AE REPORT 2012 eng

DEVELOPMENT
COOPERATION
2012 Annual Report
on external assistance provided to the Republic of Moldova
Chișinău, july 2013
State Chancellery of
the Republic of Moldova

This report was published with the support of the EU Project
‘Support for State Chancellery – TTSIB’
© State Chancellery 2013
The information and views set out in this report are those of the author(s) and do not necessarily reflect the offi-
cial opinion of the European Union. Neither the European Union institutions and bodies nor any person acting
on their behalf may be held responsible for the use which may be made of the information contained therein.

Acronyms..........................................................................................................................................
Foreword............................................................................................................................................
Executive Summary............................................................................................................................
1. Introduction..............................................................................................................................................
1.1. Scope of Report.......................................................................................................................
1.2. Dimensions of Development Assistance Coordination..........................................................
1.3. The Role of the State Chancellery..............................................................................................
1.4. Methodology.............................................................................................................................
2.OverallPoliticalandSocial-EconomicSituationinMoldova..........................................................................
2.1 Political Situation........................................................................................................................
2.2 Economic Situation.....................................................................................................................
2.3 Social Situation...........................................................................................................................
3. External Assistance Structure and Implementation Status in 2012..............................................................
3.1 Types of External Assistance........................................................................................................
3.2 Financing Modality.....................................................................................................................
3.3 Overview of Donor Support in 2012..........................................................................................
4.Strategic Priorities for External Assistance in 2012 based on the 2011-20 14 GAP ......................................
4.1. Building the Rule of Law....................................................................................................... ..
4.2. Economic and Financial Policies................................................................................................
4.3. Accountable and Efficient Administration..................................................................................
4.4. Foreign Policy..........................................................................................................................
4.5. Country Reintegration...............................................................................................................
4.6. Education and Research.............................................................................................................
4.7. Health of Population.................................................................................................................
4.8. Social Policies............................................................................................................................
4.9. Environment Protection.............................................................................................................
5. Challenges and Prospects in 2013...........................................................................................................
ANNEXES
A. Questionnaire Evaluation Summary..............................................................................................................
B. External Assistance Agreements Signed in 2012............................................................................................
TABLE OF CONTENTS
4
6
8
9
9
9
10
10
11
11
13
14
14
14
19
23
30
31
32
36
37
38
38
39
40
42
43
45
51

4 2012 Annual Report on external assistance
provided to the Republic of Moldova
EA
AIPA
ODA
CPA
LPA
CEB
EIB
EBRD
WB
EC
ECHR
CIB
ICJ
MCC
DANIDA
EUBAM
ETF
NIF
IMF
IDEA
ENPI
IFAD
IFIs
SME
LED
OECD
ODIMM
NGO
UN
External Assistance
Agency for Interventions and Payments in Agriculture
Official Development Assistance
Central Public Authorities
Local Public Authorities
Council of Europe Development Bank
European Investment Bank
European Bank for Reconstruction and Development
World Bank
Comisia Europeană
European Court of Human Rights
Comprehensive Institution Building Program
International Court of Justice
Millennium Challenge Corporation
Danish Assistance for International Development
European Union Border Assistance Mission
European Training Foundation
Neighborhood Investment Facility
International Monetary Fund
Integrated Database for External Assistance
European Neighborhood Partnership Instrument
International Fund for Agricultural Development
International Financial Institutions
Small and Medium Enterprises
Liechtenstein Development Service Foundation
Organization for Economic Cooperation and Development
Organization for Development of Small and Medium Enterprises
Non-governmental Organization
United Nations
ACRONYMS

52012 Annual Report on external assistance
OSCE
PARE
ENP
GDP
NAP
NPEEY
NIP
UNDP
BSP
RSPSP
RM
CAB
SIDA
SIGMA
NDS
USA
TAIEX
TB
TEMPUS
EU
UNAIDS
NCU
UNDAF
UNICEF
UNODC
USAID
GNI
WiB
Organization for Security and Co-operation in Europe
Programme for Attracting Remittances into the Economy
European Neighborhood Policy
Gross Domestic Product
National Acton Plan
National Program for Economic Empowerment of Youth
National Indicative Program
United Nations Development Program
Budget Support Program
Road Sector Program Support Project
Republic of Moldova
Current Account Balance
Swedish International Development Agency
Support for Improvement in Governance and Management
National Development Strategy
United States of America
EU Technical Assistance and Information Exchange Instrument
Tuberculosis
Trans-European Mobility Programme for University Studies
European Union
Joint United Nations Programme on HIV/AIDS
National Coordinating Unit
United Nations Development Assistance Framework
United Nations Children’s Fund
United Nations Office on Drugs and Crime
US Agency for International Development
Gross National Income
Joint Fund for Female Entrepreneurs

6 Raport anual 2012 cu privire la
asistenţa externă acordată Republicii Moldova
The external assistance provided by the international community continues
to play a critical part in the social and economic development of Moldova
and its efforts to achieve its priority objectives laid down in the national stra-
tegic documents.
The development aid issue is very up-to-date and complex. Moreover, the re-
orientation of the development process on social issues and the ones related
to the quality of life puts the external assistance policy in a new light.
The Global Partnership – a forum created following the commitments made
in Busan (Korea, 2011), makes a change in paradigm, shifting from “aid ef-
fectiveness” to “development effectiveness”.
The Global Partnership is expected to become a support mechanism for the
FOREWORD

7Raport anual 2012 cu privire la
post-2015 development agenda. While the UN High Level Panel deals with
“WHAT” are the development priorities, the Global Partnership focuses on
“HOW” to achieve them. In this context, the dynamic changes in time, the
players and the development ways should be given good consideration. The
Global Partnership will focus on: (i) recognition and facilitation of the in-
volvement of stakeholders and (ii) supporting the reorientation of the global
development agenda on improving the effectiveness of development.
For a better coordination of the external assistance provided to Moldova,
the Government of Moldova has taken a number of positive and decisive
actions. In the meantime, the donors’ community has joined efforts to make
sure that their assistance and cooperation meet the country’s needs and aspi-
rations.
This report, drafted by the State Chancellery and containing information
about the Official Development Assistance (ODA) that the development
partners provided to Moldova in 2012, should serve as a tool for building
the future. It is expected to raise the awareness of stakeholders, increase the
importance of the external assistance and evaluate how it is used, in particu-
lar in terms of how the external resources contribute to the development of
Moldova.
If we look at the way the external funds have been used so far, it makes us
hopeful that the Government and our country’s development partners can
build a dialogue that will help increase the impact, efficiency and effective-
ness of the external assistance.
The State Chancellery takes this opportunity to express gratitude to the bi-
lateral and multilateral donors and CPA for providing their inputs to this
Report.
Victor Bodiu,
Secretary General of the Government
Chisinau, July 2013

8 Raport anual 2012 cu privire la
This report brings together the final findings of the annual evaluation of the external assistance
impact on the social and economic development of Moldova. It is based on a survey conducted
through a questionnaire and interview process in ministries and other public authorities – recipi-
ents of external assistance (EA), and the inputs from the foreign development partners and other
players in charge of assistance planning, implementation, monitoring and evaluation. The report
aims to increase the efficiency, effectiveness, impact and sustainability of the external assistance
provided to Moldova, as well as to increase the transparency, relevance and availability of informa-
tion about the programming, implementation, monitoring and evaluation of EA available to the
state institutions, donors and the public.
This exercise was conducted by the State Chancellery – the national authority in charge of the
coordination of the external assistance at national level (NCU).
The role of the external assistance in supporting Moldova achieve its development priorities was
significant in 2012, when the country implemented 384 projects in different sectors, including
116 governance and civil society projects, 58 infrastructure and social services projects, 49 educa-
tion projects, 31 projects in agriculture, 29 multi-sector projects, 24 private sector projects, 19 en-
vironmental projects and 16 energy generation and supply projects. Overall, 98 new projects were
started with new commitments amounting to 206.6 million Euros in different sectors, according
to the national development policies.
The European Union is the largest of the many development partners active in Moldova. Other
important donors are EBRD, EIB, WB, the Government of the United States of America, UN,
the Kingdom of Sweden, Austria, the Swiss Confederation and the German Federal Republic.
The general evaluation of the EA projects in 2012 suggests that the projects accompanied by the
strong commitment of the country’s leadership and the involvement of the managers of the cen-
tral public authorities had the strongest impact. Overall, the project beneficiaries gave a positive
rating to the external assistance impact on all the sectors, while 43% of the projects were seen
as having had a significant impact on sector development. A critical finding of the evaluation is
that the external assistance provided in 2012 by different development partners was in line with
the Government Activity Program 2011-2014 “European Integration: Freedom, Democracy and
Welfare” (94% of the evaluated projects), which, as mentioned earlier, is the policy framework for
the sustainable development of Moldova for the medium term.
The purpose of the activities carried out by NCU in 2012 was to increase the transparency of the
external assistance operations in Moldova and availability of such information, as well as to enforce
the national regulations on assistance coordination approved in 2010 and reinforce the commu-
nication between the development partners, the public authorities and the civil society in order to
increase the impact of the external assistance in Moldova.
The external assistance disbursements to Moldova in 2012 amounted to 465 million Euros, i.e.
about 8.26% of GDP or about 21.65% of the incomes to the National Public Budget, and about
two fifths of the net remittances.
EXECUTIVE SUMMARY

