1. Modernization of Local Public
Services in the Republic of
Moldova
Steering Committee Session
February 21, 2014
Pagina 1

2. Modernization of Local Public Services
in the Republic of Moldova
• Based on bilateral Government negotiations Moldova-Germany Nov
2009
• Duration 6 years: 1/2010 – 12/2015
• Main Institutional Counterpart: Ministry of Regional Development
and Constructions and the Regional Development Agencies
• German contribution: 17.9 Mio. €
• Technical assistance – 10.6 Mio. €
• German Investment Support – 7.3 Mio. €
• Co-Financing by Romanian Government of 0.7 Mio. €
• Co-Financing by Swedish Government of 5.5 Mio. €
• Co-Financing by European Union 5.0 Mio. €
Pagina 2

3. German contribution 17.9 Mio. €
• Overall: 17.9 Mio €
•
Technical assistance – 10.6 Mio €
• 2010 – 2013: 5.1 Mio €
• 2014: 2.0 Mio €
• Pilot Project Investments: 3.6 Mio €
•
German Investment Support – 7.3 Mio €
• Investments
• 12 RDA staff (4 North / 5 Center / 3 South)
Pagina 3

4. Co-Financing by Romanian Government of 0.7 Mio. €
Pilot project - capital investment and procurement of equipment
Improving water and sewerage supply in Rosu village, Cahul rayon
Pagina 4

5. Co-Financing by Swedish Government of 5.5 Mio. €
3.3 Mio. € (2012-2014)
• Regional Operational Plans on WSS, SWM & EE of public buildings (by
RDAs North, Centre and South).
• Regional indicators on a. m. areas established & data bases developed.
• Models of transparent and participatory design processes for
preparing Regional Operational Plans, based on sector focus groups
with participation of key stakeholders of the respective sectors, civil society
and private sector as well as external specialists drafted.
• Formal mechanisms and procedures for coordination and
collaboration with responsible sector ministries (Environment and
Economy established.
Pagina 5

6. Co-Financing by Swedish Government of 5.5 Mio. €
2.2 Mio. € (2014)
• Support to regional development institutions and local public
authorities.
> Implementation of investment projects to improve local public
service delivery.
Benchmarks:
• Investment projects prepared for Regional Development to
ready-for-procurement stage (volume 6 million EUR).
• Project implementation management by RDAs without major
shortcomings (related investment funding provided by
Germany).
• Improved management of projects by LPAs, supported by
certified energy auditors, financed by the National Fund for
Energy Efficiency.
Pagina 6

7. Co-Financing by European Union 5.0 Mio. €
Overall
objective
Purpose
Support Moldova in advancing its economic, social and territorial cohesion with
focus on development of policy, legal, institutional and developmental
framework for an effective development policy for Moldova’s regions.
• Facilitate a regional planning process leading to the development of a
project pipeline relevant to specified areas & concerns of MD‟s RD & EU
Cohesion Policy.
•
Expected
results
Develop capacities essential to sustaining the above objectives and support
the wider regional development process.
•
Detailed regional plans covering five thematic fields essential to the
development of Moldova‟s regions (WSS, SWM, local roads of key
importance & from these updated regional operational plans for each
region (N, S, C).
•
Updated regional operational plans for each region where RD institutions
are in place.
•
Validated capacity among responsible bodies relevant to the above results,
including capacity to continuously manage a project pipeline.
•
Pipeline of ready to go, ready to finance and ready to procure projects.
Pagina 7

8. Intervention Area 1 – Local Public Services
Progress July – December 2013 < & > Outlook 2014
Modernization of Local Public Services (MLPS)
in the Republic of Moldova
Chişinău, 21 Feb 2014
Pagina 8

9. Basic Assumption
Planned and implemented activities lead to achieving progress
regarding IA1 Objective
Local Public Authorities
effectively cooperate
and manage improvements of
local public services in the
selected communities in pilot rayons
20/02/2014
Pagina 9

10. 1.
Support Model
Comprehensive
Approach
Integrated
local planning
and
programming
5.
2.
Mobilization and
raising
awareness
of the
population
… for enhanced
sustainability
Improvement of
cooperation
between
LPAs
Efficient
Local
Public
Services
4.
Increasing
capacities of
LPAs and
service
providers
3.
Investments to
optimize
infrastructure
to provide
local public
services
Pagina 10

