ECO-BUS WEEKLY DIGEST December 4-10. Most important Economy & Business news by IPN

MONDAY, December 4

Main indicators of pay TV industry go up 

Statistical data concerning the evolution of the pay TV market (cable and IP TV networks) for the first nine months of this year, aggregated by the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI), show that the main indicators of this market increased slightly. The total number of pay TV subscribers in the period rose by 18% to 319,000, while revenues from these services increased by 5.7% to 118.6 million lei. The rise in the number of pay TV subscribers was due to the increase in the number of subscribers of IP TV service providers to 138,300. These represented 43.3% of the total pay TV subscribers. At the same time, the number of cable TV subscribers decreased to 181,100, making up 56.7%. The pay TV penetration rate per 100 people rose to 9%.

Results of regional development policy in 2017 

Over 2,000 people from Risipeni and Bocsa villages of Falesti district have now access to tap water, while for 11,500 people from Telenesti district the sewerage system was rehabilitated and a wastewater treatment station was built. The first results of the regional development projects for 2017-2020, financed from the National Regional Development Fund, were presented by the Ministry of Agriculture, Regional Development and Environment on December 4. In a news conference, Minister Vasile Batca said that 39 regional development projects were initiated in 2017 and about 186 million lei was allocated from the National Regional Development Fund for implementing these. The first seven projects of the 39 that are to be carried out by 2020 have been completed this year. “Projects are being implemented in a number of sectors, such as water supply and sewerage, regional and local road infrastructure, business support infrastructure and improvement of tourist attractiveness. Works were carried out within all the initiated projects,” stated the minister.

TUESDAY, December 5

Five mobile scanners put again into operation with U.S. support 

Five non-intrusive inspection systems were repaired with the assistance of the Government of the United States, which provided US$1.3 million in technical support. The mobile scanners were put into operation in an official ceremony on December 4. In the event, director general of the Customs Service Vitalie Vrabie thanked the representatives of the U.S. Government for the permanent support. “The ensuring of the country’s economic and transfrontier security is a key priority of the Customs Service. In the fulfillment of this duty, we cannot do without the necessary inspection instruments and mechanisms. The challenges faced in this sector make us to take measures to improve the anti-fraud activity and we are glad that we further benefit from the support of the development partners,” stated Vitalie Vrabie. U.S. Ambassador to Moldova James Pettit said the extension of the period of exploiting the X-ray mobile scanners of the Customs Service is an excellent example of partnership with the Republic of Moldova in securing the border, preventing the proliferation of weapons of mass destruction and facilitating trade.

Young entrepreneur earns money by turning waste into energy 

Young entrepreneur Dmitri Asoscov earns money by turning waste into energy. Dmitri and his partner Serghei Alexei three years ago set up a business that provides them financial benefit and a moral satisfaction with the contribution to the reduction of fossil energy consumption and the country’s energy security. The business was started through the agency of the Energy and Biomass Project. Dmitri and Serghei started their business from a small carpenter’s shop, and because they had to do something with wood sawdust, the business was expanded into a similar area - production of briquettes. Also, since the demand was high, the two partners sought for new sources of raw materials to produce more and chose buckwheat husks and almond nutshells.

Court of Auditors: Tens of millions of lei from Road Fund were used inefficiently 

The Court of Auditors ascertained the inefficient management of tens of millions of lei from the Road Fund following an audit for 2014-2017. It was also established that the amounts collected into the Road Fund decreased each year and no transparency was ensured in the distribution of the Fund’s resources. Senior state inspector Aliona Oboroceanu said road repair works to the value of 29 million have been carried out in the absence of execution projects. The Road Fund loses money also because the authorities didn’t complete the process of procuring information services for ensuring the functioning of the e-vignette system. The money collected as taxes for issuing international road transport authorizations is transferred with delay. Also, there is no information system between the Customs Service and the National Auto Transport Agency.

