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### INTRODUCTION — policy context and shocks
- New Government in office from September 25, 2009 (period September 2009 - October 2010) faced the global financial/economic crisis that began in late 2008 and floods affecting much of the territory.
- Government priorities: implement National Development Strategy reforms; unblock economic processes; honor social commitments; ensure democratic institutions operation; boost European integration; strengthen trade and donor relations.
- Donor presentation: Government presented vision “Rethink Moldova” to the Consultative Group of the Donor Community.

### Macroeconomic performance and fiscal developments
- GDP and growth:
  - GDP in H2 2010: MDL 52.2 billion, increase of 6.5 percent (in comparable prices) vs same semester previous year.
  - GDP growth in first half of 2010: 4.7 percent vs same period previous year; GDP reached 6.5 percent by December 2010.
  - GDP in first half of 2010: MDL 31.7 billion, increase of 5.6 percent (in comparable prices).
- Inflation and prices:
  - Inflation in December 2010: 8.1 percent (CPI last 12 months); December 2009: 0.4 percent.
  - Inflation by end-2010 registered value equal to 7.4 percent (text also notes 7.4 percent and December 2010 CPI 8.1 percent).
- Public finances (January–December 2010):
  - National public budget revenues increased by 17.1 percent vs same period 2009.
  - Spending increased by 7.2 percent vs same period 2009.
  - Budget deficit registered around MDL 1.7 billion in 2010 (elsewhere reported as MDL 1.8 billion at end-2010; 2009: MDL 3.8 billion).
  - June 2010 State Budget Law amendments: revenues increased by about MDL 1,012.4 million; expenditures increased by about MDL 263.7 million; budget deficit reduced by MDL 748.7 million.
- Exchange rate and competitiveness:
  - Nominal appreciation vs US Dollar in 2010: 1.2 percent; vs Euro: 8.6 percent.
  - Real effective exchange rate (REER) compared to December 2000 appreciated by 4.5 percentage points.
- Public debt and financing:
  - Total state (internal and external) debt about MDL 18.9 billion in December 2010, up about 29.1 percent vs December 2009.
  - Internal state debt on December 31, 2010: USD 1116.2 million (2009: USD 773.7 million) — increase of 44.3 percent.
  - IMF financial budget support: 2009 — 177 million SDR (equivalent MDL 2,075.7 million); 2010 — 95 million SDR (equivalent MDL 1,817.1 million).

### External financing, IMF program, and donor commitments
- IMF arrangements (approved January 29, 2010):
  - Three-year arrangements under ECF/EFF.
  - Combined financial assistance equivalent to SDR 369.6 million (about US$574.4 million), each facility providing equal amount.
  - Immediately available amount: SDR 60 million (about US$93.2 million).
  - Moldova used SDR allocation in late 2009 equivalent to about US$186 million for immediate budget financing.
  - Completion of first review (July 16, 2010) made about US$90 million available.
- Donor pledges and Partnership Forum:
  - At Partnership Forum in Brussels on 24 March (year implied 2010), development partners pledged approximately EUR 1.8 billion for 2010-2013.
  - Most provided as budget support: EUR 873.28 million.

### Poverty, inequality, and MDG outcomes (2006–2009, MDG context)
- Macroeconomic shock and poverty 2009:
  - Economic downturn in 2009: -7.8 percent.
  - Annual absolute poverty rate 2009: 26.3 percent (2008: 26.4 percent).
  - Extreme poverty rate 2009: 2.1 percent (decline by about 1.1 percentage points vs 2008).
- Poverty gap indices (2009):
  - Absolute poverty gap: 5.9 percent.
  - Extreme poverty gap: 0.4 percent.
  - Interpretation: average deficit per absolutely poor person ≈ MDL 55.8 per month; per extremely poor person ≈ MDL 2.1 per month.
- Annual poverty indicator table (selected entries preserved exactly):
  - Absolute Poverty Line (MDL): 2006: 747,4; 2007: 839,3; 2008: 945,9; 2009: 945,9.
  - Absolute poverty rate (%): 2006: 30.2; 2007: 25.8; 2008: 26.4; 2009: 26.3.
  - Extreme Poverty Line (MDL): 2006: 404,2; 2007: 453,9; 2008: 511,5; 2009: 511,5.
  - Extreme poverty rate (%): 2006: 4.5; 2007: 2.8; 2008: 3.2; 2009: 2.1.
- Inequality and quintiles:
  - In 2009 national level inequality increased; average expenditures of richest 20 percent ≈ five times those of poorest 20 percent.
- Rural–urban and demographic breakdowns (2009):
  - Rural poverty rate 2009: 36.3 percent (increase of 1.7 percentage points vs 2008).
  - Of 885,000 poor persons, 706,000 are rural.
  - Large cities: poverty decreased by 3.9 percentage points to 7 percent.
  - Small towns: poverty decreased by 1.5 percentage points to 19.7 percent.
  - Household size and poverty:
    - Households with 5+ members: absolute poverty rate 41.7 percent (increase by 4.3 percentage points vs 2008).
    - Lone-person households: 29.7 percent.
  - Children and poverty:
    - Households with 3+ children: 50.8 percent fall under poverty incidence.
  - Education of household head and poverty:
    - Households headed by person with higher education: 4.1 percent.
    - By person with secondary education: 46.7 percent.
    - By person without any education: 57 percent.
- MDG 1 indicators (selected):
  - Population with consumption below $4.3 (PPP)/day:
    - 2006: 34.5; 2007: 29.8; 2008: 30.4; 2009: 29.5; 2010 (goal): 29.0; 2015 (goal): 23.0.
  - Proportion under absolute poverty line:
    - 2006: 30.2; 2007: 25.8; 2008: 26.4; 2009: 26.3; 2010 (goal): 25.0; 2015 (goal): 20.0.
  - Proportion under extreme poverty line:
    - 2006: 4.5; 2007: 2.8; 2008: 3.2; 2009: 2.1; 2010 (goal): 4.0; 2015 (goal): 3.5.
- Poverty by main source of household head income:
  - Farmers (freelance agricultural sector): absolute poverty rate 50 percent (higher by 7 percentage points due to crisis).
  - Households dependent on social benefits: poverty incidence ≈ 32 percent.
  - Employed persons: absolute poverty rate 12 percent (declining vs previous year).
  - Entrepreneurial income: households do not fall under poverty incidence.
  - Pensioners: poverty rate 33.1 percent (declined vs 2008 by 3.3 percentage points).

### Social aid, nominative compensations, and targeting reforms
- Social aid coverage and financing:
  - In 2009 only 21,000 households benefited from social aid.
  - Guaranteed minimum monthly family income increased from MDL 430 to MDL 530 beginning early 2010.
  - In 2010 list of social aid recipients increased to 55,000 disadvantaged families.
  - Financial resources for social aid payments: MDL 114 million in 2009; MDL 283.7 million in 2010.
- Nominative compensations:
  - 17.7 percent of total surveyed households received various nominative compensations.
  - Distribution by quintile of nominative compensations: quintile V: 14.4 percent; quintile I: 14.7 percent.
  - Policy change since early 2010: no nominative compensations for new applicants; these are taken over by social aid system.
- Social aid (means-tested) distribution across quintiles:
  - Quintile I absorbs 47.6 percent of social aid spending.
  - Quintile II absorbs 30 percent of social aid spending.
  - Conclusion: social aid is most appropriate social assistance benefit for poverty reduction; means-testing targeting shows appropriate inclusion.

### ENVIRONMENTAL CHALLENGES, WATER AND SANITATION, FORESTS
- Forest coverage:
  - 2000: 10.5 percent of land; 2008: 10.9 percent.
  - Slow expansion; intermediary and final targets likely not accomplished.
- State-protected areas / biodiversity:
  - Interim and final targets achieved in 2007 when indicator reached 4.76 percent.
- Water and sanitation (selected):
  - Population with sustainable access to improved water sources in 2009: 55 percent (2010 target: 59 percent; final goal: 65 percent).
  - Population with sustainable access to sewerage in 2009: 47.9 percent (2010 intermediary target: 50.3 percent; 2015 final target: 65 percent).
  - Access to improved sanitation in 2008: 45.9 percent (intermediate target: 51.3 percent; final target: 71.8 percent). Slow dynamics suggest targets may not be achieved.
- Waste management and forests (selected):
  - 1,868 landfills total area 1,415 ha; 1,026 authorized.
  - 3,743 solitude dumps detected; 2,814 liquidated.
  - State-protected natural areas: 4.65 percent of country territory = 157,227.4 ha (2009–2010).
  - Moldsilva Agency planting/regeneration works on area > 9,000 hectares by end of reporting period.

### FINANCIAL SECTOR, GIURGIULESTI PORT, AND TRADE
- Giurgiulesti International Free Port (as of July 1, 2010):
  - Total investments about USD 43 million.
  - Number of residents: 29.
  - Residents’ taxes and duties in H1 2010: MDL 47.4 million (2.3 times H1 2009), including MDL 43.1 million excise duties, MDL 1.8 million customs procedures, MDL 1.4 million social insurance fund payments.
- Petrol terminal and grain terminal (H1 2010):
  - Petrol imports: about 21 thousand tons imported in H1 2010 (1.8 times H1 2009); 23.2 thousand tons delivered on customs territory; ≈1.9 thousand tons stored at end-period.
  - Grain exports January–June 2010: 68.4 thousand tons; storage at end-H1: 3.9 thousand tons; grain storage services revenue: MDL 4.8 million.
- Financial market and banking:
  - Deposits: MDL 14.7 billion, 21.3 percent growth vs previous year (Dec 2009).
  - Credit balance increased by 12.7 percent vs end-2009, accounting for about MDL 26,915.5 million.
  - Share of credits in national currency: 57.7 percent.
  - Non-performing credits: about 13.3 percent of total credits end-2010 (end-2009: about 17.4 percent).
  - Credit interest rates decreased by 1.6 times for credits in MDL and by 1.4 times for foreign currency credits vs beginning of 2009.

### PRIORITY REFORMS — public finance, governance, and public administration
- Fiscal and tax changes (2010 measures):
  - Income from gambling by individuals taxed increased from 10 percent to 18 percent.
  - Reduced VAT rate of 8 percent on primary agricultural production in exchange for standard VAT rate of 20 percent.
  - Reduced VAT rate on natural gas and imported liquefied gas increased from 5 percent to 6 percent.
  - Excise duty increases highlighted:
    - Beer: 25 percent increase.
    - Cigarettes with filter: ad valorem component increased 4 times.
    - Gasoline and derivatives: 50 percent increase.
    - Jewelry items: increased by 3 times.
    - Passenger cars with engine capacity over 2,500 cm3: increased by 2 times.
    - Excise on crystal items: increase by 55 percent.
  - Fiscal indexation introduced for excise duty rates on wine production, spirits, low alcohol beverages, and electronic equipment.
- Public financial management reforms:
  - Draft Budget Classification, Single Chart of Accounts for public sector, functional classification testing completed for state budget components.
  - Single Methodological Set for budget drafting developed in 2010; Draft Manual for budget execution developed.
- Public administration restructuring and transparency:
  - New ministries established; multiple agencies placed under ministries; 23 of 24 specialized central authorities reorganized.
  - Regulatory framework for transparency in decision-making approved; consultation process applied to 82 percent of draft acts in 2010 (38 percent in 2009).
  - National Participatory Council created; public consultations via particip.md webpage.
  - E-Governance Centre created under State Chancellery.
  - Recruitment through competition applied for 37.8 percent of senior/managerial/executive vacant public functions; average 3.2 applicants per vacant position.
  - Automated information system “Register of public functions and civil servants” tender initiated (first stage bids opened September 2, 2010).

### RULE OF LAW, JUDICIARY MODERNIZATION, AND ANTI‑CORRUPTION
- Judicial reforms and discipline:
  - Judges may be dismissed for disciplinary deviations affecting judiciary image or for multiple disciplinary deviations.
  - Amendments aim to streamline disciplinary proceedings, evidence gathering, publication and enforcement.
  - Audio recording system “Femida” trainings conducted nationally with USAID support; Centre for Special Telecommunications to check functionality.
  - Integrated Case Management Program established; Action Plan for Judiciary financing 2010–2013 approved September 2, 2010.
- Anti‑trafficking and migration:
  - NRS implementation report for 2009 developed; NRS piloted extended to 7 new rayons and multidisciplinary teams created in Comrat and Chisinau.
  - Negotiations on labor migration/cooperation agreements initiated with Russian Federation and Italy; social security agreements signed with Portugal, Luxembourg, Romania.
- Anti‑corruption and enforcement (Sept 2009 – Sept 2010):
  - Offences discovered/counteracted: 1145 (343 corruption and related; 455 economic/financial; 347 other).
  - Material damage on criminal cases: MDL 105,32 million.
  - Seizure on goods to ensure restitution: MDL 141, 46 million.
  - Corruption acts counteracted across sectors (education 40, police 39, town halls 29, judiciary/advocacy 12, public health/medicine/pharmacy 11).
  - Anti‑corruption outputs: 19 analytical papers; draft laws to align with UN and Council of Europe anti‑corruption conventions.
  - Corruption perception index (CPI) 2010: 2.9 points (decrease by 0.4 percentage points during reporting period).

### TRANSNISTRIAN REGION — trade, registration, and reintegration efforts
- Diplomatic and negotiation efforts:
  - “5+2” format meetings: March 1-2, 2010 (Vienna) and May 24, 2010 (Astana).
  - Memorandum Merkel – Medvedev (concluded June 5) stressed readiness to contribute in “5+2” format.
  - Aide Memoire sent to European Commissioner for Enlargement on May 15, 2010 to increase EU role.
- Business registration and trade (Jan–Sep 2010):
  - SRC registered 60 economic agents from Transnistria (Jan–Sep 2010); cumulative to Sep 30, 2010: 669 businesses (462 provisionally, 207 permanently).
  - CCI issued 633 certificates of origin to 24 Transnistrian agents (first three quarters 2010).
  - CSRM issued 2,046 preferential certificates to 53 agents; total certificates by CSRM and CCI: 2,679 to 64 agents (out of 91 with export operations).
  - CSRM issued 1,541 certificates of origin for EU exports to 33 Transnistrian agents (Jan–Sep 2010); 2009 corresponding: 1,527.
- Trade volumes (Jan–Sep 2010):
  - Total trade by Transnistrian enterprises: USD 384,300.0 thousand.
    - Exports: USD 301,432.3 thousand.
    - Imports: USD 82,867.7 thousand.
  - Export regional breakdown:
    - CIS countries: 108,290.3 thousand USD (35.9 percent of exports).
    - EU countries: 133,005.5 thousand USD (44.1 percent).
    - Other countries: 60,136.5 thousand USD (20.0 percent).
- Quarter export breakdown (mil. USD):
  - Quarter I: 87,334.7; Quarter II: 135,423.0; Quarter III: 78,674.6. Total Jan–Sep 2010: 301,432.3 thousand USD.

### PRIORITY 3 — Competitiveness, SMEs, exports, and investment
- Business environment improvements:
  - Doing Business 2010 ranking: Republic of Moldova ranked 94 (previous year 108).
  - Improvements: business start-up +13 positions; business registration +34; tax payment +24.
  - Action Plan on removing administrative constraints reduced licensing types by 12; reduced mandatory certification nomenclature by ~100 positions; legalized one-stop-shop; de-monopolized imports for certain goods; simplified VAT procedures and customs fees adjustments.
  - Guillotine 2+ initiative: >55 central authorities inventoried; ~400 permissive acts reviewed; Working Group examined 138 acts and recommended 53 for exclusion/abrogation.
- Quality infrastructure and standards:
  - Draft Law on Accreditation and Conformity Assessment Activities drafted.
  - 90 technical Regulations developed; 50 aligned with European normative acts.
  - National Program for Adopting International and European Standards for 2010 includes 1503 standards; implementation Jan–Sep 2010: 882 national standards identical to ISO/CEI; 525 national standards identical to EN.
- Export promotion and trade:
  - Trade balance negative with most partners; positive with Great Britain (USD 27.8 million), Kazakhstan (USD 14.3 million), Georgia (USD 10.8 million), Iraq (USD 9.1 million).
  - Regional trade changes: negative trade balance with EU increased by 29,2 percent; other countries increased by 17,3 percent; with CIS decreased by 4 percent.
  - Exports by product groups (changes vs same period 2009): vegetal products 22.9 percent (+2.9 pp); food/alcohol/tobacco 20.3 percent (-1.8 pp); textile 17.3 percent (-2.8 pp); machines/electric equipment 11.1 percent (+0.2 pp); chemical products 5 percent (+0.6 pp); common metals 3.7 percent (+1.5 pp); different goods 3.2 percent (+0.2 pp).
  - Negotiations intensified for inclusion in EU list authorized to export animal products; launch of EU-RM Association Agreement and DCFTA negotiations.
- Investments and industrial parks:
  - Foreign investments stock: USD 2,565.7 million (2008); USD 2,604.2 million (2009); USD 2,637.5 million at end-Q1 2010.
  - Foreign direct investments increased 1.5 times by Sep 2010 vs same period 2009.
  - Balti Free Trade Zone attracted investors with expected projects of about Euro 25 million; expected jobs 5–7 thousand; estimated annual industrial production over MDL 0.5 billion with ≥ 90 percent expected exported.
- SMEs and access to finance:
  - SMEs represent about 98 percent of enterprises; 316.2 thousand people employed in SMEs (~58 percent of enterprise employees).
  - Sales proceeds of SMEs in 2009: MDL 57,480.0 million (39.25 percent of economy sales).
  - SCGF/SMEDO guarantee portfolio: 25 active guarantees amounting to MDL 4.4 million; amount of credits MDL 13.2 million; average guarantee rate: 30 percent (each MDL guaranteed permits MDL 3 investments).
  - Jan–Aug 2010: 8 guarantees granted (vs 2 same period previous year); amount of guarantees MDL 1.7 million permitting credits of MDL 5.5 million.
  - SCGF capitalization planned to increase allocations up to MDL 100 million; guarantee ceilings increased (active enterprises MDL 300k→700k; start-ups MDL 100k→300k) effective beginning June 11, 2010.
  - Additional financing for Competitiveness Enhancement Project: USD 24 million (Credit Agreement with IDA) — components: credit line USD 22.5 million; matching grants USD 1.5 million.

### RESEARCH, INNOVATION, AND DIGITAL INFRASTRUCTURE
- Research & innovation sector:
  - 3 scientific and technological parks and 1 innovation incubator; in 2 parks 50 residents operated during reporting period.
  - Indicators system for monitoring R&I developed, first phase of implementation; constrained by lack of company-level innovation statistics and definitions.
  - Agency for Innovation and Technological Transfer activities to create a risk fund; technological audit of state-financed applied research organized Sep 1 – Oct 30, 2009.
  - ACADEMICA research network created; national open database of research institutions and researchers developed.
- ICT and communications:
  - Fixed telephony beneficiaries at end-Q2 2010: 1151 thousands users (32.3 percent per 100 inhabitants).
  - Mobile users in H1 2010: 2855 thousands; mobile penetration 80.1 percent (increase of 5.2 pp vs 2009).
  - Internet users H1 2010: 235 thousand; broadband users ~231 thousand (98.2 percent); dial-up users ~4 thousand (1.7 percent).
  - Broadband technologies: ADSL 174.5 thousand users (75.5 percent of fixed-point broadband); FTTB subscribers grew by 105 percent in 2009.
  - Territorial concentration of broadband: Chisinau Municipality 106.3 thousand broadband users (56.7 percent); subscribers per 100 households: 43.3 in Chisinau, 5–15 in most districts.
  - Turnover H1 2010 in landline, mobile and internet sectors grew by ≈10 percent vs H1 2009 to MDL 2,792.1 million.