11. IA1 Result Model
> Sustainable, effective service
delivery & management
> Affordability
> Best practices disseminated
> LPAs„ development
strategically integrated
> Affordability
> Sustainable services
> Affordability & quality
> Professional public
procurement
> LPAs cooperate
> Affordability
> Best practices
communicated
> Utilisation of
new 20/02/2014
services
Pagina 11

12. Energy Efficient Street Lighting in
Soroca Rayon
Improvement of WSS services in
Riscani rayon
Improvement of Solid Waste
Management Services in Soldanesti,
Rezina & Floresti Rayons
Energy Efficiency of Public Buildings
in Orhei Rayon, Orhei Regional
Hospital
Energy Efficiency of Public Buildings
in Nisporeni Rayon, Nisporeni
Regional Hospital
Improvement of WSS services in
Iargara, Leova rayon
Improvement of WSS services in
Cahul rayon
Background Map Source: MRDC
Pagina 14

13. < 1. Local Strategic Planning & Programming
SWM
• Agreed on clean-up program of 4 temporary dumpsites
• Agreed on collection start-up support (routing)
• Parcanci landfill-site confirmed
• FS being finalised
• SEDS SWM process ongoing
WSS
• FS Cahul & Riscani Rayon being finalised (amended focus)
• Leova Rayon declared MLPS project rayon, activities started, MoU
pending, SEDS & FS to finalise prior to detailed investment planning
EE
• SEDS EE update for Orhei & Soroca Rayon started
Pagina 15

14. < 2. Inter-municipal Cooperation
SWM
• LPAs agreed on selection of 4 temporary landfill-sites for clean-up
• 67 LPAs agreed on IMC-institutionalisation
• 35 LPAs received assistance for service provision
• 20 LPAs adopted joining JSC & local tax, process ongoing
WSS
• Cahul Rayon: Institutionalisation of IMC WSS services, process ongoing, 3
primarias adopted decision on joining
• Riscani Rayon: 2 study visits (> RO & PL) on IMC based services completed
• Riscani Rayon: Discussion on IMC initiated & ongoing (> 10 LPAs)
EE
• Tatarauca Veche, Soroca: discussion on extension of IMC based service
provision initiated (> 6 LPAs)
Cross-cutting
• Discussion > State Chancellery, CALM & others on legal aspects of IMC
institutionalisation & service cost recovery, value assessment etc. Pagina 16
ongoing

15. < 3. Capital investments & acquisition of equipment
Pls see
hand-out
for
financial
overview
SWM
• All equipment procured & transferred
• Technical design for recycling yard Floresti completed
WSS
• 75% of Rosu households connected to water supply
• Tender doc preparation for 6 subprojects ongoing
EE Orhei:
• 5 sub-projects completed & transferred
• Smart energy efficiency monitoring system
• Installation of 3 heating substations
• Entrance reconstruction ongoing
EE Nisporeni
• Tender docs under preparation
EE Tatarauca Veche
• Completed, operational, transferred & awarded Eco-Energetica Award
Cross-cutting
• RDA capacitated & assisted in public procurement & reporting
Pagina 17

16. < 4. Capacity Development of LPAs & Service Providers
SWM
• Capacity development action plan developed
• Discussion on service fee collection ongoing (local tax?)
WSS
• Capacity development action plan developed
• Riscani Rayon: 2 study visits (> RO & PL) completed
EE Orhei hospital
• Energy manager in place
• Energy management team in place
• Training for Energy management team delivered
Cross-cutting
• Process to register public infrastructure started
Pagina 18

17. < 5. Community mobilization & citizens’ engagement
SWM
• Community mobilisation ongoing
• NGO contracted to support awareness campaign for SWM-system start
WSS
• NGO to support community mobilisation for entire Cahul rayon selected
• Rosu: 75% of connected pay regularly for drinking water
• Duruitoarea Veche: 90% pay regularly for drinking water
EE Orhei hospital
• Beneficiary aware about system management and monitoring
• Up-scaling of experiences postponed
EE Tatarauca Veche
• Awareness campaign re citizens‟ payments ongoing (65% paying)
Pagina 19

18. Concerns to address
•
•
•
•
•
•
•
•
•
Investments & -volumes alone do not guarantee RD;
Local project managers in support of RDA implementation?
Capacity of RDAs incl. consideration of pentagon elements?
Land-use planning > update general plans!
Technical standards!
Statistical system!
Involvement of sector ministries!
Viable & lean IMC forms!
…?
Pagina 20

