Formation and use of the Fund’s financial resources

The financial resources of the Fund shall be formed of :

• financial allocations from the state budget, at least 10% of the Fund needed to achieve the targets related to energy efficiency and renewable energy indicators;
• donations from individuals and businesses from the republic of Moldova and abroad, including from international financial institutions and funds;
• bilateral grants from the states;
• financial income consisting of interest on current accounts or bank deposits of the Fund, and of the interest and fees for financing contracts concluded with the Fund’s customers;
• loans and other financial instruments of banks, international financial institutions or investors, used exclusively for furtherance of the Fund’s objectives

The Ministry of Economy, based on the decision approved by B will propose annual allocation of funds from the state budget, by addressing a request to the Ministry of Finance to include the requested amount in the draft state budget law for the respective year.

The Fund’s Administrator shall identify, from among development partners and other interested partners, potential investors in energy efficiency and renewable energy. Following the coordination with AB and ED, the Fund’s Administrator  shall  enter into negotiations with the donors who have offered the most favourable financing conditions. After negotiations, the Fund’s Administrator shall  sign a framework agreement between the Fund and donors selected to finance the Fund.

The financial resources of the Fund shall be kept in an interest bearing account opened at a commercial bank operating under the laws of the Republic of Moldova and shall be used exclusively for:

• financing, free and / or consideration of investment projects in energy efficiency and use of renewable energy sources in the Republic of Moldova;
• providing guarantees for loans granted by financial and lending institutions for investment projects to increase energy efficiency and use of renewable energy;
• own expenses of the Fund, stipulated in the budget approved by the AB, including expenditures for the payment of services provided by the Fund’s Administrator and its financial auditors;
• payment for technical assistance, if it is deemed necessary for projects eligible for funding;
• implementation of pilot projects in energy efficiency and renewable energy proposed by the Energy Efficiency Agency.

The financial resources of the Fund unused in the current budget year shall remain available for use next year, according to current legislation.