### TRANSPORT, ENERGY, GAS TRANSPORTATION, AND INFRASTRUCTURE
- Transport system:
  - Roadworks 2009: 17 km rehabilitated; 1 km constructed; 0 km reconstructed.
  - Roadworks 2010 (second part): 6 km constructed; 24 km rehabilitated.
  - Share of investments in Transport and Communications: 20.2 percent of total fixed asset investments.
  - Road Fund increased to account for 1 percent of GDP in 2010.
  - Financing agreements: Government concluded agreement with EBRD on Oct 29, 2010 amounting to EURO 75 million; negotiation for additional EURO 75 million to follow.
  - Railway: launch of Chisinau – Odessa railway in Oct 2010.
- Energy system and gas:
  - Accession to Energy Community Treaty; laws adopted aligning energy framework with European Acquis (Law No. 117-XVIII of 23.12.2009; Law No. 124-XVIII of 23.12.2009; Law No. 123-XVIII of 23.12.2009; Law No. 142 of 02.07.2010).
  - LEA 400 kV Balti-Suceava feasibility assignment with CESI; grant Euro 500 thousand from EBRD; construction estimate EURO 29.0 million for segment crossing Moldova and Balti station works.
  - Electricity distribution grids wear ≈ 70 percent; renovation plan developed and investments reflected in tariffs.
  - Electric energy consumption H1 2010 (without Transnistria): 1,637.3 million kWh (increase by 14.39 million kWh or 0.9 percent vs H1 previous year).
- Natural gas transportation and consumption (first half of 2010):
  - About 18.0 billion m3 of natural gas (40.0 percent of maximum pipeline capacity 45 billion m3) transported through transit pipelines ATI, SDCRI, RI and ACB to Balkans and Central Europe.
  - Gas consumption increased by 8.4 percent to 619.7 million m3.
  - Import volume increased by 9.2 percent to 670.5 million m3.
  - Consumption by category: population 203.93 million m3 (+10.4 percent); economic agents 114.42 million m3 (+5.8 percent); energy enterprises 269.63 million m3 (+8.2 percent); budgetary institutions 31.71 million m3 (+6.5 percent).
  - Consumption structure: energy enterprises 43.5 percent; households 32.9 percent; economic agents 18.5 percent; budgetary institutions 5.1 percent.
  - Effective procurement price for gas procured by JSC Moldovagaz from SAD Gazprom: MDL 2,977/1000 m3.
  - National energy intensity ≈ 3 times higher than neighbor countries.
  - Draft National Program for Energetic Efficiency 2010–2020 developed; Agency for Energy Efficiency (AEE) appointed responsible.

### EDUCATION, PRE‑SCHOOL, AND HUMAN RESOURCES DEVELOPMENT
- Pre-school and school provision:
  - Furnishing of 5 pre-school institutions; didactic materials/furniture/games provided to 100 pre-school institutions; didactic materials and toys to 70 pre-school institutions.
  - Set of books for children 3–5 years distributed to all pre-school institutions.
- School feeding and camps:
  - Free food for children in grades 1–4 organized; free manuals provided.
  - Summer 2010: 78 camps hosted 398 thousands children; 447 day camps hosted 490 thousand children; total 888 thousand children (comparisons provided for 2009 and 2008).
- Social scholarships and access:
  - Social scholarships: 2010: 2510; 2009: 2352; 2008: 2231.
  - Temporary norms for orphan pupils/students increased three times vs 2008.
- Education system restructuring and staff:
  - Network optimization: 5 general educational institutions stopped activity; 77 pre-university institutions restructured; 14 institutions stopped activity.
  - Staffing and remuneration: phased salary increases during 2010–2011 (Government Decision No.807 of 07 December 2009) with implementation dates Jan 1, 2011 and Sep 1, 2011.
  - New financing formula piloted in Causeni and Riscani rayons.
- Higher education and mobility:
  - 11 TEMPUS projects valued about Euro 4 million.
  - ≈160 participants benefited from Erasmus Mundus External Cooperation Window exchanges.
  - ≈400 students participate yearly in academic long-term exchanges.
  - Collaboration protocol with Romania offered 950 scholarships for lyceum pupils and 1100 scholarships for higher education; total offer 2800 places.
  - 3467 foreign students studying in Moldovan higher education institutions.
- Education IT and registers:
  - Automated Informational System “State Education Register” technical projects developed; list of nomenclatures finalized.

### HEALTH SYSTEM, QUALITY, EPIDEMICS, AND FINANCING
- Human resources and recruitment incentives:
  - 2009 distributions to rural localities: 102 doctors and 641 medical assistants.
  - First 8 months of 2010 distributions: 72 doctors and 345 medical assistants.
  - Incentives in 2010: MDL 30 thousand to each doctor; MDL 24 thousand to medical assistants employed in rural area; total allotted to young specialists in first 8 months of 2010: MDL 7.66 million.
- Quality governance and protocols:
  - Quality Councils established in all medical and sanitary institutions in March 2010.
  - Clinical/laboratory guidance documents developed/approved Sept 2009–Sept 2010: 28 National Clinical Protocols; 35 Standard Clinical Protocols; 9 Standard Clinical Protocols for neonatology resuscitation/intensive therapy; 10 Standard Clinical Protocols for pediatric resuscitation/intensive therapy; 3 medical practical guides; 6 testing algorithms of donated blood; 2 izoserology research and sanguine compatibility algorithms.
  - Monitoring of medical audit implementation organized in 9 territories and 33 institutions.
- Maternal and child health outcomes:
  - Maternal mortality in 2010: 18 death cases (compared to 7 cases in 2009).
  - Infant mortality in 2010: 11.8 cases/1000 live births (2009: 12.1).
  - Under-five mortality in 2010: 13.6/1000 (2009: 14.3).
- Epidemic control, HIV/AIDS, TB:
  - 704 new HIV cases registered in 2010 (equal to 2009).
  - Universal access to antiretroviral treatment: 985 people under ARV treatment (including 209 from Eastern region).
  - TB cases 2010: 4,632 new and repeated (2009: 4,744); new TB cases 3,751 (2009: 3,804).
  - TB mortality 2009: 17.9 deaths per 100 thousand (2008: 17.4); MDG 2010 target: 15 deaths per 100 thousand — probability of reaching target decreasing.
- Health financing:
  - 2009 health allocations: MDL 3.846.8 million (MDL 453.9 million more vs 2008).
  - 2010 approved for health: MDL 4.040,9 million (forecasted consumption prices indicator 9.3 percent).
  - 2011 forecasted allocations: MDL 4.256,5 million (forecasted inflation 6 percent).
  - Compensated medicines 2010: MDL 112.0 million (51.2 percent more than MDL 74.1 million in 2009).
  - Mandatory medical assistance insurance collections in fixed amount paid by individuals in 2010: MDL 40.389,5 thousand (2009: MDL 38.466,1 thousand).
  - Insurance policies sold increased from 25.7 thousands to 33.55 thousands in 2010 (vs same period 2009).
- Hospital modernization and PPPs:
  - Program for Development of Hospital Medical Assistance 2010–2012 approved.
  - IFC Technical Assistance agreements for two health PPP projects: radiotherapy within Oncologic Institute and imagistic service within Republican Clinical Hospital.
  - Homecare and palliative services implementation started; normative framework approved.
  - Flu Diagnosis Laboratory equipped and functional since March 2010 (investment MDL 11 million).

### REGIONAL DEVELOPMENT, DECENTRALIZATION, AND RURAL ECONOMY
- Regional development institutionalization:
  - National and regional development councils established (2008); Regional Development Agencies North, Center, South established late 2009.
  - Agencies’ budgets cover 44 percent of National Regional Development Fund; 56 percent covered by DFID project.
  - National Strategy for Regional Development approved March 4, 2010.
- Operationalization and financing:
  - Pilot Call for proposals May 10 – June 10, 2010: 135 project proposals received; 56 projects included in Single Programming Document for 2010–2012 approved August 26, to be financed from National Regional Development Fund (which constitutes 1 percent of total state budget).
- Decentralization and local capacity:
  - Joint Commission for Decentralization established (Government Decision no. 608 of July 5, 2010).
  - Four extensive capacity studies initiated; monitoring of working groups needed to finalize local administration assessment methodology.
  - Ministry of Finance sector working group to delimit powers, review funding mechanisms, and improve local borrowing regulatory framework.
- Rural economy and agriculture:
  - Agricultural land re-plotting pilot in 40 villages (21 rayons): average MDL 60 thousand allocated per locality; of 50,184 identified owners, 75 percent interviewed; 55 percent expressed interest; 20 percent signed re-plotting forms; as of Sep 20, 2010: 8,439 land transactions initiated in 40 villages (5,513 fully implemented).
  - Subventions fund for farmers in 2010: MDL 300 million, increased by MDL 100 million from Oct 1; as of Oct 6, 2010 MDL 79.5 million capitalized.
  - Agency for Intervention and Payments for Agriculture (first half 2010): 1,551 grant applications received; 770 approved; IFAD and RISP financed 246 agricultural activities totaling MDL 74.8 million (≈68 percent or MDL 42 million increase vs same period 2009).
  - ACSA organized 2,406 seminars/training programs Jan–Aug 2010 (growth 9.1 percent vs same period 2009).

### ENVIRONMENTAL RISK MANAGEMENT AND DISASTER RESPONSE — Floods July 2010
- Floods July 2010:
  - Mostly affected rayons Hincesti and Cantemir; localities in 16 rayons on Prut and Dniester also affected.
  - Operative working group chaired by Minister of State operated 24 hours/day in affected areas; 2,500 persons mobilized across services/institutions.
  - Estimated damages and losses: USD 41.9 million.
  - Around 13,000 people affected.
  - Final total needs for short and medium term rehabilitation: USD 77.5 million.
  - Short-term objective: provision of housing to all victims of July 2010.
  - Reconstruction plan initiated late August 2010 with finalization planned for late December (planned construction of over 700 houses and infrastructure works; local inhabitants involved in reconstruction to provide income).
  - International appeal signed by Prime Minister Vladimir Filat; international response significant.

*Source: IMF country report content units compiled from the supplied chapter/section text.*

### INTRODUCTION ...........................................................................................................

### INTRODUCTION

### Overview of the 2009–2010 policy context and shocks
- New Government in office from September 25, 2009, covering period September 2009 - October 2010, faced multiple challenges including the financial and economic crisis that began in late 2008 and the floods that affected much of the territory of the country.
- Government continued implementation of reforms envisaged in the National Development Strategy and initiated new measures to unblock economic processes, honor social commitments, ensure operation of democratic institutions, boost European integration, and strengthen relations with trade partners and the donor community.
- After one year of implementation, several economic and social indicators and events indicate positive developments in strategic areas, though some policy effects are not immediately observable.

### Macroeconomic performance and fiscal developments
- GDP: In the second half of 2010, Gross Domestic Product amounted to MDL 52.2 billion, an increase of 6.5 percent (in comparable prices) compared to the same semester of the previous year.
- Inflation: In December 2010 the inflation rate was 8.1 percent, which is by 7.4 percentage points higher compared to the respective period of 2009.
- Budget deficit: Registered around MDL 1.7 billion in 2010 compared to MDL 3.8 billion in 2009.
- Public budget dynamics (January–December 2010):
  - National public budget revenues increased by 17.1 percent compared to the same period of 2009.
  - Spending was by 7.2 percent higher compared to the same period of 2009.
- Social sector reallocations and household outcomes:
  - Average salary in the economy increased by almost MDL 200.
  - Social aid doubled both in numbers of persons covered and financial resources allocated.
  - Greater access of the population to health services was achieved.

### External financing, IMF program, and donor commitments
- External financial assistance in 2010 was 4 times higher than that obtained in 2008 (USD 785 million referenced for 2008 assistance).
- IMF program:
  - On January 29, 2010, the IMF Executive Board approved three-year arrangements for Moldova under the Extended Credit Facility and the Extended Fund Facility (ECF/EFF).
  - Combined financial assistance equivalent to SDR 369.6 million (about US$574.4 million), with each facility providing an equal amount.
  - Immediately available amount: equivalent to SDR 60 million (about US$93.2 million).
  - Remaining amounts available in installments subject to semiannual reviews.
  - In late 2009, Moldova used its SDR allocation from the IMF (equivalent to about US$186 million) to cover immediate budget financing needs.
  - On July 16, 2010, the IMF Board completed the 2010 Article IV Consultation and First Review under the ECF/EFF; completion of the first review made about US$90 million available to the authorities.
- Donor pledges:
  - At the Partnership Forum in Brussels on 24 March (year implied 2010), country development partners pledged approximately EUR 1.8 billion for the period 2010-2013 to implement the reform agenda.
  - Most of this amount was provided as budget support: EUR 873.28 million.
- Government presented vision “Rethink Moldova” to the Consultative Group of the Donor Community.

### Poverty and inequality trends (2006–2009; MDG context)
- Policy objective: Improve citizens’ quality of life; poverty reduction through increasing household incomes, job creation, guaranteed access to education and health services, effective social protection, and facilitating poor participation in economic development.
- 2009 macroeconomic shock and poverty:
  - Republic of Moldova registered an economic downturn of -7.8 percent in 2009, leading to stagnation of poverty rate reduction.
  - Annual absolute poverty rate in 2009: 26.3 percent (virtually same as 26.4 percent in 2008).
  - Extreme poverty rate in 2009: 2.1 percent (decline by about 1.1 percentage points compared to 2008).
- Poverty gap indices (2009):
  - Absolute poverty gap: 5.9 percent.
  - Extreme poverty gap: 0.4 percent.
  - Interpretation: each absolutely poor person has an average deficit of about MDL 55.8 per month to get out of absolute poverty; each extremely poor person is missing about MDL 2.1 per month to get out of extreme poverty.
- Annual poverty indicators (table values preserved):
  - Absolute Poverty Line (MDL): 2006: 747,4; 2007: 839,3; 2008: 945,9; 2009: 945,9.
  - Absolute poverty rate (%): 2006: 30.2; 2007: 25.8; 2008: 26.4; 2009: 26.3.
  - Absolute poverty gap (%): 2006: 7.9; 2007: 5.9; 2008: 6.4; 2009: 5.9.
  - Severity of absolute poverty (%): 2006: 3.0; 2007: 2.1; 2008: 2.3; 2009: 2.0.
  - Extreme Poverty Line (MDL): 2006: 404,2; 2007: 453,9; 2008: 511,5; 2009: 511,5.
  - Extreme poverty rate (%): 2006: 4.5; 2007: 2.8; 2008: 3.2; 2009: 2.1.
  - Extreme poverty gap (%): 2006: 1.0; 2007: 0.5; 2008: 0.5; 2009: 0.4.
  - Severity of extreme poverty (%): 2006: 0.4; 2007: 0.2; 2008: 0.1; 2009: 0.1.
- Inequality and consumption distribution:
  - In 2009 national level inequality increased; average expenditures of the richest 20 percent were about five times higher than of the poorest 20 percent (quintile distribution 2006–2009 summary presented).
- Millennium Development Goals (MDG) targets and performance:
  - MDG target (share under USD 4.3 per day per person at PPP): decrease from 34.5 percent in 2006 to 29 percent in 2010 and to 23 percent in 2015.
  - In 2009, poverty rate according to international poverty threshold: 29.5 percent (compared to 29 percent target for 2010).
  - Given economic growth in 2010 of +6.9 percent and strong correlation between poverty and growth, it is assessed as very likely for the proposed medium-term objective to be achieved.
  - MDG target for extreme poverty: decrease from 4.5 percent in 2006 to 4 percent in 2010 and to 3.5 percent in 2015. In 2009, extreme poverty reduction achieved and medium- and long-term target reached; policies must ensure this indicator does not grow and is maintained at the maximum level recorded in 2009.
- Rural–urban and demographic breakdowns (2009):
  - Rural poverty rate in 2009: 36.3 percent, increased by 1.7 percentage points compared to 2008.
  - Of the 885,000 poor persons in the Republic of Moldova, 706,000 are from rural areas.
  - Urban poverty changes in 2009:
    - Large cities: poverty decreased by 3.9 percentage points to 7 percent.
    - Small towns: poverty decreased by 1.5 percentage points to 19.7 percent.
  - Household composition and poverty risk:
    - Households with 5 or more members have absolute poverty rate: 41.7 percent; poverty increased by 4.3 percentage points compared to 2008 for this group.
    - Lone-person households (often lonely pensioners) poverty rate: 29.7 percent (exceeds national average).
  - Children and poverty:
    - Households with 3 or more children: 50.8 percent fall under poverty incidence (more than half).
    - Poverty level increases with the number of children in the family.
  - Education and poverty:
    - Poverty rate by education level of household head:
      - Households headed by persons with higher education: 4.1 percent.
      - Households headed by persons with secondary education: 46.7 percent.
      - Households headed by persons without any education: 57 percent.

*Source: INTRODUCTION (content unit)._

### 22. The poverty rates depending on the main source of income of the household head have the

### _cr1194 - 22. The poverty rates depending on the main source of income of the household head have the

### Poverty rates by main source of household head income
- Highest level of poverty: households with main source freelance work in the agricultural sector - farmers.
  - Absolute poverty rate for these households: 50 percent.
  - Poverty rate for this category was higher by 7 percentage points (impact of the economic crisis).
- Households dependent on social benefits:
  - Poverty incidence: about 32 percent.
- Employed persons:
  - Absolute poverty rate: 12 percent.
  - Trend: declining compared to the previous year (wage increases had a positive impact on the welfare of the poor).
- Households living on income from entrepreneurial activities:
  - Do not fall under poverty incidence.
- People living on pensions:
  - Poverty rate: 33.1 percent.
  - Trend: declining in comparison with 2008 by 3.3 percentage points.
  - Note: standard of living of pensioners remains below the average living standard of the population.

### Poverty by gender and household head
- No essential differences between welfare of households by gender.
  - Poverty level for women: about 26 percent.
  - Poverty level for men: about 26 percent.
  - Increasing trend of poverty in households headed by men compared to those headed by women:
    - Men-headed households: 26.5 percent.
    - Women-headed households: 25.9 percent.

