough generatingcapacity to cover demand.”  Even when there is power,power frequency is inadequate.  This is mostly becauseMoldova is dependent on its much bigger neighbor, Ukraine, formaintaining power frequency, which is usually slightly below50Hz, but hardly ever that amount.
 Pricing
Pricing of power generated locally is shownin Annex 1.  In the second quarter of 1999 the averagetariff for power supplied by Moldavskaya GRES was 38.38 bani/kWh or3.29cents/kWh.   Romania sells power to Moldova at 3.25 cents/kWh ifpayment is made within 30 days and 2.8 cents/kWh if cash advanceis effected.  Ukraine's power export company exports toMoldova at 3.2 cents/kWh.  In September 1999 Russia's UnitedEnergy Systems was offering Moldova two billion kWh per year at1.8-2 cents/kWh with the condition that payments were timely andin cash.
 
NERA allows domestic regulated companies tocharge a 10 percent mark-up on all reasonably incurred costs,excluding purchased power costs -- for distribution companies andfuel costs -- for CHPs.
 Challenges
As shown in Table 1, the most 'new'generating assets belong to Moldavskaya GRES dating back to1980.  However, even at Moldavskaya only two out of 12generating units are currently in operation.  For severalyears now, no serious overhaul has been carried out. According to some estimates, over 100 million U.S.dollars are needed for its rated capacity to become fullyoperational again.  At other Moldovan CHPs the situation isalso dramatic.  For example, CHP-2 is at least five yearsbehind in maintenance works for which an estimated 10 to 15million U.S.dollars are needed.
 
Power losses or power theft compounds theproblem.  An average of 30 percent of power disappears afterit reaches distribution companies, of which about 20 percent isdue to thefts (see Table2~~Table~~~~3~~).  Anecdotal evidence suggests that inprevious years one could buy a book that claimed to provide overone hundred ways to steal power.  Distribution companiesbeefed up their teams of controllers verifying customer metersand embarked on a program, each of them separately, to replaceservice drops, take meters outside the house and enclose them intamper-resistant boxes.
 
A Moldovan company ADD developed acomputerized system that, when installed, can monitor in realtime power consumption by customers from a remote location. This system is likely to be used in high-density locations suchas Chisinau or Balti.  Some of the distribution companieshave even started replacing Soviet-era induction meters with newelectronic meters, which are less prone to tampering.  Butit takes much more financial and managerial effort to eliminatethefts.  And an appropriate legal framework with anefficient court system plays a crucial role in this.  It ispossible, however, that commercial losses are overstated due tothe fact that residential customers, who read their own meters,may under-report meter readings.  No small matter is thetheft of overhead cables and other equipment.  TheDepartment of Energy reported that during 1999, roughly1.3~~15~~ million U.S.~~lei~~dollars worth of equipment was stolen.
 
The average payment rate in the first tenmonths of 1999 was 75 percent (losses included).  Of thetotal payments, 72 percent were in a form other than cash, whichpartly explains why Moldova is unable to pay its foreignsuppliers, not to mention domestic power entities' worseningfinancial condition.  For example, Moldova paid for onlyhalf of the power received from its foreign suppliers inOctober.  One should not forget the huge debts which, as ofJanuary 1, 1999, amounted to ~~447.31~~38.32 million ~~lei~~U.S.dollars at the three CHPs and ~~946.7~~81.1 million ~~lei~~U.S.dollars at the five distribution companies.  However,according to the latest press reports, the Moldovan Parliamentexonerated all five distribution companies from repaying debts inthe amount of 140 million U.S. dollars, the amount representingMoldova's bonds issued to Gazprom which Moldova bought backrecently.  Gazprom said it could not tolerate poor paymentsanymore and cut its gas supply to CHPs to only one fourth of theamount required.
 
