Description
The budget deficit shrunk significantly from 2009 to 2014.
World Bank Group – Moldova Partnership
Country Program Snapshot
April 2015
Country Program Snapshot
1
RECENT ECONOMIC AND SECTORAL
DEVELOPMENTS
Growth Performance and Prospects
Despite substantial macroeconomic risks and
regional challenges, economic performance
has been relatively strong over the past few
years. Moldova has experienced the highest
cumulative GDP growth relative to the precrisis
year of 2007 compared to all its regional partners
(Romania, Ukraine, Russian Federation, European
Union [EU]17), with GDP increasing by 25 percent
since 2008. However, growth has been volatile,
reflecting the country’s vulnerability to climatic and
global economic conditions. In 2012, GDP
contracted by 0.7 percent, as agricultural output
was hit by a drought (-22.3 percent) and weaker
external demand due to the Eurozone crisis. In
2013, growth rebounded, driven by a record
harvest in agriculture, with GDP increasing by 9.4
percent.
Growth declined to 4.6 percent in 2014. Exports
started to suffer due to the difficult conditions in
Moldova’s trading partners and trade restrictions.
On the production side, a good harvest for the
second year in a row enabled an 8.2 percent growth
in agriculture. Industry grew by 7.2 percent, with
the food industry as the main contributor.
The path toward European integration anchors
growth prospects, and Moldova needs to
accelerate economic reforms. This means
developing a sound, transparent, and competitive
financial sector, reducing the burden of
inspections, removing obstacles for exporters
(including in agriculture), and channeling
remittances into productive investments. Moldova
needs to improve the efficiency and fairness of its
public expenditure, in particular through better
management of public capital investments.
Administrative and judicial reforms and less
corruption are also needed to secure European
integration and economic modernization.
External Sector
The unfavorable regional environment has
started to affect Moldova’s external position,
especially since the fourth quarter of 2014. The
current account narrowed to 3.8 percent of GDP
in January–September 2014, with a shift of exports
from the Commonwealth of Independent States
(CIS) to the EU. At the same time, heightened
regional risks reduced inflows on the financial
account. The rapid weakening of the Russian ruble
in the fourth quarter of 2014 and a reduction in
money transfers to Moldova put pressure on the
local currency. During October 2014–February
2015, the Moldovan leu lost 23 percent against the
U.S. dollar, while foreign exchange reserves
declined by 25 percent.
Fiscal Sector Performance and Challenges
The budget deficit shrunk significantly from
2009 to 2014. Since 2009, Moldova has managed to
restrain transfers and public consumption
(including the wage bill and purchases of goods and
services). A good economic performance and
revenue collection have reinforced the impact of
government actions to control expenditures and
improve efficiency. Key actions have included
reforms in the education sector (school network
rationalization) and in social assistance (the
introduction of a new targeted program and the
reduction of previous categorical compensation
schemes). As a result, the fiscal deficit of the
general government has declined by 4.6 percentage
points of GDP in the five years since 2009. The
deficit narrowed to 1.8 percent of GDP in 2013. In
2014, the targeted deficit was 2.8 percent of GDP;
however, external grants increased significantly,
resulting in a deficit of 1.8 percent of GDP. Going
forward, fiscal discipline will need to be maintained.
Higher recurrent expenditures, introduced in mid-
2014, will be a challenge for public finances in 2015
as the economy could enter a recession.
The upcoming local elections and institutional
weaknesses could hinder reforms. Social
pressures and commitments on social insurance
and pensions will test fiscal sustainability in 2015
and 2016. Institutional weaknesses are further
reflected in tax collection issues.
Budget savings are needed to keep the macro
economy stable and to save money for
productive infrastructure. The public sector wage
bill is high, especially at the local level. Initial strides
have been made in the education and health sectors
to improve efficiency and thereby free up much-
needed resources for quality interventions. These
include better teaching and learning materials and
training for school principals and teachers in the
education sector, and increased expenditures on
pharmaceuticals and facilities maintenance in the
health sector. However, much remains to be done
to improve these sectors’ quality and effectiveness.
In addition, steps need to be taken to reform the
Country Program Snapshot
2
pension system and increase pension contributions
to make the system sustainable. Public services at
the local government level need to be made more
efficient and redundant services, and overlapping
functions eliminated.
Macroeconomic Outlook
Moldova’s economy is projected to go into a
recession in 2015, followed by a slow recovery
in 2016. Economic troubles in Russia and Ukraine,
together with Russia’s restrictions on agro-food
imports from Moldova, are expected to push
Moldova’s GDP down by 2 percent in 2015. The
flexible macro-policy framework of Moldova’s
authorities, the trade reorientation to the EU, and
the weakness of the trade restrictions on Moldova
provide some—albeit small—buffer against the
negative impact. A weak recovery of about 1.5
percent in 2016 is projected, as Moldova’s main
trading partners from the CIS are expected to
recover only gradually, and EU growth is likely to
remain below potential. The current account deficit
is likely to stay below historical averages, but the
higher perception of risks in the region will likely
constrain inflows of foreign investment and
lending. Inflation is projected to temporarily
increase to above the target range of the National
Bank of Moldova (NBM) in 2015. The authorities
are expected to introduce corrective fiscal measures
to keep the budget deficit under 3.5 percent of
GDP over the projected period.
Downside risks to the macroeconomic
framework stem from the external
environment, weaknesses in the banking
sector, and fiscal pressures. First, the contraction
in Russia and Ukraine could be larger, producing a
subsequently larger negative impact on growth in
Moldova. Geopolitical tensions might intensify
further, with additional negative repercussions for
Moldova’s economy. Second, the soundness and
transparency of the banking sector remain the main
domestic policy challenge. In late 2014, the NBM
placed three troubled banks that account for 20
percent of the banking system’s deposits under
special administration. The authorities need to
recognize the losses incurred by the state in the
banking sector, to overhaul prudential supervision,
and to improve the governance of the sector in
order to minimize further risks. Third, a failure to
align fiscal policy with available financing might
undermine recent achievements in Moldova’s
macroeconomic management.
Poverty
Despite a sharp decline in poverty, Moldova
remains one of the poorest countries in
Europe. Based on the Europe and Central Asia
(ECA) standardized poverty lines of US$5 per day
and US$2.5 per day at purchasing power parity,
46.5 percent of the population was poor and 6
percent was extremely poor in 2012. Farmers and
agricultural workers account for 40 percent of
Moldova’s poor and 44 percent of those in the
bottom 40 percent of the population. Most of the
observed poverty reduction has been driven by
remittances and higher employment and earnings.
The consumption of the bottom 40 percent of the
population grew by 2.8 percent in the period 2007–
12, outpacing the growth in consumption of the
general population (-0.1 percent). However,
evidence suggests that the bottom 40 percent are
particularly affected by weaknesses in the quality
and efficiency of health and education services and
especially vulnerable to climate shocks.
Financial Sector
High risks exist in the financial sector and
require immediate action. Three banks (Banca
de Economii [BEM], Unibank, and Banca Sociala)
were placed under special administration between
late November and mid-December 2014 due to
large and opaque transactions between themselves
and with foreign banks and companies. These
transactions call into question the integrity of their
balance sheets and expose the banking sector to
significant liquidity and contagion risks. Other
banks in Moldova may have also participated in
financing these transactions. Despite the known
risks since late 2013, the authorities have been
hesitant to resolve the banks. These collective
delayed actions point to the need for a significant
overhaul of governance in the financial system.
Access to financial services in Moldova is
relatively low. Credit to the private sector as a
share of GDP is about 35 percent of GDP, and
deposits are about 45 percent of GDP. Access to
finance is identified as one of the most pressing
issues for enterprise development. Weaknesses in
the insolvency regime and in the rights of creditors
and debtors create uncertainty and discourage
financial transactions. The financial system is
dominated by the banking sector, with assets
equaling 70 percent of GDP (small compared to
neighboring peers), while insurance, microfinance,
and capital markets are very small.
Country Program Snapshot
3
Weak financial sector governance further
stifles growth and competition in the sector.
Weaknesses in the share registry system have
contributed to “raider attacks” in which securities
are fraudulently transferred from their rightful
owners to others. In 2013, one of the largest
Moldovan banks was the subject of a successful
hostile takeover by nontransparent investors.
These hostile takeovers are characterized by a rapid
transfer of ownership of shares to individuals and
companies in blocks below the 5 percent change of
control threshold (recently amended to 1 percent).
At least three banks are believed to have been
subject to a change of control as a result of such
processes.
The World Bank is providing advice on how to
stabilize the banking sector so it can serve the
public better. Over the past four years, the Bank
has provided advice on amendments to the Capital
Market Law and the enforcement powers of
financial sector regulatory agencies. The next
budget support operation will support financial
sector reform.
In addition, the Bank has advised on
developing electronic payment and remittance
services, enhancing the legal and regulatory
framework for the non-banking financial sector,
and allowing movable assets to be used as collateral.
Finally, the Bank is financing the Competitiveness
Enhancement Project II, which contains a US$30
million access to finance component in the form of
a credit line for exporting enterprises. The funds
are now available to Moldovan exporters through
participating local banks.
Business Environment Reforms
Moldova needs to deepen regulatory reforms
and strengthen the rule of law to encourage
private investment. Regulatory reforms
implemented in 2001–12 brought slow but steady
progress. On the Doing Business distance to the
frontier indicator, which measures how far a
country is from global best practice, Moldova has
risen from 55.9 (in 2006, the earliest available) to
64.5 (in 2014). Reforms have reduced the time
spent by management on meeting regulatory
requirements from 17 percent in 2005 to 10.7
percent in 2013, as reported by the domestic Cost
of Doing Business survey.
Despite this progress, the competitiveness of
Moldovan firms remains limited by a business
environment characterized by uncertainty and
high transaction costs. Moldova now ranks 78th
out of 189 economies in the 2014 edition of the
Doing Business report, and 89th out of
148 economies in the World Economic Forum’s
2013–14 Global Competitiveness Report. Companies
cite substantial barriers related to many aspects of
the business environment, from obtaining licenses
and permits to importing goods, getting credit, and
competing on a level-playing field with other
companies. There is also a need for more consistent
enforcement of legislation through the judicial
system and more effective implementation of the
new Law on Competition and the Law on State
Aid.
The Deep and Comprehensive Free Trade
Area (DCFTA) with the EU was signed in June
2014 and was ratified swiftly in Parliament,
along with the Moldova-EU Association
Agreement. As it became effective on January 1,
2015, the DCFTA gave Moldovan producers open
access to the EU market. Experience has proven
that Moldovan exporters have been able to sell
increasingly more to the EU market, so businesses
are expected to take full advantage of the new
opportunities.
The Government has developed and approved
a reform program to tackle some of the most
important barriers. The 2013–20 Regulatory
Reform Strategy and its accompanying action plan
shifted the focus from “deregulation” to “smart
regulation.” The Roadmap for Removing Critical
Barriers in the Business Environment (2013–14)
focuses on removing administrative constraints on
businesses, facilitating international trade,
improving tax administration, and eliminating anti-
competitive practices.
Education
The Government of Moldova’s objective in
education is to improve the education system
to meet the needs of the labor market and the
broader economy. The demographic decline in
the country (the student population has shrunk by
over 50 percent since 1991) brings significant
efficiency challenges. In response, the
Government has taken critical steps toward
improving resource allocation by adopting per
capita financing and an enabling legislative
framework. Sustaining and advancing these
reforms with a focus on improving learning results
are fundamental steps.
Country Program Snapshot
4
Social Protection
Moldova operates an extensive social
protection system, with both a contributory
social insurance component and
noncontributory social benefits. Total social
protection spending is quite large by regional
standards; it grew from 9 percent of GDP in 2003
to almost 13 percent in 2013. Of this amount, over
11 percent of GDP was spent on social insurance
(mostly pensions), and about 2 percent was used
for noncontributory social assistance programs.
Against the growing budget envelope, the
efficiency of social protection spending raises
concerns. Moreover, the changing demographic
situation offers challenges and opportunities that
the Government needs to address, including by
making the social protection programs fiscally
sustainable, improving life-long learning so people
are productive workers over a longer period of their
lifespan, and reducing barriers to immigration,
among other factors.
Health
The country has made progress in health
reforms over the past decade. The most notable
achievement is the introduction of mandatory
health insurance in 2004, and around 85 percent of
the population is now covered by mandatory health
insurance. All citizens also have universal access to
primary health care regardless of their insurance
status.
Other reforms include: (i) the establishment of
family medicine; (ii) increased provider autonomy;
(iii) capitation payments for primary care and case-
based payment for hospitals; (iv) the introduction
of performance-based incentives in family
medicine; and (v) steps toward accreditation and
quality standards.
The Government is committed to the health of
its citizens and spends roughly 13 percent of its
annual budget on health. However, significant
challenges remain. While death rates have
decreased among younger age groups, mortality in
adult males has increased. Noncommunicable
diseases (NCDs) have become the major burden of
mortality and illness, with smoking, alcohol use,
unhealthy diet, hypertension, and obesity among
the leading NCD risks. Notably, around 50 percent
of Moldovan adults have high blood pressure.
Adult smoking prevalence is 43 percent compared
to the ECA regional average of 31 percent.
Meanwhile, the threat of communicable diseases
such as tuberculosis and HIV/AIDS persists.
Multi-drug resistant tuberculosis is an increasing
public health problem.
The health system remains imbalanced. There
are still too many acute care hospital beds, and
funds for hospitals (over 50 percent of the health
budget) are spread thinly over 73 public hospitals,
which are often underutilized and even unsafe.
More than 40 percent of the poor are not insured.
Around 45 percent of health spending is from
patients’ pockets, of which 70 percent is for drugs.
The sustainability of the health insurance scheme is
threatened by: (i) an unclear benefits package; (ii)
the large number of categories eligible for free
insurance; and (iii) the inability of the National
Health Insurance Company to freely manage
strategic purchasing of health services from
providers.
In summary, a country with Moldova’s national
income and high health expenditure (relative to the
GDP) should have better health care.
Environment
Moldova’s main environmental problems are
soil degradation, surface water pollution, a lack
of sustainable waste management (solid and
liquid), and increased groundwater pollution due to
poor manure management in rural communities.
Moldova has made important progress in
protecting the environment and has successfully
implemented projects aimed at stopping and
reversing soil degradation. It has also made
excellent progress on reducing existing quantities
of obsolete pesticides contaminated with persistent
organic pollutants. The FY14–17 Country
Partnership Strategy has a dedicated pillar
supporting a green, clean, and resilient Moldova to:
(i) boost adaptation and resilience to climate
change; (ii) improve natural resource management;
and (iii) increase energy efficiency and security.
Forestry
Moldova’s low forest coverage (12 percent
versus an EU average of 45 percent)
contributes to erosion, floods, and landslides,
which lead to the degradation of agricultural
land. Due to climate change, forests are likely to
become more affected by pests, disease, fires, and
droughts, but the sector offers opportunities for
sustainable development. Better forest
management and afforestation could relieve the
Country Program Snapshot
5
pressure on forests from illegal felling while
contributing to climate change mitigation. In
addition, the construction of shelter belts will
ameliorate land degradation and improve
agricultural potential, and the development of local
forest-based enterprises will support the poor rural
economy.
Agriculture
Agriculture is a major contributor to the
Moldovan economy. The sector grew by more
than 35 percent in 2013 and by more than 8 percent
in 2014, showing a potential for becoming a growth
engine. In recent years, agriculture has produced 12
percent of GDP and employed 28 percent of the
labor force. The importance of agriculture is
reflected in the prevailing share of agro-food
exports, which are at 45–50 percent of total
exports. This share is backed up by the export-
oriented agro-processing industry, which produces
most of the agro-food exports and adds
approximately 7–8 percent to GDP. In spite of its
large size and major contribution to the economy,
however, the sector exhibits the highest poverty
rates. Low incomes from agriculture stem from its
weak links to markets and the low competitiveness
of outputs. In addition, the degradation of land
resources contributes to reduced agricultural
productivity, leading to land abandonment and the
deterioration of rural livelihoods.
Energy
Moldova depends on imports to cover
98 percent of its energy needs. Energy efficiency
has been improving slowly over the past 10 years
with support from various development partners,
but it still requires important investment to reach
regional levels.
Significant institutional reforms in the late
1990s helped improve the regulatory
environment and the performance of the
electricity and gas sectors, and also led to the
privatization of two-thirds of the electricity
distribution network. In November 2008,
Moldovagaz halted gas supplies because of the
tariff levels for district heating, which were below
cost recovery. Termocom was financially bankrupt
and under bankruptcy proceedings from 2001 to
2009. The payables to Moldovagaz accumulated to
US$250 million, or 3.5 percent of GDP. The
country signed the Energy Community Treaty in
March 2010. In order to support the Government
in fulfilling its obligations on institutional and
market reforms in the energy sector, the EU and
the Government of Sweden agreed to finance
budgetary support operations in 2011 and 2012,
respectively.
WORLD BANK GROUP PROGRAM IN
MOLDOVA
The World Bank Group Country Partnership
Strategy (CPS) for FY14–17 is providing
support to help reduce poverty and boost
shared prosperity by capturing the full benefits of
openness and integration with the EU and the
broader global economy through three pillars:
(i) Increasing Competitiveness. Continued institutional
reform of the business climate and governance,
improved access to finance, and activities to
improve companies’ competitiveness are
needed to reduce barriers and translate
economic openness into concrete benefits of
more jobs and higher income.
(ii) Enhancing Human Capital and Minimizing Social
Risks. The widening gap with the EU28 in
education and health outcomes should be
reduced and progressively closed.
Demographic challenges should be addressed.
Vulnerabilities should be tackled through
strengthened social protection systems.
(iii) Promoting a Green, Clean, and Resilient Moldova: the
debilitating effects of climatic events on
agriculture and rural livelihoods need to be
addressed for sustainable development.
A mid-term CPS review is planned for early
FY16. The CPS Performance and Learning Review
will aim to confirm, together with country
authorities, the proposed strategic pillars and make
any required adjustments to the lending and
analytical program and the results framework
through FY17.
The World Bank’s active portfolio includes
eight investment projects. Total commitments
amount to US$241.3 million. The disbursement
ratio for FY14 was 30.2 percent and currently
stands at 18.6 percent. Four ongoing projects (50
percent) are rated as moderately unsatisfactory for
either achievement of development objectives or
implementation progress, and solutions to existing
problems are being identified and monitored
through regular Program Problem Reviews.
Country Program Snapshot
6
In the current CPS, alongside International
Development Association (IDA) and
International Bank for Reconstruction and
Development (IBRD) resources, International
Finance Corporation (IFC) operations will
continue to focus on investment and advisory
activities that enable private sector growth and
diversification. Portfolio composition is 90
percent loans, 7 percent guarantees, and 3 percent
equity and quasi-equity (equity type only). There are
currently no nonperforming loans (NPLs) in 12
active projects. Active programs focus on: (i)
promoting investment climate reform; (ii) building
risk and NPL management capacity in the financial
sector; and (iii) developing public-private
partnerships (PPPs) in health. Projects under
development would support PPPs for municipal
infrastructure and transport.
