Human Security: Support Program for Solid Biofuel Producers (Moldova)

Under this support program, 10 MSMEs producing solid biofuels will be selected and given non-monetary support to mitigate the increase in production costs caused by rising energy prices, high equipment maintenance costs and logistics, as well as limited competitiveness on the local market. The implementation of the Support Program for producers of solid biofuels will help reduce production costs and allow selected MSMEs to reinvest savings in business expansion.

Funding Information

• The non-monetary support provided by UNDP will consist of the provision of goods/plants/equipment, as well as the provision of specialized technical assistance services /works.
• The description of the measures and the maximum value of the non-monetary support offered that can be obtained by solid biofuel producers is presented below.
  • Non- monetary support
  • Eligible equipment and services for financing positions 1-3 up to $ 42,000.
  • Equipment and services eligible for line 4 financing valued up to $ 75,000.
• Co-financing
  • Financial contribution: minimum 1 0 % of the total cost of the project
• The target group
  • Existing micro, small and medium-sized enterprises (MSMEs) producing solid biofuels (pellets and briquettes)
• Equipment and services eligible for financing
  • Mobile shredders (with or without motor);
  • Installation of photovoltaic systems;
  • Modernization/repair of pellet /briquette production lines;
  • The purchase and installation of a solid biomass thermal power plant, with the subsequent sale of the thermal agent to a public institution.
• Co-Funding
  • The co-financing is to be provided by the applicant SMEs and constitutes at least 10% of the total cost of the project. This contribution must be covered from sources other than those provided by the Project. The applicant’s contribution will be confirmed by a statement from the bank account of the applicant MMM. The applicant can also contribute “in kind” (goods, services, etc.) to the implementation of the project, but this does not exclude the mandatory financial contribution of at least 10% of the total cost of the project.

Eligibility Criteria

• To be admitted to the competition, project proposals and applicants must meet the minimum eligibility criteria listed below:
  • The applicant is a legal entity, producer of solid biofuel (pellets and briquettes), registered by the competent authorities of the Republic of Moldova
  • The applicant has produced and sold solid biofuel in the last 3 years and can demonstrate this fact through its financial reports
  • The applicant is an existing SME, with an activity of min. 3 years
  • The applicant has contracts with suppliers of raw materials or sources of raw materials used in production.
  • The applicant has a business development plan in which the impact of the implementation/adaptation in the technological cycle of the equipment/solution requested in the application is indicated
  • The applicant presents the extract from the Real Estate Register attesting the right of ownership of the building in which the activity is carried out or the copy of the Lease/Lease Agreement of the building in which the activity is carried out registered in the appropriate manner at the Real Estate Cadastre IP
  • The applicant does not have any debts to the State Budget
  • The project refers to one of the categories of equipment and services eligible for financing
  • The applicant demonstrates the contribution of at least 10% of the total cost of the project
  • The project will be implemented in a maximum of 4 months.

For more information, visit UNDP.