Foreign Assistance: use and management of funds 2010-2012

1. Foreign Assistance:use and management of funds 2010-2012 Ministry of Economy Sergiu CIOBANU, Deputy Minister of Economy May 25 – 26, 2012

2. Medium Term Priorities of Ministry of Economy • Ensure sustainable economic growth; • Increase competitiveness of national economy; • Address the administrative constraints for businesses; • Ensure SME development and facilitate access to funds; • Promote exports and investments; • Develop quality infrastructure and ensure consumer protection; • Ensure energy security and promote energy efficiency in all the sectors of the economy.

3. Foreign Aid Coordination Platform Purpose • Improve efficiency, effectiveness and sustainability of foreign aid; • Improve communication among stakeholders; • Engage all stakeholders in planning and implementing foreign assistance.

4. Foreign Aid Monitoring and Coordination in Ministry of Economy

5. Assistance in 2010-2012 • In 2010-2012 the foreign assistance in the sectors of the Ministry of Economy amounted to about 240 mil. Euros; • Type of assistance: - Budget support; - Technical assistance; - Financial assistance. • 37projects funded by 11development parteners were implemented • Key beneficiary sectors: - Development of entrepreneurship and investments; - Commercial policies; - Quality infrastructure and consumer protection; - Energy security and efficiency.

6. Breakdown of Assistance by Donors

7. Breakdown of Assistance by Sectors

8. Development of Entrepreneurship and Investments Strategic Objective:Enhance economic stability of Moldova through improved capacities for development of small and medium enterprises • Number of projects– 15 • Global budget– 83000 000 euros • Key donors – EU, USA, Government of Japan, Government of Norway

9. Projects implemented in 2010 - 2012

12. Support and development program for small and medium enterprise sector, funded by the Government of Japan (2005-2012) Objective: Create conducive environment for small and medium businesses to develop production in the Moldovan rayons. Funding scheme: • the first two tranches , 5% and 20%, accordingly, of the equipment price, before shifting to leasing scheme; • tranches III and IV, 15% and 20%, accordingly, of the equipment price, during one year from receipt of equipment in case of grant component in the amount of 40% of the equipment price; • tranche V amounting to 40% to be paid after 18 months from the receipt of the equipment only if there is no grant component under the leasing contract provisions. Outcomes: • 138 beneficiaries • 175 leasing contracts • Price of equipment 205,3 mil. lei.

13. ENTRANSE 2 Your Business Project (2006-2014) • Funded byGovernment of Norway • Total budget - 1.215 mil. USD • Objective: Support economic growth, increase employment and reduce poverty through support for SME sector development in Moldova through: creation of pilot business incubators in Soroca, support to other business incubators and their institutional development, enhancement of institutions, associations and business incubator networks, facilitation of access of SME to information by putting in place the Informative Portal for SME.

14. 17 resident companies 119 jobs created 3years – incubation period 50% start-ups

15. Commercial Policies, Quality Infrastructure and Consumer Protection Strategic Objectives: • Negotiate and implement the Deep and Comprehensive Free Trade Agreement between Moldova and the EU; • Strengthen the National Accreditation System; • Develop the National Standardization System; • Adopt and promote the European metrology standards; • Ensure protection of consumers; • Develop the market supervision capacities.

16. Commercial Policies, Quality Infrastructure and Consumer Protection • Number of projects – 3 • Global budget – 32 400 000 euros • Key donors –EU, World Bank

17. Projects implemented in 2010 - 2012

18. Competitiveness Improvement Project2006-2012 Assistance provided by: International Development Association: Credit 33,8mlnUSA; Government of Japan: grant 4,9mlnUSD. Project components: • Improvement of business environment; • Upgrade of MSTQ system (ISO co-funding grant scheme); • Facilitation of access of businesses to MSTQ services (ISO co-funding grant scheme)- 1,2 mlnUSD; • Facilitation of access to funds; • Credit Line for exporters- 22,5 mlnUSD; • Expansion of the co-funding grant scheme in order to improve competitiveness of businesses – 1,5 mln. USD

19. Competitiveness Improvement Project- outcomes

20. Energy Security and Efficiency Strategic Objectives: • Promote energy efficiency in all the sectors of the economy and use of renewable energy sources, • Build the energy connections with Ukraine and Romania; • Integrate the national energy system in the European energy system; • Diversify the country’s energy supply sources; • Improve use of energy and fuels in their production, transport, distribution and supply; • Settle the debts and stabilize the financial situation of enterprises operating in the energy sector; • Bring in private investments in the rehabilitation and construction of energy enterprises.

21. Energy Security and Efficiency • Number of projects – 12 • Global budget– 160 700 000 euro • Key donors –EU, World Bank, EBRD

22. 1 • Implementation of National Energy Efficiency Program by 2020; • Ensure smooth operation of Energy Efficiency Agency; • Creation of the Energy Efficiency Fund; • Financing of energy efficiency projects and use of renewable energy sources. Key pillars of Energy Sector Security Efficiency Sustainability Interconnection of the national energy system to the European network of transmission system operators for electricity ENTSO-E; Diversification of primary energy sources; Investments in energy infrastructure projects (LEA 400 kV Balti-Suceava, LEA 330 kV Balti- Novodnestrovsc, Ungheni-Iasi interconnection gas pipeline). Building the capacities of authorities for regulation, policy development and implementation; Aligning the legal framework to EU standards; Economic, institutional and technical re-engineering of the thermo-energy sector; Encouraging private investments in energy infrastructure based on PPP mechanism

23. Projects implemented in 2010 - 2012

24. Energy Sector

25. Energy and Biomass Project – Success Stories... Energy and Biomass project – implemented in 16 rayons and Gagauzia Projects approved for 58communities, including 72schools, kindergartens, community centers, etc. Capacity of biomass heating systems is about 15 MW Implementation of the approved projects will benefit 43643individuals, including 13135 children Briquette boiler from Community Center in Carbalia village, TAU Gagauz-Yeri. Beneficiaries: 555 individuals Bale boiler in the lyceum in village ofOlanesti, Stefan Voda rayon. Beneficiaries: 600 individuals

26. Energy and Biomass Project – Success Stories... 1543 LPA representatives and local leaders, 76suppliers of biomass fuel and 176 operators acquired new skills and knowledge in modern biomass production and use technologies for energy purposes About 1 million individuals covered by actions and events meant to promote biomass energy (public events, media campaigns, discussion clubs, onsite trips, video and audio spots, outreach materials etc.) The first edition of MOLDOVA ECO-ENERGETICĂ -annual event to grant awards in renewable energy and energy efficiency sector - successfully held

27. Thank you for your attention!