### Government actions, social aid, and targeting
- Actions implemented under the NDS (Government supported by development partners) had heterogeneous effects:
  - Positive actions: indexation of pensions, increase in salaries and allowances — helped increase incomes and avoid extreme poverty.
  - Shortcomings: efficiency of social aid and targeting social benefits/allowances exclusively to vulnerable people not fully implemented.
- Social aid coverage and financing:
  - In 2009, only 21,000 households benefited from social aid.
  - Low inclusion of beneficiaries and low awareness among poor households identified as major problems.
  - Since early 2010, guaranteed minimum monthly family income increased from MDL 430 to MDL 530.
  - During 2010, list of social aid recipients increased to 55,000 disadvantaged families.
  - Financial resources allocated for social aid payments increased from MDL 114 million in 2009 to MDL 283.7 million in 2010.

### Nominative compensations and targeting effectiveness
- Nominative compensations:
  - Remain the most frequent payments granted to 11 categories of beneficiaries.
  - 17.7 percent of the total households surveyed received various nominative compensations.
  - Beneficiaries of these allowances are not the poorest categories:
    - Share of recipient households in quintile V (highest income): 14.4 percent.
    - Share of recipient households in quintile I (poorest): 14.7 percent.
- Social aid (means-tested) and distribution across quintiles:
  - Households in bottom quintiles absorb much of the money allocated:
    - Quintile I: 47.6 percent of social aid spending.
    - Quintile II: 30 percent of social aid spending.
  - Conclusion: social aid is the most appropriate social assistance benefit for poverty reduction; targeting via testing needs confirms appropriate inclusion for these allowances.
- Policy change since early 2010:
  - No nominative compensations established for new applicants; these are taken over by the social aid system.

### Millennium Development Goals (MDGs) — overview and MDG 1 highlights
- Overall progress since 2007 has been uneven; domestic economic and political crises likely to undermine achievement of several MDG targets for 2010 and 2015.
- Specific MDG 1 (Reduce extreme poverty and hunger):
  - Population with consumption below $4.3 (PPP) a day (percent):
    - 2006: 34.5
    - 2007: 29.8
    - 2008: 30.4
    - 2009: 29.5
    - 2010 (goal): 29.0
    - 2015 (goal): 23.0
  - Proportion of people under the absolute poverty line:
    - 2002: 40.4
    - 2003: 29.0
    - 2005: 29.1
    - 2006: 30.2
    - 2007: 25.8
    - 2008: 26.4
    - 2009: 26.3
    - 2010 (goal): 25.0
    - 2015 (goal): 20.0
  - Proportion of people under the extreme poverty line:
    - 2002: 26.2
    - 2003: 15.0
    - 2005: 16.1
    - 2006: 4.5
    - 2007: 2.8
    - 2008: 3.2
    - 2009: 2.1
    - 2010 (goal): 4.0
    - 2015 (goal): 3.5
- Narrative findings for MDG 1:
  - Poverty declined from 2000 but new methodology in 2006 changed poverty indicators.
  - 2008: poverty increased to 26.4 percent (impact of 2007 drought and fall in remittances).
  - 2009: remittances declined further but general poverty level remained practically unchanged compared to 2008 due to unchanging prices and growth in household income from public sources.
  - Rural poverty continued to grow in 2009, widening the urban-rural gap.
  - Inequality indicators deteriorated, potentially hindering poverty reduction progress.
  - Gender perspective: no major discrepancies in poverty.
  - Targets:
    - Consumption below $4.3 (PPP) a day in 2007 (29.8 percent) close to 2010 target (29 percent) — likely achievable.
    - Stagnation of national poverty rate in 2008-2009 makes achieving 2010 intermediate target (25 percent) less certain.
    - Extreme poverty targets for 2010 and 2015 already achieved in 2007-2009.

### Selected MDG indicators and status (excerpts)
- MDG 2 (Education) selected indicators:
  - Gross enrollment ratio in general secondary education (percent):
    - 2002: 95.1
    - 2003: 95.1
    - 2005: 94.4
    - 2006: 92.0
    - 2007: 91.6
    - 2008: 90.9
    - 2009: 90.7
    - 2010 (goal): 95.0
    - 2015 (goal): 98.0
  - Literacy rate for the 15-24 year-old population:
    - 2006: 99.6
    - 2007: 99.6
    - 2008: 99.6
    - 2009: 99.6
    - 2010 (goal): 99.5
    - 2015 (goal): 99.5
  - Enrollment rate for pre-school programs for 3-6 year-old children:
    - 2002: 57.0
    - 2003: 61.1
    - 2005: 70.7
    - 2006: 70.1
    - 2007: 72.6
    - 2008: 74.4
    - 2009: 75.5
    - 2010 (goal): 75.0
    - 2015 (goal): 78.0
- MDG 3 (Gender) selected indicators:
  - Share of MP seats held by women, percent:
    - 2002: 15.8
    - 2003: 17.5
    - 2005: 22.0
    - 2006: 21.8
    - 2007: 21.8
    - 2008: 21.8
    - 2009: 24.7
    - 2010 (goal): n.a.
    - 2015 (goal): 50
  - Share of women's average salary compared to men's average salary, percent:
    - 2003: 71.9
    - 2005: 72.6
    - 2006: 68.1
    - 2007: 72.6
    - 2008: 75.7
    - 2009: 76.4
    - 2010 (goal): n.a.
    - 2015 (goal): >79
- MDG 4 (Child mortality) selected indicators:
  - Infant mortality rate (per 1,000 live births):
    - 2002: 14.7
    - 2003: 14.4
    - 2005: 12.4
    - 2006: 11.8
    - 2007: 11.3
    - 2008: 12.2
    - 2009: 12.1
    - 2010 (goal): 16.3
    - 2015 (goal): 13.2
  - Under-five mortality rate (per 1,000):
    - 2002: 18.2
    - 2003: 17.8
    - 2005: 15.6
    - 2006: 14.0
    - 2007: 14.0
    - 2008: 14.4
    - 2009: 14.3
    - 2010 (goal): 18.6
    - 2015 (goal): 15.3
  - Immunization, measles (percent of children under 2 years old):
    - 2002: 94.3
    - 2003: 95.7
    - 2005: 96.9
    - 2006: 96.9
    - 2007: 94.7
    - 2008: 94.4
    - 2009: n.a.
    - 2010 (goal): >96%
    - 2015 (goal): >96%
- MDG 5 (Maternal health) selected indicators:
  - Maternal mortality ratio (per 100,000 births):
    - 2002: 28.0
    - 2003: 21.9
    - 2005: 18.6
    - 2006: 16.0
    - 2007: 15.8
    - 2008: 38.4
    - 2009: 17.2
    - 2010 (goal): 15.5
    - 2015 (goal): 13.3
  - Births attended by skilled health personnel (percent):
    - 2002: 99.1
    - 2003: 99.4
    - 2005: 99.5
    - 2006: 99.6
    - 2007: 99.5
    - 2008: 99.5
    - 2009: 99.8
    - 2010 (goal): 99.0
    - 2015 (goal): 99.0
- MDG 6 (HIV/AIDS, tuberculosis and other diseases) selected indicators:
  - HIV/AIDS incidence (per 100,000 people):
    - 2002: 4.7
    - 2003: 6.2
    - 2005: 12.5
    - 2006: 14.7
    - 2007: 17.4
    - 2008: 19.4
    - 2009: 17.1
    - 2010 (goal): 9.6
    - 2015 (goal): 8.0
  - HIV incidence among 15-24 year-olds:
    - 2002: 9.0
    - 2003: 9.8
    - 2005: 20.1
    - 2006: 18.8
    - 2007: 21.2
    - 2008: 16.1
    - 2009: 19.59
    - 2010 (goal): 11.2
    - 2015 (goal): 11.0
  - Mortality rate associated with tuberculosis (deaths per 100,000 people):
    - 2002: 17.3
    - 2003: 16.9
    - 2005: 19.1
    - 2006: 19.3
    - 2007: 20.2
    - 2008: 17.1
    - 2009: 18.0
    - 2010 (goal): 15.0
    - 2015 (goal): 10.0

### MDG-specific narratives (selected)
- MDG 2 (Education):
  - Coverage of general compulsory education decreased from 95.1 percent in 2002 to 90.7 in 2009.
  - Pre-school education enrollment increased from 44.1 percent in 2000 to 75.5 percent in 2009.
  - Risks: high poverty (especially in large families), rural-urban disparities, disabilities and Roma children have much lower pre-school enrollment.
- MDG 3 (Gender):
  - Horizontal and vertical gender segregation persist; women concentrated in low-paying jobs and lower positions.
  - Female average salary in 2009: 76.4 percent of the average male salary.
  - Growing female participation in policy and decision-making may enable achieving 2015 targets if growth pace is maintained, but doubts remain about mid-term targets.
- MDG 4 (Child mortality):
  - Infant mortality in 2009: 12.1 cases per 1,000 live births.
  - Under-five mortality in 2009: 14.3 cases per 1,000 live births.
  - Targets for 2010 and 2015 for both indicators have been already achieved.
  - Concerns: higher infant mortality than most European countries; perinatal diseases, congenital malformations and respiratory diseases are prevalent causes; poorer and Roma children face higher mortality risk.
  - Immunization: decline in measles vaccination from 96.9 percent in 2007 to 94.4 percent in 2008 — 2010 intermediary target may not be met.
- MDG 5 (Maternal health):
  - Maternal mortality rose to 38.4 cases per 100,000 births in 2008, then declined to 17.2 cases per 100,000 births in 2009.
  - Causes: bleeding, late gestoses, septic states, thromboembolism, hepatic cirrhoses, anaesthesia-related complications.
  - Social determinants (poverty and migration) play a determinant role in half of maternal mortality cases.
  - High proportion of births attended by skilled personnel (99.8 percent in 2009) supports meeting 2010 and 2015 targets only if financing is sustained.
- MDG 6 (HIV/AIDS and TB):
  - HIV/AIDS incidence rose from 4 cases per 100,000 in 2000 to 19.4 cases per 100,000 in 2008, declined to 17.2 cases per 100,000 in 2009.
  - Incidence among 15-24 year-olds: 19.59 cases per 100,000 in 2009 (up from 16.08 in 2008).
  - Regional concern: Transnistria shows particularly alarming situation.
  - Conclusion: very improbable that MDG targets for 2010 and 2015 for HIV/AIDS will be achieved.
  - TB mortality: fell from 20.2 cases per 100,000 in 2007 to 17.4 in 2008, rose to 18.0 in 2009 — uneven evolution makes achievement of 2010 intermediary target uncertain.

*Source: _cr1194 - 22. The poverty rates depending on the main source of income of the household head have the*

### 34. Addressing  the  environmental  challenges  and  risks  is  imperative  for  Moldova.  From  the

### 34. Addressing the environmental challenges and risks is imperative for Moldova

### Environmental targets and progress
- Forest coverage
  - From 2000 to 2008, the proportion of land covered by forests increased from 10.5 to 10.9 percent.
  - Given the slow expansion of forest coverage, the little forestation work done in 2009-2010 and the cuts in public expenditures due to the economic crisis, both the intermediary and final targets will not be accomplished.
- State-protected areas / biodiversity
  - The interim and final targets for increasing the share of state-protected areas for maintaining biological diversity were achieved in 2007 when the indicator reached 4.76 percent.
- Water access and sanitation
  - In 2009, the proportion of the population with sustainable access to improved water sources was 55 percent (2010 target set at 59 percent).
  - The final goal for water access is 65 percent; achievement depends on economic recovery and growth in state revenues.
  - Proportion of the population with sustainable access to sewerage was 47.9 percent in 2009.
  - 2010 intermediary target for sewerage: 50.3 percent; 2015 final target: 65 percent. Progress suggests these targets will probably not be achieved.
  - Proportion of the population with access to improved sanitation in 2008: 45.9 percent. Intermediate target: 51.3 percent. Final target: 71.8 percent. Slow dynamics suggest these targets could be left unaccomplished.

### MDG 8 — Develop a global partnership for development: progress and challenges
- Positive developments
  - ICT sector and financial sector rapidly expanding.
  - Remarkable increase in penetration of mobile telecommunications, computers and the Internet.
  - Target to double telephony penetration rate and increase personal computers and Internet subscribers at an annual rate of 15 percent is realistic.
- Constraints and vulnerabilities
  - Transportation infrastructure underdeveloped due to poor condition of roads.
  - Moldova is land-locked; Giurgiulesti Port construction and opening in 2009 only partially addressed issues.
  - Foreign trade poorly diversified in exported goods; exports growing slower than imports, leading to a growing trade deficit.
- External financing and debt management
  - Policy has been to attract external resources on favorable conditions for investment and budget support.
  - Share of foreign debt in GDP decreased constantly in the last decade; despite growth of foreign debt in 2009, risks have not exceeded critical levels.
- Youth and access to medication
  - Youth unemployment rose by 4.2 percentage points in 2009 to 15.4 percent, making the 2010 intermediary target of 15 percent unlikely to be achieved.
  - If economic recovery that started in 2010 becomes sustainable, achieving the 2015 youth target seems more probable.
  - Drug prices more than tripled between 2000 and 2009; government launched systematic analysis of pharmaceutical market addressing variety, pricing, and physical and economic access to medications. Growing concern about financial affordability of medicines.

### Financial and economic crisis response (ESRP and outcomes)
- Context and initial fiscal stress
  - By fourth quarter of 2009 public finances were precarious; national public budget deficit risked reaching 15 percent of GDP.
  - Large part of the deficit financed from previous accumulations and accumulation of domestic debt.
  - Sectors contracted: industry, constructions, transport services; remittances fell significantly.
- ESRP objectives and pillars
  - Economic Stabilization and Recovery Program (ESRP) developed since last quarter of 2009 to remedy crisis impact.
  - ESRP built on three pillars: stabilization and streamlining public finances; economic activity recovery; ensure effective and fair social protection.
- Implementation and cooperation
  - Fiscal and budgetary policy measures adopted in 2009 under ESRP for 2009-2011 included adjustments of fiscal policy and management, optimization and improvement of public financial resources management aiming to eliminate budgetary imbalances.
  - Government developed dialogue and cooperation with development partners: International Monetary Fund, the World Bank, European Bank for Reconstruction and Development (EBRD), and European Investment Bank.

### Fiscal outcomes and support
- Budget and revenues/expenditures (January–December 2010)
  - Accumulated incomes: MDL 27.6 billion, 17.1 percent more compared to 2009.
  - Expenditures: MDL 29.3 billion, 7.2 percent more than last year.
  - Budget deficit at end of 2010: MDL 1.8 billion (compared to MDL 3.8 billion in same period of 2009).
- Recovery from 2009 imbalances
  - In 2009 it was found revenues of the approved budget would not be executed by about MDL 6.0 billion.
  - Urgent actions reduced estimated deficit from 15 percent of GDP (September 2009 estimate) to 3.4 percent of GDP actually executed in 2010.
- IMF financial support
  - In 2009 financial budget support from the IMF: 177 million SDR (equivalent of MDL 2,075.7 million).
  - In 2010 IMF support: 95 million SDR (equivalent of MDL 1,817.1 million).
  - Use of these funds helped unblock work of businesses in November-December 2009.
- Budget security and priorities
  - In 2010 budget fully secured resources to cover personnel costs, pensions, allowances, scholarships and other social benefits; commitments related to internal and external state debts honored.
  - June 2010 amendments to the State Budget Law for 2010 increased revenues by about MDL 1,012.4 million, increased expenditures by about MDL 263.7 million, and reduced the budget deficit by MDL 748.7 million.
  - Public revenues in 2010 exceeded 2009 level by 17.1 percent; 2009 reflected a reduction of public revenues receipts by 7.8 percent compared to 2008.

### Floods 2010: damage, response, and reconstruction
- Geographic impact
  - Floods in July 2010 affected mostly rayons Hincesti and Cantemir; localities in 16 rayons on Prut and Dniester rivers suffered to a smaller extent.
- Operational response
  - Operative working group chaired by the Minister of State established; operated 24 hours per day in most affected areas.
  - 2,500 persons mobilized from Civil Protection and Emergency Situations Service, Ministry of Internal Affairs, National Army, Ministry of Transport and Road Infrastructure, Border Guard Service, LPAs, including foreign experts.
  - Emergency medical units deployed and worked non-stop.
  - Government Working Group tasks: coordinate goods and people evacuation, distribution of humanitarian aid, emergency rehabilitation of hydraulic infrastructure, maintenance of public order, etc.
- International appeal and assistance
  - Prime Minister Vladimir Filat signed appeal to international community and development partners seeking material aid for elimination and reconstruction; international response significant and some aid continued to come.
- Reconstruction plans and targets
  - Reconstruction activities initiated in late August 2010 with finalization planned for late December.
  - Planned construction of over 700 houses, transport infrastructure, supply of natural gas, water, sewerage and electricity; approach included involving local inhabitants in reconstruction to provide income.
- Damage and needs estimates
  - Estimated damages and losses: USD 41.9 million.
  - Around 13,000 people affected.
  - Final total needs for short and medium term rehabilitation: USD 77.5 million.
  - Short term objective: provision of housing to all victims of July 2010.
  - Medium and long term objectives: implement measures to prevent further flood risk.

### Prerequisite 1: Ensure macroeconomic stability — recovery indicators
- GDP growth and demand (2010)
  - GDP grew by 4.7 percent in the first half of 2010 compared to the same period of the previous year and reached the level of 6.5 percent by December 2010.
  - Gross domestic product (GDP) in the first half of 2010 totaled MDL 31.7 billion, representing an increase over the same period of the last year by 5.6 percent (in comparable prices).
  - Household consumption and imports grew by 2.5 and 1.3 percent, respectively.
  - Exports increased by 17.1 percent as compared to January-December 2009.
  - Added value in the goods sector recorded a positive trend due to growth in both industry and agriculture; gross added-value for services increased due to positive developments in trade, transport and communications; construction continued negative developments.
- Inflation and monetary policy drivers
  - Main factors influencing inflation in 2010 included:
    - change in tariffs for services with regulated prices (gas, electricity, heating) made in January and May,
    - depreciation of Moldovan leu in relation to currencies of main economic partners,
    - decrease in food prices due to favorable weather in second quarter of 2010,
    - increase in international fuel prices,
    - moderate recovery in external and internal demand leaving economy below potential inflationary pressures,
    - an increase in indirect taxes performed in January.
  - Inflation by end of 2010 registered a value equal to 7.4 percent.
  - Inflation rate in December 2010 for the last 12 months (CPI) constituted 8.1 percent compared to 0.4 percent in December 2009.
- Exchange rate and competitiveness
  - Exchange rate of national currency in 2010 registered an appreciation compared to the US Dollar by 1.2 percent in nominal terms and by 8.6 percent for the Euro.
  - Real effective exchange rate (REER) compared to December 2000 appreciated by 4.5 percentage points.
  - Significant contributors to REER appreciation: Romania (by 51.7 percent) and Euro Zone countries such as Germany and Italy (30.8 percent).