IFC’s strategic priorities are: (i) Agriculture sector:
IFC intends to focus on food processing, related
industries such as glass and container
manufacturing, and advisory projects in food
safety; (ii) Infrastructure sector: IFC’s focus is on
investments in electricity distribution, district
heating, telecoms, water and wastewater and wind
energy; (iii) Health sector: This is a key focus as IFC
works to attract private sector participation in this
underserved market; and (iv) Financial Markets: The
goals are to expand lending capacity and improve
governance, provide financing and advisory to
major banks for lending to underserved small and
medium-sized enterprises (SMEs) across sectors,
promote energy-efficiency (EE) credit lines, and
develop non-bank financial institutions, in addition
to risk management advisory for commercial
banks.
A strong emphasis on partnerships with other
development partners has proven effective in
leveraging substantial cofinancing for reforms.
Operations in the Bank’s portfolio have attracted
the support of other development partners,
including the European Commission (EC), the
Global Environment Facility (GEF), the German
Development Bank (KFW), the Governments of
the Netherlands, Sweden, and Switzerland, the
United Nations Children’s Fund (UNICEF), and
the U.S. Agency for International Development
(USAID), which cofinanced IDA operations,
financed carbon operations, and provided other
forms of support, including for Analytical and
Advisory Activities (AAA). The size of the active
trust fund portfolio is US$30.9 million. In the
current CPS, trust funds continue to play an
important role in leveraging financing for reforms.
Trust funds have also been instrumental in
strengthening AAA and building capacity.
Technical assistance and sector support have been
provided in agriculture, education, e-
transformation, the financial and private sectors,
and energy. In energy, several trust funds have
provided support to district heating restructuring
and reform, informing the design of the District
Heating Efficiency Improvement Project (DHEIP)
approved in FY15. In the financial sector, several
trust funds have helped strengthen the National
Commission of Financial Markets’ (NCFM)
institutional capacity and enhance the financial
sector regulatory regime in line with international
good practices. Trust funds have also provided
continued assistance for private sector
development through regulatory and business
environment reform, increased access to finance,
and targeted activities to help improve Moldovan
companies’ competitiveness.
AAA delivered in FY15 include: Financial Sector
Monitoring technical assistance, a study on Electric
Power Market Options, Food Security Notes, and
a Forest Policy Note. In addition, a Public
Expenditure Review and a District Heating? Tariff
study are planned for completion in FY15.
Programmatic technical assistance in the financial
and human development sectors will continue
during the current CPS period.
A recent noteworthy example of an analytical
collaborative effort is a Briefing Book
developed by Moldova’s partners, setting out the
development community’s viewpoint on key
development and cooperation issues and providing
a viable platform for policy dialogue and strategic
partnership with the Government. In addition, the
recommendations provided in the Briefing Book
could serve as a reference for the Government’s
short and medium-term programming.
These products will be instrumental in moving
the structural reforms agenda forward. Future
AAA will include public investment management
support and continued work on competitiveness
and structural reforms, financial sector monitoring,
improvements in the governance structure, market
development measures, labor, sustainable
development technical assistance, and a poverty
assessment.
Country Program Snapshot
7
World Bank Sector Assistance
Business Environment: The World Bank has
been working with the Government to help
improve the investment climate. The Competitiveness
Enhancement Project II (CEP II) seeks to increase the
competitiveness of Moldovan enterprises by
increasing their linkages to markets, improving
their ability to access medium- to long-term
finance, and improving the business-enabling
environment. It focuses on institutional aspects,
such as governance of regulatory reform and
institutional strengthening of the SME
development agency (ODIMM) and export
promotion agency (MIEPO). CEP II also provides
support for the implementation of key regulatory
reforms, a matching grant facility to support export
competitiveness in SMEs, and a line of credit.
As part of the Moldova-EU Association
Agreement, the Government continues to improve
the corporate financial reporting framework.
Currently the effort is supported by the regional
Strengthening Auditing and Reporting in the
Countries of the Eastern Partnership (STAREP)
program, implemented through the World Bank
Centre for Financial Reporting Reform (CFRR) in
Vienna. The key priority for the Government is to
align its legislation with the relevant parts of the EU
acquis communautaire and good international
practices.
Education: The World Bank supports reforms
that aim to improve the quality of education while
promoting sector efficiency: an IDA credit for the
Education Reform Project; a Bank-administered grant
from the Government of Japan supporting equal
education opportunities for children with
disabilities; and Bank-financed technical assistance
to provide tailored policy advice, in particular to
support the alignment of the education system with
labor market needs. In addition, a Global
Partnership for Social Accountability (GPSA) Trust
Fund has provided a Moldovan nongovernmental
organization (NGO) with a grant to assist in
empowering civil society to engage local, regional,
and national authorities in evidence-based policy
and budget dialogue in the sector.
Social Protection: Moldova can achieve a more
cost-efficient spending mix of its social assistance
programs, and Bank support is instrumental to
1
PROST stands for pension reform options simulation toolkit.
sustaining these efforts. The Government is
committed to policy reforms aimed at integrating
the overall social safety net into the platform
provided by the targeted Ajutor Social program. The
Bank is supporting these efforts via the Strengthening
the Effectiveness of the Social Safety Net Project. Pursuing
a results-based financing (RBF) approach, the
US$37 million IDA credit cofinances the interim
transitional costs of expanding the Ajutor Social
program, while consolidating other benefits.
The World Bank also maintains a pension reform
dialogue. In 2013, the Bank team developed and
presented to its Moldovan counterparts the
PROST model,
1
which is used in more than 100
countries to simulate pension reforms and inform
policy choices.
Health: The World Bank is supporting the
Government to address the challenges in this sector
through the US$30.8 million Health Transformation
Operation. Its objective is reducing NCDs and
improving efficiency through the rationalization of
hospitals and incentives for health workers. In
addition, the Bank is supporting PAS, a Moldovan
NGO, to set up citizen monitoring arrangements.
Environment: The World Bank supports the
sector through the Moldova Disaster and Climate Risk
Management Project (2010–15, US$10 million), which
seeks to support the State Hydro-Meteorological
Service’s ability to forecast severe weather and to
improve its capacity to prepare for and respond to
natural disasters.
Forestry: The Bank is providing technical
assistance and is funding investment operations.
The Forest Law Enforcement and Governance
Program (an EU-sponsored initiative) includes
capacity building, analytical work, and public
awareness efforts, targeted at improving forest
governance through strengthening institutional and
human capacity. In 2014, the Bank prepared a
Forest Policy Note to provide an outside view of
the sector and strategic advice and to identify future
opportunities for sustainable sector development.
The Agricultural Competiveness Project is providing
specialized agro-forestry machinery to help extend
and rehabilitate the forest belt network.
Agriculture: The World Bank’s current support to
the sector consists of three projects:
Country Program Snapshot
8
The Moldova Agriculture Competitiveness Project (2012–
17, total financing US$25.4 million) promotes
market access for farmers and supports their
integration into complex supply chains. To achieve
this, project activities support: (i) improving food
safety; (ii) increasing the number of farmer
organizations and improving post-harvest
infrastructure; (iii) promoting sustainable land
practices; and (iv) strengthening the response to
soil degradation. An Additional Financing (US$12
million) is currently under preparation to support
farmers affected by the Russian ban on fruit in
2014.
The Moldova Soil Conservation Project (ongoing 2006–
18, US$5.44 million) aims at restoring degraded
agricultural land and building capacity for the
community-based management of these lands. This
helps carbon sequestration and the reduction of
greenhouse gas.
The Moldova Community Forestry Project (ongoing
2009–18, US$3.5 million) aims to restore degraded
land through forestation to increase economic and
environmental use for the benefit of rural
communities. The project is also providing
technical assistance to participating communities
for improving forest and pasture management.
Energy: Support to the sector includes the District
Heating Efficiency Improvement Project (DHEIP), which
will support sector reforms. It will also contribute
to improving the operational efficiency and
financial viability of Newco, an entity created by the
merger of two combined heat and power plants
(CHPs) in Chisinau and the assets purchase of
Termocom (a district heating distribution
company), and to enhancing the quality and
reliability of heating services delivered to the
population of Chisinau.
The Bank is also conducting two analytical works
in the sector. The “Moldova: Electric Power
Market Options Sector Study” advises on
improving energy security by interconnection with
the EU. The “District Heating and Electricity
Tariff and Affordability Analysis,” launched in
October 2015 with funding by the Energy Sector
Management Assistance Program (ESMAP), aims
at informing the policy dialogue on energy sector
reforms, including the DHEIP operation, and
delivering social assistance to ensure the sustainable
operation of the energy sector and service delivery.
Looking Ahead
Moldova needs to find a sustainable growth
model that creates jobs and opportunities for
young people. Private investment, including
foreign direct investment (FDI) and exports, will
need to play a more prominent role in addition to
the dominant drivers of remittances and domestic
consumption. Remittance-led growth is not “bad
growth,” and remittances will remain a very
important share of Moldova’s economy for a long
time. Moldova therefore needs to maximize the
development gains from migration. Remittances, if
captured by the banking sector and efficiently
intermediated, could be used to fuel growth.
However, Moldova does need to broaden the base
of its economy.
Trade integration with product specialization
is always important for a small, remote, and
poor country. Its total population of 2.9 million in
2014 and that of its two largest cities are arguably
too small to support large-scale manufacturing
clusters with an adequate skilled labor supply and
buoyant consumer demand. There are therefore
sound reasons to believe that Moldova’s prosperity
will depend in the future on fuller integration into
larger markets. A good start, as it has been
traditionally in the past, is specialization in the
export of agro-based products. Accessing the more
demanding EU food markets will require
investments in quality and sanitary standards.
Shortcomings in the investment climate are
limiting the profitability of businesses and
keeping the cost of doing business high. These
shortcomings end up reducing the prospects of
attracting new FDI and foreign exporters in a post-
crisis world where foreign capital is scarcer. There
are many problems that need to be addressed:
unclear customs and tax legislation that creates
opportunities for discretion, bribes, and unfair
treatment of certain businesses; administrative
decisions made to protect certain economic or
political interests; a judicial system that is
susceptible to outside influence and bribery; costly
overregulation; an underdeveloped and fragile
financial system; and the creation by licensing and
regulation of monopolies for the export and
distribution of agro-based products through which
farmers get depressed farm-to-gate prices.
A macroeconomic priority is to sustain the
recent gains in fiscal consolidation and
macroeconomic prudence. Moldova’s public
Country Program Snapshot
9
sector is still inefficient and heavily skewed toward
social projects and transfers to individuals,
households, and enterprises. Sustaining fiscal
consolidation will require holding down public
spending and correcting the underperformance in
tax collection. Other key reforms are further
optimizing the education system to enhance
efficiency; improving the composition of public
capital investments, especially through the local
budget, by investing an increasing share in
productive infrastructure; rationalizing the civil
service and payroll to increase staff incentives; and
improving the adequacy and long-run fiscal
sustainability of pensions.
10
Map of Moldova (including the breakaway Transnistria region)
Country Program Snapshot
11
MOLDOVA: COMMUNITY FORESTRY PROJECT
Key Dates:
Approved: May 26, 2009
Effective: May 26, 2009
Closing: December 31, 2018
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
BioCarbon Fund
Japan
2.6
0.9
1.6
0.9
1.0
0.0
Total 3.5 2.5 1.0
*Source: Carbon Finance Assessment Memorandum and Client
Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
The lack of adequate forest cover represents a significant environmental and economic challenge for the Republic of
Moldova. The resulting degradation and erosion of agricultural land adversely affect rural communities. Manifestations
of soil erosion are a serious problem for about one-third of all agricultural and community land in the country. The
ensuing decline in soil fertility has reduced crop yields by more than one-half in some areas. Most of the affected land
is in small, patched areas of fewer than 10 hectares, with little or no economic and/or environmental value. Such land
has remained in community ownership as “marginal land,” with little interest in its privatization and/or utilization for
economic or community purposes. Addressing the problem of “marginal land” by reclaiming its economic and/or
environmental value through forestation, while preventing further degradation, is an important instrument in
empowering rural communities and ultimately reducing rural poverty.
The Project Development Objective is to restore degraded land through forestation to increase economic and
environmental use for the benefit of rural communities. In addition to community benefits, the project’s forestation
activities would support, through the restored productivity and conservation of the soil, the global objectives of carbon
sequestration and a reduction of atmospheric greenhouse gas concentrations.
The project sets out to create community forests and protective forest belts on an area of at least 8,157 hectares, with
ensuing estimated emission reductions of 2.8 million tons of CO2 over 30 years. In addition, the project is providing
technical assistance to participating communities for improving forest and pasture management. The carbon
sequestration activities of the project were validated under the United Nations Framework Convention on Climate
Change (UNFCCC) Clean Development Mechanism procedures, allowing for carbon payments from the BioCarbon
Fund to begin.
Results achieved:
The project has successfully supported:
1. The forestation of more than 10,000 hectares of degraded land (2,000 more than the initial target), resulting in an
estimated sequestration of 600,000 tons of CO2 over the project’s five-year duration.
2. A national competitive grant scheme for participating communities to provide grant funding for localized capacity
building and improvements in forest and pasture management.
Key Partners: The World Bank team works closely with: (i) Moldsilva (State Forestry Agency), which is the
implementing agency; (ii) the Ministry of Environment of the Republic of Moldova; and (iii) selected local
communities.
Key Development Partners include the Government of Japan, which provided grant funding through a Climate
Change Policy and Human Resources Development (PHRD) facility.
Country Program Snapshot
12
MOLDOVA: SOIL CONSERVATION PROJECT
Key Dates:
Approved: January 16, 2006
Effective: June 16, 2006
Closing: December 31, 2018
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
Prototype Carbon Fund
5.4
2.9
2.4
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
The lack of adequate forest cover represents a significant environmental and economic challenge for the Republic of
Moldova. The resulting degradation and erosion of agricultural land adversely affect rural communities. The
manifestations of soil erosion are a serious problem for about one-third of all agricultural and community land in the
country. The ensuing decline in soil fertility has reduced crop yields by more than one-half in some areas. Most of the
affected land is in small, patched areas of fewer than 10 hectares, with little or no economic and/or environmental
value. Such land has remained in community ownership as “marginal land,” with little interest in its privatization
and/or utilization for economic or community purposes. Addressing the problem of “marginal land” by reclaiming its
economic and/or environmental value through forestation, while preventing further degradation, is an important
instrument in empowering rural communities and ultimately reducing rural poverty.
The Project Development Objectives are to restore a total of 20,000 hectares of degraded agricultural land to
productive uses for rural communities and to build capacity for the community-based management of 5,400 hectares
of these lands. In addition to community benefits, the project’s forestation activities support, through the restored
productivity and conservation of the soil, the global objectives of carbon sequestration and a reduction of atmospheric
greenhouse gas concentrations.
The project has set out to restore the productivity of degraded pastureland by means of forestation with tree and shrub
species adapted to adverse site conditions, while also ensuring estimated emission reductions of 1.9 million tons of
CO2 by 2015. In addition, technical assistance has been provided to participating communities for improving the
pasture management capacity.
Results achieved:
The two projects have successfully supported:
1. The forestation of 20,300 hectares. As a result, the project host, Moldsilva, the State Forestry Agency, is receiving
regular carbon payments for an estimated total of 1.9 million tons of CO2 to be sequestered by 2017.
2. The methodology applied in the two projects was successfully registered with the UNFCCC (AR-AM0002) and
can now be applied to other forestation/reforestation projects in the world.
3. The projects have supported the implementation of a national competitive grant scheme for participating
communities that provided grants to more than 50 localities for capacity-building activities aimed at improving
the management of more than 6,000 hectares of community land (mostly pastures).
Key Partners:
The World Bank team works closely with:
(i) Moldsilva (State Forestry Agency), which is the implementing agency;
(ii) the Ministry of Environment of the Republic of Moldova; and
(iii) selected local communities.
Country Program Snapshot
13
MOLDOVA: GOVERNANCE E-TRANSFORMATION PROJECT
Key Dates:
Approved: June 9, 2011
Effective: September 29, 2011
Closing: December 31, 2016
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
Government of
Moldova
IDA credit
3.0
17.7
1.1
8.4
1.9
9.2
Dutch TF 1.5 1.5 0.0
Total 22.2 11.0 11.1
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange
rate fluctuations.
The Republic of Moldova is struggling with a legacy of a vast bureaucracy its excessive and redundant procedures that
result in delays in the provision of public services. Therefore, it began a dramatic turnaround about four years ago by
adopting an e-transformation strategy designed to speed up and streamline government service delivery, fight
corruption, and promote transparency by placing public services online, adopting an open data policy, and promoting
digital tools.
Project Description. The project has two components:
Component 1. e-Leadership Capacity and Enabling Environment: provides support to the e-Government
Center; e-Leadership training and civil servant capacity building; strategic communications and partnerships; the
development of policy, technical, legal, and regulatory frameworks; and project management.
Component 2. Shared Infrastructure and e-Services Development: provides funding for: (a) establishing and
implementing the M-Cloud (Government Cloud Computing Infrastructure); and (b) developing a selected number of
e-government services and shared platforms and applications.
Results achieved to date:
(a) E-Government Center and sectorial e-Transformation Coordination Units were established to coordinate e-
government initiatives government-wide.
(b) E-Government Policy and more than 40 legislative and sub-legislative acts were approved.
(c) Government-shared computing infrastructure “M-Cloud” was launched.
(d) Open Government Data and Government Services Portals were launched.
(e) A number of e-services and shared platform services were launched: e-Applications for Criminal Record and
Activity Licensing, e-Registration to Social and Health Insurances Systems, e-Procurement, Governmental
Documents and Records Management System, M-Signature, M-Pay, e-Visa, etc.
(f) More than 2,000 public servants and other employees of central and local public agencies have received e-
government training under the project.
Key Partners. The World Bank works closely with the State Chancellery, which is responsible for executing the project
through the e-Government Center. The National e-Transformation Council and the Ministry of Information
Technology and Communications are playing a major role in driving and approving information and communications
technology (ICT) policy, legal, and technical frameworks.
Key Development Partners include the Government of the Netherlands, which has provided complementary
financial assistance, and the United Nations Development Programme (UNDP) and the U.S. Agency for International
Development (USAID), which are engaged in e-government reforms.
Country Program Snapshot
14
MOLDOVA: SECOND COMPETITIVENESS ENHANCEMENT PROJECT
Key Dates:
Approved: July 11, 2014
Effective: expected by end of September 2014
Closing: January 31, 2020
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IDA Credit
IBRD Loan
30.0
15.0
0.2 28.8
15.0
Total 45.0 0.2 44.8
*Source: Client Connection as of March 23, 2015.
