Beneficiaries: Moldovagaz and CHP-2

Financing: 10 mln USD IBRD loan 

Implementation period: 1997-2001

Main components:

• Part A: Overhaul of the Chisinau No. 2 Combined Heat and Power Plant;
• Part B: Repair of Gas Distribution Points (GDP);
• Part C: Industrial and Household Gas Meters Installation;
• Part D: Upgrade of Accounting and Billing Systems and Financial Management systems at CHP-2 and Moldovagaz.

Main results:

Twenty Flow Computers were installed for measuring gas flow on GDP permitting to create a much more precise system of supplied gas measuring, taking into account gas temperature, pressure and other parameters. 
142 gas pressure regulators were installed in different regional gas distribution networks of Moldova instead of previously used obsolete gas regulators.

Reconstruction of GDP by replacing old gas pressure regulators completely eliminated the problems with very low gas pressure at the customers. Household gas meters were procured and installed so that, by the Project completion, above 97% of all gas consumers were billed via gas meters.

The industrial meters’ verification at the installed calibration line without transportation of meters outside of Moldova led to reducing with 20% the expenses and by 50% the time period needed for gas meters calibration.

As a result of implementation of all scheduled measures for rehabilitation of gas distribution system, gas losses decreased considerably (especially at industrial consumers), more precise registration of consumption was established, main gas losses were localized and necessary measures were undertaken to eliminate them. In result, the gas losses decreased by 49% by the Project end.

Collections for supplied gas improved significantly after the Project implementation, in average on the republic in 2001 they reached 72%, the best results were achieved in private sector (the population paid all 100% of current gas consumption), the worst (58%) is the situation at large energy sector consumers.

Besides, within the Project materials and equipment were procured such as  (i) chemicals for water treatment during 1998-99 winter season peak load that contributed to reliable main equipment operation, especially important during winter period: (ii) measuring devices for Chemical and Boiler Turbine Workshops for adjusting technological processes.

After installation of these devices the reduction was registered of chemical reagents consumption for producing of chemically purified and desalted water of app. 90 000 MDL per year. Installation led to salt sedimentation slowdown on the surface of the heat-exchange apparatus and power-generating boilers, reduction of the effluent gas temperature, saving fuel (app. 290 tons conventional fuel per year). 

As a result of all measures, including installation of procured equipment, the operation reliability, unscheduled downtimes ratio and fuel specific consumption of CHP-2 were brought closely to the level of initially designed for the station and corresponding to good condition of main equipment.