9Raport anual 2012 cu privire la
The long term balanced economic development and integration of the Moldovan economy with that of the Euro-
pean Union can be achieved only through the efficient use of the internal and external resources.
The external assistance provided by the development partners plays an important role in supporting the country to
develop and achieve the goals set out in the reform agenda. In 2012 the development partners, and especially the
European Union, not only adhered to their commitments, but also allocated additional funds as an expression of
their support for the on-going structural transformations in Moldova.
1.1. Scope of Report
This report was prepared by the General Division for Policy Coordination, Foreign Aid and Central Public Ad-
ministration Reform1
of the State Chancellery as part of the actions meant to increase the government leadership
in the coordination of external assistance and making it more effective.
As the external assistance management issues have taken on more intensity over the last few years, the Government
has adopted a more proactive approach to external assistance, with a focus on the overall improvement of strategic
planning, transparency and monitoring processes.
At global level, there has been an increased awareness of the need to maximize the available resources and to make
more effective use of external assistance, as outlined in the Paris Declaration on Aid Effectiveness and the Global
Partnership for Effective Development Cooperation. The Paris Declaration calls on the development partners and
governments “to provide timely, transparent and comprehensive information on aid flows so as to enable partner
authorities to present comprehensive budget reports to their legislatures and citizens”.
The report covers only the official development assistance (ODA), as well as the non-concessional loans provided
to Moldova and registered in the Aid Information Management System (AIMS) of the State Chancellery. Other
external assistance to Moldova, e.g. humanitarian aid, grants provided to the Moldovan civil society organizations,
assistance to the private sector, etc. is not included in this report2
.
The report could be used by the Government and development partners as a tool for (i) coordination of assistance
provided to Moldova, (ii) evaluation of the external assistance (iii) programming future donor activities in a coor-
dinated manner by linking the aid provided by donors with the national development documents and, (iv) raising
awareness of and providing detailed information to all the stakeholders involved in the implementation of the
development agenda of Moldova.
1.2. Dimensions of Development Assistance Coordination
The international community recognizes different dimensions of development assistance coordination, which can
be seen as three “stages3
”.
Donor coordination refers to the specific mechanisms and arrangements agreed within the donor community to
improve the donors’ effectiveness as partners in the development process.
Aid coordination refers to established mechanisms and arrangements that country governments and donors have
agreed on in order to maximize the effectiveness of external development aid at national or sector levels (more
proactive involvement of government counterparts, creation of a platform for improved aid forecasting and man-
agement systems on the government side
1 Renamed through the Government Decision no. 940/2012, earlier known as General Division for Policies, Strategic Planning and EA.
2 Therefore, the information about the external financial flows is only partially included in the national budget. The technical cooperation, including assis-
tance for study trips and internships, as well as the food and emergency aid or support for NGOs, account for about half of the assistance.
3 Review of coordination mechanisms of development cooperation in Tajikistan, 2009
INTRODUCTION

Development coordination (at national or sector levels) refers to the integration of an aid coordination system
into the national government systems (policy-making and implementation, governance, accountability, etc.) that
ultimately helps achieve development results.
The donor or aid coordination efforts alone will not achieve significant development results unless they are effec-
tively integrated in national development planning and governance structures and systems. In other words, the aim
of coordination is not just “aid effectiveness”, but rather “development effectiveness”.
All these dimensions are present in and relevant for Moldova. Once the national mechanisms of external assistance
coordination were defined (in January 2010), elements like the National Coordinator, Sector Coordinator, Ter-
ritorial Councils, Joint Partnership Council and the donors’ monthly meetings became platforms for permanent
cooperation for coordination and improvement of the external development aid.
1.3. The Role of the State Chancellery
Governed by the principles of the Paris Declaration and the Global Partnership, both the Government and the de-
velopment partners contribute towards strengthening the reform agenda in the national institutions, harmonizing
the national development strategies and synchronizing cooperation with the development partners. The latter are
working with the Government to address the institutional capacity limitations and other constraints that prevent
the adequate use of external assistance.
According to the Government Decision No. 12 dated 19 January 2010 the State Chancellery is the National Aid
Coordination Authority and is responsible, at national level, for the coordination of programming, monitoring
and evaluation of the external assistance delivered to Moldova by the development partners. More specifically, it is
the General Division for Policy Coordination, Foreign Aid and Central Public Administration Reform (NCU) of
the State Chancellery that is in charge of the process. Some of its responsibilities are: (i) provision of support to the
relevant public administration institutions in improving the sector external assistance coordination mechanism;
(ii) monitoring and evaluation of external assistance to maximize its impact on the economic development of the
country, (iii) ensuring transparency of external assistance and the implementation of a communications policy
with the donor community and civil society.
To fulfill these tasks, the State Chancellery uses (i) an Aid Information Management System to record and process
information about the assistance initiatives and related aid flows in Moldova and (ii) a network of Sector Coordi-
nation Councils to manage and monitor the effectiveness of external assistance.
1.4. Methodology
The 2012 External Assistance Report makes an analysis of the external assistance provided to Moldova in the pe-
riod 1 January - 31 December 2012 and evaluates the impact of the support provided by the donor community
for the implementation of the Government Action Plan. The information and statistics presented in this report are
based on the inputs from different public administration institutions and development partners.
This analysis reflects the external assistance information by the chapters of the Government Activity Program4
.
To collect information the following tools were used:
— Aid Information Management System: a database managed by the State Chancellery.
— Quantitative survey: research was based on questionnaires sent to the target groups.
— Desk research: OECD/DAC database, relevant documents [such as the Government Activity Program (2011-
2014 GAP), sector strategies, legal acts and regulations, etc.] were reviewed to allow data triangulation for a more
precise analysis.
There were two target groups: (i) central public administration (CPA) and (ii) donor community.
The survey questionnaire was sent to 29 central public administration institutions to collect project information
for 2012. A simplified questionnaire was sent to the donor community. The distribution of questionnaires was
followed up by discussions with every beneficiary and donor to avoid any difficulties arising with understanding of
the questionnaires and potential mistakes.
4 Government Activity Program „European Integration: Freedom, Democracy, Welfare”, 2011-2014

Disclaimer
The team is aware and acknowledges the fact that some data might be missing or not be fully accurate.
The figures on bilateral disbursements to Moldova might differ from the reports submitted by the development
partners to OECD/DAC. Such differences could arise due to the fact that some support provided by bilateral
donors was channeled through multilateral organizations and was managed by the donors’ central offices, or the
projects are implemented at regional level with a common budget for several countries etc.
2.1. Political Situation
The EU-Moldova political dialogue continued to deepen in 2012 and
the negotiations of an EU-Moldova Association Agreement, including
a Deep and Comprehensive Free Trade Area (DCFTA), (launched in
2012) made significant progress. In 2012, Moldova addressed most of
the key recommendations contained in the previous year’s ENP Prog-
ress Report. It continued the reforms in the areas of social assistance,
health and education, energy, competition and state aid, as well as the
regulatory approximation to the EU acquis. It finalized the remaining
steps under the first phase of the visa liberalization action plan and on
November 19, 2012 the EU Council adopted the Conclusions on the
entry in the second visa dialogue phase.
In 2012 Moldova continued to be the most willing reformer and a frontrunner on many indicators in the Europe-
an Integration Index5
for Eastern Partnership Countries.
5 The Index interprets the “progress in European Integration” in the Eastern Partnership (EaP) countries against three dimensions:
A. Linkage: growing political, economic and social ties between each of the six EaP countries and the EU;
B. Approximation: structures and institutions in the EaP countries converging towards EU standards and in line with EU requirements;
C. Management: evolving management structures and policies for European integration in EaP countries.
„Moldova merită un sprijin conti-
nuu întru respectarea angajamente-
lor sale și este convingerea mea că
merită un viitor ambițios. Vorbesc
aici despre cel mai puternic instru-
ment de politică externă a Uniunii
Europene și expresia puterii sale de
transformare finală - perspectiva
pentru ca o țară să adere”…
(Stefan Füle, Comisar European,
la Forumul UE-Moldova în Berlin,
Germania, la 22 octombrie 2012)
OVERALL POLITICAL AND
SOCIAL-ECONOMIC SITUATION
IN MOLDOVA

The validation by the Constitutional Court of the election of the new President of Moldova put an end to a long
period of political and constitutional deadlock. The Parliament managed to elect a president on 16 March 2012,
thus providing policy makers with a window of stability to move ahead with their reform agenda for greater Euro-
pean integration. However, friction and infighting continued among the ruling alliance members. With regard to
Transnistria, the Moldovan authorities significantly stepped up their contacts with the new leadership in Tiraspol
on the background of a revitalized ‘5+2’ settlement process.
In 2012 some other important events occurred that were relevant to political stability: the reform of the judiciary
“recommenced”; the reform of the Centre for Fighting Economic Crimes and Corruption was initiated; and the
Law on Equal Opportunities was passed. Events of major importance also occurred in foreign policy, including
visits by Angela Merkel, Federal Chancellor of Germany; Jose Manuel Barroso, President of the European Com-
mission; Bronislaw Komorowski, President of Poland, and Jean Claude Mignon, President of the Parliamentary
Assembly of the Council of Europe. These visits were indicative of the European support for integrating Moldova
into the European Union. Another landmark foreign policy event was the repeal by the United States of the Jack-
son-Vanik amendment, which had been in force since 1974 and restricted trade with countries in the Communist
bloc.
To improve the political dialogue with the civil society, the Parliament approved in September 2012 the 2012-
2015 Civil Society Development Strategy and its Action Plan.
Although 2012 was marked by important political events, according to the Freedom House report, in terms of
politics and freedom of the press, Moldova advanced only one point from 19 in 2011 to 18 in 2012. In the fields
of justice and economy, the situation remained the same as in 2011, i.e. 17 points for justice and 19 points for the
economy6
.
6 Report on the situation of the press in Moldova in 2012
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Republic of Moldova
Georgia
Ukraine
Armenia
Azerbaijan
Belarus
Linkage Approximation Management
European Integration Index for Eastern Partnership countries
Source: Civil Society Forum