The Government of the Republic of Moldova is pursuing a policy agenda to support export-led economic growth. To
achieve this goal, the Moldova 2020 national development strategy focuses on improving the business-enabling
environment and promoting better access to finance for enterprises as two of its top priorities. The 2014 Roadmap
for Increasing Competitiveness also focuses on the need to improve competitiveness at the enterprise level. Therefore,
the Second Competitiveness Enhancement Project (CEP II) will help the Ministry of Economy achieve its reform
objectives by supporting implementation of: the Government’s regulatory reform strategies, programs to support
export growth and small and medium-sized enterprise (SME) development, and initiatives to improve access to
medium- and long-term finance for export-oriented enterprises.
The Project Development Objective is to increase the export competitiveness of Moldovan enterprises and decrease
the regulatory burden they face. This objective will be achieved through a set of measures that aim to: (i) improve the
business environment through regulatory reforms that reduce the cost of doing business; (ii) help SMEs and exporters
to get access to business development services; and (iii) improve access to medium- and long-term finance for export-
oriented enterprises.
Key Results Expected:
1. Reduction in management time spent meeting regulatory requirements, from 10.7 percent in 2013 to 8.5 percent
in 2020 (as reported in the annual domestic Cost of Doing Business survey)
2. Increase in new export-oriented activities
2
by matching grant recipients, with at least 50 percent of matching
grant recipients engaged in a new export-oriented activity by project close
3. Increase in lending to export-oriented enterprises by participating financial intermediaries (PFIs), with average
annual growth of 5 percent
4. Medium- and long-term lending by PFIs under a Line of Credit (>24 months) amounting to US$23.4 million by
project close
Key Partners: The World Bank team works closely with the Project Implementation Unit of the Ministry of
Economy and the Credit Line Directorate of the Ministry of Finance.
Key Development Partners include USAID’s BRITE (Business Regulatory, Investment, and Trade Environment)
project in areas related to regulatory reform and the European Union (EU) in its overall support to private sector
development in Moldova.
2
Defined as: exporting existing products to new markets or new customers, exporting for the first time, exporting new products to
existing or new markets, or selling new products into export-oriented value chains.
Country Program Snapshot
15
MOLDOVA: DISASTER AND CLIMATE RISK MANAGEMENT PROJECT
Key Dates:
Approved: August 5, 2010
Effective: November 10, 2010
Closing: September 30, 2015
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IDA 9.5 9.2 0.3
Total 9.5 9.2 0.3
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
Moldova is highly vulnerable to natural disasters, particularly droughts and floods that have significant social and
economic costs. The incidence of such events has seen a marked upward swing in the past 10 years. Moldova is also
situated in a seismic zone, leaving it vulnerable to powerful, potentially damaging earthquakes. Its vulnerability to
natural disasters is accentuated by a lack of proper forecasting of weather events, an obsolete infrastructure, a poor
institutional setup to manage post-disaster situations, and other limiting capacity issues. Another emerging adverse
factor is the increasing climate variability and the uncertainty it brings to agricultural production and thus to the
livelihoods of farmers and the country’s food security.
The Project Development Objective is to strengthen the State Hydro-Meteorological Service’s ability to forecast
severe weather and improve Moldova’s capacity to prepare for and respond to natural disasters.
The project aims to strengthen the institutional, human, and technical capacity for: (i) enhanced weather monitoring
and early warning systems for weather-related hazards that can produce timely and accurate hydro-meteorological
forecasts and services; (ii) improved management and response times to natural and man-made disasters; and (iii)
assistance to farmers for awareness of, and adaptation to, natural hazards and climate variability.
Results achieved:
? Operation of a dual polarization Doppler radar system resulting in improved precision of forecasting severe
weather.
? Establishment of the country’s Emergency Command Center for disaster coordination response.
? Implementation of a Just-in-Time Mobile Communication Platform for the delivery of weather information to
farmers via mobile technologies.
? Implementation of more than 50 pilot subprojects aimed at generating and disseminating knowledge about the
practical application of agricultural technologies resilient to climate risks.
Key Partners: The World Bank team works closely with the: (i) Ministry of the Environment, (ii) Ministry of Internal
Affairs, and (iii) Ministry of Agriculture and Food Industry.
Key Development Partners: Swedish International Development Cooperation Agency (SIDA); the project will
benefit from Sida support (US$100,000) for theoretical and practical activities aimed at strengthening the capacity for
disaster preparedness and response.
Country Program Snapshot
16
MOLDOVA: HEALTH TRANSFORMATION OPERATION
Key Dates:
Approved: May 22, 2014
Expected effectiveness date: October 1, 2014
Closing: March 31, 2019
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IDA Credit: 30.8 0.0 30.8
Total 30.8 0.0 30.8
*Source: Project Appraisal Document.
Over the past 20 years, the Government of Moldova made good progress in strengthening family medicine and hospital optimization
and ensuring universal access to primary health care regardless of a citizen’s insurance status. While good progress has also been
made in reducing death rates among younger age groups, mortality in adult males has increased. Noncommunicable diseases (NCDs)
have become the major burden of mortality and illness in the population, with high blood pressure (hypertension) and smoking
among the leading NCD risks. Notably, around 50 percent of Moldovan adults have high blood pressure. Adult smoking prevalence
is 43 percent, compared to the regional average of 31 percent.
With total health expenditure per capita at around US$360, Moldova spends significantly more on health than comparable countries.
However, Moldova’s health outcomes are less than expected given the level of health expenditures. The discrepancy between
Moldova’s health expenditures and its performance in health outcomes points to the need to improve the effectiveness of health
expenditures in delivering results for health.
To this end, the World Bank developed the Program-for-Results operation to support the Government in addressing the challenges
related to NCDs, achieving better value for money and the delivery of better health outcomes.
The Project Development Objectives are to contribute to reducing the key risks for NCDs and improving the efficiency of health
services in Moldova. The Health Transformation Operation (HTP) is guided by the National Health Policy 2007–2021 and is further
operationalized in the National Health Sector Development Strategy 2008–2017 with financial support from the Medium-Term
Budget Framework (MTBF).
HTP consists of a program-for-results instrument with an investment project financing (IPF) component aimed at supporting the
Government in meeting the agreed disbursement-linked results. It is expected that the operation will address a range of
interconnected sector issues by: (i) contributing to further policy developments in the area of hospital optimization while also
reducing acute care hospital beds and further shortening the average length of stay at hospitals, (ii) reducing the smoking prevalence
among adults, and (iii) facilitating better management of hypertension.
The IPF instrument aims to address the following technical capacity constraints: (1) strengthening of a diagnostic-related group
payment mechanism for hospitals, (2) development of performance-based incentives for efficiency and quality in health care, (3)
development of strategies to optimize hospital networks, and (4) monitoring and evaluation of project results (disbursement-linked
indictors [DLIs]).
Key challenges:
1. Due to the program-for-results disbursement to the general budget and the weak MTBF process, the key challenge is to ensure
that project proceeds are not diverted to finance other sector needs.
2. Achievement of NCD-related results is largely dependent on cooperation from other sectors and counterparts. Notably, the
prevalence of smoking could be reduced only if there is a combination put in place of tax-related measures and a ban on public
smoking.
3. Achievement of sensitive results related to hospital optimization would require continued government commitment and
support, which is subject to the reconfirmation of the current political leadership.
Key Partners: The World Bank team works closely with the: (i) Ministry of Health, which is responsible for implementing the IPF
part of the project (technical assistance component) and reporting to the World Bank on the results achieved; and (ii) National
Health Insurance Company (CNAM), which is also responsible for project implementation and the achievement of specific results.
Additionally, activities under the project involve close cooperation with National Centre for Health Management (NCHM) and the
National Centre for Public Health (NCPH), which are subordinated to the Ministry of Health.
Key Development Partners are the EU, the World Health Organization (WHO), Swiss Development and Cooperation Agency
(SDC), German Agency for International Cooperation (GIZ), and other relevant UN agencies engaged in the health sector that
have been running complementary financing operations and that coordinate with the World Bank team on policy issues.
Country Program Snapshot
17
MOLDOVA: STRENGTHENING EFFECTIVENESS OF THE SOCIAL SAFETY NET PROJECT
Key Dates:
Approved: June 9, 2011
Effective: October 26, 2011
Closing: June 30, 2016
Financing in million US Dollars*:
Financier Financing Disbursed
Undisburse
d
IDA Credit 31.9 19.8 12.0
Total 31.9 19.8 12.0
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
Moldova’s spending on social assistance continues to be high compared to the Europe and Central Asia (ECA) regional
average of about 1.7 percent of GDP, and even higher when compared to International Development Association
(IDA) countries. In 2014, the Government of Moldova spent about 2 percent of GDP on social assistance programs,
most of which are poorly targeted categorical benefits. Reforms launched in 2009–10 helped improve the financial
sustainability and equity of the social safety net through the expansion of targeted cash transfers such as Ajutor Social
and the Heating Allowance and the elimination of some inefficient categorical benefits.
The Project’s Development Objective is to improve the efficiency and equity of Moldova’s social safety net through
a fiscally sustainable expansion and strengthening of the Ajutor Social program. The objective is to be achieved by:
? Supporting the interim transitional costs of expanding the Ajutor Social program and consolidating other benefits
for the fiscal sustainability of the social safety net.
? Implementing measures to enhance the administrative efficiency of the social safety net through strengthened
institutional roles and capacities, improved operating procedures and systems, and better outreach and greater
awareness of the need for reforms.
The Project has two components. The first component cofinances the scaling-up of the two targeted cash transfer
programs (the Ajutor Social and Heating Allowance), while supporting the consolidation and downsizing of other
category-based benefits. It links disbursements to the achievement of specific results measured by “disbursement-
linked indicators” (DLIs). The second component invests in strengthening the institutions responsible for the design
and administration of the social assistance system, with a focus on the Ajutor Social program.
Results achieved:
? After showing good progress in 2011–12, the project has experienced difficulties because the coverage of the
targeted cash transfers has shrunk. In late 2014, the beneficiary take-up significantly intensified. The targeted
benefits coverage is now gaining momentum, which is critical to achieving the project’s objectives and to
supporting poor households in time of economic crisis. The launch of the new management information system
eliminated most of the paper-based procedures and streamlined the benefits application. The turn-around time
for Ajutor Social application processing was reduced from 30 to 11 days between 2010 and 2014.
? Establishment of the Social Inspection unit helped reduce losses from fraud and errors in the social benefits system
by 29 percent relative to 2010.
Key Partners: The World Bank team works closely with the Ministry of Labor, Social Protection and Family and the
Ministry of Finance.
Key Development Partners include: the International Monetary Fund (IMF), EU, United Nations Children’s Fund
(UNICEF), International Organization for Migration (IOM), and other UN agencies engaged in the social protection
sector.
Country Program Snapshot
18
MOLDOVA: AGRICULTURE COMPETITIVENESS PROJECT (ACP)
Approved: May 1, 2012
Effective: September 20, 2012
Closing: June 30, 2017
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IDA Credit
GEF
Swedish Sida
Total Project Cost
16.1
4.4
2.2
22.7
3.5
3.8
0.6
7.9
12.6
0.6
1.7
14.9
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations at the time of disbursement.
Challenges:
Moldova’s climate and relatively high soil fertility give the country a comparative advantage in growing most temperate fruits
and vegetables. The production and sale of fresh fruits and vegetables offer the highest potential for increased incomes from
domestic sales and exports. However, the transition to more profitable crops, as well as more profitable market segments,
continues to be hampered by high capital requirements for post-harvest infrastructure and the stringency of end-market
safety and quality requirements. In addition, current farming patterns and ubiquitous land fragmentation lead to the
proliferation of unsustainable land management practices that need to be curbed in order to reduce land productivity losses.
The Project Development Objective is to enhance the competitiveness of the agro-food sector by supporting the
modernization of the food safety management system, facilitating market access for farmers, and mainstreaming agro-
environmental and sustainable land management practices.
The objectives will be achieved through activities aimed at: (i) strengthening country capacity to manage the increasingly
complex food safety agenda; (ii) increasing the levels of farmer organization and improving the post-harvest infrastructure;
and (iii) promoting the adoption of sustainable land management practices by farmers and ensuring a strengthened response
by the authorities to soil degradation challenges.
Results achieved:
a) Under Component 1: Enhancing Food Safety Management, the country’s Food Safety Agency, a relatively new institution
established in 2012, has largely become functional due to the support of the ACP. Three major civil works activities are
under way: the rehabilitation of the Food Safety Agency building and the construction of the Border Inspection Points
in Tudora on the country’s southeastern border with Ukraine and in Criva on the northern border with Ukraine.
Procurement of civil works for another three border inspection points—Leuseni (west), Giurgiulesti (south), and Criva
(North) - has been completed and works are expected to commence in the next few weeks. Procurement of works for
the construction of the country’s national reference laboratory for the safety of products of vegetable origin (Balti) has
been completed. Capacity-strengthening activities at the national reference laboratory for the safety of products of animal
origin and animal health aimed at future international accreditation are also advancing. Additionally, the Food Safety
Agency continues to receive support for legislative and regulatory improvements, capacity-building activities, training,
and knowledge transfer from various international food safety institutions.
b) Under Component 2: Enhancing Market Access Potential, two calls for proposals for matching investment grants from emerging
productive partnerships have been completed to date. The first one, carried out in 2014, resulted in awards of US$1.65
million to eight newly created producer groups for a variety of investments in post-harvest processing and the handling
of apples, table grapes, and berries. A second call, which ended on January 30, 2015, resulted in a yield of four very solid
proposals amounting to US$0.8 million. In parallel, implementation of outreach activities has continued to focus on
raising awareness about the project’s competitiveness-enhancing opportunities for fruit and vegetable growers and also
about the quality of Moldovan fresh fruits in order to increase domestic consumption.
c) Under Component 3: Enhancing Land Productivity Through Sustainable Land Management, all activities related to the rehabilitation
of protective shelter-belts have been implemented on schedule, and the equipment that was procured for these purposes
is being utilized efficiently by two mobile mechanized agro-forestry squads. The component’s sustainable land–managed
grant scheme has been launched and the first two calls for proposals yielded 91 awards for an amount of approximately
US$0.7 million. A second, recently closed call resulted in an additional pool of 80 applications.
Key Partners: Ministry of Agriculture and Food Industry; Ministry of Environment.
Key Development Partners: Global Environment Facility (GEF), SIDA.
Country Program Snapshot
19
MOLDOVA: EDUCATION REFORM PROJECT
Key Dates:
Approved: January 24, 2012
Effective: July 1, 2013
Closing: August 31, 2018
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IDA
36.3
9.8 26.5
Total 36.3 9.8 26.5
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
The project directly supports the Government’s education reform program. The project’s objectives are to strengthen the
quality of education while supporting the efficiency reforms being implemented in the education sector, and they are in line
with the Country Partnership Strategy (CPS) for Moldova 2014–17 by directly contributing to the implementation of the
CPS’s second pillar of enhancing human capital and minimizing social risks.
The project has three components:
1. Strengthening the quality of education, which will contribute to higher quality in the general education subsector in
Moldova;
2. Improving the efficiency of the education sector by eliminating excess capacity and creating a leaner education system
that is better equipped to provide education that meets the demands of a modern economy;
3. Improving the Ministry of Education’s (MoE) capacity to monitor the reform through provision of technical assistance
to the MoE to support the implementation, monitoring, and measurement of the education reform program.
Outcome indicators:
1. 70 percent of receiving schools meet the approved school quality assurance standards by year five of the project
2. Average scores for receiving schools in Romanian and math in 4th grade increased
3. Average scores for receiving schools in Romanian and math in 9th grade increased
4. Student-teacher ratio for grades 1–12 is increased from 10.5:1 to 11.5:1.
Intermediate Results Indicators:
1. Updated program for training of school directors and teachers officially approved and implementation initiated;
2. 30 percent of school directors and 10 percent of teachers trained based on the updated program for training of school
directors and teachers;
3. New remuneration program for school directors and teachers adopted by the Government;
4. Moldova enrolled in PISA 2015 and the results of Moldova’s participation in this student assessment analyzed and
publically disseminated;
5. Administration of revised national testing of all 4th grade students completed;
6. Administration of revised national testing of all 9th grade students completed;
7. System in place to closely monitor and mitigate drop outs (by gender) in general education (using education
management information system [EMIS]);
8. School report cards produced and disseminated to schools;
9. 89 percent of primary and secondary schools with budgets approved according to per student formula;
10. 980 classes reorganized in primary and secondary schools;
11. Consolidated EMIS established.
Key Partners: The World Bank team works closely with Ministry of Education, which is responsible for the overall
implementation of the project, and Ministry of Finance in this results-based financing operation.
Key Development Partner is UNICEF and the Government of Japan, whose funds are administered by the World Bank
via a US$2.86 million grant “Integration of Children with Disabilities into Mainstream Schools,” and the Global Partnership
for Social Accountability Program through a US$0.7 million grant “Empowered Citizens Enhancing Accountability of
Education Reform and Quality,” implemented by one of the leading think tanks in the country, the nongovernmental
organization (NGO) “Expert-Grup.”
Country Program Snapshot
20
MOLDOVA: EMPOWERED CITIZENS ENHANCING ACCOUNTABILITY OF EDUCATION
REFORM AND QUALITY
Key Dates:
Approved: March 28, 2014
Effective: January 15, 2014
Closing: December 20, 2018
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
GPSA grant
0.7 0.2 0.5
Total 0.7 0.2 0.5
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
Moldova was one of the first countries to join the Global Partnership for Social Accountability.
The Project Development Objectives are to empower each member country’s civil society to: (i) engage local,
regional, and national authorities in evidence-based policy and budget dialogue in its education sector; and (ii) promote
an enabling environment for social accountability. The project includes the following specific objectives:
? Facilitate engagement of local stakeholders in approximately 100 schools using social accountability tools and
promoting a dialogue on school budgets.
? Facilitate the flow of information from users of education services to local and national authorities.
? Promote the use of three new social accountability tools as inputs into formal education budgetary processes.
? Inform the public about the impact of wider economic and financial conditions on the education sector and
reforms (e.g., current situation, availability of budgetary resources, forecast).
? Support the Ministry of Education and other policy stakeholders in improving the quality of data to better support
an evidence-based policy-making process.
Results achieved:
1. New “Scoala Mea” platform launched under the project facilitates citizens’ engagement in and the monitoring of
the quality of education service delivery.
2. Social accountability tools have been developed, promoted, and used for the oversight of the education sector,
such as stakeholders’ report cards and public hearings about the school budgets, which are new concepts for
Moldova. Budget analyses of schools with infographics have been made and presented by the implementing
agency Expert-Grup (a model applied in participating schools and beyond).
3. Training on social accountability tools have been delivered to regional partners and other stakeholders of the
project.
4. The Education Sector Open Data Readiness report has been developed, covering dimensions of leadership;
legal, policy, and institutional frameworks; responsibilities and skills; sector data; demand for open data; and the
funding of relevant initiatives and national infrastructure (with relevant policy recommendations).
The Ministry of Education supported the initiative, including through opening education data, for example,
opening baccalaureate exams results for the 2013 and 2014 school years, the first time ever since Moldova’s
independence, making school budgets for 2013 and 2014 public, and ensuring legal grounds for open data in the
new Education Code that entered into force in November 2014.
Key Partners: Ministry of Education, local authorities, and NGOs.