19. MLPS IA2 Project Pipeline
Projections for project development volumes ready by end of 2015
Sector
EE (Jan 2014)
EE (end 2015)
~ No. of Projects
9
13-15
~ Mio. € (totals)
9
12
SWM
30
WSS
Urgent
requirements for
Implementation:
3
10
28
Roads
10
30
Total
47
109
>>> Capacitated implementers > ? + ? + outreach to local level ?
>>> Securing measures ?
>>> Funding ?
Pagina 21

20. 1.
Support Model
Comprehensive
Approach
Integrated
local planning
and
programming
5.
2.
Mobilization and
raising
awareness
of the
population
… for enhanced
sustainability
Improvement of
cooperation
between
LPAs
Efficient
Local
Public
Services
4.
Increasing
capacities of
LPAs and
service
providers
3.
Investments to
optimize
infrastructure
to provide
local public
services
Pagina 22

21. > 1. Local Strategic Planning and Programming
Integrated / compiled at level of rayons / according to LPAs‟ needs &
regional / national sectorial priorities = Process
Riscani and Cahul Rayons
• Harmonization of LPA1 Strategic Plans with rayonal SEDSs
• Amendment & finalization of draft FSs WSS
Leova Rayon
• Elaborate SEDS on WSS & elaborate FS
Floresti and Soldanesti Rayons
• Update rayonal SEDS on SWM
Soroca, Nisporeni and Orhei Rayons
• Update SEDS EE of public buildings
Pagina 23

22. > 2. Inter-municipal Cooperation
Rayonal SEDSs + FSs ~ orientation to find IMC arrangements
Soldanesti, (Rezina) and Floresti Rayons
• Further support to institutionalisation of SWM IMC services
Cahul Rayon
• Further support to institutionalisation of WSS IMC services
Riscani Rayon
• Further support to institutionalisation of WSS IMC services
Soroca Rayon
• Identifying cooperation partners for Tatarauca-Veche commune
Pagina 24

23. > 3. Investments planned
Riscani Rayon (Prut Cluster)
> Costesti – Vehicles & WWT plant & Sewerage system extension
> Duruitorea Veche – Sewerage system construction
Cahul Rayon
> Rosu – Extension of sewerage system
> Cahul – Rehabilitation of drinking water purification plant
Orhei Rayon
> Orhei – EE improvement of regional hospital, maternity ward
Nisporeni Rayon
> Nisporeni – EE improvement of reg. hospital, surgery department
Leova Rayon
> SEDS & FStudy WS sector (investment funds secured)
Soldanesti / Floresti Rayon
> Preparation of tender docs for SWM center
> Recycling yard Floresti (design docs ready – funding unclear)
Pagina 25

24. GIS investment implementation overview
Check
GIZ HQs
Approval
MLPS
Tender
Ready for
IA1
doc BoQ Procurement
Preparation
MLPS IA2
Project Preparation
Working
group
MRDC,
GIZ, LPA
• Publication
• Evaluation
• Awarding
• Contracting
RDA
• Supervision
• Hand-over
MLPS IA1
Project Implementation
Pagina 26

25. GIS investment implementation
Construction
Process
=
RDA
Support by Local
Project Manager ?
5
A
O
HO
Training by
supplier
4
Operation
3
Acceptance of
work
2
Monitoring
Reports
2, 3, 4,…
Monitoring
Report 1
Training
1
Hand-over
to LPA
RDA Site Supervisor
RDA Working group MRDC, GIZ, LPA
MLPS GOPA1 expert accompaniment
MLPS CD
measures
Pagina 27

26. EEF Support Concept
EEF
RDA
> Monitoring
Advice
MLPS
Grant GIZ
STEE
Pool
Sweden
Energy expert
LPA
Project
!?
Site supervisor
Handover
Rayon energy manager
Pagina 28

27. > 4. Capacity Development of LPAs & and Service Providers
> improved capacities to manage & maintain improvements
> e.g. re planning, organizing, implementing, service delivery, fee collection,
customer relations, tariffs, monitoring and evaluation …
• Implementation of Capacity Development Action Plan for service providers
• In WSS implemented with other development partners under AMAC
• In EE implemented with EEA & EEF > facilitate implementation of EEF
projects
• Scaling-up via participation of national sector entities
• Gender mainstreaming integral part
Pagina 29

28. > 5. Community mobilization & citizens’ engagement
> Improvement of local public services is client related activity
> Citizens = clients / customers + right for quality & cost-effective services
> Customer relation & gender balanced citizen involvement
> Implementation of specific activity bundles on community mobilization,
planning and citizen engagement
SWM Soldanesti, Rezina and Floresti Rayons
• Improving SWM local public services
• Community mobilisation continued
WSS Riscani and Cahul Rayons
• Improving WSS services
EE Tatarauca Veche
• Awareness campaign re citizens‟ payments continued
Pagina 30