*Source: _cr1194 - 34. Addressing  the  environmental  challenges  and  risks  is  imperative  for  Moldova.*

### 59. Identification of opportunities and most effective mechanisms for intervention represents

### _cr1194 - 59. Identification of opportunities and most effective mechanisms for intervention represents

### Reform measures and fiscal changes
- Priority: identification of opportunities and most effective mechanisms for intervention for the Government.
- Recent work (last quarter of the previous year) focused on measures to de-bureaucratize and de-monopolize the business environment, increase budget revenues, streamline public spending and improve public administration management; embodied in the law regarding the amendment and completion of certain legislative acts resulting from the budgetary and fiscal policy for 2010.
- Tax changes:
  - Income from gains from gambling by individuals: increased tax rate applied beginning this year, from 10 percent to 18 percent.
  - Reduced VAT rate of 8 percent on primary agricultural production in exchange for standard VAT rate of 20 percent.
  - Reduced VAT rate on natural gas and imported liquefied gas delivered on the territory of the country increased from 5 percent to 6 percent; aim: accumulate additional budget revenues, already visible in the first half of the current year.
- Excise duty amendments and increases:
  - Beer: 25 percent (increase).
  - Cigarettes with filter: ad valorem component increased by 4 times.
  - Gasoline and its derivatives: 50 percent (increase).
  - Perfumes and toilet water: increased (rate not numerically specified in text).
  - Jewelry items: increased by 3 times.
  - Passenger cars with engine capacity over 2,500 cm3: increased by 2 times.
  - Introduction of excise duties on crystal items: increase by 55 percent.
  - Fiscal indexation introduced for excise duty rates on wine production, spirits, low alcohol beverages, and electronic equipment.
- Purpose: accumulation of additional budget revenues and fiscal adjustments.

### Improvement of public finance management
- Reform scope: comprehensive reform of public financial management to improve quality; continuous improvement of legislative framework in budget and internal public financial control.
- Normative acts approved during 2009 and first half of this year include:
  - Draft Budget Classification.
  - Single Chart of Accounts for the public sector.
  - Functional classification testing completed on the state budget for all components.
- Modern budget practices:
  - Single Methodological Set for budget drafting developed in 2010; scope includes all central and local budgets.
  - Draft Manual regarding budget execution developed to enable effective and more transparent monitoring of public funds movement.
- State debt and financing:
  - Total state (internal and external) debt about MDL 18.9 billion in December 2010, growing by about 29.1 percent compared to the same period of 2009.
  - Increase largely due to financing the budget deficit.
  - Internal state debt increased slightly by 3.9 percent compared to end-2009.
  - Internal debt stock on December 31, 2010: USD 1116.2 million, compared to USD 773.7 million in 2009 (increase of 44.3 percent).
  - Drivers of internal debt increase: IMF financing of USD 183.9 million at the beginning of the year, increase of external borrowings USD 212 million, and decrease of their reimbursement USD 45.9 million.
  - Change in internal state debt occurred via issuing state securities (treasury bills) through auction and redemption of state securities placed by subscription.
- Donor involvement: progress since end of 2009 would not have been possible without international donor community, given precarious situation and huge gaps in the state budget; led to increase in state (internal and external) debt.

### Strengthen capacities of public administration
- Institutional restructuring during the reference period:
  - Established ministries: Ministry of Labor, Social Protection and Family; Ministry of Construction and Regional Development; Ministry of Transport and Road Infrastructure.
  - Placing agencies under ministries: Customs Service under the Ministry of Finance; Licensing Chamber under the Ministry of Economy; “Apele Moldovei” Agency under the Ministry of Agriculture and Food Industry; Public Procurement Agency under the Ministry of Finance.
  - Re-subordination of State Registration Chamber and Civil Status Service under the Ministry of Justice.
  - State Chancellery established by transforming the Government Apparatus and undertaking coordination tasks from ministries.
- Organizational outcomes:
  - Regulations of 25 authorities approved or amended to assign policy-making to ministries and implementation to subordinated institutions.
  - 23 (out of 24) specialized central authorities reorganized.
  - New/subordinated institutions established: Intervention and Payment Agency for Agriculture under the Ministry of Agriculture and Food Industry; Transplant Agency under the Ministry of Health.
  - State Treasury under the Ministry of Finance is under liquidation.
  - Public institution “State Security Service” in process of reorganization into a state enterprise.
- Transparency and participation:
  - Regulatory framework of the Law on transparency in the decision making process approved and implemented.
  - Specialized central authorities applied the consultation process for 82 percent of draft legal and normative acts subject to the law in 2010, compared to 38 percent in 2009.
  - National Participatory Council created to develop strategic partnership between public authorities and civil society.
  - Stakeholder participation ensured via placing draft public documents on public authorities’ websites and organizing public consultations; public dialogue facilitated by creating the webpage http://www.particip.md.
- Strategic planning and evaluation:
  - Inter-Ministerial Committee for Strategic Planning animated for methodology review and institutional development plans drafting.
  - Single Government Activity Plan for 2010 developed, containing country strategic documents actions and commitments towards the IMF and other development partners.
  - Piloting of Methodological Guidelines for Ex-Ante evaluation of the Public Policies Impact carried out in five ministries; five public policy proposals designed.
  - Updated methodological guideline developed; ministries initiated development of public policy proposals using new methodological norms.
  - Draft law development started to introduce methodological norms for public policy development and coordination in accordance with the Guidelines.
- E-government and civil service reforms:
  - e-Governance Centre (E-Government) public institution created under the State Chancellery; statute approved.
  - Legislative updates and draft laws related to public function and civil service status referenced (multiple law numbers and government decisions cited).
  - Recruitment through competition applied to fill vacant public functions in central offices for senior, managerial and executive positions for 37.8 percent of the number of persons employed in these categories—significantly higher compared to 2007-2009.
  - Attractiveness of public functions: on average, 3.2 people applying for one vacant public position proposed for competition.
  - Individual performance assessment of civil servants from central and local public administration authorities conducted in 2009; individual goals for 2010 set based on activity plans and Article 34 of Law no. 158-XVI of 4 July 2008 and Prime Minister indications no. 2903-96 of November 17, 2009.
  - Automated information system “Register of public functions and civil servants”: tender package developed and consulted with the World Bank; first stage of tender organized with bids from seven companies (technical proposals and eligibility documents opened on September 2, 2010); offers evaluation and short-listing to follow.

### Strengthening the democratic state, human rights, and judiciary modernization
- Accountability, human rights and justice access:
  - Actions initiated on judges’ accountability regarding hearing of cases (European Convention for Human Rights), prevention and counteraction of domestic violence and human trafficking, improvement of detention conditions, and police modernization toward community orientation.
  - State-guaranteed legal aid in I semester of 2010:
    - 327 lawyers providing legal assistance on request and 18 public lawyers involved.
    - For comparison, I semester of 2009: 256 lawyers providing legal assistance on request and 9 public lawyers.
    - Emergency and qualified legal aid provided in 7514 cases, and 8003 persons benefited (793 cases and 1745 persons less than in same period of 2009).
    - Beneficiary children increased by 15 percent: from 308 children in I semester of 2009 to 359 children in I semester of 2010.
- Alternative dispute resolution and probation:
  - Mediation: all necessary conditions created for use of alternative dispute resolution; 6 operational individual offices of mediators (4 established in 2009); no further applications for registering mediation offices received.
  - Probation Service: 10237 beneficiary applications received in the reference period (267 more than I semester of 2009); 290 from minors (38 more than I semester of 2009); 134 active probation counselors.
- Detention conditions and penitentiary improvements:
  - Actions to create detention conditions in accordance with national and international standards implemented gradually; significant financial resources required.
  - Procedure for building detention houses not launched due to lack of identified financial sources; Ministry of Justice budgeted MDL 16 million in the Medium Term Expenditures Framework (2011 – 2013) for this purpose.
  - Reconstruction works continued in penitentiary institutions including masonry, power network installation and roof rehabilitation; inauguration of an innovative wastewater treatment system in penitentiary for women No. 7 in Rusca, Hincesti rayon.
  - Petitions to the Centre for Human Rights from detainees: increase from 642 persons in 2008 to 705 persons in 2009; most petitioners invoked limited access to justice and indecent detention conditions.
  - Figure 10 (text): Number of petitions addressed to the Centre for Human Rights by year: 2005: 348; 2006: 658; 2007: 1008; 2008: 805; 2009: 642; 2010 (6 mths): 705.
- Judiciary efficiency and transparency:
  - Integrated Case Management Program established in courts, including option for random distribution of cases (manual or automatic); courts currently use both methods.
  - Action Plan for implementation of the Concept on financing the Judiciary System for 2010 – 2013 elaborated and approved by Government on September 2, 2010; enables evaluation of a case file based on a scale depending on level of case difficulty for equitable distribution.
  - Court rulings to be automatically published on court web pages via the Integrated Case Management Program; Ministry of Justice to monitor publishing process and draft four reports.
  - Draft public policy “Development of a mechanism ensuring transparency of the legal act” elaborated: includes mechanism to monitor and report level of publication of judicial decisions on the website and level of audio recording of court hearings; a virtual Guide developed for promoting access to published court decisions and to be distributed for publication on all courts’ web pages.
  - Disciplinary accountability of judges: legislative amendments approved to create mechanisms to avoid influencing judges during case examination and to supplement list of disciplinary deviations in Law on the status of judges.
    - Judges to be sanctioned if they do not publish court decisions on the court web page, if they issue decisions infringing human rights and fundamental freedoms, or if they do not follow hearing schedules without grounded reasons.

*IMF country report content unit _cr1194 - 59. Identification of opportunities and most effective mechanisms for intervention represents*

### 91. Furthermore,  in  case  of  a  disciplinary  deviation,  affecting  the  image  of  the  judiciary

### _cr1194 - 91. Furthermore,  in  case  of  a  disciplinary  deviation,  affecting  the  image  of  the  judiciary

### Judicial discipline, court recording, and disciplinary procedure amendments
- Judges will be dismissed in case of a disciplinary deviation affecting the image of the judiciary system or of multiple disciplinary deviations.
- Amendments proposed to streamline disciplinary proceedings, including provisions related to:
  - disciplinary proceedings initiation;
  - evidence gathering;
  - publication of procedures;
  - enforcement procedures.
- Audio recording of court hearings:
  - Recurring trainings on using the auto recording system of the court hearings “Femida” are carried out at national level for court staff with support of USAID Rapid Good Governance Support Program.
  - The Centre for Special Telecommunications has been asked to check the technical and software functionality of the audio recording of court hearings equipment and program.

### Human trafficking prevention and National Referral System (NRS)
- A Report on the implementation of the Strategy for National Referral System (NRS) for assistance and protection of victims and potential victims of trafficking has been developed for 2009.
- Piloting of the NRS was extended over 7 new rayons: Vulcanesti, Rezina, Soldanesti, Anenii-Noi, Singerei, Riscani, Ocnita.
- For 2010, the NRS was extended by creating and training 5 multidisciplinary teams in Comrat and 2 teams in Chisinau.

### Labor migration and social protection agreements
- Negotiations initiated on co-operation agreements in the field of labor migration between the Government of the Republic of Moldova and:
  - the Government of the Russian Federation;
  - the Government of the Italian Republic;
  - agreements provide for equal working conditions and remuneration for Moldovan migrants with those of the natives, having the same qualification and job.
- Agreements in the field of social security were signed with a number of European countries such as Republic of Portugal, the Grand Duchy of Luxembourg, and Romania, etc., during the reported period.
- From May to June, negotiations with the Republic of Poland and Republic of Austria on draft agreements in the field of social security took place; consultations were launched with the Republic of Italy.

### Outcomes and measures in human trafficking and illegal migration prevention
- Analysis reflects a decrease in the number of crimes recorded.
- Progress achieved through complex efforts (international cooperation, training, awareness campaigns), including:
  - decrease the number of cases of human trafficking, child trafficking, illegal removal of children from the country, trading in prostitution and organization of illegal migration;
  - significantly improve the quality of criminal prosecution, carried out on criminal cases, under their management;
  - enhance the effectiveness of special investigative measures;
  - increase the number of international operations for the identification and detention of members of international human trafficking networks, with the participation of peer organizations from other countries.
- A slight increase in the number of offences is registered only in the field of organization of illegal migration.

### Corruption prevention and enforcement (September 2009 – September 2010)
- Offences discovered and counteracted: 1145, out of which:
  - 343 corruption and related acts;
  - 455 economical and financial offences;
  - 347 other categories of offences.
- Material damage established on the criminal cases presented to the justice sector: MDL 105,32 million.
- Seizure on goods applied to ensure restitution: MDL 141, 46 million.
- Corruption acts counteracted in key social areas:
  - educational and training institutions – 40 corruption acts;
  - police – 39 cases;
  - town halls – 29 cases;
  - judiciary and advocacy – 12 cases;
  - public health, medicine and pharmacy – 11 cases;
  - state organizations – 9 cases.
- Anti-corruption analytic output: 19 analytical papers on different socio-economical areas (customs system, free economic areas, subvention of agricultural producers, issues of conflict of interests concerning high ranked civil servants from the central public authorities, state representation in public enterprises/societies, etc.).
- Draft laws elaborated/submitted to Government include:
  - adjustment of national anticorruption legislation in line with UN Convention against corruption, Criminal Law Convention on Corruption, Additional Protocol and GRECO recommendations;
  - draft law on detectors’ protection;
  - amendments related to tax evasion of natural persons;
  - draft law on the Main Ethics Commission, its structure and functioning;
  - amendments to Law on State Registration of legal persons and individual entrepreneurs to include the notion of “one stop shop”.
- Institutional capacity strengthening measures:
  - implementation of the Regulation on the mechanism of signaling and monitoring the level of corruption within public authorities;
  - maintaining open dialog with the Civil Council for monitoring the activity of the Centre for Combating Economic Crimes and Corruption;
  - implementing the Methodology of corruption risk assessment as compulsory for all central specialized bodies of the central public administration;
  - Action Plan for 2010 on implementation of the National Strategy on corruption prevention and counteraction approved by Government Decision nr. 132 of February 23, 2010, and adopted by Parliament Decision nr. 79 of May 4, 2010.
- International cooperation:
  - participation in meetings of the Regional Anti-corruption Initiative (RAI);
  - discussions concerning National Program for implementation of the Individual Partnership Action Plan Republic of Moldova - NATO.
- Public procurement countermeasures:
  - participation in 10 public tenders ensured;
  - 4 complaints submitted for removal of procedural violations in procurement working groups for medical institutions;
  - 2 public tenders for purchase of medical equipment by the Republican Medical Diagnostic Centre were cancelled;
  - one public tender re-assessed by CNŞP of Emergency Medicine for purchasing X-ray films.
- Draft normative acts elaborated to amend Law nr. 96-XVI of April 13, 2007 on public procurement and other normative acts.
- Corruption perception index (CPI) for the Republic of Moldova in 2010: 2.9 points.
- Reported change in performance: a decrease by 0.4 percentage points during the reporting period.
- Causes for poor CPI score cited: imperfect legislation, political instability, existence of corruption in the judicial system.

### State border management: cooperation, reform, and capacity-building
- Activities oriented towards ensuring regional security, cooperation strengthening, institutional and legal framework adjustment, co-operation with FRONTEX, technical assistance, expertise and sector consultation.
- State Border Guard Service participation in joint control operations at the Moldovan-Ukrainian border (e.g., Joint Operation "Tyra"), border joint patrols, surveillance and checks.
- July 2010: seminars on Schengen legislation and Border Integrated Management organized under EUBAM auspices.
- International Conference on Integrated Border Management organized jointly with EUBAM during November 15-19, 2010 in Chisinau.
- Launch of the Eastern Partnership Platform on Integrated Border Management viewed as beneficial for sharing good practices and training.
- Institutional reform measures:
  - streamlining structure and tactics of the State Border Guards Service;
  - implementing EUBAM recommendations (autumn 2008) to provide corresponding powers for investigation of some crimes at the border;
  - reorganization measures for Regional Directions for State Border Surveillance and Control to create mobile units (activity carried out jointly with EUBAM).
- Vision and implementation procedure for a 10 year period developed jointly with DCAF and EUBAM.
- Personnel composition target and current status:
  - Until 2011, replacing army conscripts with contract-based officers shall be completed.
  - Currently, within the Border Guard Service, 77 percent of employees are contract-based officers and 23 percent are army conscripts.
- EU-Moldova visa liberalization dialogue: EC experts conducted an evaluation visit on illegal migration/readmission, integrated border management issues on September 7-9, 2010.
- Border infrastructure:
  - Endowment of border crossing points continued with high-performance machinery and equipment.
  - Launch of a new border crossing point Moldovan–Romanian state border “Lipcani – Radauti”.
- Information exchange and interoperability:
  - Local databases interaction between State Border Guards Service and Customs Service operating in most border crossing points to avoid duplication and decrease crossing time.
  - Agreements signed to ensure timely exchange of information between State Border Service and other state authorities.
  - November 13, 2009: signed agreements with Romania on state border crossing points and on local border traffic; two other treaties under negotiation with Romania (Joint Contact Centre “Galati” and an institutional protocol on cooperation).
  - Exchange of information with Romanian Border Police based on Protocol signed November 22, 2005.
  - Annual Co-operation Plan with Romanian Border Police signed for 2010; activities carried out according to plan.
  - Exchange of statistical information with Ukrainian Border Service per Protocol of November 21, 2006 and monthly joint Evaluation report elaboration with EUBAM.
- Training activities for Moldovan border guards in risk analysis, detection of false or counterfeited travel documents, detection of stolen vehicles, and working dog standards.
- Pilot project Focal Points 2010 planned at Moldovan–Ukrainian state border jointly with Frontex, EUBAM and Ukrainian State Border Guards Service:
  - First working meeting held June 7-9, 2010;
  - Launch planned for November at the border crossing point “Palanca".
- Frontex assistance provided during implementation of the Common Core Curriculum for Border Guards within the National Collegium of Border Guards for training officers in line with EU requirements.

### Priority II — Transnistrian conflict settlement and reintegration
- Actions during the reporting period include:
  - “5+2” format meetings on March 1-2, 2010 in Vienna and May 24, 2010 in Astana;
  - bilateral consultations with international parties (Russian Federation, EU, USA, Ukraine);
  - visit to Chisinau of the European Commissioner for Enlargement, Štefan Füle;
  - maintenance of contacts and dialog between Chisinau and Tiraspol at political representative level;
  - promotion of working groups for confidence consolidation.

*Source: _cr1194 - 91. Furthermore,  in  case  of  a  disciplinary  deviation,  affecting  the  image  of  the  judiciary*

### 128. The  matter  of  resuming  the  negotiations  for  Transnistrian  conflict  settlement  in  „5+2”

### 128. The  matter  of  resuming  the  negotiations  for  Transnistrian  conflict  settlement  in  „5+2”

### Diplomatic developments and negotiation format
- The matter was addressed during the visit to the Russian Federation, May 27, 2010.
- The conclusion, on June 5, of the Memorandum Merkel – Medvedev stressed the readiness of Russia and Germany to contribute to the identification of viable solutions in the „5+2” format”.
- On May 15, 2010 the Government sent an Aide Memoire to the European Commissioner for Enlargement and European Neighborhood Policy aimed at increasing the EU's role and activating and deepening dialogue on the Transnistrian problem within bilateral consultation mechanisms and the EU agenda with the Russian Federation and other partners.

