Carbon Finance at the World Bank: Community Development Carbon Fund

Moldova: Biomass Heating and Energy Conservation
UNFCCC Reference Nos.: 0159 , 0160 , 0173

Project Description:
The project involves installing new heating systems for a variety of public buildings as well as rehabilitation of the respective buildings. The main feature of this project is the use of biomass as an alternative fuel for heat production. The project will include up to two hundred project activities distributed throughout 13 municipalities in Moldova, including about 50 schools and kindergartens with more than 15,000 children and about 25 hospitals and clinics with more than 4,000 beds. The aim is to increase the overall efficiency of the heating systems up to 80-90% and simultaneously to reduce the greenhouse gas emissions, by implementing energy efficiency and fuel switching measures. The CDCF intends to purchase emission reductions of at least 348,000 tons of carbon dioxide equivalent over a ten-year period for almost US$2 million.

Current Context:
Most of the public buildings are currently supplied with heat from inefficient and, outdated boilers via an extremely deteriorated heat distribution network with a high level of heat loss, and an overall average system efficiency of less than 50%.

Community Benefits Plan:
The local communities are directly involved in the planning and managing of the benefits coming from the project implementation. These benefits are discussed and agreed at the local council meetings, where the decisions with regard to public buildings to be included in the project and the financial allocations are taken. Communities are taking part in these discussions either through the public consultations or by communicating directly with the Council members.

Deliverables:

Timeframe:

Deliverables	Description
Increased duration of heating period	Increased duration of heating period from 60 to 167 days per year during the heating season
Improved heating service	The project will improve the living conditions in the selected public buildings by providing more stable heat supply.
Increased efficiency in heat supply	Decrease in per unit cost of heat production through improved insulation of the buildings. Monetary savings from increased heat efficiency would accrue to the public agencies operating the buildings included in the projects and to the users of the buildings
Employment opportunities	New employment opportunities for district heating enterprises operations by approximately 100 jobs
Better air quality	Heating improvements and energy efficiency increase will have a positive impact on Moldovan forests, which currently supply fuel wood, and result in better air quality.
Public health benefit	Improvements will indirectly reduce illness caused by cold living conditions, which is particularly important for children, the elderly and disabled. Increase in heating comfort level and satisfaction with heating quality.
Public services (for sub-projects)	Funds received by the sub-project entities for ERs generated shall be used to finance social programs or other sustainable development activities in the local communities. Local councils will identify and agree on implementation of social programs or other sustainable development activities

Monitoring Plan:
Project sponsor will provide the World Bank with an Annual Progress Report on the progress that has been made in the implementation of the Community Benefits Plan during the previous calendar year, within thirty days of the end of each year. The Annual Progress Report will include a detailed description on the status of implementation of activities that create local community benefits.

Project Documents

None