29. MLPS IA1 Cross Cutting Areas
IMC experiences
• …communicated by regional events & national conference co-organized
with partners e.g. (…UNDP, USAID, SDC etc.) under ownership of the
State Chancellery, MRDC, MoEnv, RDAs and CALM
Public Procurement
• Provide TA & back-stopping at all public procurement processes
Project implementation
• Support attraction of co-financing
• Capacitate local project managers
Public Infrastructure Registration
• Support system development in support of projects
Pagina 31

30. Intervention Area 2 – Regional Planning and Programming
Progress July – December 2013 < & > Outlook 2014
Modernization of Local Public Services (MLPS)
in the Republic of Moldova
Chişinău, 21 Feb 2014
Pagina 32

31. Context - Major Developments
Scenario B involving extensive EU assistance signed GIZ-EU in November
2013
Scenario B addendum to GOPA 2 contract agreed late January 2014
Major new activities and related outputs and results:
Workstreams
Regional
Planning
Project Development (1)
(fiche)
Project Development towards ready to go
(2)
Water/
sanitation
Solid Waste
management
Energy Efficiency of
Public Buildings
BMZSweden
BMZSweden
BMZSweden
BMZ-Sweden
EU-PRDP
BMZ-Sweden
EU-PRDP
BMZ-Sweden
EU-PRDP
Local/ Regional Roads
EU-PRDP
EU-PRDP
EU-PRDP
Business Development
and Promotion
EU-PRDP
EU-PRDP
EU-PRDP
Sector
Pagina 33

32. Major Areas of Progress
Workstreams
Regional Planning
Project Development
(1) (fiche)
Project Development towards
ready to go (2)
Water/
sanitation
BMZ- Sweden
BMZ-Sweden
EU-PRDP


Solid Waste
management
BMZ-Sweden
Energy Efficiency of
Public Buildings
BMZ- Sweden
Local/ Regional
Roads
Business
Development and
Promotion
Sector
BMZ-Sweden

EU-PRDP

BMZ-Sweden

EU-PRDP
EU-PRDP
EU-PRDP
EU-PRDP
EU-PRDP
EU-PRDP
EU-PRDP

Pagina 34

33. Regional Sector Planning/Project Development
Workstreams
Regional Planning
Project Development
Water/
sanitation
3 RSProgrammes in draft
sent to MRDC (Feb-14)
2 RSProgrammes
completed with RDC
approval (Feb-14)
Process of Possible Project Concept
Identification starting
33 Possible Project Concepts agreed as
basis for project development – Project
Development work starting
Energy Efficiency of
Public Buildings
3 RSProgrammes
completed with RDC
approval (Feb-14)
5 Possible Project Concepts agreed as
basis for project development – Project
Development work starting on 3 SWM
PPCs/SWM zones
Regional and Local
Roads
Planning starting
Business
Development and
Promotion
Activities starting
Solid Waste
management
Pagina 35

34. Regional Planning and Programming and Follow on Project
Development
Key Indicator for Our Work
• 8 (11) regional sector plans
• At least 90 investment project fiches for investment projects in public
assets with a total worth of up to 170 million Euro in the areas water and
sanitation, solid waste management and energy efficiency of public
buildings are prepared based on integrated and participatory local
planning exercises and in line with sector priorities and norms.
(baseline 2011: 0; source: number of project fiches developed)
Pagina 36

35. Relation to Key Indicator
All project concepts related to Regional Sector Programmes are:
•
Consistent with regional (sector programmes) and identified as part of
process by stakeholder
•
Consistent with general national policy directions
•
Locked into a process and method of project development that will ensure
ownership and sustainability
•
Accompanied by an attempt to encourage key actors to undertake
“accompanying measures” to ensure smooth implementation, sustainability
of results and of relates services
Pagina 37

36. Project Development - Projects and Possible Project Concepts
Sector
Regional
Project Fiches
Plans/Progra Elaborated (PPCs)
ms
Elaborated
3
33 + 66 in pre-fiche
format (+ 2 ready to go
+ 9 “parked” awaiting
financing)
Indicative Value of All
Live Project Fiche in
Sector (M€)
Solid Waste
Management
2
5 (+1) in ppc format
70.9
Water & Sanitation
3 (draft)
33 (est.)
70 33 (est.)
Energy Efficiency
33: 32.74
66: 51.90
2: funded:2.239
9: “parked – to be funded”:
11.46
Current base-line (31/12/13) accepted for Phase B work: 103.64 M€ (i.e.
Approved Possible Project Concepts - 32.74 M€ (EE) +70.9 M€ (SWM),
all anchored in regional sector plans.
Pagina 38

