● TUESDAY, April 4
New price ceilings for fuel
The National Agency for Energy Regulation has announced the fuel price ceilings for the next two weeks. As of April 5, the price ceiling per liter of gasoline will rise by 0.15 lei, while per liter of diesel fuel will decrease by 0.24 lei. The price ceiling for a liter of gasoline coded 95 was set at 17.49 lei, up from 17.34 lei during the last two weeks. The diesel fuel will cost at most 14.84 lei, as opposed to 15.08 lei until now.
Millions of lei provided as subsidies to be returned to state
About 15 million lei is to be paid back to the state by farmers who obtained subsidies and didn’t use them for the right purpose. Dumitru Popovich, head of the law division of the Agency for Intervention and Payments in Agriculture, has that over 30 such cases are pending. The jurist said the irregularities were identified at the post-inspection stage. If the farmer does not return the money during 15 days, the file will be sent to court.
Over 6m lei for first 33 beneficiaries of PARE 1+1 program
A number of 33 entrepreneurs on April 4 signed contracts to get financing for businesses they run to the value of 6.6m lei within this year’s edition of the PARE 1+1 program. According to the Organization for the Development of Small and Medium-Sized Enterprises (ODIMM), of the 33 businesspersons who signed financing contracts, 20 work in agriculture and intend to grow grain, grapes, aromatic plants and vegetables on protected areas. Another seven provide educational, medical and catering services, while six operate in the agrifood and wood processing industries.
● WEDNESDAY, April 5
Pavel Filip: We are sure we will not encounter problems with power supply
Prime Minister Pavel Filip assured that the replacement of the company from which Moldova imported electrical power will not lead to a shortage of power, as some experts assert. The Premier developed the issue in the talk show “Moldova life” on the public TV channel Moldova 1. “We are sure that we will not encounter problems with the supply of power to the Republic of Moldova. Our country has its own interests and we, those from the administration, are obliged to do everything possible for the electricity to be cheaper. The bid of the Ukrainian supplier was the most advantageous one for us. Those from Transnistria are angry because we stopped to import power from Cuciurgan and will thus criticize us, no matter what we do,” stated the Prime Minister.
EU offers investment support to small and medium-sized businesses
The small and medium-sized enterprises (SMEs) can ask for investment support to improve products and services. The EBRD, the European Union and Mobiasbanca - Groupe Société Générale on April 5 launched the first credit line in Moldova that will enable SMEs to take advantage of opportunities under the Deep and Comprehensive Free Trade Area (DCFTA) with the EU. This project will support the integration of the Moldovan economy into European markets. The EU4Business-EBRD Credit Line aims to help local SMEs invest in improvements to their product quality and modernization of their services to meet EU standards. EU4Business is also providing SMEs with grant incentives of up to 15 per cent and funding advisory services by local and international consultants. The package offers Moldovan SMEs long-term financing for investment in new technologies and equipment in compliance with EU standards; cash-back incentives of up to 15 per cent of the investment financed by the partner bank, payable upon completion of the investment project; technical advice available free of charge from local and international experts.
Two primary documents with special regime to be merged
The primary documents with special regime “Invoice” and “Fiscal Invoice” will be merged based on a change made by the Government to a previous decision. The old forms will be in circulation until the supplies are used up. The executive explained that the merger will help reduce the administrative barriers placed in the way of enterprises and other entities.
Assistance for agricultural producers affected by last April’s frosts
The Cabinet approved the regulations concerning the provision of financial assistance to agricultural producers for alleviating the consequences of the late frosts of last spring. The regulations stipulate that the farmers will submit applications for assistance, personally or through an empowered representative, to a special commission set up in the territorial-administrative unit of the first level where the affected areas are situated. The special commission will consist of the mayor, secretary of the local council, cadastral engineer, accountant of the mayor’s office and a local councilor. Applications can be filed during ten working days of the creation of the special commission.
● THURSDAY, April 6
Geological exploration by Frontera Resources will affect environment, experts
The methods that will be used by the U.S. company Frontera Resources International to geologically explore 40% of Moldova’s territory could have an irremediable negative impact on the environment. Economist of the Independent Analytical Center “Expert-Grup” Sergiu Gaibu said the contract signed by the authorities with the U.S. company says that the latter will exploit and explore not only for natural gas, but also for hydrocarbons, which include shale gas, and this is a problem as over 80% of the area that is to be explored is populated. Sergiu Gaibu said the authorities misinform when they say that only natural gas will be searched for. The contract stipulates the notion of hydrocarbons that are extracted by hydraulic fracturing and this procedure has a negative effect on the environment. “Inoffensive deposits extraction methods should be clearly specified and communicated to the people and the local public authorities that will later have to explain why they accepted explorations by unwanted methods. We do not want the people to be exposed to risks. That’s why we want clear technical messages and information, including in the contract,” stated Sergiu Gaibu.
Tudor Copaci named NAER director general
After Tudor Copaci was confirmed to the post of director of the Administration Board of the National Agency for Energy Regulation (NAER) by Parliament last week, on April 6 he was appointed director general. The legislative initiative put forward by Speaker of Parliament Andrian Candu was supported by most of the attending MPs.Tudor Copaci was named director general of the NAER for a six-year term.
