Moldova

Ratings for the Environmental Infrastructure Project for Moldova were as follows: outcomes were highly unsatisfactory, the risk to development outcome was non evaluable,... Show More + the Bank performance was moderately unsatisfactory, and the Borrower performance was also moderately unsatisfactory. Some lessons learned included: the Bank should be proactive in making the decision to either withdraw from a project or adopt other alternative measures to change a project's course when it is recognized that critical implementation issues cannot be resolved in a timely manner. The Constructed Wetlands (CW) technology was new to Moldova, which had been used to the overdesigned former Soviet conventional Wastewater Treatment Plants (WWTPs). The technology was perceived as inferior and therefore unacceptable. Moreover, the Bank may face a reputational risk in appearing to be promoting and/or "overselling? specific activities or technologies with strong resistance from critical stakeholders even where the activities may be technically and economically justified. In this case several clients referred to the technology as 'the Bank's' technology which increases the Bank's reputational risk. The importance of preparing a sound Results Framework comprising adequate indicators to capture key project outcomes, with baseline data and reasonable targets or a clear plan to obtain this data as soon as possible after the onset of implementation if not available, cannot be over-emphasized for good project design and implementation readiness. Show Less -

Ratings for the First and Second Poverty Reduction Support Credits (PRSC) Project for Moldova were as follows: outcomes were moderately satisfactory, the risk to development... Show More + outcome was moderate, the Bank performance was moderately satisfactory, and the Borrower performance was also moderately satisfactory. Some lessons learned included: the political economy must be understood and given due consideration because it affects the capacity of the authorities to implement their own program. The size and complexity of the policy matrix must be reasonable, and feasibly balanced with the government's program and institutional capacity. A strong focus on the results framework facilitates stock-taking of achievements during program implementation. The program matrix including the set of indicative outcomes facilitated the assessment of progress, provided a sound basis for and policy dialogue. Complex lending operations require strong field presence and cross-sector collaboration by the Bank team. In an environment where implementation capacity is weak, operations like the PRSC series require day-to-day supervision and strong crosssectoral collaboration within the Bank on the policy agenda to deliver the expected outcomes of the lending program. Show Less -

Ratings for the AIDS Control Project for Moldova were as follows: outcomes were satisfactory, the risk to development outcome was low or negligible, the Bank performance... Show More + was satisfactory, and the Borrower performance was also satisfactory. Some lessons learned included: governmental leadership/ownership is crucial to the achievement of success in large scale national programs and to ensuring that all available resources both internal and external are maximized. The establishment of well structured and unified coordination mechanisms, particularly where many agencies and sectors are involved is crucial to for successful implementation. Involvement of ministries and sectors other than health is crucial in the successful implementation of activities targeted towards diverse populations e.g. harm reduction and Anti Retroviral (ARV) treatment in the penitentiary system. It is important that treatment services begin to be decentralized so as to decrease the potentially negative impact of travel by patients to centralized treatment location may have on treatment adherence. Continuity in Bank team members working on projects is critical particularly during early project implementation when it is critical to get the project started effectively. It is important that plans for sustaining efforts started under projects are outlined from as early as project preparation, particularly when investments are made in areas that are costly. Planning for maintenance of medical equipment and infrastructure is one critical area that is often overlooked. Show Less -

Ratings for the First Cadastre Project for Moldova were as follows: outcomes were satisfactory, the risk to development outcome was low or negligible, the Bank performance... Show More + was satisfactory, and the Borrower performance was satisfactory. Some lessons learned included: The project benefited from the Bank's experience in developing cadastre systems, but also from the knowledge of the counterpart of the situation in their country. Cadastre projects need a long period and sustained effort for their preparation and for the implementation results to become apparent. The Bank needs to be flexible and adaptable. The Project Implementation Offices (PIO's) continued strong public information campaign sustained the interest of the population and the success of the registration program. A unified cadastre system that is not tied to sector ministry eases the necessary coordination process and avoids specialized interests or a focus on a particular sector. While agricultural land constitutes the larger part in terms of absolute area or plot numbers, the value of the system and its future development potential is likely to be skewed towards urban real estate properties because of their higher market value, the potential for use in urban development and the fiscal cadastre system. The modular approach to the development of the IT system was beneficial to the project. The development of the IT system was undertaken by the PIO staff themselves with international design support and advice at critical times, but the full development of the system was not contracted out. The contracting process for IT was found to be too expensive, complex and lengthy, with little fall back for the PIO to correct errors. The IT staff was resourceful, understood the needs of the system, and was appropriately trained on an on-going basis to be able to develop and upgrade the system. Skills and ownership were higher and retained at the PIO (while some turnover took place as those skills became very valuable in the market). Show Less -

The overall outcome of the satisfactory; the performance of the Bank is satisfactory; and the performance of the borrowwer is moderately satisfactory. The objective... Show More + of the Social Projection Management Project was to develop the capacity required to implement the pension reform and to support the development of an efficient and sustainable social protection system in Moldova. The project major changes include: (i) increase of contributions to the National Social Insurance House (NSIH); (ii) on time payment of pensions; (iii) transparent budgeting and accounting practice of the NSIH; (iv) improved management of the NSIH; (v) efficient information support through improved IT system; (v) strengthened social protection policy support; and (vi) increased awareness of the public regarding the pension system. Some lessons learned included: Improving the awareness of the general public about their rights and responsibilities in the pension system. The roles of the Communication Unit (CU) and the NSIH in pension information dissemination during this operation were crucial toward meeting the project development objective; implementation of similar projects requires improving the capacity of the implementing agencies to analyze social protection policy issues; it is essential to maintain commitment to pension policy reform. Implementation of a similar operation on pensions and social protection will require a better understanding of the institutional environment in which the project is to be implemented; strong reliance on sound analytical basis for designing effective operations in social protection is important. This operation was underpinned by the Bank's Economic Sector Work (ESW) and intensive dialogue with the Borrower, which contributed to a better understanding of social protection issues in Moldova. Show Less -