2.2. Economic Situation
Although Moldova posted a strong recovery from the global economic crisis in 2010 and 2011, the country’s econ-
omy declined in 2012 with real GDP down to -0.8%7
. The economy was hit two-fold: (i) the slowdown in external
demand and (ii) severe drought. Crisis in the Eurozone (sovereign debt and banking crisis) led to lower demand for
exports and remittances from Europe. Meanwhile, agriculture was affected by a drought that caused value added
to decline by 23%, with grain harvest halved. This was offset to a small extent by a minor increase in the value
added in the industrial sector by 0.5%. In addition, robust growth of remittances from the CIS (Community of
Independent States) countries (+18%) and the increase in real wages fuelled increase in consumption by 0.9%.
While the current account improved in 2012, foreign direct investment (FDI) inflows fell. The current account
deficit declined from 11.3% of GDP in 2011 to 7% of GDP in 2012, while the net direct investments almost
halved from 4% of GDP in 2011 to 2.2% in 2012. With FDI falling, the current account deficit was financed by
private sector borrowing and official financing to the public sector.
The Moldovan efforts were also reflected in the
Global Competitiveness Report, where Moldova
went up five ranks to 87 out of 144 states assessed.
Despite this progress, further reforms are still need-
ed, inter alia, in countering the grey economy in
the retail sector, and the legislation needs to be im-
proved.
Remittances (almost Euro 1.2 billion in 2012) continue to play a very important role in the economic develop-
ment of Moldova, mainly in the context of poverty reduction.
On the other hand, the gross external debt increased by 12.7%.
Moldova was ranked 81st out of 183 economies in the Doing Business Indicator in 2012 (jumped 18 points up in
comparison to 2011) and 132nd out of 155 countries in the 2012 Logistics Performance Index.
7 WB Economic Update, 10 April 2013.
GDP, quarterly difference in%
Source: Ministry of Economy
4.7%
6.4%
8%
8.8%
8.4%
6.8%
5.3%
5.8%
1%
0.6%
-1.7%
-2.5%
-4%
-2%
0%
2%
4%
6%
8%
10%
2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4
Remittances in million EURO
Source: National Bank of Moldova
84
166
237 270 280
340
548
680
889
1,128
848
937
1,036
1,162
-
200
400
600
800
1,000
1,200
1,400
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2.3. Social Situation
The unemployment rate 8
declined from 6.7% in 2011 to 5.5% in 2012. Moldova continued important reforms
on social protection, such as the abolishment of nominal compensation system and its replacement with a new
cash-benefits system. The Law on the state budget for 2012 increased the monthly minimal guaranteed income to
640 lei as against 575 in 2011. The number of social aid beneficiaries is on the rise and has got to 78 thousand as
against 72 thousand in 2011. In the meantime, 85% of the funds allocated for social aid reach the poorest 10%
of the population. A law on social inclusion of the disabled was passed in March. The social services network was
complemented with a new service “Mobile Team” which provides social assistance, support and counseling at
home for the disabled people for their further potential social inclusion. The pension reform continued in 2012
with the support of the EU and the World Bank with the aim of increasing the minimum duration of mandatory
contributions and the retirement age for certain categories (judges and prosecutors).
The social dialogue on vocational education was strengthened, with functional sector skills councils9
established in
four sectors: construction, agriculture, information technologies and transport.
3.1 Types of External Assistance
The external assistance complements the efforts of Moldova to foster its own comprehensive development in the
context of EU integration and Busan principles for effective development cooperation: a) ownership of develop-
ment priorities by developing countries, b) focus on results, c) inclusive development partnerships and d) transpar-
ency and mutual accountability.
External assistance to Moldova comprises (i) official development assistance (ODA)10
and (ii) non-concessional
loans, mainly from EBRD, EIB and CEB.
According to the OECD statistics, Moldova is among the top ten countries in Europe by the external assistance it
receives. According to the data for 2011 (OECD data for 2012 are not available yet), the official development as-
sistance in GNI for Moldova is about 6% (5.95%), Moldova coming before all the countries in the region, besides
the Kosovo* region, where the ODA/GNI parity is about 10% (9.9%).
8 In Moldova, the unemployment rate is measured as the ratio of the people looking for a job to the total of labor force.
9 There are at least two preconditions for the existence of the sector skills councils. First of all the Government should be willing to initiate a dialogue with
the sector representatives and the social partners, in general. Secondly, the sector employees and/or workers must associate, to be able to deliver their collective opinion.
10 According to DAC/OECD, „Grants and loans to countries and territories on the DAC list of ODA Recipients (developing countries) and to multilateral
agencies which are: (a) undertaken by the official sector; (b) with promotion of economic development and welfare as the main objective; (c) at concessional financial
terms (if a loan, having a grant element of at least 25 per cent). In addition to financial flows, technical co-operation is included in aid. Grants, loans and credits for
military purposes are excluded. Transfer payments to private individuals (e.g. pensions, reparations or insurance payouts) are in general not counted”.
* This does not refer to the status and is in line with the Resolution no. 1244 and ICJ Opinion on the Kosovo Declaration of Independence.
EXTERNAL ASSISTANCE
STRUCTURE AND IMPLEMENTATION
STATUS IN 2012

Net ODA Receipts (million USD) GNI/CAP
(e)
Population Current
GNI
ODA/GNI
2007 2008 2009 2010 2011 2011 2011 2011 2011
USD mln. USD mln. percent %
EUROPA
Albania 307 363 357 341 307 3 980 3.22 12 900 2.38
Belarus 84 110 98 138 128 5 830 9.47 53 381 0.24
Bosnia and Herzegovina 599 467 414 510 425 4 780 3.75 18 316 2.32
Croatia 163 242 169 151 - - .. - -
Kosovo* - - 781 620 657 3 520 1.79 6 615 9.93
Macedonia, FYR 201 205 192 187 165 4 730 2.06 10 013 1.64
Republic of Moldova 266 298 244 470 451 1 980 3.56 7 568 5.96
Montenegro 106 105 75 80 74 7 060 0.63 4 586 1.61
Serbia 840 973 624 660 596 5 680 7.26 43 991 1.35
Turkey 792 1 116 1 362 1 047 839 10 410 73.64 765 842 0.11
Ukraine 420 618 666 626 750 3 120 45.71 161 449 0.46
Ex-Yugoslavia states, unspecified 55 51 17 18 17 - - - -
Europe, regional 501 830 742 1 008 945 - - - -
EUROPE, TOTAL 4 334 5 377 5 741 5 856 5 352 .. 151.09 .. ..
*Această denumire nu aduce referință statutului, și este în conformitate cu rezoluția 1244 și Avizului CIJ privind declarația de Independență a Kosovo
After the change of government, when a new coalition - the Alliance for European Integration - came to power
in September 2009, the new government asked from the international donor community support for the imple-
mentation of the priority reforms for the country’s economic growth laid down in “Rethink Moldova” and at the
Consultative Group Meeting “Moldova Partnership Forum” in Brussels in March 2010 it received pledges of 1.84
billion Euros (0.96 billion in grants (52%) and 0.88 billion in loans (48%) for the period of 2011-2013. By and
large, the United States (through the USD 260 million Millennium Challenge Compact signed in 2010) became
the Republic of Moldova’s largest bilateral development partner. Collectively, the European Union and the EU
member states pledged 40% of the resources committed at the meeting.
Către finele anului 2012 peste 70% din resursele prevăzute în cadrul reuniunii din 2010 de la Bruxelles au fost
More than 70% of the funds committed at the meeting in Brussels in 2010 were disbursed by the end of 2012 for
specific projects in different sectors of the national economy. Besides, Moldova received additional external funds
amounting to about 800 million Euros. Therefore, the donor community provided to Moldova 2.6 billion Euros
from 2010 to 2012 (40% more than the financial commitments made at the meeting in Brussels).
The estimated funds provided by donors in 2012 amounted to about 474 million Euros. According to the State
Chancellery data (IDEA), the budget of the projects contracted in 2012 amounted to about 206 million Euros,
while the disbursements reported by donors amounted to about 465 million Euros (about 98% of the estimated
amount).
The cooperation between Moldova and the development partners has different forms – technical assistance, sup-
port for different investment or social projects, budget support for the implementation of sector policies or support
for maintenance of the state’s balance of payments.
The objectives of the cooperation between the Government of Moldova and the development partners are agreed
and stated in the medium term cooperation framework agreements.
According to the available development cooperation data, the assistance for the implementation of projects ac-
counts for the largest part (75%), followed by the sector budget support (about 17%), technical assistance and
maintenance of the state’s balance of payments.
Given the budgetary constraints and the limited ability to cover the state debt, the Government’s preferred type of
external assistance is the grants and/or preferential loans. The amount of external assistance under implementation
in 2012 was, according to the State Chancellery database, about 1.1 billion Euros in the form of grants and 682,8
ODA received for the developing countries (Europe)
Source: OECD statistics

mln. Euros in the form of loans. Therefore, in 2012 about 109.4 million Euros were received in the form of grants
and 97.1 million Euros in the form of loans (EBRD, EIB, and WB). The active grants account for about 62% of
the external assistance. In 2012 the grant – loan parity was 53% and 47% of the external assistance received in
2012.
The community of the development partners active in Moldova gathers together about 30 countries and organiza-
tions and covers both multilateral (IFIs) and bilateral cooperation. The table below contains information by donors
about the amount of the ongoing assistance in 2012, as well as the assistance contracted in 2012. The largest pro-
vider of the ongoing financial assistance in 2012 is EU, followed by the Government of USA, WB, EIB, EBRD,
the Government of Romania, UN, the Government of Sweden, the Government of Japan and the Government of
the Swiss Confederation. In terms of the funds contracted in 2012 the largest development cooperation provider is
also EU, followed by WB, EU’s financial institutions, UN, the U.S. Government, the Government of Austria, the
Government of Sweden and the Government of the People’s Republic of China (bilateral).
Donor Ongoing (Euro) Contracted (Euro)
European Union 488,349,915 52,685,902
United States of America 292,546,224 21,726,235
World Bank 321,887,911 40,326,516
European Investment Bank 209,800,000 27,300,000
European Bank for Reconstruction and Development 140,998,160 27,220,074
Romania 102,816,169 478,169
United Nations 85,770,655 1,692,866
Kingdom of Sweden 52,332,996 6,041,493
Japan 37,163,402 268,836
Swiss Confederation 17,986,727 1,191,496
Council of Europe Development Bank 13,400,000 13,400,000
Austria 14,479,129 8,425,094
Federal Republic of Germany 12,019,418
People’s Republic of China 11,247,024 4,739,024
Global Fund to Fight AIDS, Tuberculosis and Malaria 7,434,590
682.8
97.1 117.91
1137.9
109.4
232.5
0
200
400
600
800
1000
1200
Ongoing(2012) Contracted (2012) Disbursed (2012)
Soft loan (mln. EUR) Grant (mln. EUR)
Bugetul proiectelor aflate în derulare, contractate și debursate în 2012
Sursa: AMP, Cancelaria de Stat, elaborat în baza informației raportate de Donatori și Ministerul Finanțelor.