~~Moldova is unlikelyto be hit severely by the year 2000 problem.  This isbecause computers are not as widespread as they are inindustrialized countries.  A national task force chargedwith identifying and solving the Y2K problem in Moldova announcedin mid-December that Moldova is 90 per cent ready for the newmillennium.  However, the energy sector is reported to beone of the most susceptible to the Y2K glitch, though it isunlikely to cause any major disruptions.  In the words ofthe head of the Y2K Task Force, Mr. Nicolae Cristea, “thesituation is under control.”  The question stillremains about the readiness of Moldova's power trading partners,Romania and Ukraine, for the Y2K problem, as considerable amountsof power are imported from these two countries.  Says Mr.Mariyin Vladimir, Chief of Information Systems atMoldtranselectro, “Moldova is more likely to be hit by theY2K problem from the outside, that is from Ukraine and Romania,than it is from the inside." His estimates are that domesticpower dispatch and generating activities are worse prepared forthe problem with a 50 percent chance of being hit at the turn ofthe millennium.~~
 Privatization, Greenfield and Other Investments
Privatization is believed to be essential toa better functioning power market.  Says Mr. Tasillo,“No matter how well-organized, ambitious or skillful itsmanagement team may be, the existing power entities cannotoperate as effectively as a private company with purelycommercial objectives guiding its activities.”
 
A bright spot made its appearance inMoldova's history when the winning bid made by Union Fenosa ofSpain for Moldova's distribution companies was announced onDecember 1, 1999.  Union Fenosa offered a hefty USD 20.2million for the Chisnau Disco and Central Disco ~~(first lot) which were put up for sale as a single package andUSD 15.3 million for Northern and North-Western (second lot) alsoauctioned as one package.  According to the conditions ofthe tender, no investor can own the first and second lotssimultaneously.  This forces Union Fenosa to go withChisinau and Central, and focus on~~.The Spanishcompanyis alsobuying the Southern distribution company.  The ~~third lot, consisting of~~ Northernand North Western distribution companies~~,~~will be put up for sale ~~again~~ atthe time of privatization of the three CHPs ~~scheduledfor~~~~February~~ to beofficially announced in the spring of 2000.  UnionFenosa bid along with ABB, EdF Saur, American Energy Systems, UESof Russia, Luganskoblenergo of Ukraine, Cinergy (USA) and ESBInternational (Ireland).  The Ukrainian and Russian biddersfailed to qualify, while the other companies pulled out ofcompetition after the Parliament voted out the reformistgovernment of Ion Sturza.
 
New power generating assets will be addedsoon to the existing ones.  At he beginning of 1999, SIIFMoldova, a French consortium, received the permit to build a125-MW gas turbine on the outskirts of Chisinau, in the Budestiregion.  The amount to be invested in the project rangesfrom 250 to 300 million U.S.dollars and will take two to three years to complete.  SIIFMoldova has also committed itself to transforming the plant intoa combined cycle operation within four years ofcommissioning.  It was reported that the contract for thesupply of gas to the Budesti plant was signed between EdF, whichparticipates in the SIIF-Moldova venture, and Gazprom of Russia.
 
Another potential investor isNikolus-Energo.  Interlik agency reported in December 1999citing sources at the Chisinau City Hall that Nikolus will add asteam turbine to an already existing boiler house located on theeastern side of Chisinau.  Experts gauge that the capacityof this turbine will reach 50 MW in wintertime with aheat-generating capacity of 50 gygacalories.  The powerprice will be 2-2,1 cents/kWh.  It is planned that theturbine will be up and running in the fall of 2000.
 Opportunities
Despite the seemingly unfavorablecircumstances, a few opportunities exist for U.S. firms to dobusiness in Moldova.  The success of the transaction willlargely depend on their ability to identify paying customers orto create conditions such that payment is made on timeand preferably in cash.
 
First, there is privatization of Northernand North Western distribution companies and of the three CHPs.~~ . ~~ The February 2000privatization of CHPs is also likely to succeed in part due tothe already privatized distribution networks, which will instillbetter commercial discipline among customers.  Given thecurrently difficult economic situation, assets are also going tobe cheaper than at the time when the economy will finally lookmore promising.  An investor may be likely to get interestedin the idle, but still functional, generating capacities ofMoldavskaya GRES, which require investments to achieve fullcapacity.
 