Key Development Partners: Global Partnership for Social Accountability Program.
Country Program Snapshot
21
MOLDOVA: INTEGRATION OF CHILDREN WITH DISABILITIES INTO MAINSTREAM
SCHOOLS
Key Dates:
Approved: May 14, 2013
Effective: June 24, 2013
Closing: July 30, 2016
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
PHRD grant 2.9 0.3 2.6
Total 2.9 0.3 2.6
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
The Project Development Objective is to demonstrate through pilot activities that local governments can
successfully apply national policies to promote the integration of children with disabilities into the mainstream
education system.
Children with disabilities can be successfully integrated into mainstream education and supported in achieving better
learning outcomes through the provision of equal educational opportunities. The project aims to demonstrate that this
can be achieved through adequate planning, infrastructure investments, teacher training, and community awareness
and mobilization. By bringing educators, parents, communities, and local authorities together to help kids benefit from
inclusive education, the project aims to build “models of inclusiveness” that can be replicated across Moldova. In the
process, the project aims to address the following constraints and challenges related to the integration of children with
disabilities into mainstream education. First, the funds are used to help district authorities in rolling out the National
Program for the Development of Inclusive Education, including support in assessing the number of children with
disabilities and in addressing school infrastructure needs and adequate teacher training. Second, a focus is placed on
carrying out 20 demonstration subprojects aimed at the rehabilitation and refurbishment of school facilities to ensure
that they are accessible and that they meet the educational needs of children with disabilities, in addition to providing
relevant training for parents, teachers, and the community. Third, support is channeled toward the dissemination of
experiences and good practices to encourage the national replication of successful practices concerning the integration
of children with disabilities into mainstream schools. Integration can be considered successful if it is achieved with
improved community support and if it improves educational outcomes for the children. The key performance
indicators thus include:
1. Increased participation of school-aged children with disabilities in mainstream education, as measured by the increase
in school-years completed in the district in nonresidential schools by children certified as having a disability;
2. Decreased share of people who think that children with disabilities should not go to mainstream schools and
kindergartens (from an estimated 45 to 30 percent); and
3. Improved learning environment for children with disabilities and special education needs in 20 pilot schools as
measured by the availability of trained educational personnel (including teachers and support staff) and accessible
physical infrastructure.
Results achieved: Despite the delayed effectiveness caused by the ratification of the grant, this initiative already has
a number of visible results. Solid progress has been made on mapping schools and designing the raion (district) action
plans for inclusive education in pilots.
Key Partners: Ministry of Education and the Ministry of Labor, Social Protection and Family, Moldova Social
Investment Fund and local authorities.
Key Development Partners. Government of Japan, UNICEF, LUMOS Foundation.
The grant is funded by the Government of Japan, administered by the World Bank and implemented through the
Moldova Social Investment Fund (MSIF). Furthermore, UNICEF, the Ministry of Education, and the Ministry of
Labor, Social Protection and Family actively participate in the project as members of the Project Supervisory Board.
Country Program Snapshot
22
MOLDOVA: DISTRICT HEATING EFFICIENCY IMPROVEMENT PROJECT
Key Dates:
Approved: November 21, 2015
Effective: expected at the end of May 2015
Closing: June 30, 2020
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IBRD Loan 40.5
Total 40.5
*Source: Project Appraisal Document.
Project Development Objective is to contribute to the improved operational efficiency and financial viability of the
new District Heating company and to the improved quality and reliability of heating services delivered to the
population of Chisinau, Moldova.
Expected results:
The project will contribute to the improved operational efficiency and financial viability of Newco, created by the
merger of the two combined heat and power plans (CHPs) in Chisinau and the assets purchase of Termocom (a
district heating distribution company), and to improve the quality and reliability of heating services delivered to the
population of Chisinau.
Key Partners: The Ministry of Economy; Newco (Termoelectrica).
Country Program Snapshot
23
MOLDOVA: STRENGTHENING THE CAPACITY OF THE COURT OF ACCOUNTS OF
MOLDOVA (COA)
Key Dates:
Approved: February 4, 2014
Effective: February 4, 2014
Closed: November 30, 2015
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
TF 1.0 0.2 0.8
Total 1.0 0.2 0.8
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
Moldova was one of the countries that benefited from the US$1 million allocation provided by the Russian
Government under Multi-Donor Programmatic Trust Fund for Europe and Central Asia Public Finance Management.
The Project Development Objective is to enhance Moldova’s public external audit function by increasing the
effectiveness of audit work and strengthening the capacity of the Court of Accounts. It is in line with the goals of the
Court of Accounts as outlined in its Strategic Development Plan for FY11–15.
The key components are the following:
(i) Strengthen the capacity to conduct performance audits in specialized areas, including development of
methodological guidelines, provision of training, and measurement of impact of audit reports produced by the
Court of Accounts;
(ii) Enhance performance systems for effective development and deployment of human resources on audit
engagements.
Results Achieved:
The project started with a significant delay due to the slow ratification of the grant, but as of now, all the activities
envisaged under this grant are fully operational and are expected to be completed by project closing. Under the first
component, two pilot performance audits of independent regulatory bodies have been initiated under the guidance and
support provided by the international consultant. In addition, several training sessions on techniques of performance
audit were carried out for the court’s staff. The performance audit manual has been revised and updated in line with
international standards and practices.
Key Partners: The World Bank team works closely with the Court of Accounts, which is responsible for the overall
implementation of the project.
Key Development Partners: The Russian Government, whose funds the World Bank is administering for the purpose
of this project. Other development partners include Swedish National Audit Office and the European Union, which
are providing complementary support to the Court of Accounts in implementing its Development Strategy.
Country Program Snapshot
24
MOLDOVA: BIOGAS GENERATION FROM ANIMAL MANURE PILOT
Key Dates:
Approved: June 24, 2011
Effective: July 6, 2011
Closing: June 30, 2015
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
GEF Grant
0.9 0.8 0.1
Total
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
The Project Development Objective is to promote the transfer of new, environmentally sustainable renewable
energy technology through piloting the use of animal manure for biogas-based heating and electricity production at
the farm level. To raise awareness and create a market for this new technology, the project has three main components:
Component 1: Enabling legislative and policy environment;
Component 2: Technical assistance, capacity building, and awareness raising on sound animal waste management and
animal manure-based biodigester and electricity generation technologies
Component 3: Biodigester investment grants.
Results achieved:
? Extensive training and outreach program has been completed. Through outreach and awareness-raising
activities, over 18,000 participants from farms and households have been reached through 1,840 events, including
579 workshops, 250 round tables, and 1,011 site visits. The project has formally trained over 8,500 beneficiaries in
sound manure management practices and the operation of biodigesters, including 5,828 farmers, 884 rayon and
local administration representatives, 774 engineers, agricultural and food processing sector specialists, 669 rural
entrepreneurs, and 381 consultants. Brochures on sustainable manure management practices, biogas generation
from animal manure, and the installation, operation, and maintenance of biodigesters were prepared and published.
? Adoption rates of sound practices are much higher than expected. A follow-up survey carried out indicated
that at least 11,414 households and farms (63.4 percent of the total number of trainees against the original target
of 10 percent) have applied an improved agricultural or manure management practice.
? Legal framework was found to be conducive for the use of biodigesters in Moldova. A review of the
framework for the use of biodigesters in Moldova was carried out, providing recommendations both on the
feasibility of the overall legal framework and the specific steps that need to be taken to legally use biodigesters in
Moldova. It was found that the legislation is supportive of renewable energy investments, and no separate licensing
of biodigesters is required.
? A Feasibility Study of the potential for scaling up biogas investments in Moldova has been completed in
collaboration with the Energy Efficiency Agency (EEA) under the Ministry of Economy.
? The project has supported construction of two biodigesters and technical designs for four sites. The
project has contributed to the installation of one biodigester with technical advice. Construction of another
biodigester will be started in spring 2015. Technical designs for biodigesters in four sites have been completed.
Key Partners: Ministry of Environment, Energy Efficiency Agency, and private livestock producers.
Key Development Partners: Global Environment Facility, coordination with SIDA.
Country Program Snapshot
25
IFC MOLDOVA INVESTMENT PROJECT EXAMPLE: TRANS-OIL
Key Dates:
Invested: August 9, 2012
Signed: July 18, 2012
Approved: July 10, 2012
IFC financing (million US Dollars):
Financing Amount Fiscal Year
A loan
B loan
Parallel loan
Quasi-equity
15.0
20.0
20.0
15.0
2013
Trans-Oil is a leading grain trader and oilseed crusher in Moldova, headquartered in Chisinau and with operations
across the country. IFC has provided a long-term financing package to help the company expand its business and
strengthen the sustainability of its operations.
The Project Development Objective. IFC provided Trans-Oil with long-term financing that was not available in
Moldova from commercial banks or capital markets. With IFC’s support, Trans-Oil has expanded its business through
the acquisition of a local oilseed processor and five silos. The company is also making investments to improve its
energy efficiency and raise environmental standards. Cooperation with IFC will help Trans-Oil become a major oilseed
crushing and trading group in the region and contribute to the development of the Moldovan economy.
IFC committed (July 8, 2014) and disbursed (July 17, 2014) another US$30 million of a short-term loan, which is IFC’s
share of the US$155 million short-term syndicated pre-export facility led by Societe Generale. The facility is supporting
the Group’s commodities purchases, storage, and processing during the 2014–15 harvest season for sale to export
markets.
The development impact of providing the above mentioned short-term loan is expected to include (i) increased access
to finance for a leading agricultural player operating in a key sector of the Moldovan economy, (ii) support for the
Group’s growth and generation of higher export revenues, a major source of export income in Moldova, (iii) increased
farmer reach by providing a sizable and stable source of financing for the Group’s purchase of commodities from
mainly small and medium-sized farmers, and (iv) job preservation and increased tax revenues.
Expected role and additionality: the new project complements IFC’s existing long-term investment and provides
funding to help the Group meet its working capital financing needs during the harvest season, broadening its funding
base beyond its existing financial network. The Company reported strong profitability and cash generation in FY14
(2013–14) mainly as a result of the rich harvest last year, the availability of working capital financing, and access to
additional port terminals, enabling a larger export volume of agri commodities. FY15 (2014–15) is also expected to
show growth and strong performance for the same factors. The Company continues to grow, in particular, it has
recently acquired port terminals in Reni, Ukraine, and as far as is known, considers other potential expansion
opportunities in the region, which are expected to complement and strengthen its existing operations.
Key Expected Results:
? Provide long-term financing to the company, strengthening its balance sheet and enabling it to finance its
expansion with long-term funds;
? Support the mobilization of capital: through the B loan, IFC has attracted additional financing from international
lenders, helping extend tenors available to the company and broadening the company’s long-term funding base;
? Help improve operational efficiencies and enhance competitiveness by sharing IFC’s global agriculture sector
expertise;
? Realize benefits to local farmers by integrating them with higher value-added domestic and international
markets;
? Promote job preservation and increased tax revenues; and
? Encourage local and regional companies to consider investments in Moldova.
Country Program Snapshot
26
MOLDOVA: CHISINAU CITY
Key Dates:
Invested: September 23, 2011
Signed: November 15, 2010
Approved: October 15, 2010
IFC financing (million US Dollars):
Financing Amount Fiscal Year
IFC A loan 10 2011
Over the past 20 years, investments in the city’s infrastructure were almost nonexistent. As a result, streets with the
highest concentrations of traffic have significantly deteriorated, imposing economic costs on road users and having
negative consequences for the city’s growth potential and competitiveness. The water supply and sanitation networks
required urgent rehabilitation or, in some suburban areas, did not even exist, causing frequent interruptions in service
and significant environmental ramifications. The situation was further hindered by the absence of reliable data on the
existing networks’ layouts, which resulted in poor quality technical designs and estimates that often deviated from the
concrete reality.
The Project Development Objective. As a result of this project, the newly built and rehabilitated water supply and
sewerage networks with pumping stations and treatment facilities provide more reliable and higher-quality water supply
and sanitation services to about 80,000 city’s inhabitants. The project contributes to further reducing water loses,
saving both water and maintenance costs. In addition, about 5 kilometers of the city’s main streets that handle the
highest traffic flow are rehabilitated.
Key Results:
? 30 kilometers of new water supply networks
? 4 kilometers of the water supply networks rehabilitated
? 14 kilometers of new sewerage networks
? four pumping stations
? four wastewater treatment facilities
? 5 kilometers of the city’s main streets rehabilitated
Country Program Snapshot
27
Trust Fund Portfolio
3
3
As of March 2015.
Grant
Closing
Date
TF011492 Moldova Investment Climate Reform Project 2,837.50 IFC 8/31/2015 GTCEU Lily Begiashvili Bank
TF012004 Strengthening Public Procurement 493.00 IDF 6/27/2015 GGODR Kashmira Daruwalla P129112 Recipient
TF012145 Moldova Agriculture Competitiveness Project 4,435.50 GEFIA 6/30/2017 GFADR Anatol Gobjila P127125 Recipient
TF012263
IDF Grant for Strategic Planning of Health
Information Management Reform Project 278.00 IDF 7/30/2015 GHNDR Son Nam Nguyen P131020 Recipient
TF012271 Moldova GPE Grant SPN 194.74 EFAFTI 4/29/2015 GEDDR Mariana Doina Moarcas P128468 Bank
TF013177
Advice on Strengthening Public Investment
Management 200.00 EPFM 6/30/2015 GGODR Iryna Shcherbyna P130304 Bank
TF014332
Strengthening the Capacity of the Court of
Accounts 1,000.00 EPFM 11/30/2015 GGODR Bogdan Constantinescu P133554 Recipient
TF014647 Resource Efficency For SMEs 150.00 IFC 2/29/2016 CASC8 Viera Feckova
IFC-
00599133 Bank
TF014855
Integration of Children with Disabilities into
Mainstream Schools 2,860.00 PHRD 7/30/2016 GEDDR Yuliya Smolyar P144618 Recipient
TF014946
Support for Moldova Agriculture Competitiveness
Project 2,170.29 FS-7SD 6/30/2016 GFADR Anatol Gobjila P118518 Recipient
TF015422
Strengthening the Capacity of the Court of
Accounts 120.00 EPFM 11/30/2015 GGODR Bogdan Constantinescu P133554 Bank
TF015859
Empowered Citizens Enhancing Accountability of
the Education Reform and Quality of Education in
Moldova 696.96 GPSA 12/20/2018 GGODR Anna Olefir P147607 Recipient
TF015873 Support to CFU Moldova Operations, Phase III 170.00 CDCFTA 12/31/2016 GEEDR Sandra Broka P079303 Recipient
TF015899 Moldova Power Sector Note 190.00 ESMAP 5/31/2015 GEEDR Sandu Ghidirim P146401 Bank
TF016060
Preparation of Competitiveness Enhancement
Project II 495.50 ECACDF 3/31/2015 GTCDR Melissa Rekas P144103 Recipient
TF016644
Integration of Children with Disabilities into
Mainstream Schools (Bank supervision) 140.00 PHRD 4/30/2016 GEDDR Anna Olefir P144618 Bank
TF016849
Moldova/Transnistria Knowledge for Confidence
Building 495.00 KST 4/6/2016 GSURR Klavdiya Maksymenko P151996 Bank
TF018162
IMPLEMENTING PARTICIPATORY SOCIAL
ACCOUNTABILITY FOR BETTER HEALTH PROJECT 730.00 GPSA 11/19/2019 GGOGA Son Nam Nguyen P150873 Recipient
TF018214
How to better inform decisions on jobs and
schooling in Moldova 49.00 PSIA 8/31/2015 GSPDR Abla Safir P152911 Bank
TF018600
BIOCF T1W1 MOLDOVA SOIL CONSERVATION
PROJECT 8.00 BIOCFT 8/31/2020 GENDR Anatol Gobjila P100597 Bank
TF018601
BIOCF T2W1 MOLDOVA COMMUNITY FORESTRY
DEVELOPMENT PROJECT 3.30 BIOCFT 8/31/2020 GENDR Anatol Gobjila P109459 Bank
TF018638
Learning from the Romanian Experience in the
DH Sector 49.00 SOUTH 12/15/2015 GEEDR Shinya Nishimura P132443 Bank
TF018651
Examining performance and school attendance of
socio-economically disadvantaged students to
better inform the ongoing education reforms in
Moldova 49.00 PSIA 7/31/2015 GEDDR Anna Olefir P147607 Bank
TF018739
How to better inform decisions on jobs and
schooling in Moldova 15.00 PSIA 8/31/2015 GSPDR Abla Safir P152911 Bank
TF018880
BETF to charge support costs for BIOGAS
Generation from Animal Manure 10.00 GEFIA 6/30/2015 GFADR Sandra Broka P120702 Bank
TF019116 DH and Electricity Tariff and Affordability Analysis 100.00 ESMAP 12/31/2015 GEEDR Shinya Nishimura P151113 Bank
TF019165
Multi-Donor Programmatic Trust Fund for Europe
and Central Asia Public Finance Management 250.00 EPFM 8/31/2016 GGODR Kashmira Daruwalla P151413 Bank
TF019225 Teacher Reforms in Moldova 47.67 SOUTH 7/24/2015 GEDDR Andrea C. Guedes P127388 Bank
TF056111 CDCF - MOLDOVA BIOMASS HEATING ERPA 1,047.05 CARBON 6/30/2017 GCCCF Sandrine Boukerche P092516 Recipient
TF056815 BCF - MOLDOVA SOIL CONSERVATION ERPA 2,478.00 BIOCFT 12/31/2018 GCCGT Daniel Radack P100597 Recipient
TF094358 MOLDOVA COMMUNITY FORESTRY PROJECT 2,612.50 BIOCFT 12/31/2018 GCCGT Daniel Radack P109459 Recipient
TF097543
GFDRR: Moldova Disaster and Climate Risk
management Capacity Building 100.00 GFDRR 6/30/2015 GSURR Anatol Gobjila P115634 Bank
TF098414 Moldova Food Security AAA 320.00 GFCRP 4/30/2015 GFADR Irina Schuman P124627 Bank
TF099088
ESREI TF: SUPERVISION OF RECIPIENT
ACTIVITIES 193.28 FS-7SD 6/30/2015 GEEDR Shinya Nishimura P125137 Bank
TF099139
MOLDOVA ESREI TF COMPONENT 2 & 3: DH
Investment Study & Energy Supp Optimization
Str 1,996.59 FS-7SD 6/30/2015 GEEDR Shinya Nishimura P125137 Recipient
TF099493 Moldova Soil Conservation Project 2,961.41 BIOCFT 11/30/2018 GCCGT Daniel Radack P100597 Recipient
TF099602 Biogas Generation from Animal Manure Pilot 980.00 GEFIA 6/30/2015 GFADR Sandra Broka P120702 Recipient
30,926.29
Project
#
Program
Source
Managing
Unit
Team Leader
Trust
Fund #
Trust Fund Name
Net Grant
Amount
( Figures in thousands of USD )
Exec. By
Total
doc_224769479.pdf
The budget deficit shrunk significantly from 2009 to 2014.