Kingdom of the Netherlands 4,956,980
Liechtenstein 3,653,505 453,111
Norway 1,582,154
International NGOs 944,474
Turkey 560,008 556,008
Slovakia 368,640 65,639
Denmark 197,625
Council of Europe 108,000
Czech Republic 96,266 96,266
Italy 79,710
Total 1,820,779,683 206,666,729
25.49%
19.51%
13.21% 13.17%
10.51%
6.48%
4.08%
2.92%
2.29%
0.82%
1.50%
European Union World Bank European
Investment
Bank
European Bank
for
Reconstruction
and
Development
United States of
America
Council of
Europe
Development
Bank
Austria Sweden People’s
Republic of
China
United Nations Other
According to the principles of efficient development cooperation, the link of the assistance with the national pri-
orities is critical for economic development and improvement of the standard of living. Over the last years the
Government and the development partners had a good communication. Evidence is the results of the question-
naires for two years in a row, which reveal that more than 90% of the ongoing projects are aligned with the nation-
al development priorities. The efforts of both parties to increase the efficiency of the external assistance focused on
the reduced fragmentation of projects and the balanced presence of the partners in different sectors. The evaluation
of the presence of donors in the sectors described in the Government Action Plan shows the following breakdown
– economic and financial policies (14), environment (11), healthcare and social issues (9 each), education, efficient
civil service and rule of law (8 each), foreign policy and reintegration (5 each) and youth policies, culture and in-
tegration of minorities (4 each). On the other hand, the donors are still scattered on different sectors (UN – 9, EU
– 8, WB, Germany - 6), this hindering the coordination of the activities and achievement of specific results in the
more difficult sector reforms.
AE în derulare și contractate în 2012 pe Donatori
Sursa: AMP
Repartizarea pe donatori a sumelor contractate în 2012, în procente
Sursa: AMP

The table below shows the breakdown of external assistance by sectors11
. According to the ranking, the Transport
and Storage, Government and Civil Society, Other Social Infrastructure, Agriculture and Business and Other Ser-
vices are the top five sectors that account for about 78% of the ongoing external assistance. The assistance contract-
ed in 2012 (about 206 million Euros) covers the Business and Other Services, Energy, Transport, Government and
Civil Society and Agriculture, accounting for 81% of the total assistance amount. This indicates that the external
assistance is channeled to investment projects for the economic sectors and important structural reforms. The
projects contracted in 2012 are related to the implementation of the Competitiveness Enhancement Project (WB
– 23 million Euros), rehabilitation of electric transport networks (EBRD, EIB – 32.6 million Euros), competitive
agriculture (WB – 14 million Euros), construction of housing for the socially vulnerable categories (CEB – 13.4
million Euros), support of trust building measures between the Nistru banks (EU – 12 million Euros) and road
rehabilitation in the Chisinau municipality (EBRD, EIB – 20 million Euros).
Sector Ongoing (Euro ) Contracted (Euro)
Transport and storage 361,379,960 26,815,988
Government and civil society 314,807,731 24,876,427
Other social infrastructure and services 257,729,834 17,021,192
Business and other services 223,397,122 43,916,006
Agriculture 197,271,534 21,700,531
Energy generation and supply 140,301,914 42,683,319
Water and sanitation 109,372,487 2,742,568
Health 105,759,747 8,269,667
Education 32,985,283 10,709,052
Multisector/Crosscutting 22,635,716 1,506,826
Banking and financial services 22,075,980 -
Industry 14,300,045 -
Communication 7,109,945 422,322
Tourism 3,789,913 3,380,693
Trade policy and regulations and trade-related adjustment 3,228,059 2,040,000
Humanitarian aid 1,786,115 -
Population policies/health programs 1,249,823 59,468
11 Sectors used according to the OECD sector classification
2 2 2 2
3
2
4
8
3
6
3
2
3
1
3 3
1
5
1 1
9
4
6
0
1
2
3
4
5
6
7
8
9
10
Total number of sectors covered by donors
Source: State Chancellery, based on the CPA inputs

Refugees in donor countries 1,192,839 117,030
Construction 405,639 405,639
Grand Total 1,820,779,683 206,666,729
3.2 Financing Modality
The commitment of Moldova to the Paris Declaration principles on aid effectiveness (ownership, alignment, har-
monization, delivering for results and mutual accountability) translates into a strong focus (i) on national and
sector development planning and budgeting, (ii) leadership in aid coordination, (iii) improvement of its systems
and procedures to ensure efficient, transparent and cost-effective allocation and implementation of resources and
(iv) mutual responsibility for results and for monitoring progress. It also leads to a preference for participation in
sector approaches and for budget support instead of project approach.
A sector approach is a way of working together between Government, development partners and other key sector
stakeholders. It is a process aiming at broadening government and national ownership over public sector policy and
resource allocation decisions within the sector, increasing the coherence between policy, spending and results, and
reducing transaction costs. The sector approach serves as a coordination framework for government’s own activities
and for donor support which may take different forms, including projects, technical assistance and budget support.
The EU aid instrument for providing sector support to Moldova is known as a Sector Policy Support Programme
(SPSP) complementing the budget support with targeted technical assistance, including Twinning, TAIEX and
SIGMA instruments.
Ongoing and contracted EA in 2012 by sectors
Source: AMP
Breakdown of contracted assistance by sectors in 2012, % of the total
Source: AMP
250 - BUSINESS AND OTHER
SERVICES
21%
230 - ENERGY GENERATION
AND SUPPLY
21%
210 - TRANSPORT AND
STORAGE
13%
150 - GOVERNMENT AND
CIVIL SOCIETY
12%
311 - AGRICULTURE
11%
160 - OTHER SOCIAL
INFRASTRUCTURE AND
SERVICES
8%
110 - EDUCATION
5%
120 - HEALTH
4%
332 - TOURISM
2%
140 - WATER AND
SANITATION
1%
OTHER
2%

The sector programs, besides the EU budget support programs, are implemented in the transport sector, where a
number of partners (WB, U.S. Government through the MCC Compact, EU and the European financial insti-
tutions – EBRD, EIB) provide support for the rehabilitation of the road networks in Moldova. The EU and its
member countries, the Government of Sweden and UN support the Government of Moldova in the implemen-
tation of the central and local public administration reform and institutional building of the Moldovan public
administration.
Large infrastructure projects are also implemented in the water supply and health sectors with the joint support of
the development partners (EU, EIB, WB, Government of Austria, EBRD etc.).
Budget Support
Moldova’s favored financing modality is budget support, but in certain circumstances the best available option may
be project support or pooled/trust funding with other donors.
The EU and WB are the only providers of budget support to Moldova.
The EU budget support assistance in 2007-2013 covers the following sectors: (i) Social, (ii) Health, (iii) Water
and Sanitation, (iv) Rural development, (v) Energy, (vi) Justice, (vii) VET and (viii) Mobility and Security - Visa
Liberalization.
In 2012 four sector budget support programs were implemented with the EU support and one program was im-
plemented with the World Bank support.
The World Bank’s budget support provided to Moldova in 2012 (30 mln. USD) and targeting the reforms aiming
at economic growth and poverty reduction aimed to:
- Increase the productivity and bring in new investments for exports by improving the investment climate;
- Facilitate the access to funds for investments.
As for the policy actions agreed with the WB to achieve the program objectives, the Government has made sig-
nificant progress in the implementation of the reform agenda. In some sectors, as agriculture, investment climate
and productivity, the reform program has made significant progress, while others are underway. The law packages
passed by the Parliament in 2012 in order to align the national legislation with the EU legislation in terms of tech-
nical regulations, standardization, state control, state aid, competition etc. are meant to improve dramatically the
investment climate in Moldova. Similarly, the law on the payment services and the electronic currency, implemen-
tation of the international reporting standards by the licensed commercial banks and the new law on the capital
market aim to facilitate the access to finance for investments.
The sector budget support programs, implemented in 2012 with the EU financial support, targeted the health,
water and sanitation sectors, economic stimulation in the rural areas and the energy sector.
In the health sector, where the only sector program was at its final stage, relevant activities were carried out, in
particular related to the monitoring and evaluation of the health system, enhancement of the role of cooperation
in the public-private partnerships, implementation of the HR plan in the health sector, tobacco control activities,
as well as increased transparency of procurements in the health sector. The program, in general, was implemented
successfully, and all the policy measures agreed in its policy matrix were carried out. Therefore, additional funds
were provided for the Program (6 mln.Euros) in November 2012 for fitting out the public health laboratories in
the Moldovan public health centers and the Medical Simulation Center of Nicolae Testimiteanu State Medicine
and Pharmacy University in Chisinau.
The water supply and sanitation sector support program made less progress in 2012 in the delivery on the com-
mitments laid down in the policy matrix agreed by the EU and the Government of Moldova. The purpose of the
program was to support the country in the implementation of reforms in the water supply and sanitation sector,
providing financial and technical assistance for priority activities and the political dialogue in this sector that is so
important for the population and environment.
The evaluation of the sector policy measures by the EU experts revealed that 65% of the commitments were
achieved. While significant progress was made in relation to the system extensions and expansion of the access of
the people to water, promotion of the market economy principles and the environment protection measures, im-
provement of the internal and external control, the central and local public authorities are expected to make more
efforts in order to decentralize the water supply and sanitation services, to improve the medium-term planning, the
social dialogue and public procurement, where significant gaps were found.