### Registration of Transnistrian economic agents (January–September 2010)
- State Registration Chamber (SRC) registered 60 economic agents from Transnistria in the first nine months of 2010.
- Additionally: 50 economic agents were provisionally registered, and 10 companies were registered on permanent basis.
- Cumulative until September 30, 2010: 669 businesses registered in all (provisionally - 462 and permanently - 207).

### Certificates of origin and export documentation (first three quarters of 2010)
- Chamber of Commerce and Industry (CCI) issued 633 certificates of origin for export of goods to 24 economic agents from Transnistrian region.
- Customs Service of the Republic of Moldova (CSRM) issued 2046 preferential certificates of origin for export of goods to CIS, European Union and Central and Eastern Europe, for 53 economic agents.
- Total certificates issued by CSRM and CCI during first three quarters of 2010: 2679 certificates to 64 economic agents from the region out of 91 that have registered export operations.
- Comparable figure for similar period in 2009: approximately 2473 certificates.

### Autonomous Trade Preferences (to EU) – certificates issued
- CSRM issued 1541 certificates of origin for goods to 33 economic agents from the Transnistrian region for export to EU countries in January–September 2010.
- Corresponding period of 2009: 1527 certificates were issued.

### Trade volumes verified and processed by Moldovan Customs (January–September 2010)
- Total volume of goods exported and imported by enterprises from Transnistrian region: USD 384,300.0 thousand.
  - Export: USD 301,432.3 thousand.
  - Import: USD 82,867.7 thousand.

### Transnistrian export volume by category (2010, quarterly breakdown)
- Total exports by quarter (mil. USD): Quarter I 87,334.7; Quarter II 135,423.0; Quarter III 78,674.6.
- Total (January–September 2010): 301,432.3 thousand USD (see category breakdown below):
  - 1 Metallurgical products: Quarter I 40,550.3; Quarter II 84,016.5; Quarter III 8,177.8; Quarter III in percent to Quarter I: 20.2; to Quarter II: 9.7
  - 2 Products of light industry: Quarter I 29,915.7; Quarter II 29,508.5; Quarter III 42,910.8; Quarter III in percent to Quarter I: 143.4; to Quarter II: 145.4
  - 3 Products of machinery and electronic processing industry: Quarter I 7,519.8; Quarter II 9,015.7; Quarter III 12,118.6; Quarter III in percent to Quarter I: 161.2; to Quarter II: 134.4
  - 4 Electricity: Quarter I 4,394.4; Quarter II 3,925.2; Quarter III 3,657.7; Quarter III in percent to Quarter I: 83.2; to Quarter II: 93.2
  - 5 Agricultural products: Quarter I 2,901.1; Quarter II 4,847.1; Quarter III 8,052.6; Quarter III in percent to Quarter I: 2.7 times; to Quarter II: 166.1
  - 6 Alcoholic products: Quarter I 713.7; Quarter II 1,376.8; Quarter III 695.2; Quarter III in percent to Quarter I: 97.4; to Quarter II: 50.5
  - 7 Other products: Quarter I 1,339.7; Quarter II 2,733.2; Quarter III 3,061.9; Quarter III in percent to Quarter I: 2.3 times; to Quarter II: 112.0

### Export destinations and regional breakdown (January–September 2010)
- Export destinations (thousand USD and percent of total exports):
  - CIS countries: 108,290.3 thousand USD; In percent (times) by same period of 2009: 128; Volume, in percent January–September 2010: 35.9; January–September 2009: 32.7
  - EU countries: 133,005.5 thousand USD; In percent (times) by same period of 2009: 107; Volume, in percent January–September 2010: 44.1; January–September 2009: 48.2
  - Other countries: 60,136.5 thousand USD; In percent (times) by same period of 2009: 122; Volume, in percent January–September 2010: 20.0; January–September 2009: 19.1
- Total exports (January–September 2010): 301,432.3 thousand USD; In percent (times) by same period of 2009: 116.

- Analysis: About 44 percent of total exports were to EU countries, about 36 percent to CIS countries, and 20 percent to other countries.

### Import operations (January–September 2010)
- Number of Transnistrian economic agents declaring imports to CSRM: 66.
- Of these, 51 agents imported raw materials and additional components to manufacture products for export.
- Volume of imported production declared: USD 82,867.6 thousand.
- This represents an increase by approximately 40 percent against the same period of 2009 (USD 59,100 thousand).

### Administrative and confidence-building measures
- Abolishment of customs duties for some goods from the right bank of the Dniester introduced in the Transnistrian region; registration fees for access of people in the region remain.
- Number of checkpoints was not reduced for purposes of implementing Government Action Plan for 2010.
- Implementation of the Council of Europe – Moldova Action Plan launched; it includes a section on confidence-building measures for the Transnistrian region.
- To withdraw foreign troops from Moldovan territory: on June 17, 2010 the European Parliament requested the Council and the Commission to pursue joint initiatives with the Russian government (resolution concerning conclusions of the EU-Russia summit).

---

### PRIORITY 3: Enhancing the competitiveness of the national economy

### Objectives under Priority 3
- i) improving business environment to intensify investments in economy;
- ii) promoting SMEs;
- iii) enhancing the efficiency of enterprises;
- iv) developing the research and innovation field;
- v) development of physical infrastructure.

### 3.1 Improving business environment

3.1.1 Regulatory reform
- Doing Business 2010 ranking: Republic of Moldova ranked 94 compared to 108 in the previous year.
  - Improvements driven by: business start-up indicator (by 13 positions), business registration (by 34 positions), tax payment (by 24 positions).
- Action Plan on removing administrative constraints (2010) removed multiple barriers, including:
  - number of types of activity subject to licensing reduced by 12 and simplification of licensing procedures;
  - Nomenclature of products subject to mandatory certification reduced by about 100 positions and certification costs reduced;
  - legalization of “one-stop-shop” for business registration;
  - improved protection of investors’ rights by amending the Law on Joint-Stock Companies;
  - de-monopolization of meat and meat products import and fish import;
  - removing barriers in the export of wine and divine distillates, bulk wine, export of grapes;
  - exclusion of wine products certification for each batch of goods;
  - removing the state trademark;
  - reduction of cost and simplification of authorization construction procedures;
  - decentralization of metrology activities and implementation of declarative principle on own responsibility in metrology activities;
  - simplification of VAT taxation procedure at zero rate on goods introduced on the customs territory of the Republic of Moldova in customs active processing regime;
  - maximum reduction of customs fees for raw material, auxiliary materials and technological equipment and increase of fees for final products directly competitive with local products.
- Guillotine 2+ initiative:
  - First inventory phase: more than 55 central public authorities inventoried; about 400 permissive acts reviewed.
  - Working Group examined 138 permissive acts; 53 were recommended for exclusion/abrogation.

3.1.2 Improving quality infrastructure
- Draft Law on Accreditation and Conformity Assessment Activities drafted to harmonize national legislation with EU norms and enable Multilateral Recognition Agreements.
- Republic of Moldova developed and implemented 90 technical Regulations; 50 aligned with European normative acts.
- National Program for Adopting International and European Standards as Moldavian Standard/pre-standard for 2010 includes 1503 standards.
- Implementation (January–September 2010): 882 national standards identical to ISO/CEI adopted; 525 national standards identical to EN adopted.
- Consumer protection: Government Decision drafted to approve Regulation on indicating prices of products, transposing Directive 98/6/CE of February 16, 1988.
- Consumer awareness actions: articles, radio-TV shows, webpage www.consumator.gov.md under construction.

3.1.3 Export Promotion
- Despite non-tariff barriers imposed by EU market, positive results in export diversification and increased penetration on Western markets.
- Trade balance: Republic of Moldova maintains negative trade balance with most partners except:
  - Great Britain: exported by USD 27.8 million more than imported;
  - Kazakhstan: USD 14.3 million surplus;
  - Georgia: USD 10.8 million surplus;
  - Iraq: USD 9.1 million surplus.
- Regional trade changes:
  - Negative trade balance increase with EU by 29,2 percent;
  - Other countries by 17,3 percent;
  - With CIS countries decreased by 4 percent.
- Biggest negative trade balances with traditional partners (USD):
  - Ukraine USD 395,4 million;
  - China USD 279,4 million;
  - Germany USD 197,1 million;
  - russian Federation USD 137,9 million;
  - Italy USD 112,7 million;
  - Turkey USD 111,7 milion;
  - Romania USD 104,9 million;
  - Greece USD 65,4 million.
- Exports by product groups (changes vs same period 2009):
  - vegetal products: 22.9 percent ( +2.9 percentage points);
  - food products, alcoholic drinks, non-alcoholic drinks and vinegar, tobacco: 20.3 percent ( -1.8 percentage points);
  - textile materials and articles: 17.3 percent ( -2.8 percentage points);
  - machines and devices, electric equipment and spare parts: 11.1 percent ( +0.2 percentage points);
  - chemical industry products: 5 percent ( +0.6 percentage points);
  - common metals and articles from metal: 3.7 percent ( + 1.5 percentage points);
  - vehicles, aircrafts, containers and auxiliary transportation equipment: + USD 6 million;
  - different goods and products: 3.2 percent ( + 0.2 percentage points).
- Trade regime and market access measures:
  - Negotiations to expedite inclusion of Republic of Moldova in the list of countries authorized to export animal products to EU states intensified.
  - Launch of negotiations on EU-RM Association Agreement, including Deep and Comprehensive Free Trade Agreement (DCFTA).
  - Participation in CEFTA and approval process of 2009-2011 Strategic Action Program of the CEFTA Secretariat supporting extension of trade preferences and contingent management, especially in agriculture.

3.1.4 Investments Attraction
- Foreign investments (total stock): USD 2,565.7 million in 2008; USD 2,604.2 million in 2009; USD 2,637.5 million at end of quarter I of 2010.
- Foreign direct investments increased 1.5 times by September 2010 compared to same period of 2009.
- Legal framework on industrial parks improved; new Law on Industrial Parks shifts focus from State creation to State/local assistance.
- Feasibility efforts commenced for 6 industrial parks (S.A. Raut, S.A. CAAN, S.A. Uzina masini salubrizare Falesti from Cantemir, Hincesti, and Edinet).
- Balti Free Trade Zone launched: attracted investors KBE Elektrotechnik SCS (Tunis), KBE (Germany), DLB (Germany), etc.
  - First economic projects foresee investments of about Euro 25 million.
  - Expected job creation: from 5 to 7 thousands new jobs.
  - Estimated annual industrial production: over MDL 0.5 billion, of which at least 90 percent expected to be exported.

*Source: _cr1194 - 128. The  matter  of  resuming  the  negotiations  for  Transnistrian  conflict  settlement  in  „5+2”*

### 159. Of  special  importance  for  the  country’s  economy  is  the  Giurgiulesti  International  Free

### Giurgiulesti International Free Port and Related Economic Developments

### Giurgiulesti International Free Port: investment, activity, and fiscal contributions
- Total volume of investments for its entire activity period, as of July 1, 2010: about USD 43 million.
- Number of residents registered at the moment: 29.
- In the first half year of 2010 residents paid taxes and duties amounting to MDL 47.4 million, or by 2.3 times more than in the first half year of 2009, including:
  - MDL 43.1 million as excise duties
  - MDL 1.8 million for customs procedures
  - MDL 1.4 million as payments to the social insurance fund

### Petrol terminal: energy security and market effects
- Opening of petrol terminal enhanced energy security by securing delivery of oil products to the domestic market under mutually advantageous prices.
- Dependency of the Republic of Moldova on a number of limited suppliers decreased.
- Imports and deliveries (first half of 2010):
  - About 21 thousand tons of oil products were imported on the territory of the Petrol Terminal of the International Port during the first half of 2010, or by 1.8 times more than in first six months of 2009.
  - 23.2 thousand tones were delivered on the customs territory of the Republic of Moldova.
  - At the end of the reporting period another about 1.9 thousand tons of oil products were stored.
- Market competition:
  - A new domestic market participant (FCE Bemol Retail SRL) created a network of 50 filling stations, intensifying competition and positively influencing price and quality.

### Grain terminal: food security and services
- Construction and opening of grain terminal ensures food security and stabilizes grain products market.
- Exports and storage (January–June 2010):
  - Companies exported 68.4 thousand tons of grains in January - June 2010.
  - At the end of first half year, the territory of the grain terminal was storing 3.9 thousand tones of grains, including stored by local companies.
- Total volume of grain storage services accounted for MDL 4.8 million in the reporting period.

### Transport and regional attractiveness
- Use of the goods port ensured direct entrance to external markets and independent import of raw materials and materials.
- Exploitation of Giurgiulesti-Cahul-Chisinau railway and Giurgiulesti-Chisinau highway improved the transport system of the South region.
- Opening businesses within International Port along with developing logistics and commercial services increased the attractiveness of South region overall.

### Observance of fair competition principles
- In 2009, National Agency for Competition Protection focused on finalizing and promoting legal framework on state assistance and developing a new Law on Competition Protection.
- The legal framework that regulates policy and principles of loyal competition in the Republic of Moldova has not been adopted; delay impedes promotion of adequate measures to support entrepreneurs and protect consumers.
- Enforcement activity to date:
  - 122 cases initiated (excess of power, anti-competition agreements, disloyal competition, limiting competition by public authorities)
  - 135 decisions issued
  - 63 prescriptions issued

### Financial market development and reform (2009–2010)
- Impact of global financial crisis on local banking system was limited.
- Deposits and credits:
  - Deposits accounted for MDL 14.7 billion, registering a 21.3 percent growth compared to the previous year (comparing to December 2009).
  - Credit balance in the economy increased by 12.7 percent compared to end-2009, accounting for about MDL 26,915.5 million.
  - Share of credits in national currency: 57.7 percent.
- Interest rate trends:
  - Credit interest rates decreased by 1.6 times for credits in MDL and by 1.4 times for foreign currency credits compared to the beginning of 2009.
- Credit allocation by destination:
  - Industry/trade: 51.4 percent
  - Agriculture and food industry: 14.9 percent
  - Property, construction and development: 12.3 percent
  - Consumption credits: 8.4 percent
- Non-performing credits:
  - Accounted for about 13.3 percent of total volume of credits at the end of 2010, compared to about 17.4 percent at the end of 2009.
  - Accumulation driven by reduced remittances, higher unemployment, and reduced local demand.
- Conclusion: banking sector succeeded in getting through the global crisis in 2009 and was more stable in 2010.

### SMEs promotion: structure, finance, and programs
- Role of SMEs:
  - SMEs represent about 98 percent of the total number of enterprises.
  - Number of people working in SMEs: 316.2 thousand people, or over 58 percent of total number of employees of enterprises.
  - Sales proceeds of SMEs in 2009: MDL 57,480.0 million, or 39.25 percent of sales proceeds from the economy overall.
  - Sectoral variation in SME sales proceeds: 1.3 percent in electric energy, gas and water; 32.1 percent in transport and communications; 65.8 percent in agriculture; 67 percent in real-estate transactions.
- Access to credit:
  - State Credit Guarantee Fund (SCGF) / SMEDO guarantee portfolio: 25 active guaranties amounting to MDL 4.4 million; amount of credits accounting for MDL 13.2 million.
  - Average rate of credit guarantee: 30 percent.
  - Impact: each MDL offered under a guarantee permits investments in the amount of MDL 3.
  - January–August 2010: 8 guarantees for bank credits granted (compared to 2 in the same period previous year); amount of guarantees granted: MDL 1.7 million, permitting credits of MDL 5.5 million.
  - Beneficiary uses: procure agricultural equipment, plant vine, establish greenhouses, procure mineral fertilizers, top up current assets.
  - Reported outcomes for beneficiaries: increased number of employees by 25 percent per enterprise; average growth of sales proceeds by 45 percent and 34 percent; directed production to export.
- SCGF capitalization and guarantee ceilings:
  - Capitalization foreseen by increasing allocations up to MDL 100 million.
  - Increase of guarantee thresholds: for active enterprises from MDL 300 thousand to 700 thousand and for start-ups from MDL 100 thousand to 300 thousand.
  - Increased guarantee ceiling accepted beginning with June 11, 2010.
- Grants and international support:
  - Government of Japan grant for small business support and development: number of beneficiaries 106 economic agents; total value of grant offered MDL 44.8 million (about USD 4 million).
  - 101 applications collected during the third Tranche accounting for USD 182 million; as a result 11 projects accepted for financing value MDL 22.4 million.
  - 21 applications collected during the fourth tranche.
- Competitiveness Enhancement Project:
  - Additional financing obtained at end-2009: USD 24 million within Credit Agreement with International Development Association.
  - Components:
    - Credit line to qualified commercial banks to finance capital investments and current assets of exporting enterprises: USD 22.5 million.
    - Extending co-financing (matching) grant scheme for employee training, modern methods, new products: USD 1.5 million.

### Business support infrastructure and entrepreneurial culture
- Business incubators:
  - December 2009: first business incubator launched in Soroca city under ENTRANSE 2 Your Business Project.
  - Incubator hosts 17 small companies; about half are startups and the rest are newly launched or re-specialized companies benefiting from technical and financial assistance including non-repayable grants.

### Public-private partnership (PPP) and dialogue
- Legislative adjustments:
  - Identified need to specify fields to adjust existing legal and regulatory framework in line with Law on Public-Private Partnership and communitarian law.
  - Legal framework adjusted to the provisions of Law on Public-Private Partnership.
  - Reference laws: Law No.179-XVI of 10.07.2008; Law No.181 of 15 July 2010.
- Institutional framework:
  - Functional units created within both the Ministry of Economy and Public Property Agency to ensure promotion and implementation of PPP policies.
- Contractual forms for PPP allowed: enterprise/service provision, fiduciary administration, rent.

### Improving enterprise efficiency, managerial practices, and state asset management
- Managerial practices and quality systems:
  - Development and implementation of quality management systems in accordance with ISO 9000 continues in about 46 industrial enterprises.
  - Compared to same period of 2009, number of companies implementing ISO 9000 increased by 21 units.
  - January–September 2010: 7 matching grants for ISO offered (compared to 61 grants in same period of 2009); local companies remain passive toward ISO implementation.
- State asset management and corporatization:
  - Central public authorities administrate 292 state companies; Administrative Boards established in 207 state enterprises.
  - Economic and financial analysis carried out for 350 state-owned companies and state joint-stock companies to inform decisions on reorganization, privatization, or liquidation.
- Privatization and sales (July 6–9, 2010 and July 29, 2010):
  - Call auctions via Stock Exchange: state shares in 44 joint-stock companies and other state public property goods offered; shares of the state in 12 joint-stock companies sold; total amount of sales about MDL 27 million.
  - Investment tender organised on 29 July 2010: 5 goods of state property sold (cinemas in Floresti, Riscani, Donduseni, Calarasi, Singerei); total value MDL 2.7 million.

*Source: IMF staff report content unit _cr1194 - 159 through 185 (excerpts).*

### 3.4 Development of research and innovation sector

### 3.4 Development of research and innovation sector

### 3.4.1 Capacity building in technologic innovation and modernization

- Progress and limitations
  - The innovation and research sector registered significant progress with respect to the achievement of innovation and research development objective, but the exclusive implementation of mainly logistics actions "have not influenced directly the achievement of key objectives in this field."
  - Improvement of the structure of institutions within the Academy of Science and organizational structure of the Supreme Council for Science "has not been finalized by the end of the reporting period," making achievement of that objective uncertain for the period.
  - Reduced financing slowed down many activities, although renovation of research and innovation infrastructure continued (including construction of the Lyceum town for gifted children and the campus of the University of the Academy of Science), procurement of equipment, and procurement of scientific equipment.