37. Issue of Financing for Projects and Project Preparation
Documentation
Number
M€ (indicative)
(Towards RTG)
Energy
Efficiency
Will include documentation equivalent to
12 RTG
feasibility studies according to standards already (equivalent)
approved by GIZ Construction Department
11.8
Solid Waste
Management
Pre-feasibility stage is covered by Regional
Plans. Elaboration stage includes Feasibility
Study, EIA, Conceptual Design
3 (+3)
26.1
Water &
Sanitation
Pre-feasibility stage is covered by Regional
Plans. Elaboration stage includes Feasibility
Study, Environmental Management Plan
Conceptual Design
12
25
Regional and
Local Roads
Pre-feasibility stage is covered by Regional
Plans. Elaboration stage includes Feasibility
Study, Environmental Management Plan
Conceptual Design
12 x 15 km
(180km)
40
102.9
Pagina 39

38. The Logic
Regional
Planning (1)
Project
Identification
(2)
Project
Development
(3A)
Targeted
Sector
Reform (3B)
Financing (4)
Sustainable projects and services
driving durable change
Type presentation title here
Pagina 40

39. Financing Issues
• In EE, already more projects than available investment financing (shortfall =
approx 9 MEUR). By early 2015, the shortfall will be greater (est. 9+5) and by
end 2015 in the order of at least 25 MEUR if financing is not found
• In SWM, shortfall of resources likely in Q2-2015 to complete full technical
design and tender book of major infrastructure in 3 SWM zones and to
accelerate work on 3 other zones.
• However feasibility studies/EIA and conceptual technical design will be
complete for 3 zones with prospect of implementation by start 2016 (for
investments near 30MEUR)
• In WSS, shortfall of resources likely in Q2-2015 to complete full technical
design and tender book of major WSS infrastructure in 12 rayonal centres and
to expand to others.
• Feasibility studies/Environmental Management Plans and conceptual technical
design will be complete for 12 projects with prospect of implementation by start
2016 (for investments near 25MEUR)
• Roads – to be determined but likely as WSS
Pagina 41

40. Conclusions
More resources will be needed:
•
(i) to finance the implementation of a (conservatively) estimated
100MEUR of ready or near ready to go projects by end 2015/start
2016
•
(ii) to support finalisation of project preparation in certain “heavy” areas
e.g. SWM, WSS
•
As MRDC, RDAs, LMs work to develop programmes, projects and
reform respects sectors (eg SNIP/GOST etc), IFIs and donors need to
anticipate and plan for a major shift if real financial demand
Pagina 42

41. Capacity building with a view to implementing ENPI
programs and applying for ENI programs
•
Organization of eight public consultations to identify priorities for the
following cross-border cooperation programs.
Pagina 43

42. Capacity building with a view to implementing ENPI
programs and applying for ENI programs
•
Organization of three working group meetings on cross border
cooperation programs for 2014-2020.
•
Organization of trainings on the implementation of transnational
cooperation projects funded under the Transnational Co-operation
Program “South-East Europe” for the period 2007-2013.
•
Provision of individual consultations regarding the implementation of
cross-border cooperation projects.
Pagina 44

43. Implementation of regional development policies by
capacity building of LPAs, RDAs and RDCs
•
8 trainees from the Public Administration Academy have the
opportunity to strengthen their practical skills in the field of regional
planning and programming by participating in sector workshops and
study visits to pilot projects.
•
Piloting of the “Regional Development” training program (40 hours).
•
17 trainers in the field of regional development
•
Curriculum document
•
Participant's Guide.
•
Facilitator's Guide
Pagina 45

44. Further activities
•
Organization of working group meetings on cross border cooperation
programs for the period 2014-2020.
•
Organization of workshops on implementing projects financed under
the European Neighbourhood and Partnership Instrument (ENPI).
•
Supporting trainees from the Public Administration Academy upon
master's thesis completion.
•
Implementation of continuous training programs on “Local and
Regional Planning and Programming” and “Regional Development”.
Pagina 46

45. Thank you for attention.
German Development Cooperation through GIZ
Chișinău, 31a Bulgară str.,
T + 373 22 22-83-19
F + 373 22 00-02-38
Internet: www.giz.de, www.serviciilocale.md
Pagina 47