Secondly, given Moldova's power deficiencysmall power generating units with a capacity of up to 100 MWcould be built.  Such units will add maneuverability toMoldova's small power system.  These generating units couldbe built as: (1) a green field investment following the exampleof French investors as approximately 325 to 525 MW are stillneeded; (2) an addition of turbine to an already functioningboiler house, such as the one in Taraclia, Moldova's southernpart; and (3) custom-built small generating units designed for aparticular client or group of clients.  The green fieldinvestment has the advantage of being built exactly to investors'specifications, but carries the disadvantage of potentially beinga rather costly endeavor.  The addition of a turbine to analready existing infrastructure, such as the one provided by aboiler house, is likely to be less costly than a green fieldinvestment, but may be lacking in certain technical features asthe investor would be adjusting to the existing infrastructurelimitations.  Some enterprises, whose technologicalprocesses require an uninterrupted power supply, are choosing tooperate their own power generating units as a backup in case ofemergency.  This was what the administration of theindustrial park "Alfa" has done to ensure that theseventy-something businesses located on its territory have a moreor less secure source of power supply.  Note that accordingto the Electricity Act, government approval is required to buildgenerating capacities over 20MW.
 
Thirdly, with time, the high voltage linesconnecting Moldova with Romania and Bulgaria will need to beupgraded and maybe new ones added.  If one were to assumethat Moldova will some day become a power exporter as it used tobe only a decade ago, operable transmission capacity will beneeded for export purposes.  Not to mention the need toupgrade or replace existing transformers within Moldova, many ofwhich are considerably old.
 
On a smaller scale, more and better meteringequipment is required.  As a temporary solution, transparentboxes used to enclose meters are currently in demand as arelatively inexpensive measure to prevent tempering with themeter.
 The Future
It looks like that most of the legalframework needed for the power market to operate is already inplace.  However, NERA will have to adjust to futuredevelopments, privatization being one of them.  “Theshift to a system based on commercial operations will bring manychanges that will benefit consumers, but also it means that ANREmust now begin to learn how to regulate private companies whileguarding consumer interests,” says Mr. Tas~~s~~i llo.  He is also quick to add that success ofMoldova's power market will be achieved through dedication andhard work by all participants and Moldtranselectro as marketoperator.  Many also agree that Moldova must continue toshow political will in order to implement successfully neededeconomic reform.
Table 1. Installed Power Generating Capacitiesin Moldova
**Generating Co. & years of commissioning**
**MW**
Moldavskaya GRES, 1964-80
2,520
CHP-2, 1976
240
Sugar Plants CHPs
100
Dubasari Hydro, 1954
48
CHP-1, 1958-61
46
CHP-Balti, 1958-60
28
Costesti Hydro, 1978
16
Total
2,998
Note: CHP=Combined Heat and Power generatingplant
Source: EkonomicheskoyeObozrenie, no. 29, August 13, 1999
Table2. Power losses in distributionnetworks (0.4-10kV), as percent of total power flow
**Distribution Co.**
**1990**
**1995**
**1997**
**1998**
**1999***
Chisinau Disco
na
9.6
16.82
16.64
17.62
North Western Disco
8.4
19.1
17.74
34.36
35.44
Northern Disco
6.4
23.9
27.34
34.41
36.82
Central Disco
7.2
21.2
30.62
37.50
40.28
Southern Disco
6.4
13.3
24.64
40.00
39.65
AVERAGE, right bank of Dniester river
na
16.6
20.90
32.58
29.70
 
* Jan.-Oct.  1999
 
Source: Kommersant Moldovy, no.44, December3, 1999
 
Annex 1. Price (Tariff) Schedule for RegulatedEntities as set by the National Energy Regulatory Agencyeffective July 1, 1999*
 
