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Development partner | World Bank |
Development/ Implementation agency | The World Bank Group (IBRD, IDA, IFC, MIGA, ICSID) |
Contact details | 20/1 Pushkin Street,
MD -2012, Chisinau, Republic of Moldova.
Tel: +373-22-200706
Fax: +373-22-237053
Email: moldova_contact@worldbank.org
http://www.worldbank.org/en/country/moldova |
Legal framework for cooperation | Moldova joined IBRD on August 12, 1992, which is considered the official date of membership in the World Bank.
The International Development Association (IDA) provides little or no interest loans – called credits - and grants to the poorest countries. Moldova joined IDA on June 14, 1994.
The International Finance Corporation (IFC) provides loans, equity and technical assistance to stimulate private sector investments in developing countries. Moldova became a member of IFC on March 10, 1995.
The Multilateral Investment Guarantee Agency (MIGA) provides guarantees against losses caused by non-commercial risks to investors in developing countries. Moldova is a member of MIGA since June 9, 1993.
The International Center for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes. Moldova joined ICSID on June 4, 2011. |
Strategic documents for programming | World Bank Country Partnership (CPS) Group Strategy for the Republic of Moldova for fiscal years 2009-2012 and Progress Report on CPS with the Republic of Moldova for fiscal years 2009-2013.
The country's 2014-2017 Country Partnership Strategy, with a budget of about US $ 570 million, provides support for the Republic of Moldova in economic growth and poverty reduction. The strategy focuses on three pillars:
(I) Increasing competitiveness;
(II) Strengthening human capital and minimizing
Social risks;
(III) Promoting a clean, environmentally friendly Moldovan environment.
The next Country Partnership Strategy with the World Bank 2017-2020 is to be completed by the end of the World Bank's financial cycle (July 2017).
Pillars for the next Country Partnership Strategy, preliminarily selected by the World Bank, are:
• Governance and the rule of law;
• Increasing the skills of human resources;
• Improving public service delivery. |
Priority sectors/ Areas of cooperation | The World Bank Group's Country Partnership Strategy (CPS) for Moldova for FY2009-12 focuses on three strategic priorities:
• Improving economic competitiveness to support sustainable economic growth;
• Minimizing social and environmental risks, building human capital, promoting social inclusion;
• Improving public sector governance.
A mid-term progress report in June 2011 found the strategy to be on track and extended it to 2013, but suggested adapting the program to reflect the following developments:
• Impact of the global economic and financial crisis;
• The opportunity created by the reform mandate given to the Government by the Moldovan people;
• Moldova’s European integration agenda.The objectives of the 2017-2020 Partnership Strategy are poverty reduction and the improvement of living standards by 40 percent of the poor population in the Republic of Moldova. Therefore, the Strategy will be based on the country diagnosis conducted and on the results of the mid-term review of the current strategy:
• Country diagnostics identified that development policy and technical assistance operations are preferred tools for addressing governance issues and investment projects to support people's livelihoods.
• Following the mid-term review of the current strategy, economic governance has been identified as a key challenge to poverty reduction, while highlighting the country's high vulnerability to climate change. |
Types of funds / financial instruments and assistance modalities | The strategy recommends considering one or maximum two new International Development Association (IDA) lending operations per year bringing annual commitments to approximately USD 50 million.
Assistance modalities:
- Credits, including results-based financing
- AAA (Economic and Sector Work and Technical Assistance)
- Trust Funds |
Procedures for programming, approval and implementation of projects | The programming is done in consultation with the Government of Moldova. |
Special conditions for submission of project proposals and project acceptability criteria | The special conditions are established according to the priority area and the type of loans through the Financing Agreement. |
Other information | Two decades of cooperation and joint efforts to boost prosperity, reduce poverty and improve the quality of life for Moldovans have translated in a broad range of support to the country, covering areas such as health, education, agriculture, energy, water supply and sanitation, e-governance, social protection, competitiveness and many others. Over 970 million US dollars have been committed to date in support of 45 projects. Over 340 trust funds have been implemented in excess of 200 million US dollars. The International Finance Corporation and the Multilateral Guarantee Agency, two members of the World Bank Group, provided finance and guarantees for a total of 295 million US dollars.The World Bank administers a substantial USD 74 million Trust Fund (TF) portfolio, which is one of the largest in the Europe and Central Asia region, with a largely satisfactory implementation track record, which provide co-financing to IDA operations, finance GEF and carbon operations, and provide other forms of support, including for AAA.AAA delivered in FY10-12 include a Country Procurement Assessment Report, a Country Economic Memorandum, a District Heating Restructuring Study, a Public Expenditure Review, and Financial Sector Monitoring TA. In the financial sector specifically, the World Bank provided assistance in improving the legal and regulatory frameworks for electronic payments and for segments of the non-banking financial sector, assisted the National Bank of Moldova with bank stress testing, produced a technical note on capital market development, helped to organize a roundtable on financial services supervision, and provided advice and assistance in other areas through our ongoing dialogue with government counterparts.These TA products will be instrumental in moving forward the structural reforms agenda and developing a second growth engine for Moldova based not only on remittances but also on exports and investments. In addition to ongoing work on Food Security, future AAA include programmatic fiscal work, A&A ROSC follow-up, continued work on competitiveness and structural reforms, and Health TA. Sector-specific analytical work to complement the proposed lending program could take place in energy, education rationalization, DCFTA preparation in agriculture. AAA in the financial sector could include work to improve the intermediation of remittances, financial sector monitoring to support crisis resilience and market development measures.Currently, the World Bank portfolio includes 10 active projects with a total of $ 365.3 million in commitments and 8 grants totaling $ 14.4 million.
The Financing Agreement between the Republic of Moldova and the International Development Association (IDA) and the Loan Agreement between the Republic of Moldova and the International Bank for Reconstruction and Development (IBRD) to implement the Operational Program for Competitiveness Development (DPO-2) Were ratified by Parliament on 22.12.2016.
The agreements, signed on December 17, 2016 in Chisinau, envisage providing the Republic of Moldova with a budget support of about US $ 45 million, in the form of a loan of 13 million special drawing rights (about $ 17.4 million) from IDA and A loan of US $ 27.2 million from the IBRD.
Therefore, the Ministry of Foreign Affairs and European Integration has notified the World Bank about the completion of internal procedures and the Ministry of Finance has sent the World Bank payment request, which made disbursements in two installments (one from IDA, another from IBRD) and money Have already arrived in the RM Treasury.
DPO -2 requires budget support to be used to implement structural reforms to facilitate and streamline business activity, ensure financial sector stability, streamline public investment management, including by ensuring that subsidies in agriculture are delivered in an efficient manner.
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Normative Framework | |