More payments are made by card 

Twenty years after the putting of the first bank card into circulation in Moldova, the volume of payments made by card rose to 15.6 billion lei. More than half of these payments were made in 2016 and 2017. The statistics were presented by economist of the Institute for Development and Social Initiative “Viitorul” Veaceslav Ionita in the program “15 minutes of economic realism. The expert said the card at the initial stage was used only for withdrawing cash from ATMs - 98% of the operation at that time. Instead of collecting the salary from the accountant’s office, employees went to the cash machine to withdraw the salary and traditionally paid cash for purchases. However, during the past three years the card payments have risen by 50% a year.

● WEDNESDAY, December 6

Bypassing road in Ungheni could be opened next May 

The bypassing road in Ungheni, which was to be made available for use in June 2016, could be opened next May. According to the authorities, this was 87% ready by December 1 this year and 30 more days favorable for works are yet needed to finish it. In a news conference, Minister of Economy and Infrastructure Octavian Calmic, Deputy Prime Minister, said the given road was 25% built on January 1, 2017. The last layer of asphalt that is to be placed is a special one as it contains cellulose and necessitates favorable weather conditions – temperatures of at least 10 degrees Celsius. That’s why the works will be resumed next April. Moreover, road workers recommended not using the road in winter as the balustrades haven’t been yet set up on this segment. The repair of the bypassing road in Ungheni is financed with €11 million worth of grants provided by the EU. Of this sum, €9.5 million has been used.

New financing contract to be negotiated with EIB 

The Cabinet approved the initiation of negotiations on the financing contract between the Republic of Moldova and the European Investment Bank (EIB) for the implementation of the project “Interconnection of electric power networks between the Republic of Moldova and Romania”. Currently, the interface between Moldova and Romania consists of the Vulcanesti–Isaccea aerial power line of 400 kV and four aerial power lines of 110 kV. The Government plans to extend the power network with other such lines. The EIB is to lend Moldova €80 million. The money will be used to build a back-to-back station in Vulcanesti and a transport line of 400 kV between Vulcanesti and Chisinau and to extend the transformer stations in Chisinau and Vulcanesti. Thus, the construction and development of the infrastructure needed to permanently interconnect the electric power transport networks of Moldova and Romania will be ensured.

THURSDAY, December 7

Moldovan wine, walnuts and dried fruit to be exhibited in Japan 

Twelve wineries, three companies that produce bee honey and two companies that dry fruit and cultivate walnuts will display their products at an exhibition at the Okura Hotel in Tokyo on December 18. The event is organized on the initiative and with the financing of the Moldova Investment Attraction and Export Promotion Organization (MIEPO) in cooperation with Moldova’s Embassy in Tokyo. Moldova’s Ambassador to Japan Vasile Bumacov has told that the event is staged with the aim of promoting high-quality wine and other national products, such as bee honey, walnuts and dried fruit, on the Japanese market. The selection of companies was coordinated at the national level by the MIEPO, while the Embassy cooperated with Japanese companies that import Moldovan wines so that these represent producers that cannot come to Tokyo in the December 18 event. According to the ambassador, there were invited about 200 representatives of companies that import and distribute wine products, the main shop chains and the media as well as officials of the Government, Parliament, Ministry of Foreign Affairs, diplomatic corps and international cooperation agencies.

International company to issue meal vouchers in Moldova as from 2018 

As of 2018, an international company will issue meal vouchers in Moldova, on paper and in electronic form. The international group Up opened a local office in Moldova and is finishing the licensing process. Up already concluded the first commercial agreements with national brands that are the first companies in Moldova that will accept payments with meal vouchers. Among these are: Linella, UniMarket, Nr.1, Andy’s Pizza, La Placinte, Fourchette, Mojito, Draft, Tucano, Pretzel, and La Taifas. The international group said it took such a decision in the wake of the recent promulgation of the law by which employers in Moldova are authorized to offer employees an individual food allowance for each workday, in the form of meal vouchers.