Tariff, without value-added tax (bani/kWh)**
1. Sale of power by generating companies
 
CHP-1
28.21
CHP-2
28.33
CHP-Balti
32.20
Costesti Hydro
1.22
2. Sale of power by state transmission anddispatch company "Moldtranselectro"
including transmission fee
42.70
 
  1.87
3. Charge for the transit of power to othercountries (excluding technical losses)
0.2 cents/kWh
4.Sale for power to all customers
50.0***
 
Notes:
*)          1 Leu=100bani.  As of ~~December 10, 1999~~January 11,2000 the official Leu/U.S. dollar exchange rate was 11. 67~~77~~ Lei to one U.S. dollar.
**)        All tariffs ~~are based on~~assume anexchange rate of 12 Lei per one U.S. dollar.
***)       This tariff variesdepending on time of day and time of year usage for customerswith proper metering equipment and other factors.
 
 
**Useful Contacts:**
 
MINISTRY OF INDUSTRY AND ENERGY
~~DEPARTMENT OF ENERGY AND FUEL RESOURCES~~
Str. Vasile Alecsandri 78
Chisinau, Moldova
Tel: +3732/ 213000
Fax: +3732/ 222264
Contact Person: Mr. Valentin Arion, ~~General Director~~Vice Minister
 
NATIONAL ENERGY REGULATORY AGENCY
Str. Columna 101, MD-2012,
Chisinau, Moldova
Tel: +3732/ 212385, 541384
Fax: +3732/ 540534
Email: [email protected]
Contact Person: Mr. Anatol Saracuta,Director; Mr. Veaceslav Chilat, Deputy Director
 
DEPARTMENT OF PRIVATIZATION AND STATEPROPERTY ADMINISTRATION
Str. Pushkin 26, MD-2012 Chisinau, Moldova
Tel.: +3732/ 234350
Fax: +3732/ 234336
Email: [email protected]
Website: www.privatization.md
Contact Person: Mr. Alexandru Oleinic,General Director
 
MINISTRY OF ECONOMY AND REFORMS
Chişinău, MD-2033
Piaţa Marii AdunăriNaţionale,1
Tel. +3732/ 23-41-42
Fax: +3732/ 23-40-64
Contact Person: Mr. V.Cemirtan, Chief ofEnergy Unit
 
STATE COMPANY MOLDTRANSELECTRO S.A. (POWERDISPATCH AND TRANSMISSION)
Str. Vasile Alecsandri, 78
Chisinau, Moldova
Tel. +3732/ 253-350
Fax +3732/ 253-142
Email: [email protected]
Contact Person: Mr. Anatolii Goncear,Director General
 SA “RE” mun. Chişinău (ChisinauDistribution Company)
Str. A. Doga, 4
Chişinău, MD- 2024
Tel: +3732/ 22-72-84
Fax +3732/ 22-05-47; 43-13-03
Contact Person: Mr. Mihai Cernei, Director
 
SA”RED- CENTRU” (CentralDistribution Company)
str. Luceafărul, 13
or. Vatra, MD-2055
Tel.: +3732/ 71-31-59Fax: +3732/ 71-33-10
Contact Person: Mr. Gheorghe Mihalachi,Director
 SA “RED- NORD” (Northern DistributionCompany)
Bălţi , MD-3100
Str. Ştefan cel Mare, 180
Tel.: +373 231/ 2-20-00
Fax: +373 231/ 2-33-12
Contact Person: Mr. Ion Batrinac, ChiefEngineer
 
SA ”RED-NORD-VEST” (North-Western Distribution Company)
Donduşeni, MD-5100
Str. Ştefan cel Mare, 30
Tel.: +373 251/ 2-23-06Fax: +373 251/ 2-25-63, 2-42-79
Contact Person: Mr. A. Vengher, Director SA “RED-Sud” (Southern Distribution Company)
Or.Comrat-2, MD-3800
Str. Lenin, 56Tel/Fax: +373 238/ 2-21-42
Contact Person: Mr. Sava Pandicli, Director
 
