Switzerland contributes US$6.67 million to Moldova’s Energy Vulnerability Reduction Fund
December 19, 2022
Switzerland is contributing $6.67 million to Moldova's Energy Vulnerability Reduction Fund, through an agreement with the United Nations Development Programme (UNDP). The funds will enable the Government of Moldova to offer on-bill compensations for at least 100,000 vulnerable households for the period November-December 2022.
“Switzerland was among the first countries to provide direct financial support to the Moldovan Government in order to strengthen its capacity to cover the costs and needs related to the refugee crisis response. Now, Switzerland contributes to Moldova’s astronomical effort to manage the energy crisis and to limit the effects of high bills for the people,” said Guido Beltrani, Director of the Swiss Cooperation Office in the Republic of Moldova.
The Energy Vulnerability Reduction Fund was developed by the Government of Moldova, with the financial support of the European Union and of the Government of Slovakia. UNDP supported the creation of the fund, the development of the information system, the training of social workers, the creation and operation of the call centre, as well as the information campaign dedicated to the fund.
“I commend Switzerland’s significant contribution to the Energy Vulnerability Reduction Fund, which comes at a critical time and will contribute to reducing the burden of the high energy costs on the most vulnerable population, including refugees,” said Dima Al-Khatib, UNDP Resident Representative to the Republic of Moldova.
Recently, Sweden has also contributed $10 million to the Energy Vulnerability Reduction Fund, through an agreement with UNDP.
At the current inflation rate, there is a high risk that 1/4 of the population will fall into poverty (less than $1.5/day), according to UNDP estimates. If implemented in full, the Energy Vulnerability Reduction Fund would prevent such a risk from materialising. Moreover, UNDP’s early income simulation shows that there are chances that the energy compensations would lift about 160,000 households from poverty.