The economic stimulation in the rural areas is another budget support program implemented with the EU support.
In 2012 the policy measures, aimed to develop the economic development capacities at local level and facilitate
the access to financial instruments, helped increase the number of start-ups and jobs in the rural areas. The capi-
talization of NPEEY, PARE 1+1, the ODIMM Guarantee Fund and AIPA contributed to more than 330 grants
provided for more than 220 start-ups and creation of more than 300 jobs. To develop the support infrastructure
for businesses, the program contributed to the opening of three additional incubators in Moldova (Stefan Voda,
Leova and Rezina) and preparation for the launch of another two incubators in 2013 (Singerei, Cosnita). This
program also addressed issues related to the gender dimension in the development policies of the national SMEs,
development of the business training skills in the vocational schools, regional development policies, as well as bud-
get planning and public finance management.
Due to the successful implementation of the planned policy measures EU provided additional resources to the
program (14 mln. Euros, December 2012).
Energy sector also received EU budget support for reforms and improvement of the technical operation of the
sector. Since the agreement was signed in December 2011, the first year of the program implementation was 2012.
Revision of the Energy Sector Development Strategy up to 2030, approval of the National Energy Efficiency Pro-
gram, creation of the one stop shop for the investors in the energy sector, alignment with the EU legislation, as
well as the development of the institutional capacities and the skills of staff are specific steps made as part of the
program implementation. These policy measures enabled to achieve quantitative results – implementation of about
197 energy efficiency projects, using new technologies which allow for saving public funds, and ten energy audits
of public buildings.
Since the implementation of the EU sector budget support programs started in 2007 the amount of such projects
has been about 298 mln. Euros so far. The budget support programs covered by the 2011-2013 NIP12
account for
53% of the total amount of 148.6 mln. Euros, including the technical assistance.
The table below contains information about the EU budget support programs
PNA
Anual
Sector
BSP Components
Addendum
/ additional
BSP amount
mln. EUR
New
BSP
com-
ponent
mln.
EUR
Statut
Disbur-
sed in
previous
year
mln.
EUR
Disbursed in
2012 Planned
disburse-
ment in
2013 mln.
EUR
mln. EUR mln. EUR
Original
total allo-
cation
PSB
AT și alte
acțiuni
Plan-
ned
Actual
1.      2007 Social PSB 1 0 20 Completed 20 - - -
2.      2008 Health
TA and
other
actions
43.45 3.15 6 49.45 Ongoing 38.97 4.48 4.14 6
3.      2009
Water and
sanitation
45 37 8* 5 42 Ongoing 15 14 12.03 13
4.      2010
Economic
stimulation in
rural areas
45 42 3 14 56 Ongoing 25.85 13 3.15 13
5.      2011 Energy 42.6 40 2.6* 0 40 Ongoing 13 13 0 13
6.      2012 Justice reform 52 50.2 1.8 8 58.2 Signed FA 0 0 0 15
7.      2013 VET 25* - - - -
Under
preparation
- - - -
8.      2013
Mobility and
security re-
form
21* - - - -
Under
preparation
- - - -
TOTAL 298.2 232.65 19.55 33 265.65 112.82 44.48 19.32 60
As already mentioned above, the Government’s preferred type of assistance is the grants and the concessional
funds. Additionally, the application of the national systems for external assistance use helps reduce the transac-
tion costs of assistance and build the capacities for the use of assistance, using the national funds management
systems. The implementation of the budget support programs is fully in line with what has been mentioned
above. Therefore, it should be noted that about 95% of the amounts allocated for EU BSP were used.
12 NIP 2011-2013 –MEUR 281.14 (including MEUR 8 of more for more)
* Planned amount
EU ENPI Budget Support Program in Moldova
Source: State Chancellery

The budget support is complemented with targeted technical assistance, where technical assistance is a valuable
tool for providing policy advice and/or expert advice, thereby supporting the development of the national capaci-
ties with a focus on ‘learning by doing’ at organizational and/or individual levels. Where possible, the management
of technical assistance is integrated in the national structures and designed to complement, not substitute, the
national expertise with mechanisms in place through which knowledge and know-how can be transferred to per-
manent staff. In Moldova a provision is made in each SPSP programme budget, within the budget support com-
ponent, for recruitment of technical assistance. For example, in the Justice and VET sectors a substantial provision
was made outside the budget support components to provide TA (judicial reform - MEUR 10, VET – MEUR 5)
for the preparation of policy documents, capacity building and improved sector coordination.
The multilateral approach in the form of multi-donor trust funds for the country allows the priorities of the
national government to be taken into account, together with the development partners’ priorities. Multi-donor
trust interventions, including project-based ones, directly contribute to the implementation of existing national
programmes and strategies. Two multi-donor trust funds assist the Moldovan authorities in achieving its strategic
goals: (i) the multi-donor trust fund managed by the World Bank for the implementation of the Central Public
Administration Reform and (ii) the Neighborhood Investment Facility (NIF), which is blending grants from the
EU budget with loans from multilateral European development banks like EIB, EBRD and CEB, as well as the
contributions from the partner countries. It supports infrastructure projects in the transport, energy, social and
environment sectors, as well as private sector initiatives (in particular SMEs) in the EU Neighborhood region.
The bulk of external assistance provided by the donor community to Moldova is technical assistance in support of
the national reform agenda. In 2012 the technical assistance was used by development partners to build the insti-
tutional capacities of the central public authorities, to prepare studies, strategies, tender documentation, provide
consulting services, etc. to support the implementation of the Government Activity Program. Technical assistance
in the form of grants is a key instrument for improving the quality of lending operations towards investment and
enhancing their development impact. It is an integral part of the appraisal and implementation process for devel-
opment banks loans, and provides the analytical data needed to understand the economic and financial develop-
2007/Social 2008/Health 2009/Water and Sanitation 2010/Economic stimulation
in rural areas
2011/Energy 2012/Justice Reform
0
10
20
30
40
50
60
BSP Additional Funding Disbursed Commited
Budget Support Programs

ment issues of the partner countries.
Despite the noticeable increase of budget support allocations within the overall portfolio of external assistance
(from 21 mln. Euros in 2007 to 83 mln. Euros) in the past several years, the technical assistance will keep a signif-
icant share in the total structure of external assistance in the forthcoming years. The investment support provided
by the development partners (EBRD, EIB, WB, CEB, USA, EU etc.) for the implementation of large infrastruc-
ture projects – rehabilitation of power networks and roads, infrastructure development in agriculture, construction
of housing for the socially vulnerable groups, as well as conservation of the cultural patrimony, accounted for about
129 mln. Euros in 2012 (63% of the total amount).
The EU Neighborhood Investment Facility provides funding to infrastructure investment in transport, energy
(with a focus on renewable energy and energy efficiency), water and sanitation, environment and social sectors,
as well as to the financial and private sectors, with a focus on SMEs. In 2012 NIF approved to provide EUR 11
million of grants for the rehabilitation of power networks, modernization of the public transport and rehabilitation
of roads.
3.3. Overview of Donor Support in 2012
This section of the report makes a very brief overview of the support provided by the top 10 development partners
to Moldova in 2012.
Moldova is among the top ten countries in Europe (the sixth) by development cooperation received, with a 7%
average of all the assistance provided to the region for 2009-2011, followed by Albania, Macedonia, Belarus and
Croatia.
2009 2010 2011
3-year
average
% of all recipients
1 Turkey 1362 1047 839 1083 19%
2 Kosovo* 781 620 657 686 12%
3 Ukraine 666 626 750 681 12%
4 Serbia 624 660 596 627 11%
5 Bosnia and Herzegovina 414 510 425 450 8%
6 Republic of Moldova 244 470 451 388 7%
7 Albania 357 341 307 335 6%
8 Macedonia 192 187 165 181 3%
9 Belarus 98 138 128 121 2%
10 Croatia 169 151 _ 107 2%
Other beneficiaries 834 1106 1035 992 18%
Total ODA beneficiaries 5741 5856 5352 5650 100%
* This does not refer to the status and is in line with the Resolution no. 1244 and the ICJ Opinion on the Kosovo Declaration of Independence
According to the data delivered by the development partners and the Ministry of Finance, about 465 million Eu-
ros were disbursed as external assistance, while other 322 million Euros and 213 million Euros were planned for
2013 and 2014, accordingly. The availability of full information about the disbursed and planned assistance for the
following years is an internationally agreed principle meant to ensure the transparency of the information and pre-
dictability of the development cooperation. Unfortunately, the collection of information is still difficult, one of the
reasons being the consolidation of the annual financial data of the development partners and their central offices.
Top 10 external assistance recipients in Europe
Source: OECD/DAC statistics

Development Partner
Number of ongo-
ing projects
Disbursed in 2012
MEUR
Planned for
2013
MEUR
Planned for
2014
MEUR
1 Austria 16 8.54 2.40 2.60
2 European Council Development Bank - 3.80 3.73 4.71
3 Czech Republic 16 2.87 - -
4
European Bank for Reconstruction and
Development
- 8.13 18.25 40.40
5 European Investment Bank - 27.84 27.56 52.29
6 Estonia - 0.49 0.50 0.70
7 European Union - 85.94 100.35 -
8 Japan - 1.36 - -
9 Holland - 3.50 - -
10 Federal Republic of Germany - 5.37 - -
11 Finland 23 12.00 14.00 16.00
12 France 182 1.15 1.35 -
13 Hungary 8 0.62 - -
14 International Monetary Fund 114.92 - -
15 Liechtenstein 6 0.92 0.97 0.65
16 Lithuania 12 0.85 0.53 -
17 Poland 21 1.02 - -
18 Romania 14 14.00 - -
19 Sweden 25 13.00 12.80 8.00
20 Swiss Confederation 11 5.80 7.40 8.70
21
Global Fund to Fight AIDS, Tubercu-
losis and Malaria
1 5.00 1.20 1.20
22 United Nations 98 30.80 31.40 17.70
23 Turkey 21 1.14 2.60 -
24 United States of America 14 35.59 57.42 40.19
25 Slovakia 18 0.12 0.29 -
26 People’s Republic of China 6 6.61 6.23 -
27 World Bank 23 70.64 33.04 20.07
28 Other - 3.32 - -
TOTAL 515 465.33 322.01 213.21
Disbursed and planned assistance
Source: State Chancellery, based on the inputs from donors and Ministry of Finance