The project outcome is satisfactory, sustainability is likely, and institutional development impacts are substantial. Lessons of broad applicability to Bank-financed... Show More + projects suggest that in countries with limited natural resources, but with a highly literate population, making the development of human resources and the development of new technologies a priority, can deliver dramatic results: improved management skills, combined with new technologies can enable companies avoid bankruptcy, can improve market focus, collaborate effectively with foreign partners, and, improve quality standards for exports. Nonetheless, it is important to tailor management training programs to company size and category of management. Lessons of specific applicability to private sector development in Moldova suggest that participating companies have shown they are willing to pay for training, and there appears to be substantial potential for training on a commercial basis. In addition, there is likely to be a sizeable market for quality management certifications, particularly for enterprises targeting export markets. Thus, management training programs can be a viable means for Moldova to regain access to foreign markets, find more reliable suppliers, and forge joint venture partnerships. Show Less -

The project outcome was satisfactory, sustainability likely, and institutional development impacts were substantial, achieved through satisfactory performances by both... Show More + the Bank and Borrower. Lessons address the following: 1) On broad policy issues, conditionalities should be very limited in investment lending operations, limited to policies that affected the project directly. For example, further disbursement to savings and credit associations should not have been allowed until there was a proper supervisory authority in place. As much as possible, further "policy issues" should be integrated into alternative documents. 2) On Rural Finance, credit lines that are likely to make a large number of small sub-loans need considerable delegation of fiduciary responsibilities. While eligibility criteria for participating financial institutions should be designed during project preparation, the project should allow for some flexibility to add/subtract financial intermediaries throughout project implementation. Loan documents AND budgets should allow this flexibility. If the credit line is going to contain a grant portion, the project should ensure there is a general consensus on the constrain the grant is trying to address, so that the project can objectively measure its effectiveness. 3) On advisory and business development services, the lack of consulting services to help small entrepreneurs prepare and implement business plans, was as important a constrain to rural finance, as the lack of long-term credit on the market. Show Less -

The rating for the project were as follows: the outcome was unsatisfactory, the sustainability was unlikely, the institutional development impact was modest, the Bank... Show More + performance was satisfactory, and the borrower performance was unsatisfactory. The lessons learned indicate that the Bank was aware that the new Government's electoral platform was often at odds with the reform agenda supported by Structural Adjustment Credit (SAC3). So, the Bank was faced with the choice of pursuing an adjustment operation, providing some budget support and continuing to engage in order to limit the reform reversals, or to disengage. It chose the former. It was the right decision because more serious policy reversals almost certainly would have occurred in the absence of SAC3. Tariff re-balancing, though partially undermined, probably would likely have been much delayed or not have taken place at all. A hospital restructuring plan for the further elimination of excess capacity in Chisinau Municipality Hospital and Republican Hospitals might never have been developed and the case against Union Fenosa might have actually led to cancellation of the privatization contract. Granting extensions can be costly to subsequent operations if it sets a precedent for noncompliance. In the case of Moldova, there was a mixture of delays and last minute scrambling to implement. In the end, the Government came up short in its implementation of second tranche conditions and adherence to the LDP. Show Less -

Ratings show a satisfactory project outcome, likely sustainability, with only modest institutional development impacts. Lessons learned on sector policy, identify the... Show More + importance of metering for a successful energy commercialization, highlighting that interventions should start at the point of interaction with end-customers, for distribution of electricity, gas, and heat. Moreover, since a small investment project is not an appropriate vehicle to implement major energy sector reforms, it does need to be supported, as in this case, by adjustment operations with significant energy sector reform components. Regarding lessons on country issues, it is worth noting that in this project, a multi-year Institutional Development Fund (IDF) for accounting reform, in addition to assistance from USAID, encouraged the Government to adopt national accounting standards, based on international standards, with training provided at the national level. It is thus suggested that during the country financial management assessment, consideration be given on whether to use an IDF grant, combined with funding from other donors. In addition, the importance of a competent Project Implementation Unit set at the early stages cannot be underestimated, evidenced by its strong, unifying role in the midst of continued staffing changes in implementing agencies, and line ministries, which could have somehow hindered implementation. Show Less -

The outcome of the First Agriculture Project is rated as unsatisfactory, sustainability as likely, institutional development impact as modest, Bank performance as unsatisfactory,... Show More + and Borrower performance as satisfactory. Moldova was a relatively new borrower. Simultaneous preparation of multiple projects for a new client country as overly ambitious, and, in the end, led to costly project preparation with limited development impact. Project design should be kept simple. There should have been clear distinctions between public and private investments. Initiating investment projects in an unstable environment is risky but particularly so when support is given to state-owned entities where major restructuring is looming. High quality, state of the art equipment given to non-reformed institutions in the public sector did not necessarily improve the overall effectiveness of the research institutes. Research should be funded by the government, rather than requiring research institutes to divert their efforts to commercial activities. When a loan from an international financial institution is being utilized, repayment matters should be addressed up front, with cost recovery and repayment terms and conditions clearly defined in the project document and properly monitored during implementation. A public investment should be clearly defined up-front, and specify appropriate cost recovery rates. Support for research should have clear linkages to the farming community. Show Less -