World Bank Group – Moldova Partnership
Country Program Snapshot
April 2015
Country Program Snapshot
1
RECENT ECONOMIC AND SECTORAL
DEVELOPMENTS
Growth Performance and Prospects
Despite substantial macroeconomic risks and
regional challenges, economic performance
has been relatively strong over the past few
years. Moldova has experienced the highest
cumulative GDP growth relative to the precrisis
year of 2007 compared to all its regional partners
(Romania, Ukraine, Russian Federation, European
Union [EU]17), with GDP increasing by 25 percent
since 2008. However, growth has been volatile,
reflecting the country’s vulnerability to climatic and
global economic conditions. In 2012, GDP
contracted by 0.7 percent, as agricultural output
was hit by a drought (-22.3 percent) and weaker
external demand due to the Eurozone crisis. In
2013, growth rebounded, driven by a record
harvest in agriculture, with GDP increasing by 9.4
percent.
Growth declined to 4.6 percent in 2014. Exports
started to suffer due to the difficult conditions in
Moldova’s trading partners and trade restrictions.
On the production side, a good harvest for the
second year in a row enabled an 8.2 percent growth
in agriculture. Industry grew by 7.2 percent, with
the food industry as the main contributor.
The path toward European integration anchors
growth prospects, and Moldova needs to
accelerate economic reforms. This means
developing a sound, transparent, and competitive
financial sector, reducing the burden of
inspections, removing obstacles for exporters
(including in agriculture), and channeling
remittances into productive investments. Moldova
needs to improve the efficiency and fairness of its
public expenditure, in particular through better
management of public capital investments.
Administrative and judicial reforms and less
corruption are also needed to secure European
integration and economic modernization.
External Sector
The unfavorable regional environment has
started to affect Moldova’s external position,
especially since the fourth quarter of 2014. The
current account narrowed to 3.8 percent of GDP
in January–September 2014, with a shift of exports
from the Commonwealth of Independent States
(CIS) to the EU. At the same time, heightened
regional risks reduced inflows on the financial
account. The rapid weakening of the Russian ruble
in the fourth quarter of 2014 and a reduction in
money transfers to Moldova put pressure on the
local currency. During October 2014–February
2015, the Moldovan leu lost 23 percent against the
U.S. dollar, while foreign exchange reserves
declined by 25 percent.
Fiscal Sector Performance and Challenges
The budget deficit shrunk significantly from
2009 to 2014. Since 2009, Moldova has managed to
restrain transfers and public consumption
(including the wage bill and purchases of goods and
services). A good economic performance and
revenue collection have reinforced the impact of
government actions to control expenditures and
improve efficiency. Key actions have included
reforms in the education sector (school network
rationalization) and in social assistance (the
introduction of a new targeted program and the
reduction of previous categorical compensation
schemes). As a result, the fiscal deficit of the
general government has declined by 4.6 percentage
points of GDP in the five years since 2009. The
deficit narrowed to 1.8 percent of GDP in 2013. In
2014, the targeted deficit was 2.8 percent of GDP;
however, external grants increased significantly,
resulting in a deficit of 1.8 percent of GDP. Going
forward, fiscal discipline will need to be maintained.
Higher recurrent expenditures, introduced in mid-
2014, will be a challenge for public finances in 2015
as the economy could enter a recession.
The upcoming local elections and institutional
weaknesses could hinder reforms. Social
pressures and commitments on social insurance
and pensions will test fiscal sustainability in 2015
and 2016. Institutional weaknesses are further
reflected in tax collection issues.
Budget savings are needed to keep the macro
economy stable and to save money for
productive infrastructure. The public sector wage
bill is high, especially at the local level. Initial strides
have been made in the education and health sectors
to improve efficiency and thereby free up much-
needed resources for quality interventions. These
include better teaching and learning materials and
training for school principals and teachers in the
education sector, and increased expenditures on
pharmaceuticals and facilities maintenance in the
health sector. However, much remains to be done
to improve these sectors’ quality and effectiveness.
In addition, steps need to be taken to reform the
Country Program Snapshot
2
pension system and increase pension contributions
to make the system sustainable. Public services at
the local government level need to be made more
efficient and redundant services, and overlapping
functions eliminated.
Macroeconomic Outlook
Moldova’s economy is projected to go into a
recession in 2015, followed by a slow recovery
in 2016. Economic troubles in Russia and Ukraine,
together with Russia’s restrictions on agro-food
imports from Moldova, are expected to push
Moldova’s GDP down by 2 percent in 2015. The
flexible macro-policy framework of Moldova’s
authorities, the trade reorientation to the EU, and
the weakness of the trade restrictions on Moldova
provide some—albeit small—buffer against the
negative impact. A weak recovery of about 1.5
percent in 2016 is projected, as Moldova’s main
trading partners from the CIS are expected to
recover only gradually, and EU growth is likely to
remain below potential. The current account deficit
is likely to stay below historical averages, but the
higher perception of risks in the region will likely
constrain inflows of foreign investment and
lending. Inflation is projected to temporarily
increase to above the target range of the National
Bank of Moldova (NBM) in 2015. The authorities
are expected to introduce corrective fiscal measures
to keep the budget deficit under 3.5 percent of
GDP over the projected period.
Downside risks to the macroeconomic
framework stem from the external
environment, weaknesses in the banking
sector, and fiscal pressures. First, the contraction
in Russia and Ukraine could be larger, producing a
subsequently larger negative impact on growth in
Moldova. Geopolitical tensions might intensify
further, with additional negative repercussions for
Moldova’s economy. Second, the soundness and
transparency of the banking sector remain the main
domestic policy challenge. In late 2014, the NBM
placed three troubled banks that account for 20
percent of the banking system’s deposits under
special administration. The authorities need to
recognize the losses incurred by the state in the
banking sector, to overhaul prudential supervision,
and to improve the governance of the sector in
order to minimize further risks. Third, a failure to
align fiscal policy with available financing might
undermine recent achievements in Moldova’s
macroeconomic management.
Poverty
Despite a sharp decline in poverty, Moldova
remains one of the poorest countries in
Europe. Based on the Europe and Central Asia
(ECA) standardized poverty lines of US$5 per day
and US$2.5 per day at purchasing power parity,
46.5 percent of the population was poor and 6
percent was extremely poor in 2012. Farmers and
agricultural workers account for 40 percent of
Moldova’s poor and 44 percent of those in the
bottom 40 percent of the population. Most of the
observed poverty reduction has been driven by
remittances and higher employment and earnings.
The consumption of the bottom 40 percent of the
population grew by 2.8 percent in the period 2007–
12, outpacing the growth in consumption of the
general population (-0.1 percent). However,
evidence suggests that the bottom 40 percent are
particularly affected by weaknesses in the quality
and efficiency of health and education services and
especially vulnerable to climate shocks.
Financial Sector
High risks exist in the financial sector and
require immediate action. Three banks (Banca
de Economii [BEM], Unibank, and Banca Sociala)
were placed under special administration between
late November and mid-December 2014 due to
large and opaque transactions between themselves
and with foreign banks and companies. These
transactions call into question the integrity of their
balance sheets and expose the banking sector to
significant liquidity and contagion risks. Other
banks in Moldova may have also participated in
financing these transactions. Despite the known
risks since late 2013, the authorities have been
hesitant to resolve the banks. These collective
delayed actions point to the need for a significant
overhaul of governance in the financial system.
Access to financial services in Moldova is
relatively low. Credit to the private sector as a
share of GDP is about 35 percent of GDP, and
deposits are about 45 percent of GDP. Access to
finance is identified as one of the most pressing
issues for enterprise development. Weaknesses in
the insolvency regime and in the rights of creditors
and debtors create uncertainty and discourage
financial transactions. The financial system is
dominated by the banking sector, with assets
equaling 70 percent of GDP (small compared to
neighboring peers), while insurance, microfinance,
and capital markets are very small.
Country Program Snapshot
3
Weak financial sector governance further
stifles growth and competition in the sector.
Weaknesses in the share registry system have
contributed to “raider attacks” in which securities
are fraudulently transferred from their rightful
owners to others. In 2013, one of the largest
Moldovan banks was the subject of a successful
hostile takeover by nontransparent investors.
These hostile takeovers are characterized by a rapid
transfer of ownership of shares to individuals and
companies in blocks below the 5 percent change of
control threshold (recently amended to 1 percent).
At least three banks are believed to have been
subject to a change of control as a result of such
processes.
The World Bank is providing advice on how to
stabilize the banking sector so it can serve the
public better. Over the past four years, the Bank
has provided advice on amendments to the Capital
Market Law and the enforcement powers of
financial sector regulatory agencies. The next
budget support operation will support financial
sector reform.
In addition, the Bank has advised on
developing electronic payment and remittance
services, enhancing the legal and regulatory
framework for the non-banking financial sector,
and allowing movable assets to be used as collateral.
Finally, the Bank is financing the Competitiveness
Enhancement Project II, which contains a US$30
million access to finance component in the form of
a credit line for exporting enterprises. The funds
are now available to Moldovan exporters through
participating local banks.
Business Environment Reforms
Moldova needs to deepen regulatory reforms
and strengthen the rule of law to encourage
private investment. Regulatory reforms
implemented in 2001–12 brought slow but steady
progress. On the Doing Business distance to the
frontier indicator, which measures how far a
country is from global best practice, Moldova has
risen from 55.9 (in 2006, the earliest available) to
64.5 (in 2014). Reforms have reduced the time
spent by management on meeting regulatory
requirements from 17 percent in 2005 to 10.7
percent in 2013, as reported by the domestic Cost
of Doing Business survey.
Despite this progress, the competitiveness of
Moldovan firms remains limited by a business
environment characterized by uncertainty and
high transaction costs. Moldova now ranks 78th
out of 189 economies in the 2014 edition of the
Doing Business report, and 89th out of
148 economies in the World Economic Forum’s
2013–14 Global Competitiveness Report. Companies
cite substantial barriers related to many aspects of
the business environment, from obtaining licenses
and permits to importing goods, getting credit, and
competing on a level-playing field with other
companies. There is also a need for more consistent
enforcement of legislation through the judicial
system and more effective implementation of the
new Law on Competition and the Law on State
Aid.
The Deep and Comprehensive Free Trade
Area (DCFTA) with the EU was signed in June
2014 and was ratified swiftly in Parliament,
along with the Moldova-EU Association
Agreement. As it became effective on January 1,
2015, the DCFTA gave Moldovan producers open
access to the EU market. Experience has proven
that Moldovan exporters have been able to sell
increasingly more to the EU market, so businesses
are expected to take full advantage of the new
opportunities.
The Government has developed and approved
a reform program to tackle some of the most
important barriers. The 2013–20 Regulatory
Reform Strategy and its accompanying action plan
shifted the focus from “deregulation” to “smart
regulation.” The Roadmap for Removing Critical
Barriers in the Business Environment (2013–14)
focuses on removing administrative constraints on
businesses, facilitating international trade,
improving tax administration, and eliminating anti-
competitive practices.
Education
The Government of Moldova’s objective in
education is to improve the education system
to meet the needs of the labor market and the
broader economy. The demographic decline in
the country (the student population has shrunk by
over 50 percent since 1991) brings significant
efficiency challenges. In response, the
Government has taken critical steps toward
improving resource allocation by adopting per
capita financing and an enabling legislative
framework. Sustaining and advancing these
reforms with a focus on improving learning results
are fundamental steps.
Country Program Snapshot
4
Social Protection
Moldova operates an extensive social
protection system, with both a contributory
social insurance component and
noncontributory social benefits. Total social
protection spending is quite large by regional
standards; it grew from 9 percent of GDP in 2003
to almost 13 percent in 2013. Of this amount, over
11 percent of GDP was spent on social insurance
(mostly pensions), and about 2 percent was used
for noncontributory social assistance programs.
Against the growing budget envelope, the
efficiency of social protection spending raises
concerns. Moreover, the changing demographic
situation offers challenges and opportunities that
the Government needs to address, including by
making the social protection programs fiscally
sustainable, improving life-long learning so people
are productive workers over a longer period of their
lifespan, and reducing barriers to immigration,
among other factors.
Health
The country has made progress in health
reforms over the past decade. The most notable
achievement is the introduction of mandatory
health insurance in 2004, and around 85 percent of
the population is now covered by mandatory health
insurance. All citizens also have universal access to
primary health care regardless of their insurance
status.
Other reforms include: (i) the establishment of
family medicine; (ii) increased provider autonomy;
(iii) capitation payments for primary care and case-
based payment for hospitals; (iv) the introduction
of performance-based incentives in family
medicine; and (v) steps toward accreditation and
quality standards.
The Government is committed to the health of
its citizens and spends roughly 13 percent of its
annual budget on health. However, significant
challenges remain. While death rates have
decreased among younger age groups, mortality in
adult males has increased. Noncommunicable
diseases (NCDs) have become the major burden of
mortality and illness, with smoking, alcohol use,
unhealthy diet, hypertension, and obesity among
the leading NCD risks. Notably, around 50 percent
of Moldovan adults have high blood pressure.
Adult smoking prevalence is 43 percent compared
to the ECA regional average of 31 percent.
Meanwhile, the threat of communicable diseases
such as tuberculosis and HIV/AIDS persists.
Multi-drug resistant tuberculosis is an increasing
public health problem.
The health system remains imbalanced. There
are still too many acute care hospital beds, and
funds for hospitals (over 50 percent of the health
budget) are spread thinly over 73 public hospitals,
which are often underutilized and even unsafe.
More than 40 percent of the poor are not insured.
Around 45 percent of health spending is from
patients’ pockets, of which 70 percent is for drugs.
The sustainability of the health insurance scheme is
threatened by: (i) an unclear benefits package; (ii)
the large number of categories eligible for free
insurance; and (iii) the inability of the National
Health Insurance Company to freely manage
strategic purchasing of health services from
providers.
In summary, a country with Moldova’s national
income and high health expenditure (relative to the
GDP) should have better health care.
Environment
Moldova’s main environmental problems are
soil degradation, surface water pollution, a lack
of sustainable waste management (solid and
liquid), and increased groundwater pollution due to
poor manure management in rural communities.
Moldova has made important progress in
protecting the environment and has successfully
implemented projects aimed at stopping and
reversing soil degradation. It has also made
excellent progress on reducing existing quantities
of obsolete pesticides contaminated with persistent
organic pollutants. The FY14–17 Country
Partnership Strategy has a dedicated pillar
supporting a green, clean, and resilient Moldova to:
(i) boost adaptation and resilience to climate
change; (ii) improve natural resource management;
and (iii) increase energy efficiency and security.
Forestry
Moldova’s low forest coverage (12 percent
versus an EU average of 45 percent)
contributes to erosion, floods, and landslides,
which lead to the degradation of agricultural
land. Due to climate change, forests are likely to
become more affected by pests, disease, fires, and
droughts, but the sector offers opportunities for
sustainable development. Better forest
management and afforestation could relieve the
Country Program Snapshot
5
pressure on forests from illegal felling while
contributing to climate change mitigation. In
addition, the construction of shelter belts will
ameliorate land degradation and improve
agricultural potential, and the development of local
forest-based enterprises will support the poor rural
economy.
Agriculture
Agriculture is a major contributor to the
Moldovan economy. The sector grew by more
than 35 percent in 2013 and by more than 8 percent
in 2014, showing a potential for becoming a growth
engine. In recent years, agriculture has produced 12
percent of GDP and employed 28 percent of the
labor force. The importance of agriculture is
reflected in the prevailing share of agro-food
exports, which are at 45–50 percent of total
exports. This share is backed up by the export-
oriented agro-processing industry, which produces
most of the agro-food exports and adds
approximately 7–8 percent to GDP. In spite of its
large size and major contribution to the economy,
however, the sector exhibits the highest poverty
rates. Low incomes from agriculture stem from its
weak links to markets and the low competitiveness
of outputs. In addition, the degradation of land
resources contributes to reduced agricultural
productivity, leading to land abandonment and the
deterioration of rural livelihoods.
Energy
Moldova depends on imports to cover
98 percent of its energy needs. Energy efficiency
has been improving slowly over the past 10 years
with support from various development partners,
but it still requires important investment to reach
regional levels.
Significant institutional reforms in the late
1990s helped improve the regulatory
environment and the performance of the
electricity and gas sectors, and also led to the
privatization of two-thirds of the electricity
distribution network. In November 2008,
Moldovagaz halted gas supplies because of the
tariff levels for district heating, which were below
cost recovery. Termocom was financially bankrupt
and under bankruptcy proceedings from 2001 to
2009. The payables to Moldovagaz accumulated to
US$250 million, or 3.5 percent of GDP. The
country signed the Energy Community Treaty in
March 2010. In order to support the Government
in fulfilling its obligations on institutional and
market reforms in the energy sector, the EU and
the Government of Sweden agreed to finance
budgetary support operations in 2011 and 2012,
respectively.
WORLD BANK GROUP PROGRAM IN
MOLDOVA
The World Bank Group Country Partnership
Strategy (CPS) for FY14–17 is providing
support to help reduce poverty and boost
shared prosperity by capturing the full benefits of
openness and integration with the EU and the
broader global economy through three pillars:
(i) Increasing Competitiveness. Continued institutional
reform of the business climate and governance,
improved access to finance, and activities to
improve companies’ competitiveness are
needed to reduce barriers and translate
economic openness into concrete benefits of
more jobs and higher income.
(ii) Enhancing Human Capital and Minimizing Social
Risks. The widening gap with the EU28 in
education and health outcomes should be
reduced and progressively closed.
Demographic challenges should be addressed.
Vulnerabilities should be tackled through
strengthened social protection systems.
(iii) Promoting a Green, Clean, and Resilient Moldova: the
debilitating effects of climatic events on
agriculture and rural livelihoods need to be
addressed for sustainable development.
A mid-term CPS review is planned for early
FY16. The CPS Performance and Learning Review
will aim to confirm, together with country
authorities, the proposed strategic pillars and make
any required adjustments to the lending and
analytical program and the results framework
through FY17.
The World Bank’s active portfolio includes
eight investment projects. Total commitments
amount to US$241.3 million. The disbursement
ratio for FY14 was 30.2 percent and currently
stands at 18.6 percent. Four ongoing projects (50
percent) are rated as moderately unsatisfactory for
either achievement of development objectives or
implementation progress, and solutions to existing
problems are being identified and monitored
through regular Program Problem Reviews.
Country Program Snapshot
6
In the current CPS, alongside International
Development Association (IDA) and
International Bank for Reconstruction and
Development (IBRD) resources, International
Finance Corporation (IFC) operations will
continue to focus on investment and advisory
activities that enable private sector growth and
diversification. Portfolio composition is 90
percent loans, 7 percent guarantees, and 3 percent
equity and quasi-equity (equity type only). There are
currently no nonperforming loans (NPLs) in 12
active projects. Active programs focus on: (i)
promoting investment climate reform; (ii) building
risk and NPL management capacity in the financial
sector; and (iii) developing public-private
partnerships (PPPs) in health. Projects under
development would support PPPs for municipal
infrastructure and transport.