If one looks at the amount of external assistance against macroeconomic indicators, one can see the ratio of the
external funds to the foreign direct investments or remittances, as well as the share of such funds in GDP and in
the incomes to the National Public Budget. It should be noted that the amount of the remittances in 2012 (2010
for comparison) is three times higher than the external assistance, while the Foreign Direct Investments are by one
third less than the external assistance. The share of ODA disbursed in 2012 in GDB continues to be 8.26% and
about 21.65% of the current incomes to the National Public Budget.
European Union. The key assistance instrument used by the EU in Moldova is the European Neighborhood
Policy Instrument (ENPI) - a financial instrument that supports the European Neighborhood Policy (ENP) and
the Eastern Partnership (EaP) initiatives covering specific assistance actions for the neighboring countries.
In 2012 the European Union continued to
assist the Government of Moldova (within
the 2011-2013 NIP) in the implementation
of the EU-Moldova ENP Action Plan to en-
shrine the European values and respect for
human rights into the fabric of Moldova’s
institutions and political life.
The 2011-2013 EU National Indicative
Programme (signed in March 2010) pro-
vides an envelope of about 273 MEUR for
reforms in three sectors agreed by the par-
ties: (i) good governance, rule of law and
fundamental liberties; (ii) human and so-
cial development; (iii) trade and sustainable
development. The chart depicts the initial
financial distribution among these sectors
and the use of these funds. Therefore, about
194 MEUR (71% of the total amount) are
committed for sector (i), about 30 MEUR
(11%) for sector (ii) and about 49 MEUR
(18%) for sector (iii).
External assistance in the macroeconomic context, MEUR
Source: State Chancellery, based on the reports by donors and Ministry of Finance
0 200 400 600 800 1000 1200
Disbursed EA
Remittances
Foreign Direct Investments
448
937.29
151.8
465.33
1162.19
122.5
2012 2010
Evolution of the European Union funds allocated to Moldova
50
66
78.6
122.2
0
20
40
60
80
100
120
2009 2010 2011 2012

Within the 2012 national envelope the EU allocations originally were EUR 94.2 million. Then, in recognition of
Moldova’s outstanding performance to carry out structural reforms to improve respect of democratic standards and
the creation of a functioning market economy, the EU by using the Eastern Partnership Integration and Coop-
eration (EaPIC) programme has significantly increased its bilateral assistance budget by 30% bringing it to EUR
122 million.
Astfel, alocațiile PNA pentru 2012 prevăd13
52,2 mln .de euro pen-
tru Programul de suport bugetar în sectorul The national envelope
for 2012 allocates13 EUR 52.2 million to the Justice Sector Reform
Budget Support programme, EUR 30 million to the Support for the
Implementation of the EU-Moldova Agreements programme (phase
II of the CIB Programme, Twinning and TA projects), EUR 7 million
to the Regional Development Pilot Programme and EUR 5 million to
the preparation of Vocational Education Sector Budget Support pro-
gramme. Additional allocations (28 MEUR) by the EU were chan-
neled to the ongoing programs in the health and justice sectors and
economic stimulation in the rural areas.
In 2012 the EU disbursements from the national envelope and mac-
rofinancial assistance (30 MEUR) to Moldova amounted to almost 56
MEUR. In 2012 the EU signed eight financing agreements (for details
see Annex C).
Five sector budget support programmes, with a budget of about 200 mln Euros, were implemented in 2012 and
the preparation for the next BSP for NAAP 2013 started with an estimated 46 mln Euros for vocational education
and mobility and security reforms.
Other 8 Twinning projects were underway in 2012; three were completed in 2012, four were launched and oth-
13 Din cauza procedurilor administrative ale Comisiei Europene, fondurile UE angajate sunt debursate cu o întârziere de unu-trei ani.
73.2
25 42.6
40
10
5
7
70.35
0
20
40
60
80
100
120
140
160
180
200
Governance Social Trade
Support to the EU-Moldova Agreements Technical Assitance Sector
Confidence Building Measures Budget Support Programme
Good governance,
rule of law
and fundamental
freedoms
Human and social
development
Trade and
sustainable
development
35 – 40%
95 – 109 mln. EUR
25 – 30%
68 – 82 mln. EUR
35 – 40%
95 – 109 mln. EUR
2011-2013 National Indicative Programme, initial provisions and allocations according to the financial agreements signed
MEUR
„…Adding other EU assistance
funds to these grants we stand at
EUR 41 per capita - the highest
level of support in the European
Neighborhood! In the last six
years the EU’s financial support
has increased by five times, from
EUR 25 million in 2006 to EUR
122 million in 2012!!” (José Ma-
nuel Barroso, President of the Eu-
ropean Commission in Chisinau
on 30 November 2012)

er five projects were at the preparation stage. The TAIEX instrument was one of the favorite tools of the public
institutions in Moldova, which took part in 87 events, which benefited 1244 civil servants. In the meantime, the
central public administration reform, the modernization of the public procurement and public internal control
systems were supported through three SIGMA projects.
Besides the national programme, Moldova benefits from other EU programmes and instruments: east-regional
(e.g., TRACECA, INOGATE), inter-regional (Neighborhood Investment Facility - NIF, TAIEX, SIGMA, CIU-
DAD, TEMPUS and Erasmus Mundus), cross-border cooperation (Moldova-Romania-Ukraine and Black Sea),
transnational cooperation (South-East Europe), specific (e.g., Investing in People, Migration and Asylum, Non-
State Actors and Local Authorities), EU internal programs (e.g., FP-7) and other.
World Bank. The current portfolio of the World Bank included 13 investment projects amounting to USD
329.5 mln. net commitments. The AID portfolio covers almost all the sectors, but most of the activities are in
infrastructure, HR development and rural development. WB also manages a substantial portfolio of the Trust
Fund for Moldova, which at the beginning of the calendar year 2012 amounted to 76.4 million USD – the largest
budget in the region of Europe and Central Asia.
In 2012 the cooperation with WB continued as part of the 2009-2012 Country Partnership Strategy focusing on
the improvement of the economic competitiveness, mitigation of the social and environmental risks, consolidation
of the human capital, promotion of the social inclusion and improvement of the public sector governance.
As far as transparency is concerned, the cooperation with the World Bank may be considered the most efficient in
terms of the openness of the WB information. Moldova is the first country to sign the Open Data Agreement with
the WB (April 2012), which provides for the free access of development cooperation data. The information about
funding agreements, the financing conditions and the financial data on project implementation are available on
the World Bank’s official websites. Therefore, anyone can get any information about the use of the public funds in
the implementation of different investment or development projects.
The four projects approved in 2012 support the implementation of reforms for investments in agriculture, educa-
tion and competitiveness enhancement.
In 2012 the WB started preparing a new 2014–2017 Country Partnership Strategy (CPS), which will further
support Moldova in boosting prosperity and reducing poverty by capturing the full benefits of openness and inte-
gration with the EU and the broader global economy. Three pillars are proposed that will help Moldova diversify
and expand its institutional, human and natural capital: (i) Increasing Competitiveness, (ii) Enhancing Human
Capital and Minimizing Social Risks and (iii) Promoting a Green, Clean, and Resilient Moldova.
European Bank for Reconstruction and Development, European Invest-
ment Bank, Council of Europe Devel-
opment Bank. EBRD and EIB are two of the most
active development partners in infrastructure investments in
Moldova. Their support helped implement a number of road
infrastructure, transport, water supply and sanitation projects
and projects in other sectors. In 2012 two major projects were
signed - critical for Moldova and Chisinau municipality, with
a total budget of 52.6 MEUR. The first project targets the
rehabilitation of the power networks of the SE “Moldelectri-
ca” and its objective is to consolidate the regional intercon-
nections and development of the regional trade in the energy
sector, thus facilitating the integration of Moldova into the
European Network of Transmission Systems Operators for
Electricity (ENTSO-E). EBRD is active in energy efficiency
and opened two credit lines in 2012 for the private sector.
Source: State Chancellery, based on the reports by donors and Ministry of
Finance0
50,000,000
100,000,000
150,000,000
200,000,000
Integral (mln. EUR) Capital Investments (mln. EUR)
Total Budget EBRD/EIB/CEB

CEB is present in Moldova in particular through social infrastructure projects and also contributed to the reha-
bilitation of the Republican Hospital. The first phase of the housing project for the socially vulnerable groups was
completed and the MEUR 20.3 financing agreement for its second phase was signed in 2012, where the CEB loan
accounts for MEUR 13.4. The arrangements for the feasibility studies for the launch of a new human rights project
started by improving the detention conditions.
Sweden. In 2012 Sweden was the largest European bilateral donor for Moldova implementing projects in
three sectors: 1) democracy, human rights and gender equality; 2) sustainable infrastructure, with a focus on energy
and 3) market development. In Moldova, Sweden supports programs through SIDA, with country allocation of
about 13 mln. Euros per year and with a special allocation for NGOs amounting to about 812 thousand Euros
per year.
It should be noted that the Government of Sweden pays a special attention to the human rights and gender equal-
ity dimensions and it is the only development partner that supports programs that directly target the involvement
of women in politics, social and business sectors. In 2012 different programs were launched targeting women
meant to increase their leadership skills and the knowledge required to start businesses.
Sixteen projects with a total budget of 36.8 million Euros are underway.
United States of America. The assistance provided by the U.S. Government continues to support the
transition of Moldova to a transparent and participatory state governed by the rule of law and with a functional
market economy. The programs implemented with the support of the U.S. Embassy, USAID and MCC contribute
to fighting corruption and transnational crime, including trafficking in human beings, development of agriculture
and road rehabilitation, economic growth and improvement of central and local governments.
The MCC’s largest ongoing projects – road rehabilitation project and transition to high value agriculture project
started the works on the sites in 2012. Other three projects aimed at improving the private sector and economic
growth, supporting the local government and enhancing the law-enforcement institutions were allocated addition-
al 9 mln. Euros.
Therefore, according to the IDEA data, there were 26 ongoing projects in 2012 with a total budget of about 278
mln. Euros (including MCC) and other 21 projects started in 2012 with a total budget of about 16 mln. Euros.
Breakdown of funds by sectors
Source: Ministry of Foreign Affairs of Sweden in cooperation with the Swedish International Development Cooperation Agency