SA”CET-1” (Combined Heat andPower Plant no. 1)
Chişinău, MD-2023
Str.Vadul-lui-Vodă, 5
Tel/Fax: +3732/ 37-52-53
Contact Person: Mr. Tudor Moiseev, Director
 
SA “CET-2” (Combined Heat andPower Plant no. 2)
Chişinău, MD-2036
Str. Meşterul Manole,3
Tel: +3732/ 24-13-26
Fax: +3732/ 37-21-25
Contact Person: Mr. Ilarion Popa, Director
 
SA “CET-Nord” (Combined Heat andPower Plant Balti)
Bălţi, MD-3100
Str. Ştefan cel Mare, 168Tel: +373 231/  2-20-00
Fax: +373 231/ 2-33-12Contact Person: Mr. Ion BatrŒnac, ChiefEngineer
 
SIIF MOLDOVA (the French greenfieldinvestor)
Tel.: +3732/ 21-37-55
Fax: +3732/ 21-37-53
Contact Person: Mr. Sergiu Cobusceanschi
 
S.A. CONCERNUL “MOLDOVAGAZ” (GasSupplier)
Chişinău, MD-2005
Str. Albişoara, 38Tel.: +3732/ 22-32-70Fax +3732/ 24-00-14
 
MOLDEXPO (organizer of annual shows ofenergy and energy-saving equipment)
Str. Ghioceilor 1
Md-2008 Chisinau, Republic of Moldova
Tel +3732/ 74 74 19
Fax +3732/ 74 74 20
Email: [email protected]
Contact Person: Natalia Ciocan, Director
 
CONTRACTORS OF THE UNITED STATES AGENCY FORINTERNATIONAL DEVELOPMENT:
 
HAGLER BAILLY SERVICES INC. (advisor toregulatory commission)
Str. Columna 101, MD-2012
Chisinau, Moldova
Tel.: +3732/ 544945, 544936
Fax: +3732/ 540534
Email: [email protected]
Contact Person: Mr. James Tasillo, ProjectManager
 
DELLOITTE AND TOUCHE TOHMATSU INTERNATIONAL
Emerging Markets-Moldova Power SectorPrivatization
Str. Pushkin 26, Chisinau, MD-012, Rep. ofMoldova
Tel.: +3732/ 234267
Fax: +3732/ 237564
Email: [email protected]
Contact Person: Mr. Daniel A. Potash,Resident Advisor
 
CREDIT COMMERCIAL DE FRANCE (energy advisorto the Department of Privatization)
Str. Columna 101, MD-2012
Chisinau, Moldova
Tel.: +3732/ 543298
Fax: +3732/ 225378
Email: [email protected]
Contact Person: Ms. Gabriela Coica, CountryRepresentative
 
MULTILATERAL INSTITUTIONS:
 
INTERNATIONAL MONETARY FUND -- ResidentMission
Chişinău, MD-2033
Piata Marii Adunari Nationale,1, room 105
Tel +3732/ 23-32-32
 
WORLD BANK -- Resident Mission
Chişinău, MD-2012
Str. Şciusev 76/6
Tel.: +3732/ 23-27-37, 23-70-65
Fax: +3732/ 23-70-53
 
EUROPEAN BANK FOR RECONSTRUCTION
AND DEVELOPMENT – Resident Office
Room 309, 98, str. 31 August 1989, ChisinauMD-2012, Moldova
Tel.: +3732/ 248414, 249810
Fax: +3732/ 249363
 
We would appreciate your feedback on thisreport. Please share your comments and suggestions with us:
 
Business Information Service For theNewly Independent States (BISNIS)
U.S. Embassy Chisinau
Str. Mateevici 103
Chisinau 2009 Moldova
Tel. +373 2 23-37-72
Fax + 373 2 23-41-46
Email: [email protected],[email protected], ~~[email protected]~~~~,~~
cc: [email protected];searsmj@chisinaub.us-state.gov