IFC’s strategic priorities are: (i) Agriculture sector:
IFC intends to focus on food processing, related
industries such as glass and container
manufacturing, and advisory projects in food
safety; (ii) Infrastructure sector: IFC’s focus is on
investments in electricity distribution, district
heating, telecoms, water and wastewater and wind
energy; (iii) Health sector: This is a key focus as IFC
works to attract private sector participation in this
underserved market; and (iv) Financial Markets: The
goals are to expand lending capacity and improve
governance, provide financing and advisory to
major banks for lending to underserved small and
medium-sized enterprises (SMEs) across sectors,
promote energy-efficiency (EE) credit lines, and
develop non-bank financial institutions, in addition
to risk management advisory for commercial
banks.
A strong emphasis on partnerships with other
development partners has proven effective in
leveraging substantial cofinancing for reforms.
Operations in the Bank’s portfolio have attracted
the support of other development partners,
including the European Commission (EC), the
Global Environment Facility (GEF), the German
Development Bank (KFW), the Governments of
the Netherlands, Sweden, and Switzerland, the
United Nations Children’s Fund (UNICEF), and
the U.S. Agency for International Development
(USAID), which cofinanced IDA operations,
financed carbon operations, and provided other
forms of support, including for Analytical and
Advisory Activities (AAA). The size of the active
trust fund portfolio is US$30.9 million. In the
current CPS, trust funds continue to play an
important role in leveraging financing for reforms.
Trust funds have also been instrumental in
strengthening AAA and building capacity.
Technical assistance and sector support have been
provided in agriculture, education, e-
transformation, the financial and private sectors,
and energy. In energy, several trust funds have
provided support to district heating restructuring
and reform, informing the design of the District
Heating Efficiency Improvement Project (DHEIP)
approved in FY15. In the financial sector, several
trust funds have helped strengthen the National
Commission of Financial Markets’ (NCFM)
institutional capacity and enhance the financial
sector regulatory regime in line with international
good practices. Trust funds have also provided
continued assistance for private sector
development through regulatory and business
environment reform, increased access to finance,
and targeted activities to help improve Moldovan
companies’ competitiveness.
AAA delivered in FY15 include: Financial Sector
Monitoring technical assistance, a study on Electric
Power Market Options, Food Security Notes, and
a Forest Policy Note. In addition, a Public
Expenditure Review and a District Heating? Tariff
study are planned for completion in FY15.
Programmatic technical assistance in the financial
and human development sectors will continue
during the current CPS period.
A recent noteworthy example of an analytical
collaborative effort is a Briefing Book
developed by Moldova’s partners, setting out the
development community’s viewpoint on key
development and cooperation issues and providing
a viable platform for policy dialogue and strategic
partnership with the Government. In addition, the
recommendations provided in the Briefing Book
could serve as a reference for the Government’s
short and medium-term programming.
These products will be instrumental in moving
the structural reforms agenda forward. Future
AAA will include public investment management
support and continued work on competitiveness
and structural reforms, financial sector monitoring,
improvements in the governance structure, market
development measures, labor, sustainable
development technical assistance, and a poverty
assessment.
Country Program Snapshot
7
World Bank Sector Assistance
Business Environment: The World Bank has
been working with the Government to help
improve the investment climate. The Competitiveness
Enhancement Project II (CEP II) seeks to increase the
competitiveness of Moldovan enterprises by
increasing their linkages to markets, improving
their ability to access medium- to long-term
finance, and improving the business-enabling
environment. It focuses on institutional aspects,
such as governance of regulatory reform and
institutional strengthening of the SME
development agency (ODIMM) and export
promotion agency (MIEPO). CEP II also provides
support for the implementation of key regulatory
reforms, a matching grant facility to support export
competitiveness in SMEs, and a line of credit.
As part of the Moldova-EU Association
Agreement, the Government continues to improve
the corporate financial reporting framework.
Currently the effort is supported by the regional
Strengthening Auditing and Reporting in the
Countries of the Eastern Partnership (STAREP)
program, implemented through the World Bank
Centre for Financial Reporting Reform (CFRR) in
Vienna. The key priority for the Government is to
align its legislation with the relevant parts of the EU
acquis communautaire and good international
practices.
Education: The World Bank supports reforms
that aim to improve the quality of education while
promoting sector efficiency: an IDA credit for the
Education Reform Project; a Bank-administered grant
from the Government of Japan supporting equal
education opportunities for children with
disabilities; and Bank-financed technical assistance
to provide tailored policy advice, in particular to
support the alignment of the education system with
labor market needs. In addition, a Global
Partnership for Social Accountability (GPSA) Trust
Fund has provided a Moldovan nongovernmental
organization (NGO) with a grant to assist in
empowering civil society to engage local, regional,
and national authorities in evidence-based policy
and budget dialogue in the sector.
Social Protection: Moldova can achieve a more
cost-efficient spending mix of its social assistance
programs, and Bank support is instrumental to
1
PROST stands for pension reform options simulation toolkit.
sustaining these efforts. The Government is
committed to policy reforms aimed at integrating
the overall social safety net into the platform
provided by the targeted Ajutor Social program. The
Bank is supporting these efforts via the Strengthening
the Effectiveness of the Social Safety Net Project. Pursuing
a results-based financing (RBF) approach, the
US$37 million IDA credit cofinances the interim
transitional costs of expanding the Ajutor Social
program, while consolidating other benefits.
The World Bank also maintains a pension reform
dialogue. In 2013, the Bank team developed and
presented to its Moldovan counterparts the
PROST model,
1
which is used in more than 100
countries to simulate pension reforms and inform
policy choices.
Health: The World Bank is supporting the
Government to address the challenges in this sector
through the US$30.8 million Health Transformation
Operation. Its objective is reducing NCDs and
improving efficiency through the rationalization of
hospitals and incentives for health workers. In
addition, the Bank is supporting PAS, a Moldovan
NGO, to set up citizen monitoring arrangements.
Environment: The World Bank supports the
sector through the Moldova Disaster and Climate Risk
Management Project (2010–15, US$10 million), which
seeks to support the State Hydro-Meteorological
Service’s ability to forecast severe weather and to
improve its capacity to prepare for and respond to
natural disasters.
Forestry: The Bank is providing technical
assistance and is funding investment operations.
The Forest Law Enforcement and Governance
Program (an EU-sponsored initiative) includes
capacity building, analytical work, and public
awareness efforts, targeted at improving forest
governance through strengthening institutional and
human capacity. In 2014, the Bank prepared a
Forest Policy Note to provide an outside view of
the sector and strategic advice and to identify future
opportunities for sustainable sector development.
The Agricultural Competiveness Project is providing
specialized agro-forestry machinery to help extend
and rehabilitate the forest belt network.
Agriculture: The World Bank’s current support to
the sector consists of three projects:
Country Program Snapshot
8
The Moldova Agriculture Competitiveness Project (2012–
17, total financing US$25.4 million) promotes
market access for farmers and supports their
integration into complex supply chains. To achieve
this, project activities support: (i) improving food
safety; (ii) increasing the number of farmer
organizations and improving post-harvest
infrastructure; (iii) promoting sustainable land
practices; and (iv) strengthening the response to
soil degradation. An Additional Financing (US$12
million) is currently under preparation to support
farmers affected by the Russian ban on fruit in
2014.
The Moldova Soil Conservation Project (ongoing 2006–
18, US$5.44 million) aims at restoring degraded
agricultural land and building capacity for the
community-based management of these lands. This
helps carbon sequestration and the reduction of
greenhouse gas.
The Moldova Community Forestry Project (ongoing
2009–18, US$3.5 million) aims to restore degraded
land through forestation to increase economic and
environmental use for the benefit of rural
communities. The project is also providing
technical assistance to participating communities
for improving forest and pasture management.
Energy: Support to the sector includes the District
Heating Efficiency Improvement Project (DHEIP), which
will support sector reforms. It will also contribute
to improving the operational efficiency and
financial viability of Newco, an entity created by the
merger of two combined heat and power plants
(CHPs) in Chisinau and the assets purchase of
Termocom (a district heating distribution
company), and to enhancing the quality and
reliability of heating services delivered to the
population of Chisinau.
The Bank is also conducting two analytical works
in the sector. The “Moldova: Electric Power
Market Options Sector Study” advises on
improving energy security by interconnection with
the EU. The “District Heating and Electricity
Tariff and Affordability Analysis,” launched in
October 2015 with funding by the Energy Sector
Management Assistance Program (ESMAP), aims
at informing the policy dialogue on energy sector
reforms, including the DHEIP operation, and
delivering social assistance to ensure the sustainable
operation of the energy sector and service delivery.
Looking Ahead
Moldova needs to find a sustainable growth
model that creates jobs and opportunities for
young people. Private investment, including
foreign direct investment (FDI) and exports, will
need to play a more prominent role in addition to
the dominant drivers of remittances and domestic
consumption. Remittance-led growth is not “bad
growth,” and remittances will remain a very
important share of Moldova’s economy for a long
time. Moldova therefore needs to maximize the
development gains from migration. Remittances, if
captured by the banking sector and efficiently
intermediated, could be used to fuel growth.
However, Moldova does need to broaden the base
of its economy.
Trade integration with product specialization
is always important for a small, remote, and
poor country. Its total population of 2.9 million in
2014 and that of its two largest cities are arguably
too small to support large-scale manufacturing
clusters with an adequate skilled labor supply and
buoyant consumer demand. There are therefore
sound reasons to believe that Moldova’s prosperity
will depend in the future on fuller integration into
larger markets. A good start, as it has been
traditionally in the past, is specialization in the
export of agro-based products. Accessing the more
demanding EU food markets will require
investments in quality and sanitary standards.
Shortcomings in the investment climate are
limiting the profitability of businesses and
keeping the cost of doing business high. These
shortcomings end up reducing the prospects of
attracting new FDI and foreign exporters in a post-
crisis world where foreign capital is scarcer. There
are many problems that need to be addressed:
unclear customs and tax legislation that creates
opportunities for discretion, bribes, and unfair
treatment of certain businesses; administrative
decisions made to protect certain economic or
political interests; a judicial system that is
susceptible to outside influence and bribery; costly
overregulation; an underdeveloped and fragile
financial system; and the creation by licensing and
regulation of monopolies for the export and
distribution of agro-based products through which
farmers get depressed farm-to-gate prices.
A macroeconomic priority is to sustain the
recent gains in fiscal consolidation and
macroeconomic prudence. Moldova’s public
Country Program Snapshot
9
sector is still inefficient and heavily skewed toward
social projects and transfers to individuals,
households, and enterprises. Sustaining fiscal
consolidation will require holding down public
spending and correcting the underperformance in
tax collection. Other key reforms are further
optimizing the education system to enhance
efficiency; improving the composition of public
capital investments, especially through the local
budget, by investing an increasing share in
productive infrastructure; rationalizing the civil
service and payroll to increase staff incentives; and
improving the adequacy and long-run fiscal
sustainability of pensions.
10
Map of Moldova (including the breakaway Transnistria region)
Country Program Snapshot
11
MOLDOVA: COMMUNITY FORESTRY PROJECT
Key Dates:
Approved: May 26, 2009
Effective: May 26, 2009
Closing: December 31, 2018
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
BioCarbon Fund
Japan
2.6
0.9
1.6
0.9
1.0
0.0
Total 3.5 2.5 1.0
*Source: Carbon Finance Assessment Memorandum and Client
Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
The lack of adequate forest cover represents a significant environmental and economic challenge for the Republic of
Moldova. The resulting degradation and erosion of agricultural land adversely affect rural communities. Manifestations
of soil erosion are a serious problem for about one-third of all agricultural and community land in the country. The
ensuing decline in soil fertility has reduced crop yields by more than one-half in some areas. Most of the affected land
is in small, patched areas of fewer than 10 hectares, with little or no economic and/or environmental value. Such land
has remained in community ownership as “marginal land,” with little interest in its privatization and/or utilization for
economic or community purposes. Addressing the problem of “marginal land” by reclaiming its economic and/or
environmental value through forestation, while preventing further degradation, is an important instrument in
empowering rural communities and ultimately reducing rural poverty.
The Project Development Objective is to restore degraded land through forestation to increase economic and
environmental use for the benefit of rural communities. In addition to community benefits, the project’s forestation
activities would support, through the restored productivity and conservation of the soil, the global objectives of carbon
sequestration and a reduction of atmospheric greenhouse gas concentrations.
The project sets out to create community forests and protective forest belts on an area of at least 8,157 hectares, with
ensuing estimated emission reductions of 2.8 million tons of CO2 over 30 years. In addition, the project is providing
technical assistance to participating communities for improving forest and pasture management. The carbon
sequestration activities of the project were validated under the United Nations Framework Convention on Climate
Change (UNFCCC) Clean Development Mechanism procedures, allowing for carbon payments from the BioCarbon
Fund to begin.
Results achieved:
The project has successfully supported:
1. The forestation of more than 10,000 hectares of degraded land (2,000 more than the initial target), resulting in an
estimated sequestration of 600,000 tons of CO2 over the project’s five-year duration.
2. A national competitive grant scheme for participating communities to provide grant funding for localized capacity
building and improvements in forest and pasture management.
Key Partners: The World Bank team works closely with: (i) Moldsilva (State Forestry Agency), which is the
implementing agency; (ii) the Ministry of Environment of the Republic of Moldova; and (iii) selected local
communities.
Key Development Partners include the Government of Japan, which provided grant funding through a Climate
Change Policy and Human Resources Development (PHRD) facility.
Country Program Snapshot
12
MOLDOVA: SOIL CONSERVATION PROJECT
Key Dates:
Approved: January 16, 2006
Effective: June 16, 2006
Closing: December 31, 2018
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
Prototype Carbon Fund
5.4
2.9
2.4
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
The lack of adequate forest cover represents a significant environmental and economic challenge for the Republic of
Moldova. The resulting degradation and erosion of agricultural land adversely affect rural communities. The
manifestations of soil erosion are a serious problem for about one-third of all agricultural and community land in the
country. The ensuing decline in soil fertility has reduced crop yields by more than one-half in some areas. Most of the
affected land is in small, patched areas of fewer than 10 hectares, with little or no economic and/or environmental
value. Such land has remained in community ownership as “marginal land,” with little interest in its privatization
and/or utilization for economic or community purposes. Addressing the problem of “marginal land” by reclaiming its
economic and/or environmental value through forestation, while preventing further degradation, is an important
instrument in empowering rural communities and ultimately reducing rural poverty.
The Project Development Objectives are to restore a total of 20,000 hectares of degraded agricultural land to
productive uses for rural communities and to build capacity for the community-based management of 5,400 hectares
of these lands. In addition to community benefits, the project’s forestation activities support, through the restored
productivity and conservation of the soil, the global objectives of carbon sequestration and a reduction of atmospheric
greenhouse gas concentrations.
The project has set out to restore the productivity of degraded pastureland by means of forestation with tree and shrub
species adapted to adverse site conditions, while also ensuring estimated emission reductions of 1.9 million tons of
CO2 by 2015. In addition, technical assistance has been provided to participating communities for improving the
pasture management capacity.
Results achieved:
The two projects have successfully supported:
1. The forestation of 20,300 hectares. As a result, the project host, Moldsilva, the State Forestry Agency, is receiving
regular carbon payments for an estimated total of 1.9 million tons of CO2 to be sequestered by 2017.
2. The methodology applied in the two projects was successfully registered with the UNFCCC (AR-AM0002) and
can now be applied to other forestation/reforestation projects in the world.
3. The projects have supported the implementation of a national competitive grant scheme for participating
communities that provided grants to more than 50 localities for capacity-building activities aimed at improving
the management of more than 6,000 hectares of community land (mostly pastures).
Key Partners:
The World Bank team works closely with:
(i) Moldsilva (State Forestry Agency), which is the implementing agency;
(ii) the Ministry of Environment of the Republic of Moldova; and
(iii) selected local communities.
Country Program Snapshot
13
MOLDOVA: GOVERNANCE E-TRANSFORMATION PROJECT
Key Dates:
Approved: June 9, 2011
Effective: September 29, 2011
Closing: December 31, 2016
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
Government of
Moldova
IDA credit
3.0
17.7
1.1
8.4
1.9
9.2
Dutch TF 1.5 1.5 0.0
Total 22.2 11.0 11.1
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange
rate fluctuations.
The Republic of Moldova is struggling with a legacy of a vast bureaucracy its excessive and redundant procedures that
result in delays in the provision of public services. Therefore, it began a dramatic turnaround about four years ago by
adopting an e-transformation strategy designed to speed up and streamline government service delivery, fight
corruption, and promote transparency by placing public services online, adopting an open data policy, and promoting
digital tools.
Project Description. The project has two components:
Component 1. e-Leadership Capacity and Enabling Environment: provides support to the e-Government
Center; e-Leadership training and civil servant capacity building; strategic communications and partnerships; the
development of policy, technical, legal, and regulatory frameworks; and project management.
Component 2. Shared Infrastructure and e-Services Development: provides funding for: (a) establishing and
implementing the M-Cloud (Government Cloud Computing Infrastructure); and (b) developing a selected number of
e-government services and shared platforms and applications.
Results achieved to date:
(a) E-Government Center and sectorial e-Transformation Coordination Units were established to coordinate e-
government initiatives government-wide.
(b) E-Government Policy and more than 40 legislative and sub-legislative acts were approved.
(c) Government-shared computing infrastructure “M-Cloud” was launched.
(d) Open Government Data and Government Services Portals were launched.
(e) A number of e-services and shared platform services were launched: e-Applications for Criminal Record and
Activity Licensing, e-Registration to Social and Health Insurances Systems, e-Procurement, Governmental
Documents and Records Management System, M-Signature, M-Pay, e-Visa, etc.
(f) More than 2,000 public servants and other employees of central and local public agencies have received e-
government training under the project.
Key Partners. The World Bank works closely with the State Chancellery, which is responsible for executing the project
through the e-Government Center. The National e-Transformation Council and the Ministry of Information
Technology and Communications are playing a major role in driving and approving information and communications
technology (ICT) policy, legal, and technical frameworks.
Key Development Partners include the Government of the Netherlands, which has provided complementary
financial assistance, and the United Nations Development Programme (UNDP) and the U.S. Agency for International
Development (USAID), which are engaged in e-government reforms.
Country Program Snapshot
14
MOLDOVA: SECOND COMPETITIVENESS ENHANCEMENT PROJECT
Key Dates:
Approved: July 11, 2014
Effective: expected by end of September 2014
Closing: January 31, 2020
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IDA Credit
IBRD Loan
30.0
15.0
0.2 28.8
15.0
Total 45.0 0.2 44.8
*Source: Client Connection as of March 23, 2015.
The Government of the Republic of Moldova is pursuing a policy agenda to support export-led economic growth. To
achieve this goal, the Moldova 2020 national development strategy focuses on improving the business-enabling
environment and promoting better access to finance for enterprises as two of its top priorities. The 2014 Roadmap
for Increasing Competitiveness also focuses on the need to improve competitiveness at the enterprise level. Therefore,
the Second Competitiveness Enhancement Project (CEP II) will help the Ministry of Economy achieve its reform
objectives by supporting implementation of: the Government’s regulatory reform strategies, programs to support
export growth and small and medium-sized enterprise (SME) development, and initiatives to improve access to
medium- and long-term finance for export-oriented enterprises.