Plots crossed by Ungheni-Chisinau gas pipeline assessed at €600,000
The Cabinet approved the bill by which the construction of the Ungheni-Chisinau gas pipeline is declared public utility work. This means that the state will buy the plots through which the pipeline will go from owners. These plots were valued at €600,000. The gas pipeline will be 120 km long and will cross the following villages: Radenii Vechi, Todiresti, Parlita, Tuzara, Pitusca, Niscani, Temeleuti, Peticeni, Valcinet, Sadova, and Calarasi. This will also go through the outskirts of the communes Tohatin, Stauceni, Gratiesti and Ghidighici of Chisinau municipality. The purchase of the land was entrusted to the Ministry of Economy.
● FRIDAY, April 7
Central depository licenses and register society authorizations to be eliminated
Legal entities that possess central depository licenses or register society authorizations will be able to get licenses and authorizations for working on the capital market without paying the related taxes as they already paid taxes for obtaining the central depository licenses or register society authorizations held at present. Thus, the central depository licenses and register society authorizations will be eliminated. This is provided in a bill that was adopted by Parliament in the final reading on April 6. The informative note to the bill says the goal is to adjust the current legal acts and to create an efficient framework for regulating the activity of the Common Central Securities Depository (CCSD). Furthermore, the law contains amendments to the financial-banking regulatory framework, which are aimed at optimizing this.
Challenges faced by business community in implementing DCFTA discussed in Chisinau
The business community in Moldova is disfavored compared with that of the region, for example with Romania’s, in terms of access to European funds. Thus, a part of the Moldovan companies migrate over the Prut in order to enjoy the same benefits as the Romanian businessmen in attracting investment and developing businesses, Minister of Economy Octavian Calmac stated in the launch of the publication “Business Issues Briefs” (2016) that describes the most important problems encountered by Moldovan businesspeople in the process of implementing the Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union. “We approve of the fact that the business community reacted promptly to the challenges of the DCFTA. There is clear evidence that the number of companies that export to the EU is on the rise. The number of products exported to the EU member states has also increased and this makes us hopeful that the estimates about the potential of the DCFTA are realistic and can be achieved,” stated the minister.
Government to sign investment agreements for implementing strategic projects
The Government will be able to sign investment agreements for implementing strategic projects for the national economy, according to a supplement to the Law on Investments in Entrepreneurial Activity that was approved by the Cabinet on April 5. The possibility for the Government to be able to sign investment agreements was provided in accordance with the national strategy for attracting investment and promoting exports for 2016-2020.
Electronic public procurement system to be applied as of 2018
Representatives of business entities and contracting authorities were familiarized with the new electronic procurement system M-Tender in a conference. Minister of Finance Octavian Armasu, in the opening of the event, said the electronic public procurement system enables to maximally reduce the intervention of the human factor in procurement process, eliminates corruption, increases transparency and enables to reduce costs by 15-20%. Presenting the M-Tender system, deputy minister of finance Iurie Cicibaba said this will cover the whole procurement process – from tender contest planning and presentation of bids by companies to the implementation of procurement contracts.
“The bid will be introduced in the system by the business entity. There will be no need to go to the mayor’s office and look for the mayor to ask for an application form. Situations when the business entity disappears after signing the procurement contract and does not fulfill the obligations will be prevented,” said the deputy minister. The information in electronic format will be accessible to business entities, contracting authorities and civil society observers.
Easter cakes go on sale
Easter cakes are available on shelves in the specialized stores “Franzeluta”. The bakery complex’s marketing specialist Aliona Cucu said the range of Easter products this year remained the same. Changes were made to packing and decoration only. The Easter bread with cheese weighing 500 grams costs 38 lei and up, while that weighing 1 kg can be bought for 68 lei. The range of pound cakes suits everyone’s taste, said Aliona Cucu. These are filled with cherries, cacao, raisin etc.
Adjustments to Authorized Economic Operator program take effect
The new adjustments made to the program Authorized Economic Operator (AEO) of Moldova to match the European one came into force on April 7. The adjustments refer mainly to such aspects as the approval of the application form for obtaining the status of AEO, in accordance with the new provisions of the Customs Code of the European Union, cases of rejection of the application, etc. There was approved a new AEO authorization model and the regulations concerning the AEO logo. The Customs Service said the April 4 Government decision, by which changes are made concerning the implementation of the provisions of sections 271 and 281 of the Customs Code of the Republic of Moldova, also took effect. These refer to the implementation of simplified clearance procedures and the AEO.
Cooperation as a solution to multiple problems faced in horticulture
Moldova has a rather well developed legal framework concerning the foundation and regulation of the activity of cooperatives. The most viable forms of cooperation turned out to be the production and entrepreneurial ones. However, the production cooperatives act as a form of farmland renting rather than as a way of integrating agricultural producers. Such conclusions are contained in a study carried out by the National Institute of Economic Research. The research authors say cooperation is one of the key solutions to the multiple problems faced in horticulture. The problems in this sector are similar to the general problems encountered in agriculture, such as land consolidation, lack of labor force, excessive bureaucracy, difficult access to sources of financing, etc. Cooperatives can play an essential role in strengthening the power of negotiation of small agricultural producers. However, the power of negotiation of cooperatives with wholesale and retail customers is yet rather limited.
