UF Moldova

completed

RED Union Fenosa (“the Company” or “UF Moldova”), the largest electricity distribution company in Moldova, combining the operations of three distribution companies privatized in 2000 and merged into it in January 2008, is seeking financing to fund its Investment Plan of approximately $40 million to be implemented in 2009-2010 (“the Project”). The Project is designed to (i) rehabilitate and rationalize the existing network and substations; (ii) increase operational efficiencies; (iii) reduce technical and non-technical losses; (iv) increase productivity gains with investments in information technology; and (v) improve the safety and security of the installations. UF Moldova’s existing network and substations as of 2008 include 104 substations (HV/MV, High voltage / Medium voltage), 507 km of 110kV lines, 1,312km of 35 kV lines, 14,300 km of 10kV – 6 kV lines, 18,100 km of 0.4 kV lines, 1,636 km of underground lines, 7,411 MV/LV (Low voltage) transformer stations. It serves about 793,000 customers with annual electricity sale of 2,262 GWh in 2008.IFC’s financing will be in the form of a corporate loan to UF Moldova to support its Investment Plan. This is a repeat business with the Company.