- Technology absorption and international integration
  - A technological audit of applied scientific research projects financed from the state budget was organized during September 1 – October 30, 2009, resulting in receipt of innovation and technological transfer projects and proposals to complete the Inventions and Technologies Stock Exchange.
  - Increased involvement and participation in relevant European and international organizations and integration in main European and international research programs:
    - Conclusion of bilateral agreements with similar institutions from other countries.
    - Start of joint projects with foreign institutions and increased participation of research teams from the Republic of Moldova in communitarian projects.
  - ICT community support under EXTEND Project / National Contact Points Program (PC7):
    - Development of new communication channels including Helpdesk service.
    - Designing of the PC7 webpage.
    - Development of an informative brochure for program participants from the Republic of Moldova.

- Research commercialization infrastructure and indicators
  - Promotion of research and innovation activity through scientific and technological parks and innovation incubators:
    - The Republic of Moldova has 3 scientific and technological parks and one innovation incubator.
    - During the reporting period, in 2 of the parks there operated 50 residents cumulatively, with the respective number of projects.
  - Development of innovation indicators in national statistics:
    - An indicators system for monitoring and evaluation of research and innovation activity was developed and is at the first phase of implementation.
    - Implementation is constrained by lack of statistics information on innovation activities of active companies (their share in the total number of SMEs), lack of a clear definition for statistics indicators that characterize manufactured innovative production, and inexistence of calculation methods for these indicators, making it difficult to evaluate impact.

- Finance, human capital, networks, and databases
  - Access to financial resources in intensive technological fields registered some progress; financing of a project was approved during the reporting period.
  - The Agency for Innovation and Technological Transfer undertook activities to create a risk fund.
  - Development of innovative and managerial scientific human potential continues on a contest basis; some contests were organized and some projects registered during the reporting period.
  - Creation of a single research network ACADEMICA including many organizations and researchers; premises facilitate access to national and international academic informational resources.
  - Creation of a national open database containing data about research institutions and individual researchers; promoted through multiple channels (webpage of ASM, etc.). Over 300 project proposals were evaluated via informational programs implemented in this field during the reporting period.

*Source: _cr1194 - 3.4 Development of research and innovation sector*

### 3.5 Development of physical infrastructure

#### 3.5.1 Transport system

- General assessment
  - Development of physical infrastructure denotes some growing progress; some indicators registered significant growth while others showed lack of progress during the reporting period.

- Roadworks and investments
  - 2009 monitoring indicators:
    - 17 km of roads were rehabilitated.
    - 1 km of road was constructed.
    - No reconstruction of roads took place.
  - 2010 (second part of reporting period) indicators:
    - 6 km of road were constructed.
    - 24 km of road were rehabilitated.
  - Feasibility studies on rehabilitation of some portions of roads were initiated; financing sources to be identified.
  - Share of investments in Transport and Communications during the reporting period: 20.2 percent of the total investments in fixed assets.

- Institutional and financing developments
  - Creation of the Road Fund Council and the Road Sector Technical and Economic Council of the Ministry of Transport and Road Infrastructure with participation of civil society and specialists.
  - Road fund increased to account for 1 percent of GDP in 2010, ensured by applying increased rate of tax for road use by vehicles registered in the Republic of Moldova.
  - Negotiation and signing of Financing Agreements with external partners:
    - On October 29, 2010, Government concluded an agreement with the European Bank for Reconstruction and Development amounting to EURO 75 million, with negotiation shortly to follow for an additional agreement of EURO 75 million.

- Sector liberalization and sub-sector progress
  - Actions to organize and ensure functioning of the Civil Aviation Authority progressed; discussions on liberalization of transport markets including air were held and intentions passed to competent EU authorities.
  - Railway transport development: launch of railway Chisinau – Odessa in October 2010.

#### 3.5.2 Energy system

- Strategic alignment and legal framework
  - Republic of Moldova adhered to the Energy Community Treaty and obtained status of full-fledged member of the Energy Community.
  - Laws adopted to harmonize national energy framework with Acquis Communautaire:
    - Law No. 117-XVIII of 23.12.2009 on the adherence to the Energy Community Treaty.
    - Law No. 124-XVIII of 23.12.2009 (Law on Electric Energy).
    - Law No. 123-XVIII of 23.12.2009 (Law on Natural Gas).
    - Law No. 142 of 02.07.2010 (Law on Energy Efficiency).
  - These laws are fully aligned with European requirements and open the way for integration into the EU energy market and facilitate investment conditions.

- Integration with UCTE (ENTSO-E) and infrastructure upgrading
  - Current interfaces between Moldova and Ukraine: voltage lines of 110 kV (14 lines) and 330 kV (7 lines) with operative interaction based on a technical agreement of parallel functioning with Ukrenergo.
  - Moldova–Romania interconnection: voltage lines of 110 kV (3 lines) and 400 kV (1 line); parallel functioning with Romania permits access to European market but absence of strong interface limits viability until full integration into UCTE (ENTSO-E).
  - Equipment reconstruction and upgrading under Energy-II Project covering primary (commuting equipment from stations, electric lines) and secondary (telecommunications systems, dispatching, protection) parts to align to UCTE (ENTSO-E) standards.
  - Integration in UCTE (ENTSO-E) plus enhancing Moldova–Romania and Moldova–Ukraine sections expected to substantially increase reliability of energy transportation and diversify import possibilities and generation development.

- Interconnection projects and investments
  - LEA 400 kV Balti-Suceava project:
    - In 2009, Italian company CESI assigned to carry out feasibility study with grant from EBRD of Euro 500 thousand.
    - Estimated amount for construction of segment that crosses Moldova and works at Balti station amount to EURO 29.0 million.
    - Decision on design company to be taken jointly with Romanian side in near future.
  - LEA 110 kV Falciu-Gotesti:
    - Construction works ongoing, to be finalized by end of October (this year in context).
    - Construction of 15.83 km planned for 2010 (total length on Moldova territory is 25.03 km).
    - Financing to be made from financial sources of S.E. Moldelectrica.
  - Second circuit of Balti – Novodnestrovsk – Suceava line:
    - Feasibility study made in 2006 with MDL 1.2 million from state budget.
    - Implementation problematic because Memorandum was signed only by Moldova and Romania; Ukraine has not yet signed.

- Distribution grids and consumption
  - Electricity distribution grids (EDG) have about 70 percent degree of wear and tear.
    - Renovation of EDGs necessary to reduce loss and ensure continuous supply.
    - Renovation plan developed by EDGs and approved by National Agency for Energy Regulation; investments reflected in electricity tariffs.
    - Lack of available financial sources at companies limits accelerated renovation.
  - Electric energy consumption in first half of 2010 (without Transnistrian region):
    - Increased by 14.39 million kWh or by 0.9 percent compared to same period of last year, and accounted for 1 billion 637.3 million kWh.
    - Area covered by EDG Nord: consumption increased by 1.1 percent and accounted for 286.84 million kWh.
    - Area covered by EDG UNION FENOSA: consumption increased by 0.6 percent and accounted for 1 billion 170.01 million kWh.
    - Eligible consumers and EDG Nord–Vest registered consumption of 37.26 and 143.19 million kWh, respectively, higher by 2.9 and 2 percent than first six months of previous year. (According to ANRE data)

- Thermal energy modernization
  - JSC Termocom activities in Chisinau Municipality included:
    - Installing individual thermal points (ITP).
    - Implementation of automated monitoring system of ITPs.
    - Installing thermal energy meters at consumers.
    - Installing thermostats to ensure quality of hot water.
    - Installing spherical taps.
    - Installing converters at central thermal points with independent scheme.
    - Reconstruction of distribution systems and changing of pumps.
    - Implementation of individual thermal points installation project demonstration financed by Sweden International Development Agency.
  - Balti Municipality key works included:
    - Reparation of steam generator boiler stations, turbo-generator and additional equipment.
    - Hydraulic testing of internal networks of the station, water boilers, main and inter-sector pipelines.
    - Planning preventive reparation of central thermal points equipment.
    - Preventive reparation of pumping stations.
    - Change of pipes and renewal of thermal insulation.
  - Terms of reference for projects on development of thermal energy delivery optimization in Chisinau Municipality are being coordinated with stakeholders; priorities for short- and long-term investments being identified.
    - Implementation to take place with participation of World Bank experts and financing foreseen from SIDA grant.
    - Decisions on CHP upgrading and thermal energy transportation and distribution infrastructure to be made.

- Gasification
  - Gas supply network extension continued: about 500 km of medium and low gas pressure networks were built during the current year.
  - As of June 1, 2010:
    - 924 localities out of 1531 localities of the republic, or about 60 percent, were gasified.
    - Number of consumers accounted for 580 thousands.

### 220. The existing capacity of natural gas transportation have been enhanced; about 18.0 billion

### _cr1194 - 220. The existing capacity of natural gas transportation have been enhanced; about 18.0 billion

### Natural gas transportation and consumption — findings and statistics
- Existing capacity enhancements and flows:
  - About 18.0 billion m3 of natural gas, accounting for 40.0 percent of the maximum capacity of pipelines of 45 billion m3, were transported through transit pipelines ATI, SDCRI, RI and ACB to the Balkans and Central European states.
- Consumption and imports (first half of 2010):
  - Gas consumption increased by 8.4 percent compared to the same period of the last year and accounted for 619.7 million m3.
  - Import volume increased by 9.2 percent and accounted for 670.5 million m3.
- Consumption by category (first six months of 2010 versus first six months of 2009):
  - Population’s consumption increased by 10.4 percent and accounted for 203.93 million m3.
  - Consumption of economic agents increased by 5.8 percent and accounted for 114.42 million m3.
  - Consumption of enterprises from the energy sector increased by 8.2 percent and accounted for 269.63 million m3.
  - Budgetary institutions consumed 31.71 million m3 of gas, by 6.5 percent more than in the first six months of the last year.
- Consumption structure (first semester of current year):
  - Enterprises from the energy sector: 43.5 percent.
  - Household consumers: 32.9 percent.
  - Economic agents: 18.5 percent.
  - Budgetary institutions: 5.1 percent.
- Procurement price:
  - Effective procurement price for natural gas procured by JSC Moldovagaz from SAD Gazprom from the Russian Federation was MDL 2,977/1000 m3.

### Energy dependence, policy responses, and institutional measures
- Energy dependence and intensity:
  - The national economy depends very much on the import of energy resources; the energy intensity being 3 times higher than in the neighbor countries.
- Policy direction and legal framework:
  - Law on Energy Efficiency: Law No. 142 of 02.07.2010.
  - Agency for Energy Efficiency (AEE) appointed responsible institution in the field of energy efficiency and renewable energy sources; draft decision for its establishment is still under promotion.
  - The activity of AEE shall be financed from the state budget and extra-budgetary resources (Energy Efficiency Fund).
- Programmatic response:
  - Draft National Program for Energetic Efficiency for 2010–2020 includes policies and priority actions to address growing fuel prices, dependency on energy resource imports, and impact of the energy sector on climate changes.

### Communication infrastructure development — key metrics and trends
- Fixed telephony:
  - Number of beneficiaries of landline telephone services reached 1151 thousands users at the end of the second quarter of the current year, reported to 100 inhabitants, accounting for 32.3 percent.
  - Market shows saturation and slowing growth.
- Mobile telephony:
  - Total number of users reached 2855 thousands in the first half of the year 2010.
  - Mobile telephony penetration increased by 5.2 percentage points compared to 2009 and reached 80.1 percent.
  - Growth attributed to strong competition, reduced tariffs, and increased traffic/offers by operators.
- Internet access and broadband:
  - Total number of Internet users reached 235 thousand users in the first half of 2010.
  - Of these, about 231 thousand users (98.2 percent) are using broad-band Internet connection, and 4 thousand (1.7 percent) use dial-up connections.
  - Broadband at fixed points — technology mix and dynamics:
    - ADSL technology: 174.5 thousand users accounting for 75.5 percent of the total broadband subscribers at fixed points/locations.
    - In 2009, optical networks (FTTx), mainly FTTB, were the most dynamic access technology; FTTB subscribers grew by 105 percent driven mainly by connections in Chisinau Municipality.
  - Territorial concentration:
    - Chisinau Municipality: 106.3 thousand broadband users (56.7 percent of the total).
    - Number of subscribers per 100 households: 43.3 in Chisinau Municipality and between 5 and 15 in most districts.
  - Initiatives to increase rural access:
    - MICT and ITU pilot project established public internet access points within postal offices in 20 villages; ITU offered to replicate with another 20 access points.
- Sector turnover:
  - Turnover in the first half of 2010 in landline, mobile and internet access sectors grew by about 10 percent compared to the respective period of 2009, accounting for 2,792.1 million.

### Broadband access technology and subscriber details (selected figures)
- Broadband access technology subscriber counts and dynamics (selected data points from figures):
  - Nr. of broadband subscribers increased across Q1 2008–Q2 2010 (specific quarterly counts shown in figures).
  - Dial-up subscribers at fixed locations declined to single-digit thousands by Q2 2010.
  - Broadband technologies shown include xDSL, FTTB/LAN, and TV cable subscribers with evolving counts depicted in figures.

### Human resources development and education — priorities, reforms, and outcomes
- Strategic priorities:
  - Priority: Improving the quality and enhancing equitable access to education services to support sustainable development.
  - Identified impediments: poverty, emigration, and inefficient financial management.
  - Government commitments: (i) enhancement of the quality of education to develop practical skills and knowledge, and (ii) enhance access of children from poor families and of children with special needs to different levels of the public educational system.
- Efficiency and restructuring in education (September 2009 – October 2010):
  - New financing formula for education institutions approved end-2009; piloted in Causeni and Riscani rayons.
  - Network optimization results:
    - Five general educational institutions stopped activity.
    - 77 pre-university institutions were restructured; 14 institutions stopped activity.
    - 41 classes, 71.5 didactic norms, 37 units of didactic personnel and 53.7 units of non-didactic personnel were reduced.
    - Assessment of 8 residential institutions led to stopping placement in 7; one residential institution stopped activity; two more planned to be liquidated.
    - Reorganization of 4 vocational schools and one craft school was approved (Government Decision No.749 of 18 August 2010).
- Staffing and remuneration measures:
  - Increase of salaries for employees from the education system was phased out with gradual implementation during 2010-2011 in two phases, January 1, 2011 and September 1, 2011 (Government Decision No.807 of 07 December 2009).
- Institutional and regulatory development:
  - List of State Real Estate Property under the administration of the Ministry of Education approved (Government Decision No.625 of 12 July 2010).
  - Nomenclature of paid works and services for education and research institutions revised (Government Decision No.341 of 03 May 2010).
  - Draft Education Code envisages establishment of a structure authorized to carry out evaluation and accreditation functions; evaluation and accreditation criteria and standards to be developed and approved.
- Training, curriculum, and materials:
  - Regional training of trainers centers created: North Region – A. Russo State University from Balti; South Region – B. P. Hasdeu State University from Cahul.
  - Authorization for continuous training: 10 higher educational institutions, Institute of Education Science, and 2 programs (PRO DIDACTICA and Step-by-Step).
  - Financial means provided in 2010 for continuous professional training:
    - 450 didactic and managerial units at Alecu Russo State University from Balti.
    - 380 didactic and managerial units at B.P.Hasdeu State University from Cahul.
  - Training demand exceeds authorized supply; additional training financed from 2 percent resources, own means, or support of NGOs and international organizations.
  - Modernization of curricula and training of trainers:
    - About 30 thousands didactic personnel trained via training-of-trainers cascade.
    - 46 manuals republished for the 1st, 5th, 9th, and 12th grades.
- Vocational and higher education developments:
  - Sector Construction Committee piloting social partnership and curricula updating for secondary vocational and secondary specialized education; Republican Center for the Development of Vocational Education created.
  - Higher education internationalization and mobility:
    - 11 TEMPUS projects under implementation with a value of about Euro 4 million.
    - About 160 students, MBA candidates, PhD candidates, and didactic personnel benefit from exchange scholarships within Erasmus Mundus External Cooperation Window.
    - About 400 students participate yearly in academic long-term exchange programs.
    - Collaboration Protocol with Romania offered 950 scholarships for lyceum pupils, 1100 scholarships for higher education, coming up with an offer of 2800 places.
    - 3467 foreign students are studying in the higher educational institutions of the Republic of Moldova.
- Assessment and testing:
  - Methodology developed for organization and realization of 2010 exams session; Regulations on organization of baccalaureate, secondary school and gymnasium graduation exams developed.
  - PISA 2009 was piloted in October 2009, conducted by OECD.
- Information systems:
  - About 200 didactic staff trained to implement uniform standards for minimum ITC skills in education.
  - List of nomenclatures for creation and implementation of Automatic Informational System “State Education Register” finalized; technical projects developed and main functionality defined.

*Source: _cr1194 - 220. The existing capacity of natural gas transportation have been enhanced; about 18.0 billion m3 of natural gas accounting for 40.0 percent of the maximum capacity of pipelines of 45 billion m3 were transported...*

### 245. The level of providing the educational institutions with didactic equipment and materials

### 245. The level of providing the educational institutions with didactic equipment and materials

### Provision of didactic equipment and materials
- Furnishing of 5 pre-school institutions.
- Endowment with didactic materials, furniture, games of 100 pre-school institutions.
- Provision of didactic materials and toys to 70 pre-school institutions.
- Distribution of a set of books for children between 3-5 years old in all pre-school institutions from the country.

### Increasing access for children from poor families and children with special needs
- Main action areas:
  - (i) analyzing the phenomenon of limited access to education;
  - (ii) fighting the phenomenon of child labor;
  - (iii) direct financial and material support to children from poor families and children with special needs;
  - (iv) streamlining the educational network and development of access infrastructure;
  - (v) social assistance communitarian mechanism development.
- Development of the Automated Informational System “State Education Registry” (currently under development) to register all system aspects including registration of children with limited access to education, assist identification of children in need, and enable implementation of inclusion measures.

### School feeding, materials, exemptions, and camps
- Free food for all children from the 1st-4th grades was organized during the reporting period; these children also received free of charge manuals.
- Pupils from vulnerable families who study in a gymnasium are exempted from the book rental fee.
- Summer 2010: 78 camps hosted 398 thousands children; 447 day camps hosted 490 thousand children; total 888 thousand children.
- Comparative figures:
  - Summer 2009: 78 camps and 362 day camps hosted 96 thousands children.
  - Summer 2008: 344 thousands children in day camps.

### Social scholarships and benefits for orphans and vulnerable students
- Social scholarships granted:
  - 2010: 2510 social scholarships.
  - 2009: 2352 social scholarships.
  - 2008: 2231 social scholarships.
- The quantum of temporary norms related to expenditures in money value for orphan pupils (students), and those under guardianship/fosterage increased by three times compared to 2008.