The Project Development Objective is to increase the export competitiveness of Moldovan enterprises and decrease
the regulatory burden they face. This objective will be achieved through a set of measures that aim to: (i) improve the
business environment through regulatory reforms that reduce the cost of doing business; (ii) help SMEs and exporters
to get access to business development services; and (iii) improve access to medium- and long-term finance for export-
oriented enterprises.
Key Results Expected:
1. Reduction in management time spent meeting regulatory requirements, from 10.7 percent in 2013 to 8.5 percent
in 2020 (as reported in the annual domestic Cost of Doing Business survey)
2. Increase in new export-oriented activities
2
by matching grant recipients, with at least 50 percent of matching
grant recipients engaged in a new export-oriented activity by project close
3. Increase in lending to export-oriented enterprises by participating financial intermediaries (PFIs), with average
annual growth of 5 percent
4. Medium- and long-term lending by PFIs under a Line of Credit (>24 months) amounting to US$23.4 million by
project close
Key Partners: The World Bank team works closely with the Project Implementation Unit of the Ministry of
Economy and the Credit Line Directorate of the Ministry of Finance.
Key Development Partners include USAID’s BRITE (Business Regulatory, Investment, and Trade Environment)
project in areas related to regulatory reform and the European Union (EU) in its overall support to private sector
development in Moldova.
2
Defined as: exporting existing products to new markets or new customers, exporting for the first time, exporting new products to
existing or new markets, or selling new products into export-oriented value chains.
Country Program Snapshot
15
MOLDOVA: DISASTER AND CLIMATE RISK MANAGEMENT PROJECT
Key Dates:
Approved: August 5, 2010
Effective: November 10, 2010
Closing: September 30, 2015
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IDA 9.5 9.2 0.3
Total 9.5 9.2 0.3
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
Moldova is highly vulnerable to natural disasters, particularly droughts and floods that have significant social and
economic costs. The incidence of such events has seen a marked upward swing in the past 10 years. Moldova is also
situated in a seismic zone, leaving it vulnerable to powerful, potentially damaging earthquakes. Its vulnerability to
natural disasters is accentuated by a lack of proper forecasting of weather events, an obsolete infrastructure, a poor
institutional setup to manage post-disaster situations, and other limiting capacity issues. Another emerging adverse
factor is the increasing climate variability and the uncertainty it brings to agricultural production and thus to the
livelihoods of farmers and the country’s food security.
The Project Development Objective is to strengthen the State Hydro-Meteorological Service’s ability to forecast
severe weather and improve Moldova’s capacity to prepare for and respond to natural disasters.
The project aims to strengthen the institutional, human, and technical capacity for: (i) enhanced weather monitoring
and early warning systems for weather-related hazards that can produce timely and accurate hydro-meteorological
forecasts and services; (ii) improved management and response times to natural and man-made disasters; and (iii)
assistance to farmers for awareness of, and adaptation to, natural hazards and climate variability.
Results achieved:
? Operation of a dual polarization Doppler radar system resulting in improved precision of forecasting severe
weather.
? Establishment of the country’s Emergency Command Center for disaster coordination response.
? Implementation of a Just-in-Time Mobile Communication Platform for the delivery of weather information to
farmers via mobile technologies.
? Implementation of more than 50 pilot subprojects aimed at generating and disseminating knowledge about the
practical application of agricultural technologies resilient to climate risks.
Key Partners: The World Bank team works closely with the: (i) Ministry of the Environment, (ii) Ministry of Internal
Affairs, and (iii) Ministry of Agriculture and Food Industry.
Key Development Partners: Swedish International Development Cooperation Agency (SIDA); the project will
benefit from Sida support (US$100,000) for theoretical and practical activities aimed at strengthening the capacity for
disaster preparedness and response.
Country Program Snapshot
16
MOLDOVA: HEALTH TRANSFORMATION OPERATION
Key Dates:
Approved: May 22, 2014
Expected effectiveness date: October 1, 2014
Closing: March 31, 2019
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IDA Credit: 30.8 0.0 30.8
Total 30.8 0.0 30.8
*Source: Project Appraisal Document.
Over the past 20 years, the Government of Moldova made good progress in strengthening family medicine and hospital optimization
and ensuring universal access to primary health care regardless of a citizen’s insurance status. While good progress has also been
made in reducing death rates among younger age groups, mortality in adult males has increased. Noncommunicable diseases (NCDs)
have become the major burden of mortality and illness in the population, with high blood pressure (hypertension) and smoking
among the leading NCD risks. Notably, around 50 percent of Moldovan adults have high blood pressure. Adult smoking prevalence
is 43 percent, compared to the regional average of 31 percent.
With total health expenditure per capita at around US$360, Moldova spends significantly more on health than comparable countries.
However, Moldova’s health outcomes are less than expected given the level of health expenditures. The discrepancy between
Moldova’s health expenditures and its performance in health outcomes points to the need to improve the effectiveness of health
expenditures in delivering results for health.
To this end, the World Bank developed the Program-for-Results operation to support the Government in addressing the challenges
related to NCDs, achieving better value for money and the delivery of better health outcomes.
The Project Development Objectives are to contribute to reducing the key risks for NCDs and improving the efficiency of health
services in Moldova. The Health Transformation Operation (HTP) is guided by the National Health Policy 2007–2021 and is further
operationalized in the National Health Sector Development Strategy 2008–2017 with financial support from the Medium-Term
Budget Framework (MTBF).
HTP consists of a program-for-results instrument with an investment project financing (IPF) component aimed at supporting the
Government in meeting the agreed disbursement-linked results. It is expected that the operation will address a range of
interconnected sector issues by: (i) contributing to further policy developments in the area of hospital optimization while also
reducing acute care hospital beds and further shortening the average length of stay at hospitals, (ii) reducing the smoking prevalence
among adults, and (iii) facilitating better management of hypertension.
The IPF instrument aims to address the following technical capacity constraints: (1) strengthening of a diagnostic-related group
payment mechanism for hospitals, (2) development of performance-based incentives for efficiency and quality in health care, (3)
development of strategies to optimize hospital networks, and (4) monitoring and evaluation of project results (disbursement-linked
indictors [DLIs]).
Key challenges:
1. Due to the program-for-results disbursement to the general budget and the weak MTBF process, the key challenge is to ensure
that project proceeds are not diverted to finance other sector needs.
2. Achievement of NCD-related results is largely dependent on cooperation from other sectors and counterparts. Notably, the
prevalence of smoking could be reduced only if there is a combination put in place of tax-related measures and a ban on public
smoking.
3. Achievement of sensitive results related to hospital optimization would require continued government commitment and
support, which is subject to the reconfirmation of the current political leadership.
Key Partners: The World Bank team works closely with the: (i) Ministry of Health, which is responsible for implementing the IPF
part of the project (technical assistance component) and reporting to the World Bank on the results achieved; and (ii) National
Health Insurance Company (CNAM), which is also responsible for project implementation and the achievement of specific results.
Additionally, activities under the project involve close cooperation with National Centre for Health Management (NCHM) and the
National Centre for Public Health (NCPH), which are subordinated to the Ministry of Health.
Key Development Partners are the EU, the World Health Organization (WHO), Swiss Development and Cooperation Agency
(SDC), German Agency for International Cooperation (GIZ), and other relevant UN agencies engaged in the health sector that
have been running complementary financing operations and that coordinate with the World Bank team on policy issues.
Country Program Snapshot
17
MOLDOVA: STRENGTHENING EFFECTIVENESS OF THE SOCIAL SAFETY NET PROJECT
Key Dates:
Approved: June 9, 2011
Effective: October 26, 2011
Closing: June 30, 2016
Financing in million US Dollars*:
Financier Financing Disbursed
Undisburse
d
IDA Credit 31.9 19.8 12.0
Total 31.9 19.8 12.0
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
Moldova’s spending on social assistance continues to be high compared to the Europe and Central Asia (ECA) regional
average of about 1.7 percent of GDP, and even higher when compared to International Development Association
(IDA) countries. In 2014, the Government of Moldova spent about 2 percent of GDP on social assistance programs,
most of which are poorly targeted categorical benefits. Reforms launched in 2009–10 helped improve the financial
sustainability and equity of the social safety net through the expansion of targeted cash transfers such as Ajutor Social
and the Heating Allowance and the elimination of some inefficient categorical benefits.
The Project’s Development Objective is to improve the efficiency and equity of Moldova’s social safety net through
a fiscally sustainable expansion and strengthening of the Ajutor Social program. The objective is to be achieved by:
? Supporting the interim transitional costs of expanding the Ajutor Social program and consolidating other benefits
for the fiscal sustainability of the social safety net.
? Implementing measures to enhance the administrative efficiency of the social safety net through strengthened
institutional roles and capacities, improved operating procedures and systems, and better outreach and greater
awareness of the need for reforms.
The Project has two components. The first component cofinances the scaling-up of the two targeted cash transfer
programs (the Ajutor Social and Heating Allowance), while supporting the consolidation and downsizing of other
category-based benefits. It links disbursements to the achievement of specific results measured by “disbursement-
linked indicators” (DLIs). The second component invests in strengthening the institutions responsible for the design
and administration of the social assistance system, with a focus on the Ajutor Social program.
Results achieved:
? After showing good progress in 2011–12, the project has experienced difficulties because the coverage of the
targeted cash transfers has shrunk. In late 2014, the beneficiary take-up significantly intensified. The targeted
benefits coverage is now gaining momentum, which is critical to achieving the project’s objectives and to
supporting poor households in time of economic crisis. The launch of the new management information system
eliminated most of the paper-based procedures and streamlined the benefits application. The turn-around time
for Ajutor Social application processing was reduced from 30 to 11 days between 2010 and 2014.
? Establishment of the Social Inspection unit helped reduce losses from fraud and errors in the social benefits system
by 29 percent relative to 2010.
Key Partners: The World Bank team works closely with the Ministry of Labor, Social Protection and Family and the
Ministry of Finance.
Key Development Partners include: the International Monetary Fund (IMF), EU, United Nations Children’s Fund
(UNICEF), International Organization for Migration (IOM), and other UN agencies engaged in the social protection
sector.
Country Program Snapshot
18
MOLDOVA: AGRICULTURE COMPETITIVENESS PROJECT (ACP)
Approved: May 1, 2012
Effective: September 20, 2012
Closing: June 30, 2017
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IDA Credit
GEF
Swedish Sida
Total Project Cost
16.1
4.4
2.2
22.7
3.5
3.8
0.6
7.9
12.6
0.6
1.7
14.9
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations at the time of disbursement.
Challenges:
Moldova’s climate and relatively high soil fertility give the country a comparative advantage in growing most temperate fruits
and vegetables. The production and sale of fresh fruits and vegetables offer the highest potential for increased incomes from
domestic sales and exports. However, the transition to more profitable crops, as well as more profitable market segments,
continues to be hampered by high capital requirements for post-harvest infrastructure and the stringency of end-market
safety and quality requirements. In addition, current farming patterns and ubiquitous land fragmentation lead to the
proliferation of unsustainable land management practices that need to be curbed in order to reduce land productivity losses.
The Project Development Objective is to enhance the competitiveness of the agro-food sector by supporting the
modernization of the food safety management system, facilitating market access for farmers, and mainstreaming agro-
environmental and sustainable land management practices.
The objectives will be achieved through activities aimed at: (i) strengthening country capacity to manage the increasingly
complex food safety agenda; (ii) increasing the levels of farmer organization and improving the post-harvest infrastructure;
and (iii) promoting the adoption of sustainable land management practices by farmers and ensuring a strengthened response
by the authorities to soil degradation challenges.
Results achieved:
a) Under Component 1: Enhancing Food Safety Management, the country’s Food Safety Agency, a relatively new institution
established in 2012, has largely become functional due to the support of the ACP. Three major civil works activities are
under way: the rehabilitation of the Food Safety Agency building and the construction of the Border Inspection Points
in Tudora on the country’s southeastern border with Ukraine and in Criva on the northern border with Ukraine.
Procurement of civil works for another three border inspection points—Leuseni (west), Giurgiulesti (south), and Criva
(North) - has been completed and works are expected to commence in the next few weeks. Procurement of works for
the construction of the country’s national reference laboratory for the safety of products of vegetable origin (Balti) has
been completed. Capacity-strengthening activities at the national reference laboratory for the safety of products of animal
origin and animal health aimed at future international accreditation are also advancing. Additionally, the Food Safety
Agency continues to receive support for legislative and regulatory improvements, capacity-building activities, training,
and knowledge transfer from various international food safety institutions.
b) Under Component 2: Enhancing Market Access Potential, two calls for proposals for matching investment grants from emerging
productive partnerships have been completed to date. The first one, carried out in 2014, resulted in awards of US$1.65
million to eight newly created producer groups for a variety of investments in post-harvest processing and the handling
of apples, table grapes, and berries. A second call, which ended on January 30, 2015, resulted in a yield of four very solid
proposals amounting to US$0.8 million. In parallel, implementation of outreach activities has continued to focus on
raising awareness about the project’s competitiveness-enhancing opportunities for fruit and vegetable growers and also
about the quality of Moldovan fresh fruits in order to increase domestic consumption.
c) Under Component 3: Enhancing Land Productivity Through Sustainable Land Management, all activities related to the rehabilitation
of protective shelter-belts have been implemented on schedule, and the equipment that was procured for these purposes
is being utilized efficiently by two mobile mechanized agro-forestry squads. The component’s sustainable land–managed
grant scheme has been launched and the first two calls for proposals yielded 91 awards for an amount of approximately
US$0.7 million. A second, recently closed call resulted in an additional pool of 80 applications.
Key Partners: Ministry of Agriculture and Food Industry; Ministry of Environment.
Key Development Partners: Global Environment Facility (GEF), SIDA.
Country Program Snapshot
19
MOLDOVA: EDUCATION REFORM PROJECT
Key Dates:
Approved: January 24, 2012
Effective: July 1, 2013
Closing: August 31, 2018
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IDA
36.3
9.8 26.5
Total 36.3 9.8 26.5
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
The project directly supports the Government’s education reform program. The project’s objectives are to strengthen the
quality of education while supporting the efficiency reforms being implemented in the education sector, and they are in line
with the Country Partnership Strategy (CPS) for Moldova 2014–17 by directly contributing to the implementation of the
CPS’s second pillar of enhancing human capital and minimizing social risks.
The project has three components:
1. Strengthening the quality of education, which will contribute to higher quality in the general education subsector in
Moldova;
2. Improving the efficiency of the education sector by eliminating excess capacity and creating a leaner education system
that is better equipped to provide education that meets the demands of a modern economy;
3. Improving the Ministry of Education’s (MoE) capacity to monitor the reform through provision of technical assistance
to the MoE to support the implementation, monitoring, and measurement of the education reform program.
Outcome indicators:
1. 70 percent of receiving schools meet the approved school quality assurance standards by year five of the project
2. Average scores for receiving schools in Romanian and math in 4th grade increased
3. Average scores for receiving schools in Romanian and math in 9th grade increased
4. Student-teacher ratio for grades 1–12 is increased from 10.5:1 to 11.5:1.
Intermediate Results Indicators:
1. Updated program for training of school directors and teachers officially approved and implementation initiated;
2. 30 percent of school directors and 10 percent of teachers trained based on the updated program for training of school
directors and teachers;
3. New remuneration program for school directors and teachers adopted by the Government;
4. Moldova enrolled in PISA 2015 and the results of Moldova’s participation in this student assessment analyzed and
publically disseminated;
5. Administration of revised national testing of all 4th grade students completed;
6. Administration of revised national testing of all 9th grade students completed;
7. System in place to closely monitor and mitigate drop outs (by gender) in general education (using education
management information system [EMIS]);
8. School report cards produced and disseminated to schools;
9. 89 percent of primary and secondary schools with budgets approved according to per student formula;
10. 980 classes reorganized in primary and secondary schools;
11. Consolidated EMIS established.
Key Partners: The World Bank team works closely with Ministry of Education, which is responsible for the overall
implementation of the project, and Ministry of Finance in this results-based financing operation.
Key Development Partner is UNICEF and the Government of Japan, whose funds are administered by the World Bank
via a US$2.86 million grant “Integration of Children with Disabilities into Mainstream Schools,” and the Global Partnership
for Social Accountability Program through a US$0.7 million grant “Empowered Citizens Enhancing Accountability of
Education Reform and Quality,” implemented by one of the leading think tanks in the country, the nongovernmental
organization (NGO) “Expert-Grup.”
Country Program Snapshot
20
MOLDOVA: EMPOWERED CITIZENS ENHANCING ACCOUNTABILITY OF EDUCATION
REFORM AND QUALITY
Key Dates:
Approved: March 28, 2014
Effective: January 15, 2014
Closing: December 20, 2018
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
GPSA grant
0.7 0.2 0.5
Total 0.7 0.2 0.5
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
Moldova was one of the first countries to join the Global Partnership for Social Accountability.
The Project Development Objectives are to empower each member country’s civil society to: (i) engage local,
regional, and national authorities in evidence-based policy and budget dialogue in its education sector; and (ii) promote
an enabling environment for social accountability. The project includes the following specific objectives:
? Facilitate engagement of local stakeholders in approximately 100 schools using social accountability tools and
promoting a dialogue on school budgets.
? Facilitate the flow of information from users of education services to local and national authorities.
? Promote the use of three new social accountability tools as inputs into formal education budgetary processes.
? Inform the public about the impact of wider economic and financial conditions on the education sector and
reforms (e.g., current situation, availability of budgetary resources, forecast).
? Support the Ministry of Education and other policy stakeholders in improving the quality of data to better support
an evidence-based policy-making process.
Results achieved:
1. New “Scoala Mea” platform launched under the project facilitates citizens’ engagement in and the monitoring of
the quality of education service delivery.
2. Social accountability tools have been developed, promoted, and used for the oversight of the education sector,
such as stakeholders’ report cards and public hearings about the school budgets, which are new concepts for
Moldova. Budget analyses of schools with infographics have been made and presented by the implementing
agency Expert-Grup (a model applied in participating schools and beyond).
3. Training on social accountability tools have been delivered to regional partners and other stakeholders of the
project.
4. The Education Sector Open Data Readiness report has been developed, covering dimensions of leadership;
legal, policy, and institutional frameworks; responsibilities and skills; sector data; demand for open data; and the
funding of relevant initiatives and national infrastructure (with relevant policy recommendations).
The Ministry of Education supported the initiative, including through opening education data, for example,
opening baccalaureate exams results for the 2013 and 2014 school years, the first time ever since Moldova’s
independence, making school budgets for 2013 and 2014 public, and ensuring legal grounds for open data in the
new Education Code that entered into force in November 2014.
Key Partners: Ministry of Education, local authorities, and NGOs.
Key Development Partners: Global Partnership for Social Accountability Program.