United Nations Organization. One of the most active advocates of the development policies for
poverty eradication and human rights is the UN team in Moldova. Completion of the 2013-2017 UN-Moldova
Partnership Framework is one of its major successes in 2012 achieved in concert with the UN. This document
was drafted jointly by the UN Country Team and the Government of Moldova following large consultations with
other partners with the purpose to support the country’s efforts to achieve the Millennium Development Goals
and the European integration goal. This process reveals the increased capacity of the Government to take the lead
in defining the development agenda and the availability of the development partners to cooperate to make the
development aid more efficient.
The ongoing projects implemented with the UN support in 2012 targeted the priority sectors that were laid down
in the 2007-2012 United Nations Development Assistance Framework (UNDAF), more specifically (i) good gov-
ernance, rule of law, equal access to justice, human rights; (ii) fair and guaranteed access to the basic services and
(iii) regional and local development.
Given the flexibility and the large presence of the UN entities in Moldova, UN is implementing projects as an im-
plementing entity for other international and multilateral organizations. Therefore, in 2012 UN implemented the
“Energy and Biomass in Moldova” project funded by the EU; the Joint Integrated Local Development Programme,
with the support of the Government of Sweden; the Institutional Building Project funded by the Government of
Romania; the “Improvement of irrigation systems to support small farmers” project with the support of the Gov-
ernment of Hungary and other.
Overall, 98 projects amounting to about 50.5 mln. USD were underway in 2012 in cooperation with the UN
agencies.
Federal Republic of Germany. The Government of the Federal Republic of Germany supports
the implementation of the structural reforms and improvement of local infrastructure in Moldova. The sectors in
which the Government of Germany implemented five projects amounting to about 12.9 mln. Euros in 2012 are
agriculture, education and regional development. Following the visit of the Federal Chancellor Angela Merkel to
Chisinau, the German development cooperation increased with about 19 mln. Euros allocated for further imple-
mentation of infrastructure projects in the country’s development regions.
People’s Republic of China. Over the last years the Government of the People’s Republic of China
has been active in supporting the efforts of the Government of Moldova to achieve its goals, in particular in the IT
and health sectors, by providing modern equipment. In 2012 Beijing provided to Moldova assistance amounting
to 6.6 mln. Euros, 4.7 mln. Euros of which were used to procure PCs for the student hostels and traffic monitoring.
The support of the Government of Austria facilitated the access to concessional loans. It allocated 7.5
mln. Euros for improvement of health services at the Republican Hospital of Moldova.
Funds planned for disbursement by USA for Moldova
Source: State Chancellery, based on the reports by donors and Ministry of Finance
15.7
21.4
22.3
37.2
0
5
10
15
20
25
30
35
40
2009 2010 2011 2012

On January 14, 2011 the Parliament of Moldova took a confidence vote for the Government and its Activity
Program. The new Government committed to continue the actions started by its predecessor, which was also man-
dated by the parliamentary majority called Alliance for European Integration. These actions focus on the contin-
uous democratization and economic recovery of the country, its integration in the EU and building a prosperous
country governed by genuine rule of law.
The Government Activity Program “European Integration: Freedom, Democracy, Welfare” provides a framework
for the government policies for 2011-2014. The program’s strategic vision is people’s welfare. The major objectives
to achieve this strategic vision are improvement of the standard of living and European integration.
To achieve these major goals in 2012 the Government continued its actions aimed at improving the people’s social
protection, economic development, consolidation of the rule of law, creating new jobs, building the relations with
the external partners, bringing in investments, visa cancellation and others so as to create a better life for the people.
The external assistance provided to Moldova has a similar goal – to support the implementation of the national de-
velopment programs and contribute to the economic growth and improvement of people’s lives. The trend among
the development partners in recent years in the context of the efforts to make development cooperation more ef-
ficient is to align the support with the Government’s development priorities. Therefore, the national development
strategies are drafted in a participatory manner, following consultations with all the partners and the donors’ sup-
port strategies are largely consulted and agreed with the government, in order to make the expected results more
efficient. The evaluation of the external assistance provided to Moldova versus the Government Action Plan found
that only 40% of the actions laid down in the latter have external assistance support for implementation. This
means that the other actions are funded from the Government’s budget.
STRATEGIC PRIORITIES FOR EXTERNAL ASSISTANCE
IN 2012 BASED ON THE 2011-2014 GOVERNMENT
ACTIVITY PROGRAM (GAP)
Covered, 186,
40%
Not covered, 277,
60%
Covered
Not covered
Strategic priorities for external assistance in 2012 based on 2011-2014 GAP

If we look at the priorities of the Government Program, we can see that most of the external assistance is provided
in areas like accountable and efficient administration, foreign policy, country reintegration, environment protec-
tion, while less external assistance is provided for culture policies, youth policies, education and research, economic
and financial policies etc.
The following sub-chapters make an overview of the progress achieved with the foreign assistance support in the
implementation of the 2011-2014 Government Activity Program.
4.1. Building the Rule of Law
Government Action Plan objectives
To build the rule of law, the Government aims to safeguard the human rights by eradicating torture, inhuman and
degrading treatment, the trafficking in human beings and domestic violence; secure free access to justice and a fair
trial; guarantee the freedom of expression and access to information and others. All these goals can be achieved
through the reform of the justice system and prosecution, which aims to create an independent, unbiased, func-
tional and transparent judiciary. To safeguard the public order and security and enhance the national anti-cor-
ruption system, the Government committed to reform the relevant institutions to align them to the European
and international standards. The Government’s Action Plan provides for the development of an appropriate legal
framework that will improve the cooperation between the civil society and the public sector, as well as liberalize
the media space and guarantee freedom of expression.
External assistance in 2012
In 2012 there were 37 ongoing projects aimed at building the rule of law and supported by the development part-
ners, 17 of which were started in the reported period.
The rule of law was supported significantly by the development partners, especially through the completion of
the negotiations and approval of the largest budget support that Moldova has received from the European Union.
More specifically, to help Moldova achieve its European integration goal, Brussels provided the most impressive
assistance to reform the justice sector. The EU support for this sector amounts to about 70 mln. Euros. The larg-
est part of these funds were provided through budget support, while the other part is provided through technical
assistance for the coordination of strategy implementation, efficiency, accountability and transparency of courts
and improvement of the execution and probation systems – crucial elements for a judiciary compliant with the
Strategic priorities for external assistance in 2012 based on the 2011-2014 Government Activity Program (GAP)
76.3%
9.4%
35.0%
28.1%
60.7%
31.6%
37.5%
63.2%
37.5%
23.7%
90.6%
65.0%
71.9%
39.3%
68.4%
62.5%
36.8%
62.5%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Accountable and
efficient
administration
Culture/youth and
sport
policies/Integration of
national minorities
Building rule of law Education and
research
Foreign Policy
/Country reintegration
Economic and
financial policies
Social policies Environmental
protection
Health of population
Covered Not covered

European standards.
Besides EU, other donors such as USAID, UNDP, CEB, and the Government of Romania also contributed to
building the rule of law in Moldova. They all provided inputs in the Government’s efforts to achieve its goals relat-
ed to human rights, justice reform, public order, and fight against corruption.
The feasibility study for the construction of a new penitentiary with a capacity of about 1600 detainees was con-
ducted with CEB support, and this will enable Moldova align the detention standards to the standards recom-
mended by the European Court of Human Rights (ECHR). The latter appreciated the transformation started in
the justice system, as they believe that only this way the human rights will be respected in the penitentiary insti-
tutions.
The implementation of the Rule of Law Institutional Strengthening Program started in 2012 with the U.S. sup-
port. It is expected to help build the institutional and operational capacities of the Superior Council of Magistrates
and of the Legal Administration Department, by increasing the efficiency, transparency and accountability of the
judiciary system.
The rehabilitation of the Penitentiary no.10 also started in 2012 with the support of the development partners.
This project is expected to change the entire juvenile correction system, by shifting from detention to the child-fo-
cused environment with education, therapeutic and vocational activities.
Public order is one of the key prerogatives of any democracy and to support it USA provided funds for video
surveillance systems and CPS-monitoring of 80 vehicles of the National Patrol Inspectorate, as well as for procure-
ment of two data storage servers. All these things significantly contribute to the reformation and demilitarization
of the Ministry of Internal Affairs, according to the EU security standards. To monitor the road traffic round the
clock, increase the responsibility of the road users and prevent corruption among road police officers by excluding
the direct contact with the road users, Moldova started implementing the project supported by the People’s Re-
public of China for provision of road traffic monitoring and control equipment for the Chisinau municipality. The
system will monitor 47 crossroads in the Chisinau municipality and the national access roads and will capture the
violations of the traffic rules in an automated and ongoing manner. This project will reduce the number of road
accidents and will help achieve the e-Governance goal.
To make sure the Border Police Department reorganized in 2012 is fully operational, the first phase of the project
for development of the fixed and mobile communications network at state border was completed with the EU sup-
port, and consequently telecommunications nodes were installed in 40 localities (28 towers were built) both on the
territory of the Border Police units and outside it. This project also built the relay infrastructure, covered the bor-
der area, put in place the intranet for data transmission, and installed a video surveillance system for the territory
covered by the Border Police units and its own VoiP landline. In the meantime the projects’ second phase started.
4.2 Economic and Financial Policies
Government Action Plan objectives
The major objectives of the Government of Moldova related to the economic and financial policies are to remove
the administrative constraints on the private sector, encourage the technological development of businesses, de-
velop the support infrastructure for businesses; fully align the specific regulations in the sectors of the national
economy with the European ones and implement them; ensure the stability of the national public budget; create a
predictable budgetary-fiscal framework and maintain the budget deficit at a reasonable level; modernize agriculture
and reduce its dependence on the adverse climate factors; rehabilitate and modernize the transport infrastructure,
in particular the road infrastructure; connect to the pan-European networks.
External assistance in 2012
The development partners supported 20 ongoing projects in 2012, five of which started in the reported period.
Private Sector. A reference to estimate the outcomes of the policy measures implemented by the Government
with the support of the development partners can be the WB 2013 Doing Business in a More Transparent World
Report, according to which the Republic of Moldova went three places up and was ranked 83rd out of 185 coun-
tries in the world. In comparison with the countries in the region, Moldova was before Ukraine (ranked 137) and
the Russian Federation (ranked 112), and below Romania (ranked 72). In the Heritage Foundation Economic
Freedom Index 2013, Moldova has made a significant leap from 124 to 115 out of 177 countries.