### Flood response and education access
- Under exceptional situation induced by floods:
  - About 300 children from localities affected by floods spent their vacation in camps of the republic.
  - Over 300 children spent their vacation in Romania.
  - 125 children spent their vacation in Georgia.
- Allowances to children from families affected by floods:
  - 554 allowances in the amount of MDL 1195.
  - 630 allowances in the amount of MDL 612.
- Education placements financed from the state budget for affected beneficiaries:
  - 34 people benefited of university education financed from the state budget.
  - 45 people in specialized secondary education.
  - 56 people in secondary vocational education institutions.
  - All candidates were provided with free accommodation in hostels.

### Access infrastructure and transport
- 10 buses procured and transferred under the management of the Education Directorates of 2 pilot rayons, Riscani and Causeni.
- Another 15 buses procured for other rayons according to pupils transportation needs.
- Local public authorities included road rehabilitation used by school transport in development programs and budgets; repair/construction of bus stations in localities from which children are transported were undertaken.

### Pre-school system development
- 3 pre-school institutions were renovated and reopened; another 4 institutions were selected for renovation.
- Rehabilitation Center for children with special needs from Criuleni was equipped.
- 120 didactic personnel from the higher and general specialized educational institutions who prepare teachers for pre-school education were trained.

---

### 4.2. Strengthening a healthy society

### Health policy and human resources
- Emphasis: promotion of efficient policy for medical personnel management; hiring of medical personnel, particularly young specialists in rural localities and rayons, is a permanent process.
- 2009 distributions: 102 doctors and 641 medical assistants, young specialists, distributed to rural localities and rayons.
- First 8 months of 2010 distributions: 72 doctors and 345 medical assistants with general education, young specialists, distributed to rayons and rural localities.
- Incentives for rural employment in 2010:
  - Government continued to allot MDL 30 thousand to each doctor.
  - MDL 24 thousand for medical assistants with general education, young specialists, employed in the rural area.
  - Overall, in the first 8 months of 2010, the young specialists were allotted means in the amount of MDL 7.66 million.

### Young specialists accounting table (source indicated)
- TOTAL employed/dismissed/TOTAL (as presented in the source table):
  - Doctors: Employed 53 (2006), 71 (2007), 71 (2008), 78 (2009), total 273; Dismissed -2, -8, -4, -3, -17; TOTAL 51, 63, 67, 75, 256.
  - Medical assistants with general education: Employed 87 (2006), 131 (2007), 254 (2008), 230 (2009), total 702; Dismissed -3, -11, -8, -5, -27; TOTAL 84, 120, 246, 225, 675.
  - Grand TOTAL presented: 975 (employed total) and 931 (TOTAL column in table).

### Human resources systems and promotion transparency
- Human resources database in the field of health has been developed for efficient accounting and analysis of medical personnel.
- Implementation of contest-based mechanism for hiring managers of sanitary medical institutions continued in September 2009 – September 2010; competitions for director positions in 28 medical and medical and sanitary institutions were organized.

### Telemedicine and continuous training
- Draft Concept of Telemedicine Development in the Republic of Moldova elaborated to include continuous professional training via long-distance training; telemedical equipment to be procured and installed in:
  - Oncologic Institute,
  - Neurological and Neurosurgery Institute,
  - Clinical Hospital of Balti Municipality.
- Training achievements:
  - 52 trainers and 1101 medical assistants with general education trained to strengthen primary medical assistance skills.
  - Until December 31, 2009: 127 family doctors, 153 medical assistants of family doctor, and 44 coordinators of Health Centers trained in family medicine practice management.
  - 135 coordinators of Health Centers trained in the first half of 2010.
  - Regional NHA seminars in 2010: 370 people from over 200 medical and sanitary institutions trained by September 15, 2010.
  - 436 doctors, didactic personnel, residents and medical assistants trained to improve quality of medical assistance management.
- Curricula for family doctors and medical assistants developed and approved; being implemented within N.Testemitianu SMPU and National Medicine and Pharmaceutical College.

### Primary medical assistance enhancement and financing
- Legal delimitation and separation of primary medical assistance from hospital and specialized ambulatory service started on January 1, 2008.
- 2010 developments:
  - 22 independent Health Centers founded (including one private).
  - 54 Health Centers operate on the basis of contracts concluded directly with the National House of Medical Insurance, compared to 32 in 2009.
  - 2010-2013 Primary Medical Assistance Development Strategy approved.
- Allocations from the Mandatory Medical Insurance Fund:
  - The 30 percent share of allocations for primary medicine from the Fund was maintained in 2009 and 2010.
  - In the first 7 months of 2010, primary medical assistance services were paid in the amount of MDL 566.9 million, which accounts for 32.1 percent of the core Fund.

### Hospital assistance, feasibility studies, and PPPs
- Government approved Program for the Development of Hospital Medical Assistance for 2010-2012.
- Feasibility study of the Oncologic Institute performed to identify recommendations and support State Oncologic Program and investment attraction.
- Design phase started for the Performance Center of the Republican Clinical Hospital based on 2009 feasibility study; Terms of Reference finalized to select design company.
- Final Report and Strategy for removing barriers and delivery of private health services and integrated operation of public and private services drafted and approved; legal amendments made to allow private economic agents to operate on PPP contracts in public medical and sanitary institutions.
- Agency for approval and monitoring of PPP projects established within the Ministry of Economy.
- June–July 2010: Agreement for Technical Assistance with IFC concluded for two health PPP projects: radiotherapy service within the Oncologic Institute and imagistic service within the Republican Clinical Hospital.

### Homecare, palliative services, and contracting
- Implementation of homecare and palliative services started; normative framework approved.
- Costs of a case assisted by medical care provided in stationary conditions (palliative care) for 2010 estimated to contract these services by the National Company for Medical Insurance.

### Health center rehabilitation and hospital reconstruction
- Rehabilitation works planned:
  - Decision to start rehabilitation of 35 Health Centers; after 2008 hazards, another 4 included; total planned for reconstruction is 39 Health Centers divided into 3 lots.
  - In 2010 the rest of 34 Health Centers were approved for renovation.
  - Contracts signed for renovation of 16 Health Centers; works started in July (year implied by reporting period).
- Vorniceni Ftizio-pneumonia Hospital reconstruction:
  - Resources in the amount of MDL 13.7 million allotted from the state budget in the first eight months of 2010.
  - Renovation of pathomorphologic block finalized; reconstruction of curative block No. 2 continued; external engineering network modernization initiated.
  - No budgetary financial resources for endowment of the health system including Vorniceni Tuberculosis Hospital, Straseni Rayon, were allotted in the first half of 2010.
  - Expenditures for health system were reduced as a result of the economic situation that influenced sector allocation of financial resources.
- IMSP Psychiatric Clinical Hospital reparation:
  - In the first eight months of 2010, MDL 2.1 million allotted for reparation works.
  - Humanitarian aid tranche included 12 aesthesis machines, infusion pumps, artificial breathing machines and consumables.

### Medical education infrastructure and funding
- Construction and reconstruction of objects of higher and secondary medical educational institutions continued; budgetary sources in the amount of MDL 1.3 million were used by December 31, 2009 for specified projects.
- Budgetary sources in the amount of MDL 4.86 million were disbursed until December 31, 2009 for modernization of technical and material basis of higher medical and specialized secondary education.
- 2010 state budget foresees expenditures in the amount of MDL 9.5 million for medical education institutions.

### Medical devices, procurement systems, and price regulation
- General Plan of the hospitals developed, foreseeing necessary equipment for subordinated public hospital medical and sanitary institutions; proposal to establish an authority to ensure management of medical devices.
- Electronic register of medical devices/equipment – open MEDIS – developed; to be implemented in 6 public medical and sanitary institutions. Pilot Center for software application for medical equipment record created.
- Automatic Informational System for the Procurement Section under Medicine Agency continued in the second half of 2009; electronic procurement currently not done by responsible authorities in the field. Piloting to be extended in implementation phase.
- Monitoring system of producer’s medicine price registration created in August 2010; Regulation on its activity under development.
- Creation of one-stop-shop within Medicine Agency for reception of documents for registration of prices of owners of certificates of medicine registration has started.

### Equipment, IT systems, and laboratory investments
- Medical equipment for strengthening perinatology service received in November 2009; high quality Doppler ultrasound machines procured; personnel trained.
- Modern equipment for emergency and intensive pediatric therapy accounting for EURO 1.42 million was installed during the reporting period; another 6 medical equipment units are under procurement process.
- Web pages of public sanitary and medical institutions launched.
- AI Blood Service System reached final stage of application and a closed and secured communication infrastructure was created for Blood Service.
- Implementation of SIME SIDA continued; AI System for improved epidemiologic supervision of Birds Flu and Other Infectious Diseases reached mass exploitation.
- Flu Diagnosis Laboratory within the National Public Health Scientific and Practical Center equipped with modern equipment with World Bank support; functional since March 2010, estimated value of investments MDL 11 million.
- Automatic Informational System for primary medicine developed; piloting period of software application extended; database of the Register of persons registered in rural primary medical and sanitary institutions was developed and implemented.

*Source: _cr1194 - 245. The level of providing the educational institutions with didactic equipment and materials*

### 288. For  continuous  improvement  of  medical  assistance  quality,  the  Quality  Councils  were

### _cr1194 - 288. For  continuous  improvement  of  medical  assistance  quality,  the  Quality  Councils  were

### Medical quality governance and protocols
- Quality Councils were established in all medical and sanitary institutions in March 2010.
- The set of indicators of medical assistance quality is under development.
- During September 2009 - September 2010, the following clinical and laboratory guidance documents were developed and approved:
  - 28 National Clinical Protocols
  - 35 Standard Clinical Protocols
  - 9 Standard Clinical Protocols for neonatology medicine in the resuscitation and intensive therapy sections
  - 10 Standard Clinical Protocols for pediatric doctors from the resuscitation and intensive pediatric therapy sections
  - 3 medical practical guides
  - 6 testing algorithms of donated blood
  - 2 izoserology research and sanguine compatibility algorithms
- Monitoring of medical audit system implementation was organized in 9 territories and 33 public medical and sanitary institutions.
- Evaluation procedures of surgery protection of patients were adjusted and applied in medical and sanitary hospital institutions to ensure a qualitative surgery standard.

### Accreditation, audits, and service quality controls
- Health evaluation and accreditation procedure applied to medical and sanitary institutions and pharmaceutical enterprises.
  - In November 2009 – September 2010, 18 public medical and sanitary institutions were evaluated and accredited.
- In January-July 2010, 347 controls were undertaken over the volume and quality of medical services provided within mandatory medical assistance insurance.
- In 2010 a larger number of homecare service providers was contracted to increase access for the elderly, lonely people and people with disabilities.
- In 2010 the payment of medical services within hospital medical assistance continued based on “treated case” principle per specialties differentiated for rayon, municipal and republican hospitals.
- Co-payment was gradually implemented in municipal and third tier hospitals, simultaneously with the right to free choice by the patient.

### Maternal, neonatal, and child health outcomes and services
- Republican Diagnosis and Supervision of Newborns Service was created in February 2010 to organize precocious diagnosis at national level and continuing neonatal supervision, increase survival of newborns with small weight, and reduce disability and belated neurological complications.
- National Communication Campaign organized August 2009 – April 2010 covering: burns and scalding, intoxications and food poisoning, suffocation with foreign bodies and drowning in household conditions.
- Mortality indicators:
  - Maternal mortality in 2010: 18 death cases (compared to 7 cases in 2009)
  - Infant mortality in 2010: 11.8 cases/1000 born alive (compared to 12.1 children/1000 born alive in 2009)
  - Child mortality (under 5) in 2010: 13.6 children/1000 born alive (compared to 14.3 children/1000 born alive in 2009)

### Epidemic control, HIV/AIDS, and tuberculosis
- Extraordinary Public Health National Commission created; measures undertaken to prevent spreading of pandemic flu A(H1N1).
- Quality Standards of Youth Friendly Health Services approved in 2009.
- Training and service expansion for youth health:
  - 23 medical workers of Youth Friendly Health Centers trained in counseling related to pre– and post–HIV testing and Hepatitis B and C.
  - 50 people trained in main modules related to youth health.
  - 47 reproduction health cabinets, 12 Youth Friendly Health Centers, 3 Women Health Centers operate in the republic.
  - 245 seminars attended by 18.608 young people organized within Youth Resource Centers and Youth Friendly Health Centers.
  - 57.000 teenagers benefited from services.
- HIV/AIDS and TB program management:
  - National Program evaluations for HIV/AIDS Prophylaxis and Sexual Transmission Infections for 2006-2010 conducted February – May 2010.
  - Three meetings of National TB/AIDS Coordinating Council discussed implementation activities of National Programs for 2006-2010.
- Tuberculosis statistics for 2010:
  - 4,632 new and repeated cases registered in 2010 (compared to 4,744 cases in 2009)
  - New TB cases in 2010: 3,751 registered (compared to 3,804 in 2009) — decrease by 53 cases
- TB mortality and MDG target:
  - Mortality indicator growing in 2009: 17.9 death cases per 100 thousand people (exceeds 2008 level of 17.4 deaths per 100 thousand people by 3 percent)
  - Millennium Development Goals target in 2010: 15 death cases per 100 thousand people; probability of reaching target is decreasing.
- Policy development:
  - Draft National Program for HIV/AIDS prophylaxis and control and sexually transmitted diseases for 2011-2015 developed.
  - Draft National Program for Tuberculosis Control and Prophylaxis for 2011-2015 developed.
  - Strategies for fighting epidemics based on tripartite principle under implementation.
  - National HIV/AIDS Prevention and Control Center created in May 2010 within the National Center for Public Health as single monitoring and evaluation structure; epidemiologic supervision carried out per national standard adjusted to European Union requirements.
- HIV case counts and treatment:
  - 704 new cases of HIV registered in 2010 (equal to the number in 2009)
  - Right Bank of River Dniester: 457 cases registered in 2010 (445 in 2009)
  - Eastern region: 247 cases registered in 2010 (259 in 2009)
  - Universal access to antiretroviral treatment ensured per National Protocols: 985 people under ARV treatment, including 209 people from the Eastern region.

### Micronutrient deficiency programs
- National Iodine Deficiency Disorders Control Program evaluation (first quarter 2010) findings:
  - 82 percent of trade companies checked sell/use iodine salt
  - 92 percent of public catering companies checked sell/use iodine salt
  - 100 percent of canteens from children and youth institutions checked sell/use iodine salt
  - 97 percent of samples of iodine salt tested consist of adequate quantities of iodine (25 mg and more of iodine per kg of salt)
- Draft National Iron and Folic Acid Deficiency Disorders Control Plan was developed and presented for notifications.
- Policy rationale: prevention of children’s intellectual affection and anemia described as the most cost-efficient intervention to improve population’s health.

### Health financing, insurance coverage, and payments
- Payment procedures and contracting criteria established for medical assistance types: emergency hospital medical assistance; primary medical assistance; ambulatory specialized medical assistance; hospital medical assistance; high quality medical services; medical homecare.
- Approved payment methods for contracting medical service providers: per capita; per service; per treated case; per visit (in homecare “assisted case”); global budget; retrospective payment per service within the contracted budget; deduction for performance indicators.
- Health sector budget and related figures:
  - 2009: quantum of financial resources allotted to the health system accounted for MDL 3.846.8 million — MDL 453.9 million more compared to 2008; consumption prices indicator registered 0 percent in 2009.
  - 2010: amount approved for the health sector MDL 4.040,9 million provided the forecasted consumption prices indicator is 9.3 percent.
  - 2011: quantum of allocations for health foreseen MDL 4.256,5 million (provided the forecasted inflation rate is 6 percent).
- Primary medical assistance fund:
  - In 2010 the rate of 30 percent of allocations from the primary medical assistance fund was maintained.
  - In the first seven months of 2010, primary medical assistance services were paid in the amount of MDL 566.9 million which accounts for 32.1 percent of the Fund.
- Compensated medicines:
  - Means in the amount of MDL 112.0 million were approved for compensated medicines in 2010 — 51.2 percent more than the amount paid in 2009 (MDL 74.1 million).
- Insurance uptake and collections:
  - Number of insurance policies sold increased from 25.7 thousands to 33.55 thousands in 2010 (compared to same period of 2009).
  - Mandatory medical assistance insurance contributions in fixed amount paid by individuals collected MDL 40.389,5 thousand in 2010 (compared to MDL 38.466,1 thousand in 2009).
  - Number of insurance policies sold by July 1, 2010 increased from 23.9 to 31.3 thousands compared to the respective period of 2009.
- Measures to extend coverage and financial protection:
  - Subventions from the state budget granted to economically and financially vulnerable people to cover the cost of MMAIF insurance policies.
  - Expansion of the list of medicines partially and/or fully compensated by MMAIF by including essential and generic medicines and replacing expensive ones.
  - Non-insured persons benefit from ambulatory specialized medical assistance (infected with HIV/AIDS) and hospital assistance for social-related diseases with major public health impact.
  - Access to emergency pre-hospital assistance and primary medical assistance extended by re-allotting financial means cumulated in MMAIF from state budget transfers and streamlining the single Program.
  - Access of insured people to oncologic, gynecological, otorhinolaryngology consultations increased within ambulatory specialized medical assistance, and access to hospitalization for chronic diseases requiring hospitalized recovery and rehabilitation treatment increased.
- Contracting and distribution adjustments:
  - When planning 2010 medical service volumes, real rates of different types of medical assistance across territories and phases of service provision, patient flows, and equity in distribution of financial sources were considered; fund resource distribution per types of medical assistance was differentiated based on priorities, commitments, and assumed anti-crisis measures focused on financial protection and access to essential services.
- Incentives to increase insured population:
  - In 2010, reduced mandatory medical assistance insurance premium in fixed amount for some categories of people paid within 3 months from enforcement of the law, in the amount of 50 percent, was maintained.
  - A 75 percent reduction of the insurance premium for owners of agricultural land paid within the first 3 months of the insured year was foreseen.
- Coverage of non-insured persons:
  - Expenditures for emergency pre-hospital medical assistance, primary medical assistance, ambulatory specialized medical assistance and hospital assistance in case of socially related diseases with major public health impact shall be covered from mandatory medical assistance insurance funds — ensuring entire population access to these types of assistance financed from MMAIF.
- Range and access improvements:
  - Range and number of high quality medical services, including share provided to rural sector and disadvantaged categories, increased in 2010.

### Employment-related measures affecting health and social outcomes
- Memorandum of Understanding signed between Government of the Republic of Moldova and OSCE Mission to Moldova on professional reconversion and social adaptation of contract-serving and retired military; Program for the Training of Retired Military started on September 14, 2010.
- New professions added to vocational enrolment to cover qualified labor needs: repairman – mechanic of appliances; radio-mechanic in repairing radio devices; homecare worker; shoemaker of orthopedic shoes.
- Strategy for modernization of National Employment Agency for 2009-2015 and Action Plan approved based on International Labor Organization recommendations.
- Call Center – Labor Market inaugurated to provide information free of charge on NEA services, vacancies, job search, registration, legal migration and risks of illegal migration.
- Labor market data and activities:
  - NEA database: 81 523 people were registered at NEA during the first eight months of 2010.
  - From the total registered unemployed, 14 681 people were employed from the beginning of the current year.
  - Youth Job Fair (May 26, 2010) visited by about 2000 young people; 115 people hired.