Country Program Snapshot
21
MOLDOVA: INTEGRATION OF CHILDREN WITH DISABILITIES INTO MAINSTREAM
SCHOOLS
Key Dates:
Approved: May 14, 2013
Effective: June 24, 2013
Closing: July 30, 2016
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
PHRD grant 2.9 0.3 2.6
Total 2.9 0.3 2.6
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
The Project Development Objective is to demonstrate through pilot activities that local governments can
successfully apply national policies to promote the integration of children with disabilities into the mainstream
education system.
Children with disabilities can be successfully integrated into mainstream education and supported in achieving better
learning outcomes through the provision of equal educational opportunities. The project aims to demonstrate that this
can be achieved through adequate planning, infrastructure investments, teacher training, and community awareness
and mobilization. By bringing educators, parents, communities, and local authorities together to help kids benefit from
inclusive education, the project aims to build “models of inclusiveness” that can be replicated across Moldova. In the
process, the project aims to address the following constraints and challenges related to the integration of children with
disabilities into mainstream education. First, the funds are used to help district authorities in rolling out the National
Program for the Development of Inclusive Education, including support in assessing the number of children with
disabilities and in addressing school infrastructure needs and adequate teacher training. Second, a focus is placed on
carrying out 20 demonstration subprojects aimed at the rehabilitation and refurbishment of school facilities to ensure
that they are accessible and that they meet the educational needs of children with disabilities, in addition to providing
relevant training for parents, teachers, and the community. Third, support is channeled toward the dissemination of
experiences and good practices to encourage the national replication of successful practices concerning the integration
of children with disabilities into mainstream schools. Integration can be considered successful if it is achieved with
improved community support and if it improves educational outcomes for the children. The key performance
indicators thus include:
1. Increased participation of school-aged children with disabilities in mainstream education, as measured by the increase
in school-years completed in the district in nonresidential schools by children certified as having a disability;
2. Decreased share of people who think that children with disabilities should not go to mainstream schools and
kindergartens (from an estimated 45 to 30 percent); and
3. Improved learning environment for children with disabilities and special education needs in 20 pilot schools as
measured by the availability of trained educational personnel (including teachers and support staff) and accessible
physical infrastructure.
Results achieved: Despite the delayed effectiveness caused by the ratification of the grant, this initiative already has
a number of visible results. Solid progress has been made on mapping schools and designing the raion (district) action
plans for inclusive education in pilots.
Key Partners: Ministry of Education and the Ministry of Labor, Social Protection and Family, Moldova Social
Investment Fund and local authorities.
Key Development Partners. Government of Japan, UNICEF, LUMOS Foundation.
The grant is funded by the Government of Japan, administered by the World Bank and implemented through the
Moldova Social Investment Fund (MSIF). Furthermore, UNICEF, the Ministry of Education, and the Ministry of
Labor, Social Protection and Family actively participate in the project as members of the Project Supervisory Board.
Country Program Snapshot
22
MOLDOVA: DISTRICT HEATING EFFICIENCY IMPROVEMENT PROJECT
Key Dates:
Approved: November 21, 2015
Effective: expected at the end of May 2015
Closing: June 30, 2020
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
IBRD Loan 40.5
Total 40.5
*Source: Project Appraisal Document.
Project Development Objective is to contribute to the improved operational efficiency and financial viability of the
new District Heating company and to the improved quality and reliability of heating services delivered to the
population of Chisinau, Moldova.
Expected results:
The project will contribute to the improved operational efficiency and financial viability of Newco, created by the
merger of the two combined heat and power plans (CHPs) in Chisinau and the assets purchase of Termocom (a
district heating distribution company), and to improve the quality and reliability of heating services delivered to the
population of Chisinau.
Key Partners: The Ministry of Economy; Newco (Termoelectrica).
Country Program Snapshot
23
MOLDOVA: STRENGTHENING THE CAPACITY OF THE COURT OF ACCOUNTS OF
MOLDOVA (COA)
Key Dates:
Approved: February 4, 2014
Effective: February 4, 2014
Closed: November 30, 2015
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
TF 1.0 0.2 0.8
Total 1.0 0.2 0.8
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
Moldova was one of the countries that benefited from the US$1 million allocation provided by the Russian
Government under Multi-Donor Programmatic Trust Fund for Europe and Central Asia Public Finance Management.
The Project Development Objective is to enhance Moldova’s public external audit function by increasing the
effectiveness of audit work and strengthening the capacity of the Court of Accounts. It is in line with the goals of the
Court of Accounts as outlined in its Strategic Development Plan for FY11–15.
The key components are the following:
(i) Strengthen the capacity to conduct performance audits in specialized areas, including development of
methodological guidelines, provision of training, and measurement of impact of audit reports produced by the
Court of Accounts;
(ii) Enhance performance systems for effective development and deployment of human resources on audit
engagements.
Results Achieved:
The project started with a significant delay due to the slow ratification of the grant, but as of now, all the activities
envisaged under this grant are fully operational and are expected to be completed by project closing. Under the first
component, two pilot performance audits of independent regulatory bodies have been initiated under the guidance and
support provided by the international consultant. In addition, several training sessions on techniques of performance
audit were carried out for the court’s staff. The performance audit manual has been revised and updated in line with
international standards and practices.
Key Partners: The World Bank team works closely with the Court of Accounts, which is responsible for the overall
implementation of the project.
Key Development Partners: The Russian Government, whose funds the World Bank is administering for the purpose
of this project. Other development partners include Swedish National Audit Office and the European Union, which
are providing complementary support to the Court of Accounts in implementing its Development Strategy.
Country Program Snapshot
24
MOLDOVA: BIOGAS GENERATION FROM ANIMAL MANURE PILOT
Key Dates:
Approved: June 24, 2011
Effective: July 6, 2011
Closing: June 30, 2015
Financing in million US Dollars*:
Financier Financing Disbursed Undisbursed
GEF Grant
0.9 0.8 0.1
Total
*Source: Client Connection as of March 23, 2015.
Note: Disbursements may differ from financing due to exchange rate
fluctuations.
The Project Development Objective is to promote the transfer of new, environmentally sustainable renewable
energy technology through piloting the use of animal manure for biogas-based heating and electricity production at
the farm level. To raise awareness and create a market for this new technology, the project has three main components:
Component 1: Enabling legislative and policy environment;
Component 2: Technical assistance, capacity building, and awareness raising on sound animal waste management and
animal manure-based biodigester and electricity generation technologies
Component 3: Biodigester investment grants.
Results achieved:
? Extensive training and outreach program has been completed. Through outreach and awareness-raising
activities, over 18,000 participants from farms and households have been reached through 1,840 events, including
579 workshops, 250 round tables, and 1,011 site visits. The project has formally trained over 8,500 beneficiaries in
sound manure management practices and the operation of biodigesters, including 5,828 farmers, 884 rayon and
local administration representatives, 774 engineers, agricultural and food processing sector specialists, 669 rural
entrepreneurs, and 381 consultants. Brochures on sustainable manure management practices, biogas generation
from animal manure, and the installation, operation, and maintenance of biodigesters were prepared and published.
? Adoption rates of sound practices are much higher than expected. A follow-up survey carried out indicated
that at least 11,414 households and farms (63.4 percent of the total number of trainees against the original target
of 10 percent) have applied an improved agricultural or manure management practice.
? Legal framework was found to be conducive for the use of biodigesters in Moldova. A review of the
framework for the use of biodigesters in Moldova was carried out, providing recommendations both on the
feasibility of the overall legal framework and the specific steps that need to be taken to legally use biodigesters in
Moldova. It was found that the legislation is supportive of renewable energy investments, and no separate licensing
of biodigesters is required.
? A Feasibility Study of the potential for scaling up biogas investments in Moldova has been completed in
collaboration with the Energy Efficiency Agency (EEA) under the Ministry of Economy.
? The project has supported construction of two biodigesters and technical designs for four sites. The
project has contributed to the installation of one biodigester with technical advice. Construction of another
biodigester will be started in spring 2015. Technical designs for biodigesters in four sites have been completed.
Key Partners: Ministry of Environment, Energy Efficiency Agency, and private livestock producers.
Key Development Partners: Global Environment Facility, coordination with SIDA.
Country Program Snapshot
25
IFC MOLDOVA INVESTMENT PROJECT EXAMPLE: TRANS-OIL
Key Dates:
Invested: August 9, 2012
Signed: July 18, 2012
Approved: July 10, 2012
IFC financing (million US Dollars):
Financing Amount Fiscal Year
A loan
B loan
Parallel loan
Quasi-equity
15.0
20.0
20.0
15.0
2013
Trans-Oil is a leading grain trader and oilseed crusher in Moldova, headquartered in Chisinau and with operations
across the country. IFC has provided a long-term financing package to help the company expand its business and
strengthen the sustainability of its operations.
The Project Development Objective. IFC provided Trans-Oil with long-term financing that was not available in
Moldova from commercial banks or capital markets. With IFC’s support, Trans-Oil has expanded its business through
the acquisition of a local oilseed processor and five silos. The company is also making investments to improve its
energy efficiency and raise environmental standards. Cooperation with IFC will help Trans-Oil become a major oilseed
crushing and trading group in the region and contribute to the development of the Moldovan economy.
IFC committed (July 8, 2014) and disbursed (July 17, 2014) another US$30 million of a short-term loan, which is IFC’s
share of the US$155 million short-term syndicated pre-export facility led by Societe Generale. The facility is supporting
the Group’s commodities purchases, storage, and processing during the 2014–15 harvest season for sale to export
markets.
The development impact of providing the above mentioned short-term loan is expected to include (i) increased access
to finance for a leading agricultural player operating in a key sector of the Moldovan economy, (ii) support for the
Group’s growth and generation of higher export revenues, a major source of export income in Moldova, (iii) increased
farmer reach by providing a sizable and stable source of financing for the Group’s purchase of commodities from
mainly small and medium-sized farmers, and (iv) job preservation and increased tax revenues.
Expected role and additionality: the new project complements IFC’s existing long-term investment and provides
funding to help the Group meet its working capital financing needs during the harvest season, broadening its funding
base beyond its existing financial network. The Company reported strong profitability and cash generation in FY14
(2013–14) mainly as a result of the rich harvest last year, the availability of working capital financing, and access to
additional port terminals, enabling a larger export volume of agri commodities. FY15 (2014–15) is also expected to
show growth and strong performance for the same factors. The Company continues to grow, in particular, it has
recently acquired port terminals in Reni, Ukraine, and as far as is known, considers other potential expansion
opportunities in the region, which are expected to complement and strengthen its existing operations.
Key Expected Results:
? Provide long-term financing to the company, strengthening its balance sheet and enabling it to finance its
expansion with long-term funds;
? Support the mobilization of capital: through the B loan, IFC has attracted additional financing from international
lenders, helping extend tenors available to the company and broadening the company’s long-term funding base;
? Help improve operational efficiencies and enhance competitiveness by sharing IFC’s global agriculture sector
expertise;
? Realize benefits to local farmers by integrating them with higher value-added domestic and international
markets;
? Promote job preservation and increased tax revenues; and
? Encourage local and regional companies to consider investments in Moldova.
Country Program Snapshot
26
MOLDOVA: CHISINAU CITY
Key Dates:
Invested: September 23, 2011
Signed: November 15, 2010
Approved: October 15, 2010
IFC financing (million US Dollars):
Financing Amount Fiscal Year
IFC A loan 10 2011
Over the past 20 years, investments in the city’s infrastructure were almost nonexistent. As a result, streets with the
highest concentrations of traffic have significantly deteriorated, imposing economic costs on road users and having
negative consequences for the city’s growth potential and competitiveness. The water supply and sanitation networks
required urgent rehabilitation or, in some suburban areas, did not even exist, causing frequent interruptions in service
and significant environmental ramifications. The situation was further hindered by the absence of reliable data on the
existing networks’ layouts, which resulted in poor quality technical designs and estimates that often deviated from the
concrete reality.
The Project Development Objective. As a result of this project, the newly built and rehabilitated water supply and
sewerage networks with pumping stations and treatment facilities provide more reliable and higher-quality water supply
and sanitation services to about 80,000 city’s inhabitants. The project contributes to further reducing water loses,
saving both water and maintenance costs. In addition, about 5 kilometers of the city’s main streets that handle the
highest traffic flow are rehabilitated.
Key Results:
? 30 kilometers of new water supply networks
? 4 kilometers of the water supply networks rehabilitated
? 14 kilometers of new sewerage networks
? four pumping stations
? four wastewater treatment facilities
? 5 kilometers of the city’s main streets rehabilitated
Country Program Snapshot
27
Trust Fund Portfolio
3
3
As of March 2015.
Grant
Closing
Date
TF011492 Moldova Investment Climate Reform Project 2,837.50 IFC 8/31/2015 GTCEU Lily Begiashvili Bank
TF012004 Strengthening Public Procurement 493.00 IDF 6/27/2015 GGODR Kashmira Daruwalla P129112 Recipient
TF012145 Moldova Agriculture Competitiveness Project 4,435.50 GEFIA 6/30/2017 GFADR Anatol Gobjila P127125 Recipient
TF012263
IDF Grant for Strategic Planning of Health
Information Management Reform Project 278.00 IDF 7/30/2015 GHNDR Son Nam Nguyen P131020 Recipient
TF012271 Moldova GPE Grant SPN 194.74 EFAFTI 4/29/2015 GEDDR Mariana Doina Moarcas P128468 Bank
TF013177
Advice on Strengthening Public Investment
Management 200.00 EPFM 6/30/2015 GGODR Iryna Shcherbyna P130304 Bank
TF014332
Strengthening the Capacity of the Court of
Accounts 1,000.00 EPFM 11/30/2015 GGODR Bogdan Constantinescu P133554 Recipient
TF014647 Resource Efficency For SMEs 150.00 IFC 2/29/2016 CASC8 Viera Feckova
IFC-
00599133 Bank
TF014855
Integration of Children with Disabilities into
Mainstream Schools 2,860.00 PHRD 7/30/2016 GEDDR Yuliya Smolyar P144618 Recipient
TF014946
Support for Moldova Agriculture Competitiveness
Project 2,170.29 FS-7SD 6/30/2016 GFADR Anatol Gobjila P118518 Recipient
TF015422
Strengthening the Capacity of the Court of
Accounts 120.00 EPFM 11/30/2015 GGODR Bogdan Constantinescu P133554 Bank
TF015859
Empowered Citizens Enhancing Accountability of
the Education Reform and Quality of Education in
Moldova 696.96 GPSA 12/20/2018 GGODR Anna Olefir P147607 Recipient
TF015873 Support to CFU Moldova Operations, Phase III 170.00 CDCFTA 12/31/2016 GEEDR Sandra Broka P079303 Recipient
TF015899 Moldova Power Sector Note 190.00 ESMAP 5/31/2015 GEEDR Sandu Ghidirim P146401 Bank
TF016060
Preparation of Competitiveness Enhancement
Project II 495.50 ECACDF 3/31/2015 GTCDR Melissa Rekas P144103 Recipient
TF016644
Integration of Children with Disabilities into
Mainstream Schools (Bank supervision) 140.00 PHRD 4/30/2016 GEDDR Anna Olefir P144618 Bank
TF016849
Moldova/Transnistria Knowledge for Confidence
Building 495.00 KST 4/6/2016 GSURR Klavdiya Maksymenko P151996 Bank
TF018162
IMPLEMENTING PARTICIPATORY SOCIAL
ACCOUNTABILITY FOR BETTER HEALTH PROJECT 730.00 GPSA 11/19/2019 GGOGA Son Nam Nguyen P150873 Recipient
TF018214
How to better inform decisions on jobs and
schooling in Moldova 49.00 PSIA 8/31/2015 GSPDR Abla Safir P152911 Bank
TF018600
BIOCF T1W1 MOLDOVA SOIL CONSERVATION
PROJECT 8.00 BIOCFT 8/31/2020 GENDR Anatol Gobjila P100597 Bank
TF018601
BIOCF T2W1 MOLDOVA COMMUNITY FORESTRY
DEVELOPMENT PROJECT 3.30 BIOCFT 8/31/2020 GENDR Anatol Gobjila P109459 Bank
TF018638
Learning from the Romanian Experience in the
DH Sector 49.00 SOUTH 12/15/2015 GEEDR Shinya Nishimura P132443 Bank
TF018651
Examining performance and school attendance of
socio-economically disadvantaged students to
better inform the ongoing education reforms in
Moldova 49.00 PSIA 7/31/2015 GEDDR Anna Olefir P147607 Bank
TF018739
How to better inform decisions on jobs and
schooling in Moldova 15.00 PSIA 8/31/2015 GSPDR Abla Safir P152911 Bank
TF018880
BETF to charge support costs for BIOGAS
Generation from Animal Manure 10.00 GEFIA 6/30/2015 GFADR Sandra Broka P120702 Bank
TF019116 DH and Electricity Tariff and Affordability Analysis 100.00 ESMAP 12/31/2015 GEEDR Shinya Nishimura P151113 Bank
TF019165
Multi-Donor Programmatic Trust Fund for Europe
and Central Asia Public Finance Management 250.00 EPFM 8/31/2016 GGODR Kashmira Daruwalla P151413 Bank
TF019225 Teacher Reforms in Moldova 47.67 SOUTH 7/24/2015 GEDDR Andrea C. Guedes P127388 Bank
TF056111 CDCF - MOLDOVA BIOMASS HEATING ERPA 1,047.05 CARBON 6/30/2017 GCCCF Sandrine Boukerche P092516 Recipient
TF056815 BCF - MOLDOVA SOIL CONSERVATION ERPA 2,478.00 BIOCFT 12/31/2018 GCCGT Daniel Radack P100597 Recipient
TF094358 MOLDOVA COMMUNITY FORESTRY PROJECT 2,612.50 BIOCFT 12/31/2018 GCCGT Daniel Radack P109459 Recipient
TF097543
GFDRR: Moldova Disaster and Climate Risk
management Capacity Building 100.00 GFDRR 6/30/2015 GSURR Anatol Gobjila P115634 Bank
TF098414 Moldova Food Security AAA 320.00 GFCRP 4/30/2015 GFADR Irina Schuman P124627 Bank
TF099088
ESREI TF: SUPERVISION OF RECIPIENT
ACTIVITIES 193.28 FS-7SD 6/30/2015 GEEDR Shinya Nishimura P125137 Bank
TF099139
MOLDOVA ESREI TF COMPONENT 2 & 3: DH
Investment Study & Energy Supp Optimization
Str 1,996.59 FS-7SD 6/30/2015 GEEDR Shinya Nishimura P125137 Recipient
TF099493 Moldova Soil Conservation Project 2,961.41 BIOCFT 11/30/2018 GCCGT Daniel Radack P100597 Recipient
TF099602 Biogas Generation from Animal Manure Pilot 980.00 GEFIA 6/30/2015 GFADR Sandra Broka P120702 Recipient
30,926.29
Project
#
Program
Source
Managing
Unit
Team Leader
Trust
Fund #
Trust Fund Name
Net Grant
Amount
( Figures in thousands of USD )
Exec. By
Total
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