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With World Bank support, some of Moldova’s development results include:
The World Bank is actively engaged, , in supporting the authorities’ efforts to deepen the level of financial intermediation in Moldova, through technical assistance and investment/policy lending while making the sector more resilient to possible shocks. Over the past four years, the World Bank has built a strong dialogue with the Ministry of Finance, the NBM (add full name before abbreviation), and the National Commission of Financial Markets (NCFM). The World Bank provided support to these authorities in drafting amendments to the Capital Market Law, with the aim of enhancing the safety and efficiency of the corporate securities’ registration function. These legal amendments are pending parliamentary approval. Likewise, the World Bank started to work with financial sector authorities in order to provide technical assistance to review and strengthen legislation aimed at consolidating the enforcement powers of financial sector regulatory agencies. To complement those efforts, the World Bank is currently putting together a contingency planning and crisis simulation exercise, to be delivered by the World Bank Vienna Financial Sector Advisory Center (FinSAC). That exercise will be followed by technical assistance to reform the bank resolution framework.
The World Bank has been working closely with the Government of Moldova to help improve the investment climate. To make it easier to do business, as part of the Competitiveness Enhancement Project (CEP), in 2008, the government introduced the Regulatory Impact Assessment methodology as mandatory for the development of all new laws and regulatory acts affecting business operations. In addition, business owners are now able to voice their views through a committee set up to address new legislation. In 2013, the CEP funded the development of the Regulatory Reform Strategy and action plan, and the World Bank report (Economic and Sector Work [ESW]) on “Policy Priorities for Private Sector Development” strongly informed the 2013–14 Roadmap developed by the government. Additional financing under the CEP provided US$22.5 million in loans to export-oriented enterprises, and the government has established a revolving fund from repayments of the original credit line, from which an additional US$7 million in loans has been made available. A matching grants scheme helped Moldovan businesses obtain international quality certifications, such as International Organization for Standardization (ISO) and Hazard Analysis Critical Control Point (HACCP), and acquire relevant business development services.
The World Bank-financed Quality Education in Rural Areas of Moldova Project (QERM) made a significant contribution by jump-starting education reforms; contributing to revisions of the lyceum curricula and the development of associated guides; providing teaching/learning materials; equipping 1,190 schools with equity school grants and 304 schools with quality grants, helping students in poor rural schools; and supporting participation in international assessments. Furthermore, the project supported the initiation of per student financing in the sector, initially in two pilot rayons (districts) and nationwide since January 2013, thereby promoting efficiency in the use of resources, education planning, and monitoring.
Moldova is on track to achieve a more cost-efficient spending mix of its social assistance programs, and World Bank support is instrumental to sustaining these efforts. The Government continues policy reforms and invests in improving benefits administration and management information systems. The reforms aim to integrate the overall social safety net into the platform provided by the expanded targeted Ajutor Social program. The World 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 project is also investing in improving the administrative efficiency of the social safety net, as well as strengthening institutional roles and capacities, operating procedures and systems, and communications activities to reduce resistance and generate support for reforms. Another ongoing Bank operation, the Health Services and Social Assistance Project, supports the creation of a modern management information system to improve the administration of social assistance benefits. The two projects complement each other and closely coordinate activities to achieve tangible results.
The World Bank supports health care modernization through the implementation of the Health Services and Social Assistance Project (2007–13), which promotes capacity building in policy development, implementation, financing, and management and upgrading of health services. An additional US$10.2 million was approved under this project in December 2011 to strengthen primary health care quality and availability across the country. In 2013, the World Bank embarked on the preparation of a new program for results to support health transformation implementation for 2014-17. The new operation will support NCD risks reduction and health care efficiency enhancement.
The World Bank’s current support to the sector is comprised of five projects. The Moldova Agriculture Competitiveness Project (2012–17, total financing US$25.4 million) seeks to address the critical competitiveness agenda by promoting market access for farmers and supporting their integration into complex supply chains. To achieve this, project activities will support: (i) strengthening country capacity to manage the increasingly sophisticated food safety agenda; (ii) increasing the number of farmer organizations and improving the post-harvest infrastructure; (iii) promoting the adoption of sustainable land practices by farmers; and (iv) ensuring a strengthened response by the authorities to soil degradation challenges.
Support to the sector includes the Energy Sector Reform and Efficiency Improvements Technical Assistance project, funded by the Government of Sweden (€1.8 million grant), which supports Moldova in identifying the investments and measures needed to address : (i) the security and reliability of the energy supply, and (ii) the efficiency of both energy production and consumption. The World Bank is preparing the District Heating Efficiency Improvement Project for FY15 to support the above sector reforms. The project will finance: (i) priority investments in the district heating system to improve the energy efficiency, quality, and affordability of the heat supply (International Bank for Reconstruction and Development [IBRD] US$40 million), and (ii) debt restructuring and the financing of debt repayment (IBRD Partial Credit Guarantee US$80 million, IBRD allocation US$20 million). The World Bank is also conducting a Power Market Options Sector Note to provide the Government with guidance on power market options, the investments required to increase the security of Moldova’s electric power supply, and how to effectively integrate the electric power sector into the energy community market.
Moldova has made important progress in protecting the environment. It has successfully implemented projects aimed at stopping and reversing soil degradation, while also contributing to global objectives such as a planned reduction of CO2 emissions by 4.3 million tons over the next 10 years. It has also made progress in reducing the existing quantities of obsolete pesticides contaminated with persistent organic pollutants by liquidating 1,272 tons of such substances. Furthermore, close to 100 percent of the country’s stock of polychlorinated biphenyls (PCBs) has been accounted for, through a national inventory, while the country disposed some 17,300 contaminated capacitors. . Going forward, the Country Partnership Strategy (CPS) for FY14-17 has a dedicated pillar supporting a green, clean, and resilient Moldova. The pillar will aim to: (i) boost adaptation and resilience to climate change; (ii) improve natural resources management; and (iii) increase energy efficiency and security.
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Last Updated: May 22, 2014