### Social protection and guaranteed minimum income
- Guaranteed minimum monthly income (GMMI) of the household increased from MDL 430 (in 2009) to MDL 530.
- Eligibility and beneficiary statistics:
  - About 144 thousand people eligible for social allowance granted on the basis of global average monthly income (about 38 thousands vulnerable households) compared to average beneficiary family size in 2009 – 3.8 people.
  - In 2010, list of social aid beneficiaries covered over 55 thousands vulnerable families.
- Social aid expenditures:
  - Expenditures for social aid payment increased from MDL 114 million in 2009 to MDL 283.7 million in 2010.
  - Expenditure increase due to amendments to legal and normative framework improving social aid payment mechanism and extension of number of beneficiaries; more information campaigns informed population about provisions of the new law.

*Italic: Content derived from the supplied IMF chapter/section text.*

### 339. To ensure efficient targeting of financial means to the poorest, beginning with January 1,

### _cr1194 - 339. To ensure efficient targeting of financial means to the poorest, beginning with January 1,

### Social assistance targeting and administration
- Beginning with January 1, 2010 new nominative compensations shall not be set for new applicants; new applicants have the possibility to apply for social aid.
- A Social Inspection was to be established to evaluate and monitor implementation of the new system for provision of social contributions based on income evaluation and to control correctness of setting social aid and use of financial resources allotted for this purpose in accordance with the legislation; due to lack of financial resources, the respective unit was not established.
- To design an integrated automatic informational system in the social assistance field for all levels of administration and management, five modules of additional supervision were developed:
  - protection of children’s rights,
  - prevention and fighting against violence in the family,
  - human trafficking,
  - record and social assistance of people with disabilities,
  - social assistance to people infected with/affected by HIV/AIDS.
- The consolidation of the social service system implies deinstitutionalization of children from residential care system, prevention of their institutionalization and reintegration in the community by offering family type communitarian services.

### Social assistants, supervision, and training
- Strategy regarding the establishment of continuous education of hired personnel in the social assistance system was approved.
- Initial training of 520 communitarian social assistants was organized in June – December 2009.
- Beginning with June 2010, continuous education of communitarian social assistants started; its purpose is to develop functional abilities and organizational culture to stimulate continuous professional growth.
- Until now, 830 out of the total of 1159 social assistants benefited of continuous education.
- A professional supervision mechanism was established and its Guide for implementation was approved; the coverage degree of social assistants with supervision procedure accounts for 77.4 percent.

### Legal and institutional framework for social services
- Structural changes at community level required clear definition of competences of territorial social assistance units of 1st and 2nd tiers; achieved through modification of legal frame for integrated social service system.
- Modifications clarified:
  - policy development role and normative and methodological frame at central level,
  - role of resources organization and management and role of social services provision at the 2nd level of the local public administration,
  - role of supporting social service provision at the 1st level of the local public administration.
- Personnel in the social assistance system were supplemented with professional parental assistants and parents-teachers from family-type orphanages.
- In June 2010 the Law on Social Services was adopted; it sets forth the general framework for creation and functioning of integrated social service system by determining tasks and responsibilities of local and central public administration authorities, other legal persons authorized to ensure and provide social services as well as protection of rights of social service beneficiaries.

### Child protection and alternative care
- Commissions for the protection of children in difficulty were instituted in all administrative-territorial units.
  - 371 meetings of these Commissions were organized during 2009, which examined 1568 cases.
  - As a result, 835 cases of institutionalization prevention and 255 cases of institutionalization were addressed.
- There are 74 family-type children’s homes in the republic, which host 308 orphans and children without parental care.
- Professional parental assistance service:
  - Goal: temporarily protect the child in difficulty, child’s socialization and reintegration in the biological family, extended or other family-type care.
  - Currently, 89 families of professional parental assistants host 125 children.
  - Allowances paid to professional parental assistants were approved depending on length of placement and number of children placed under the service.
- The National Action Plan on protection of children without parental care for 2010-2011 was approved in June 2010.

### Disability rights and inclusion
- On July 9, 2010, the Parliament ratified UN Convention on the Rights of People with Disabilities adopted in New York on December 13, 2006 and endorsed by the Republic of Moldova on March 30, 2007.
- The Strategy on social inclusion of people with disabilities (2010–2013) was adopted, defining state’s disability policy reform and covering main trends of activities in harmonizing social protection system of people with disabilities with European standards and Convention’s provisions.

### Pensions and social insurance adjustments
- Amendments were made to implement the principle of dependency between size of contribution paid and received pensions, correlating individual contributions paid by the insured with the quantum of received social insurance pensions.
- Reconsideration of the pension system to consolidate it and exclude privileged retirement conditions from the public social insurance system became inevitable; no tangible results have been registered yet in this field.
- To improve social assistance policies and streamline costs of SSIB and SB, financing source of pensions and monthly allowances for judges and prosecutors was modified:
  - Beginning with January 1, 2010, expenditures for paying pensions and monthly allowances to this category are covered: 50 percent from the set volume – from the state social insurance budget and 50 percent - from the state budget.

### Regional Development — institutional setup and strategy (PRIORITY 5)
- Objective: Balanced participation of all regions in socio-economic development, with primary focus on North, Center and South regions.
- Law on Regional Development passed in late 2006; implementation became more active since second half of 2009.
- Institutional establishment timeline:
  - National Regional Development Coordination Council and Northern, Central and Southern Regional Development Councils established in 2008.
  - Regional Development Agencies North, Center and South established in late 2009 in Balti municipality, Ialoveni city and Cimislia city respectively.
- Agencies' budgets approved by the National Regional Development Coordination Council in February this year; their financing is at the level of 44 percent of the National Regional Development Fund, while 56 percent is covered by the DFID project “Moldova: Regional Development Cooperation”.
- General Directorate on Regional Development established for regulation and coordination of national regional development policy.
- On March 4, 2010 the Government approved the National Strategy for Regional Development, the main document for regional development planning.
- Regional Development Strategies North, Center and South were approved as medium-term regional development policy documents; identified priorities:
  - Rehabilitation of physical infrastructure,
  - Support to the private sector development, particularly in rural areas,
  - Improvement of the environmental factors and tourist attraction.
- Draft regional strategies were consulted with the general public.

### Operationalization and financing of regional projects
- Operational Manual regarding use of funds of the National Regional Development Fund was approved by decision of the National Regional Development Coordination Council; training sessions for Ministry of Construction and Regional Development staff and agencies were performed.
- Pilot call for proposals for regional development projects financed from National Regional Development Fund (which constitutes 1 percent of total state budget approved for the respective year) was conducted from May 10 to June 10, 2010.
  - 135 project proposals were received.
  - 56 projects were included in the Single Programming Document for 2010-2012, approved by the Government on August 26, to be financed from the National Regional Development Fund resources.

### Decentralization and local capacity
- State Chancellery implemented the Joint Integrated Local Development Program; Government Decision no. 608 as of July 5, 2010 established the Joint Commission for Decentralization.
- Working groups for decentralization were established to contribute to the draft National Decentralization Strategy and its Implementation Plan; process of revising legislation and identifying compliance proposals with decentralization principles is on-going.
- Four extensive studies on capacities of local public administration authorities and related topics were initiated; results to be reflected in final policy document expected to be completed by end of reporting period.
- Despite actions to transfer responsibility to local public administration authorities and administrative capacity building, no sustainable/viable results have been registered; monitoring of working groups is needed to finalize methodology for assessing capacity of local public administration authorities of level I and II and approval of working tools.
- Ministry of Finance established a sector working group to:
  - Delimit own powers and those delegated to local public authorities and review funding mechanisms,
  - Identify proposals for balancing financial resources in local budgets with competences for public expenditures,
  - Improve regulatory framework for local government borrowing.
- Some progress was shown during the reporting period regarding separation of public services between CPA and LPA and capacity building, but regulatory and legislative framework needs further development in accordance with European and international standards.

### Small towns as regional “growth poles”
- Guidelines regarding administrative check and preliminary examination of proposals on regional development were approved to select and prioritize project proposals from the pilot Call for proposals.
- To promote small towns as “growth poles”, the evaluation criterion “Contribution of the project activities to the development of disadvantaged areas”, urban areas, awards 2 additional points to the obtained score.
- The National Spatial Plan was developed and submitted to concerned institutions for examination and approval in accordance with Article 19 of Law no. 835 of May 17, 1996 on Urban Planning principles.

### Rural economy and agricultural productivity
- National Development Strategy (NDS) directions for agricultural change:
  - increase agricultural efficiency and competitiveness of food products;
  - reducing the number of people involved in agriculture.
- Agricultural land re-plotting project (supported and funded by the World Bank and Swedish International Development Cooperation Agency (Sida)) on administrative territories of 40 villages in 21 rayons (pilot phase):
  - Average budget allocated to each locality for this process is MDL 60 thousand.
  - Out of total identified owners (50,184 persons) in those 40 villages, 75 percent (37,520 persons) were interviewed:
    - 55 percent out of the total number of owners were identified and expressed interest in participating in the project (27,765 people),
    - 20 percent (7,381 persons) have signed the forms of the re-plotting agreement (design/planning completed and transactions can be registered and implemented).
  - As of September 20, 2010, 8,439 land transactions have been initiated in those 40 participating cities:
    - 5,513 were fully implemented (4,392 sale transactions, 164 - exchange, 345 – lease and 438 - legacy),
    - 2,926 transactions under implementation.
  - Participation rate of owners in the project is 11 percent - taking into account only the transactions already recorded and 17 percent - adding transactions under implementation.
- In 2010 resource reproductive technologies of soil processing were developed, promoted and implemented in practice within a set of four farms on a total area of 6,085 ha (Moara de piatră, Popeştii de jos, Ţarigrad and Hăsnăşenii Mari, Drochia Rayon).
- Pilot projects on “Owning the book of fields’ history” were implemented on a total area of 200 hectares in farms in Soroca, Edinet, Orhei, Briceni and Ocnita Rayons.
- Information materials developed:
  - “Pedological heritage, quality, recovery and management”,
  - Guidelines “Assessment and management of soils under organic farming practices” (meant for farmers engaged in developing the organic sector production).
- According to legal provisions, the subventions fund for farmers in 2010 amounted to MDL 300 million, which since 1 October was increased by another MDL 100 million.
  - As of October 6, 2010 MDL 79.5 million were capitalized; resources mainly allocated for:
    - investment incentives for establishment of perennial plantations, where MDL 37.500 were capitalized,
    - investment incentives for purchasing equipment and farm machinery and irrigation equipment, which used MDL 19.8 million.

*Document content provided from the source PDF.*

### 378. During  the  reporting  period,  the  Agency  for  Intervention  and  Payments  for  Agriculture

### _cr1194 - 378. During  the  reporting  period,  the  Agency  for  Intervention  and  Payments  for  Agriculture

### Agricultural support, grants, and investments
- The Agency for Intervention and Payments for Agriculture received 1,551 grant applications for review, of which 770 approved and the other being under review.
- State support through IFAD and RISP Programs financed 246 agricultural activities during the first half of 2010 for a total amount of MDL 74.8 million.
- This level of financing represented an increase of such benefits by approximately 68 percent (MDL 42 million) compared to the same period of 2009.

### Market infrastructure, trade promotion, and phytosanitary measures
- Market Infrastructure Development Program objectives:
  - Promote market and trade policies to ensure a favorable environment for business development and stimulate investment across the agribusiness value chain.
  - Actively promote exports of agricultural products with added value.
  - Support improving post-harvest infrastructure and strengthen direct relations between producers and consumers.
  - Improve marketing infrastructure and implement a market information system.
  - Attract foreign and local investors for development of production means and to increase quality of agricultural production.
- Legislative and regulatory actions:
  - Draft law on plant protection and plant quarantine was developed and adopted by the Parliament in the first reading.
  - The “Phyto-sanitary Registry” was developed and implemented; it contains critical data about importers of products subject to phyto-sanitary control.

### Branding, partnerships, and international cooperation in agribusiness
- Wine industry trademark promotion:
  - Collaboration possibilities examined between local Moldovan alcoholic beverage producers and Strategic Media Planning Agency “MAXXIMUM CONSULTING” from Ukraine; cooperation proposals were submitted via the Embassy of the Republic of Moldova in Ukraine.
- Moldovan-Italian partnership:
  - Agreement signed with the Province of Fermo, Italy, providing a common foundation for three packing houses in villages of Orhei, Ungheni and Cahul Rayons, establishment of joint ventures for production and marketing of fruit and vegetables on the EU market, attracting private investments and EU funds for joint projects.
  - An action plan on promoting trade exchange with foodstuffs and attracting investments in agriculture and food industry between MAFI and embassies of the Russian Federation and Ukraine was drafted.
- Memorandums of Understanding concluded during the reporting period:
  - Between the Government of the Republic of Moldova and Romania and the Czech Republic and the Canadian Agri-Sustainable Partnership Corporation (CASPIAN), covering cooperation in: animal traceability systems, irrigation, milk processing, production and promotion of wine, fruit and vegetable processing, rural development, promoting high value-added agriculture, etc.

### Agricultural education, training, and research
- Admission planning:
  - Plan regarding admission in higher education institutions (cycle I and II) and specialized education for 2010-2011 was developed; Registration Plan approved in 2010 for institutions of higher education (first cycle), masters degree (second cycle) and specialized, with funding from the state budget and on contract base.
- Graduate labor market placement:
  - Ministry requested Rayonal Departments to collect information about number of employees necessary for 2010.
  - So far, 16.5 percent (229 persons) have been assigned out the total number of graduates (1,391 persons).
- National Rural Development Agency (ACSA) activities:
  - During January - August 2010, ACSA organized 2,406 seminars and training programs, an indicator of growth of 9.1 percent compared with the same period of 2009.
- Ministry training:
  - During January - August 2010, 11 training courses for MAFI employees were organized (nine by outside institutions and two by MAFI); beneficiaries numbered 36 employees, representing a 20 percent increase compared with the corresponding period of 2009.
- ACSA service reach and science/innovation measures:
  - Annually, recipients of services provided by ACSA are approximately 300 - farmers, rural entrepreneurs and rural population.
  - Government approved decisions to reorganize institutes and scientific organizations in the food industry, create new organizations in science and innovation, and approve the Nomenclature of paid works and services executed and delivered by educational institutions and those related to science and innovation.
- Research and innovation projects:
  - Through Codru Experimental Station, two projects launched in 2010:
    1) “Implementation of apple species immune to scab and maintaining the Fruit Genetic Resources”
    2) “Using high-value species of fruit when founding commercial demonstrative orchards”
  - Agricultural State University of Moldova is establishing an Innovation Park with eight research centers in applied and additional agricultural sciences; applied scientific research institutes and educational institutions collaborate with similar foreign research institutions; research results used by doctoral, master and students involved in most research projects.

### Regional infrastructure development and public-private partnerships
- Regional development strategies prioritized “Rehabilitation of physical infrastructure,” addressing drinking water supply, sanitation services and roads in localities.
- German Technical Cooperation Office (GTZ) cooperation:
  - Regional development agencies, in cooperation with GTZ, implemented actions to modernize utilities via the project “Modernization of local public services”.
  - GTZ will finance and implement four projects selected in the pilot Call for project proposals in the field of public utilities.
- Partnership and project submission requirements:
  - Guidelines for Applicants require a partnership declaration; project proposals should contain partnership statements concluded with 3-8 partners.
  - Multiple partnership types promoted: among regions, among communities, intra-sectors, cross-border partnerships.
- International regional cooperation agreements:
  - Memorandum of Understanding between the Ministry of Construction and Regional Development of the Republic of Moldova and the Ministry of Regional Development of the Republic of Poland concluded.
  - Collaboration agreement between the Ministry of Construction and Regional Development of the Republic of Moldova and the Ministry of Regional Development and Public Works of the Republic of Bulgaria concluded.
- Cross Border Cooperation Program Romania - Ukraine – Republic of Moldova:
  - Collaboration with the National Focal Point representative of Moldova initiated to inform those responsible for regional development projects and regional cooperation on specific cross-border programs (field training).

### Environment, waste management, water and sanitation, forests, and meteorological systems
- Waste management:
  - Increase in number of specialized companies collecting, transporting and using industrial and hazardous waste; currently 19 specialized companies on the market, out of which five obtained work permits in 2010.
  - Inventory conducted of all solid waste landfills (dumps); uncontrolled dumps identified and recorded.
  - Country statistics: 1,868 landfills in the Republic of Moldova, with a total area of 1,415 ha, out of which only 1,026 are authorized.
  - 3,743 solitude dumps were detected, out of which 2,814 were liquidated.
  - During the period, 331 authorized landfills were arranged, 81 plots of land were selected for location of new landfills, and specialized sanitation services were established in 68 rural localities.
- Persistent Organic Pollutants (POPs) monitoring:
  - Soil Quality Monitoring Centre of the State Hydrometeorological Service equipped with professional equipment and supplies and undergoing certification, approval and accreditation according to international standard of competence ISO / IEC 17025.
- Water supply and sewerage improvements:
  - Aqueduct construction, repair and development resulted in an aqueduct length of 103.1 km, connecting 158,623 beneficiaries in different areas.
  - Sewage system improvements included construction and development of 44 km of sewerage network to connect 101,356 beneficiaries in localities including Anenii Noi, Balti, Comrat, Hincesti.
  - Budgetary allocations for development and modernization of water supply and sanitation systems amounted to MDL 255 million, which added MDL 1 million allocated from the National Environmental Fund.
- Transboundary water cooperation:
  - Memoranda of cooperation signed between the Government of the Republic of Moldova and responsible institutions from Romania and Ukraine for protection and sustainable use of water from the Prut and Dniester rivers.
- Protected areas and forestry:
  - During 2009 - 2010, state-protected natural areas remained at 4.65 percent of the country territory, equivalent to 157,227.4 ha.
  - To raise forestation toward levels exceeding 15 percent, allocations from the State Environmental Fund: about MDL 5.2 million in 2009 and about MDL 8.0 million in 2010 for forestation of degraded lands, planting and regeneration of protection bands.
  - Moldsilva Agency planting and forest regeneration works were carried out on an area of over 9,000 hectares by end of the reporting period.
- Hydrometeorological monitoring and disaster risk management:
  - National monitoring modernization included extending forecast lead time from 5 to 7 days and introducing a system of warning of hazardous hydro meteorological phenomena by means of four color codes (green, yellow, orange and red).
  - Negotiations with the World Bank were launched for financing the project “Climate Risk and Disaster Management in Moldova” to strengthen inter-institutional potential to prevent and minimize the impact of natural hazards.
  - Project from negotiations with the Government of the Czech Republic provides for installation of 11 automatic hydrometric stations on the Prut River starting the autumn of 2010.

*Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr1194.pdf*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr1194.pdf_