Public Consultation Notice on the Implementation of the SACET 2 Project

Public Consultation Notice on the Implementation of the SACET 2 Project

Public Consultation Notice on the Implementation of the SACET 2 Project

26 Mar 2020

Public Consultation Notice on the Implementation of the SACET 2 Project

Between March and April 2020, preparations are underway for a new project to support the development of the energy sector in the Republic of Moldova with the support of the World Bank — the District Heating Efficiency Improvement Project 2 (PIESACET 2). This project aims to continue the efforts started under the first SACET Efficiency Improvement Project (2015–2020) for the modernization of Termoelectrica S.A.'s thermal energy infrastructure.

The project will include the following components:
Component 1: Optimization of Heat and Power Generation, including the following subcomponents:

1.1. Modernization of Generation Units at CET Sursa 1 (CET-2), including:

  • Reconstruction of Generation Unit No. 2, including: refurbishment of the steam turbine to extend operational life and increase electricity generation capacity and efficiency; replacement of auxiliary turbine equipment; diagnostic testing of the electric generator; modernization of the vibration control system; improving boiler efficiency by replacing burners and auxiliary equipment; installation of an automatic system for capacity regulation, protection, and combustion control.
  • Capital repair of the turbine and replacement of heat transfer surfaces of the boiler for Generation Unit No. 3, including: overhaul of the steam turbine and replacement of the steam boiler economizer.

1.2. Expansion of High-Efficiency Cogeneration, including:

  • Installation of high-efficiency cogeneration units (gas-fired internal combustion engines) at CT Vest and CET Sursa 3 (CET-1) [new facility located on the CET Sursa 2 site];
  • Installation of power transformers and ID-110 kV distribution installations for grid connection of the new cogeneration units at CT Vest; modernization of the ID-110 kV system at CET Sursa 3 (CET-1).

1.3. Implementation of a modern and comprehensive Management Information System (MIS) to improve planning and operations management at Termoelectrica S.A.

1.4. Implementation of a modern, interactive Hydraulic Simulation System.

1.5. Technical Supervision.

Component 2: Pilot Energy Efficiency Investments

This component will finance energy efficiency pilot investments in residential buildings, including:

  • Installation of approximately 140 Individual Heating Points (PTIs) and associated networks in buildings with poor internal heating systems and/or lacking centralized hot water supply;
  • Reconstruction of internal heating and hot water networks in approx. 40 residential buildings equipped (or to be equipped) with PTIs, transitioning to horizontal distribution systems with individual metering and consumption control;
  • Thermal rehabilitation of approx. 7 residential buildings equipped (or to be equipped) with PTIs and horizontal distribution systems.
Component 3: Project Management and Technical Assistance

This component will fund consulting support for project implementation and supervision, including fiduciary, safeguard, monitoring, and reporting aspects through the Consolidated Unit for the Implementation of Energy Projects (UCIPE). It also includes audits for Termoelectrica S.A. and the Project.

The project beneficiary is Termoelectrica S.A., and implementation will be supported by UCIPE, under the Ministry of Economy and Infrastructure.

Both entities will be involved in all stages: procurement planning, preparation of technical specifications and bidding documents, evaluation and selection of contractors, engineering design, construction, installation, testing, commissioning, and quality control. UCIPE will handle fiduciary responsibilities (payments, financial management, procurement, M&E, and environmental and social compliance), and will ensure coordination between the Government, Termoelectrica S.A., and the World Bank.

Environmental and Social Management

To address environmental and social risks, consultants contracted by UCIPE — in collaboration with World Bank experts — have:

  • Conducted an Environmental and Social Impact Assessment (ESIA);
  • Developed an Environmental and Social Management Plan (ESMP) for Component 1;
  • Prepared an Environmental and Social Management Framework (ESMF) for Component 2.

The overall risk level of the project, based on national legislation and expert assessments, is rated as “Moderate Risk.”

The unified ESIA&ESMP and ESMF report outlines all World Bank Environmental and Social Standards (ESS) applicable to the project and includes legal, policy, and institutional frameworks for environmental and social governance in Moldova's district heating sector. It sets out mandatory measures for contractors, including a Traffic Management Plan, Code of Conduct, Public Information and Communication Plan, etc.

A Stakeholder Engagement Plan (SEP) has also been developed to outline timelines and methods for engaging affected parties and stakeholders throughout the project lifecycle.

In line with World Bank standards and national law, a Grievance Redress Mechanism (GRM) has been established. Termoelectrica and UCIPE will respond in a timely and fair manner to any concerns or complaints.

The mechanism will ensure fast, transparent, culturally appropriate, and accessible redress at no cost and without fear of retaliation, including anonymous complaints. A public log of all registered complaints and responses will be maintained.

Additionally, a Labor Management Procedure (LMP) has been developed, outlining work conditions, responsibilities, and protection measures for all workers involved.

Due to the state of emergency and restrictions on public gatherings, the following documents are made available online for public consultation:

  • ESIA & ESMP
  • ESMF
  • SEP
  • LMP

These documents are initially available in English at:
www.termoelectrica.md
https://ucipe.gov.md

Romanian versions will be posted once translations are finalized.

Contact for Public Feedback (within 7 days):

UCIPE:
Str. Alecu Russo 1, Bloc A1, Of. 163, MD-2068, Chișinău, Moldova
Tel/Fax: +373-22-49-67-90
Email: mepiu@mepiu.md

For technical inquiries: 069874057
For environmental issues: 060500821
For social issues (SEP and GRM): 068077557

Project documents exposed for public consultation: