Districts may apply to the competition for setting up Public – Private Partnerships to render biomass energy supply services

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Moldova Energy and Biomass Project invites the Districts to apply and embark on competition for setting up Public – Private Partnerships (PPP) to render biomass energy supply services. The Districts interested to develop private services for manufacturing and supplying biomass heating to public institutions may submit their Statement/File of Intention from 21 March through 18 April 2016.

The Energy and Biomass Project is going to provide grants worth EUR 100,000 from the European funds to five selected Districts, which shall use the money for the development of PPP services. Also, the selected authorities will receive technical assistance and financial support from the Energy and Biomass Project to develop feasibility studies and to launch the competition aimed at selecting the private partner.

The Applicants eligible to embark on competition shall meet the following minimum criteria:

  • Represent the Local Public Administration of second tier;
  • Demonstrate knowledge in setting up a Public – Private Partnership (PPP) and prove (in the Application Form) the feasibility of establishing the proposed Public – Private Partnership;
  • Have enhanced potential to organise a single service to heat public facilities with biomass energy.

To participate in the competition, the Local Authorities of second tier shall submit the following documents:

  • The Application for Funding – filled in either in Romanian or in Russian. No applications completed by hand shall be accepted;
  • The Applicant’s Statement;
  • AGREEMENT expressing the intention to ASSOCIATE with the owners and administrators of buildings proposed for PPP.

Each local public authority of second tier shall write down in the document package the list of public buildings that have been connected or are to be connected to biomass heating systems. The buildings proposed to switch to the new PPP service shall meet the following requirements:

  • Have the heating area of more than 500 sq.m;
  • Have operational indoor heating system;
  • Have at least 100 Beneficiaries and an operation potential of at least 10 years;
  • Be in good or satisfactory condition;

Besides, the administration of the beneficiary institutions shall be willing and committed to connect the buildings to biomass heating systems.

By no means shall be accepted those buildings where gas-fired heating plants were installed at the expense of international donors during the past five years.  

The package of documents to register for competition, as well as the selection criteria are available at: www.biomasa.md.

Public – Private Partnership Models for the production and supply of biomass heat are widely used in the EU Member States. Such models are to be developed in the Republic of Moldova at the expense of European funds through the Energy and Biomass Project. Such Public – Private Partnerships in supplying biomass energy present a series of advantages for the Local Public Authorities, as the latter do not need to buy biofuel, ensure its quality and to take care of heating plants maintenance.

”All these responsibilities are borne by the economic operator that renders high quality heating services on a contract basis. Likewise, the economic operator shall secure a competitive chain for supplying goods and maintaining the heating systems throughout the established contractual period”, Oleg Brinză, Business Development Officer of Moldova Energy and Biomass Project, mentioned. ”All of the activities mentioned above will be carried out by having motivated the private partner, which shall secure its own investment worth at least half of the investment value estimated for the proposed project. Now investments, advanced heating systems, new jobs and better conditions for the public institution beneficiaries – these are the advantages created for the Districts willing to embark on competition”, Oleg Brinză states.

The Energy and Biomass Project experts jointly with the Energy Efficiency Agency counterparts will conduct awareness-raising sessions for the Public Authorities of second tier, which are interested to participate in the competition. A meeting to explain the participation procedure and complete the required file is scheduled to take place on 25 March 2016, 10.00, in the Government Building, Conference Room on the 1st floor, entrance from Pushkin Street.

The Energy and Biomass Project Phase II is carried out during 2015-2017. The Project budget totals EUR 9.41 million provided by the European Union, and it is implemented by the United Nations Development Programme.