European Commission Cooperation and Development assistance in Moldova

1. European Commission Cooperation and Development assistance in Moldova Kaido Sirel Head of Operations EU Delegation to Moldova

2. Summary • Sources of funding • Projects/Assistance areas

3. Sources • TACIS (~15) • Macro-financial assistance (90) • European Neighbourhood and Partnership Instrument • Bilateral program for Moldova (225, +273, + EaPIC) ------------------------------------------------------------------------------- • Inter-regional programmes (NIF bilateral - 80, NIF regional) • Regional program ENPI East (~100) • Cross-border cooperation programmes (44, ~150) --------------------------------------------------------------------------------- • Development Cooperation Instrument - Thematic Budgets • bilateral, • regional, • global • External programmes from Commission Directorate General’s • Internal EU programmes opened and to be opened to Moldova.

4. ENPI Bilateral National Indicative Programme 2011-2013 • Priorities for MOLDOVA (273,14 MEUR) • Good governance, rule of law, fundamental freedoms • Social and human development • Trade and sustainable development Confidence Building Measures. Regional Cohesion pilots

5. REGIONAL PROGRAMME EAST : Democracy, Good Governance and Stability Economic Development Climate Change, Energy and Environment Advancing Integration with the EU and Regional Co-operation

6. Inter-regional Priority Area 1: Promoting reform through European advice and expertise – SIGMA, TAIEX Priority Area 2: Promoting higher education and student mobility TEMPUS, Erasmus Mundus Priority Area 3: Promoting cooperation between local actors in the EU, and in the partner countries – CIUDAD Priority Area 4: Promoting Investment projects via Neighbourhood Investment Facility (NIF)

7. Cross Border Cooperation • CBC Moldova – Romania - Ukraine (2007-2013) 126 million euro 44 million for Large Scale projects decided • Black Sea Programme 26 million euro • CBC South East Europe

8. CBC Programs for land borders (9) and sea crossings (3)

9. CBC Sea Basin Programs (3)

10. 5 Global Thematic Programmes • ”Investing in people”Human and social development • Protection of the environment and sustainable planning/cultivation of natural resources, energy • Non-state actors and local authorities in the process of development • Food security • Migration and asylum policies • Projects selected via Call For Proposals

11. Bilateral Thematic calls • European Instrument for Democracy and Human Rights • Non State Actors and Local Actors in Governance and Civil Society Facility

12. Other external programmes from European Commission • Instrument for Nuclear cooperation (DEVCO) • Humanitarian aid (DG ECHO) • Instrument for Stability (EEAS) • Cohesion Pilots (DG REGIO) • SME programme (DG ENTR) • 7th Framework Programme for Research (DG RTD) • New EU Internal Programmes to be opened to MD • ENPARD – Neighbourhood Agriculture and Rural Development (DG AGRI)

13. EU Internal programmes which can be opened to Moldova • Customs 2013 • Competiveness and Innovation Framework Program (CIP) • Intelligent Energy Europe • Entrepreneurship and Innovation; • ICT Policy Support • Consumer Policy • SESAR (Air Traffic) • Public Health

14. Additional Strategies/Initiatives • Eastern Partnership • Comprehensive Institution Building • EaPIC - Integration and Cooperation Programme • Regional Development Pilots (PRDP) • Agriculture and Rural Development (ENPARD) • Black Sea Synergy (ENPI East + Russia + Turkey) • Danube Strategy • Mobility Partnership - Moldova as pilot case • European Endownment for Democracy – Support for Civil Society

15. Projects state of Affairs 2012 • Around 150 programmes and projects ongoing or in preparation in Moldova • Phasing out of TACIS and TACIS Cross Border Coopertion • 6 Budget Support programmes ongoing or in preparation • Technical Assistance (social, health, economy, mobility partnership, water, justice, public administration, etc) • Twinnings and Comprehensive Institution Building • Thematic Budget lines projects (media, anti-torture, legal protection, elections, migration, energy, environment, etc) • Cross Border Cooperation projects (water, infrastructures, tourism, historic towns, etc) • Macro-Financial Assistance • Neighbourhood Investment Facility – Roads, Water, Health, Air Logistics, Airport, Trolleybuses, - in pipeline wine sector, roads,

16. Budget Support • ENPI 2007 Social sector € 21 million • ENPI 2008 Health sector € 46 million • ENPI 2009 Water and sanitation sector € 50 million • ENPI 2010 Economic Stimulation in Rural Areas € 45 million • ENPI 2011 Energy € 42 million • ENPI 2012 Justice reform € 52 million • ENPI 2013 Vocational Education and Training

17. Macro-Financial Assistance 2007-2008: 45 M EUR grant, paid in 3 tranches 2010 – 2012: 90 M EUR grant, paid in 3 tranches – support provided as response to financial crisis. Conditions: • Public expenditure management and fiscal reform: implementation of Treasury Systems, customs & taxation reforms, public procurement • Enterprise restructuring and business environment: privatisation of state-owned firms, bankruptcy legislation, competition legislation, SME development • Financial sector reform: privatisation of banks, supervision regulation, insurance legislation • Specific sectoral issues: public utilities, statistics, export promotion.

18. Neighbourhood Investment Facility • Providing blending grants for the loans • 11 projects blending in the loans of around 700 m eur with 87,96 m eur grants in Moldova • Modernisation of the Republican Clinical Hospital • Airport Modernisation Project • Road Rehabilitation project • Feasibility Study for the Improvement of Water and Sanitation System in Chisinau • Water Utilities development programme • Chisinau Transport project • Vine sector upgrading • Roads rehabilitation project • 2 Energy efficiency projects • Moldelectrica Regional NIF grants

19. Twinnings • Annual envelope of 5-7 MEUR (~3 new Twinnings per year) • Requests from state institutions can cover all aspects of EU approximation process where there is EU acquis. Concluded Twinnings: • Parliament (FR, HU) • Penitentiary system (D, NL) Ongoing Twinnings • Procurement (RO) • Intellectual Property Rights (DK, RO), • Competition and State Aid (LV, A, RO) • Regional development (F) • Public internal financial control (S, NL) • Accreditation of product conformity assessment (S, NL) • Market surveillance (UK, LT) Several more Twinnings in preparation

20. Comprehensive Institution Building EaP framework jointlydeveloped and implemented with the partner country to ensure effective institution building of a limited number ofcoreinstitutions which are central to the preparation and implementation of future Association Agreement and DCFTA.

21. CIB- Indicative list of Beneficiary Institutions Public Administration Reform: • State Chancellery • Public Procurement Agency • Ministry of Finance Ensuring rule of law, human rights and fundamental freedoms • General Prosecutor's Office • Ministry of Internal Affairs • Centre for Combating Economic Crimes and Corruption Preparing Moldova in view of future DCFTA • Ministry of Economy • Ministry of Agriculture • Ministry of Health (Public Health Service) • Inspectorate for Phyto-Sanitary Surveillance and Seed Control • Sanitary-Veterinary and Animal origin Food Safety Agency • Agency for Protection of Competition • Agency on Intellectual Property of the Republic of Moldova

22. Conclusions • Assistance increased around 10 fold • Moldova is often pilot and praised as most advanced reformer in the EU Neighbourhood • Lots of new cooperation programmes opened and more in view from the European Institutions • New logic of assistance – move from committed development assistance grants to co-funded competition/cooperations grants and loans.

23. Additional info http://www.delmda.ec.europa.eu http://eeas.europa.eu/moldova/index_en.htm Funding: http://ec.europa.eu/europeaid/work/funding/index_en.htm