The implementation of the Guillotine 2+ project continued in 2012 with the USAID support. It aims at detecting
and addressing the bureaucratic constraints. Additionally, the laws passed last year aim to simplify the entrepre-
neurship authorization procedures, prevent any abusive intervention in business by regulating the state control,
simplify the insolvency procedure etc. The new program BRITE started in November 2012 aims at simplifying the
customs clearance procedures to facilitate the foreign trade.
The EUHLPAM project (European Union High Level Policy Advice Mission) contributed to enhancing coop-
eration at the external border of the EU with the Romanian customs authorities; putting in place control and
cooperation mechanisms in order to prevent and mitigate smuggling; facilitating the passenger traffic; building the
capacity of the Customs Service for the implementation of the European customs standards in areas like simplifi-
cation of customs procedures, risk analysis, customs value, experience exchange with the EU customs authorities
in the priority areas for the Customs Service. The joint control exercise at the Briceni-Rossosani border checkpoint
in Ukraine started in February 2012. The working groups and sub-groups created to fight the trans-border crime,
in particular, with cigarettes, drugs and weapons, continued their work.
In June 2012 the Parliament passed the law on the state aid which aligns the Moldovan legislation with the EU
acquis, and in July it passed the new competition law, which regulates the antitrust and fusion policy and is also
in close compliance with the EU requirements. These laws were passed following the successful implementation of
the Twinning project by the Competition Council. The modernization of the Customs Service of Moldova contin-
ued in 2012 with the support of the EU Border Assistance Mission (EUBAM).
On May 22, 2012 the Embassy of the Kingdom of Sweden in Moldova and EBRD launched the Joint Fund for
Female Entrepreneurs (WiB), expected to benefit the businesses started by women and where most of the staff
are women. Up to 90 beneficiaries can benefit from consulting and facilitated access to loans. This is a three-year
program.
WB, IFAD, EU, EBRD, the banking system, MCC and others implemented projects aimed to facilitate the access
of the private sector to finance.
Competitiveness Policies and Development of Small and Medium Enterprises. To create enabling
environment and facilitate the access to funding to start up and expand businesses the SME support programs
continued in 2012.
The support program for small and medium enterprises funded by the Government of Japan, which has a 40%
grant component, facilitates the procurement of a large range of new production equipment by businesses. Eigh-
teen leasing contracts were signed in 2012 with the program beneficiaries for equipment amounting to about 1.3
mln. Euros.
The Economic Stimulation in Rural Areas (ESRA) Program, funded by the EU with the support of the Govern-
ment of Norway, developed the entrepreneurship skills of business associations and NGOs at local level, while the
programs targeting the young people and the migrants who come back to Moldova (NPEEY, PARE 1+1, AIPA)
facilitated the access to funding for SMEs.
The World Bank signed in 2012 a EUR 23 mln. Financing Agreement on Competitiveness Enhancement Project
in Moldova. It targets a number of structural reforms aimed to improve the investment climate and the access to
funding for investments. This is a unique operation through which WB supports the efforts of the Government of
Moldova to enhance the economic growth through increased competitiveness of the exports and access to funding.
A critical step forward was the EUR 40 mln. Financing Agreement signed between the Government of Moldo-
va and the European Union on the rehabilitation of the electric transport networks of SE Moldelectrica. This
assistance includes the funds provided jointly by EBRD (15 MEUR), EIB (17 MEUR) and an 8 MEUR NIF
grant provided by the EU. The financial support aims to upgrade the stations and power lines, replace the out-
dated equipment, which operated at its minimal technical capacity and was already threatening the environment.
Upgrading the power system is a prerequisite that Moldova must fulfill in order to join ENTSO-E (European
Network of Transmission System Operators for Electricity) and a priority laid down in the Activity Program of
the Government of Moldova. In the meantime, to increase the energy efficiency, in 2012 EBRD started, through
commercial banks, two financing projects (Energy Financing Facility for Moldova II, Moldovan Residential Ener-
gy Efficiency Financing Facility). The total budget of these two credit facilities is about 62 MEUR.
The Chamber of Commerce and Industry of Moldova implemented in 2012 a cooperation program with the
Chamber of Commerce and Industry of Romania and the Paris Chamber of Commerce and Industry aimed to
create an IT platform to promote the business opportunities in Moldova. More specifically, the program focuses
on the customer relationship management system; exhibitions and economic missions; marketing of international
trade and ways to detect new exporters.

Quality Infrastructure, Industrial Security and Consumer Protection. The competition policies
were supported by the Government of Japan in cooperation with WB. The National Metrology Institute (NMI)
received testing equipment for oil products; additional equipment was procured for maintenance of national and
reference standards for NMI, as well as “express test” equipment for the Consumer Protection Agency. Addition-
ally, 228 businesses received an ISO-based management certificate; 154 businesses received services for business
expansion.
The Consumer Protection Agency was established in January 2012 to replace the Main State Inspectorate for
Market Surveillance, Metrology and Consumer Protection. To build its institutional capacities the Consumer
Protection Agency received support from the European colleagues from the United Kingdom of Great Britain and
Lithuania through the EU Twinning instrument.
In the Agro-Industrial Policies Sector, the Wine Sector Restructuring Program started with the EIB sup-
port. In 2012 its activities focused on the application and further development of the financial tools “Credit Facili-
ty” and “Leasing”. Twenty four applications received from beneficiaries were reviewed and nine companies received
EIB Credit Facility loans amounting to about nine million Euros.
The International Fund for Agriculture Development (IFAD) continued supporting SMEs in agriculture through
its three ongoing programs. In 2012 it provided 592 loans amounting to about 7.5 mln. Euros to beneficiaries
from all the 33 rayons of the country. In the meantime, 2130 new jobs were created in the companies which re-
ceived such loans.
The Rural Investment and Services Project (RISP II), with the WB financial support, also contributes to the recov-
ery of the agri-industrial sector. The project made significant progress in 2012, creating 274 jobs and starting up
46 businesses with loans amounting to about 3 mln. Euros.
The WB Agriculture Competitiveness Project was signed in 2012 for a five year term and aims to increase compet-
itiveness of the country’s food sector by supporting the modernization of the food safety management system, fa-
cilitating the access of the agricultural producers to markets and integrating the environmentally-friendly farming
and sustainable land management practices. The budget of the project is 22 mln. Euros.
The U.S Government plays an important part in the development of the agro-industrial sector. Acting through
MCC it implements the Transition to High Value Agriculture Project, which facilitates the irrigation sector re-
form. Twenty-one loans amounting to 3.3 mln. Euros were approved and disbursed in 2012, while the average
amount of the loans was about 160 000 Euros.
The Government of Japan, through its Assistance Project for Underprivileged Farmers 2KR, facilitated the leasing
of farming equipment, covering the free maintenance of the equipment until it is fully paid off. In 2012 contracts
were signed with 630 beneficiaries, amounting to about 13 mln. Euros.
Following the drought in 2012, Moldova asked for the support of the development partners to liquidate the af-
ter-effects of the natural disasters. Consequently, Moldova received about 100 thousand Euros and about 110 tons
of wheat seeds from the Governments of France and Romania, and UNDP. Additionally, Moldova negotiated with
WB a larger USD 10 mln. program to prevent and mitigate the natural disasters, while the EU provided about 3
million Euros to the farmers affected by drought.
The National Agency for Food Safety was established in 2012 to address the challenges related to the food safety,
operation of the rapid alert system etc. The Twinning “Support to Moldova in food safety rules and standards for
vegetable products” project started in April 2012, funded by the European Commission. It provides support for
the development of agriculture and food industry in Moldova, in particular for vegetal products, according to the
EU legislation, and for the empowerment of these sectors to engage in the international trade.
The Budgetary-Fiscal Sector and Public Finance Management was supported in 20 12 by WB, EU and
the bilateral development partners – Slovakia, Estonia and the Netherlands. The ongoing projects in 2012 focused
on capacity building in performance-based budgeting, enhancement of the public finance management, issues
related to the taxation of non-residents, as well as the tax and customs policy and legislation.
The World Bank facilitated through the Public Finance Management Project the drafting of the organic law on
public finance and budgetary-tax responsibility, which passed the first reading in Parliament in July 2012. The
testing of the IT Financial Management System (FMS) continued. It should be noted, however, that there are
significant delays in this activity, which is critical for the successful implementation of the project.
The EU Twinning project (Sweden and the Netherlands) provided support for putting in place and implementa-

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