Silvia Radu empowered to negotiate financing for energy efficiency project 

The Chisinau Municipal Council empowered acting mayor Silvia Radu to negotiate aspects of the lending agreement with the EBRD/EIB for implementing the project to ensure the energy efficiency and thermal insulation of public buildings and apartment blocks in Chisinau municipality. Silvia Radu was empowered to negotiate the period of validity of the contract, commitment fee, anticipated repayment and late payment interest rates. In the same meeting, the Council approved the composition of the commission for surveying the implementation of the energy efficiency project.

Sic!: President Dodon versus statistics, Part II 

Igor Dodon’s statements about the Association Agreement with the EU oscillated between “should be annulled” and “should be reviewed”, but the attitude is clearly negative. The authors of a new Sic! article say the President repeatedly stated that after signing the Agreement, Moldova lost the Russian market and gained nothing instead, but things stand differently as a matter of fact. In the first part of the series President Dodon versus statistics, the authors showed how Russia and the CIS were outstripped by Romania and the EU by commercial significance for Moldova. The new article examines the impact of the Deep and Comprehensive Free Trade Agreement of the Association Agreement that was signed in 2014. The authors say the President is right when he says that Moldova lost the Russian market, but this is not the result of the Association Agreement. It is actually a consequence of the ban imposed by Moscow before the signing of the Agreement. Thus, after the ban imposed in 2013, Moldova’s exports to Russia declined from US$ 423 million in 2014 to US$ 233 million in 2016.

Modern technologies and innovations at Moldova Eco Energetica 2017 

Modern energy production and efficient consumption technologies and innovations were presented at the Moldova Eco Energetica 2017 exhibit that is held at Moldexpo during December 6-8. The exhibits include solar water heating systems, photovoltaic panels, solid biofuel boilers, energy-efficient light bulbs, etc. Mihai Talpa represents a company that imports automobiles. At Moldova Eco Energetica, the company displayed two models of electric cars without internal combustion engines. “These are ecological cars that do not emit gas (CO2) in the atmosphere. The used electrical energy is much cheaper than the fuel. They are more efficient when accelerating,” Mihai Talpa stated.

● FRIDAY, December 8

Restrictions concerning advertising of alcoholic beverages


Advertisements for alcoholic drinks, except for grape wines, will be banned on radio, TV and the Internet and in the media, public transport etc. Such publicity will be allowed only during national events, in specialized shops, on the territory of producing companies, on travel tickets or in aircraft. Parliament adopted the bill to amend and supplement a number of legal acts on alcohol control in the final reading on December 7. Under the law, advertisements for alcoholic beverages on radio and TV stations will be permitted between 11pm and 6am. Images with alcoholic products could be placed in public areas during national and traditional holidays, in head offices of specialized companies and on the official websites of producers and retail outlets.

2018 state social insurance budget law passed in first reading

Parliament on December 7 adopted the draft state social insurance budget law for next year in the first reading. Under the draft law, the state social insurance budget revenues in 2018 will total 19.312 billion lei, an increase of 1.798 billion lei compared with this year. 65% of the revenues will be the general resources of the state social insurance budget, while 35% will be transfers from the state budget. Boris Gilca, secretary general of state at the Ministry of Health, Labor and Social Protection, said the 2018 state social insurance budget provides for a total expenditure of 19.312 billion lei, up 1.798 billion lei compared with the spending projected for this year. The money will go to finance state social insurance budget subprograms in accordance with the sector policy priorities.

2018 health insurance funds law adopted in first reading

The legislative body passed the draft mandatory health insurance funds law for 2018 in the first reading on December 7. The revenues and expenditure of the mandatory health insurance funds for next year were projected at 6.669 billion lei each. About 94% of the funds will be directed to the main fund that is used to cover current costs for purchasing medical services. Boris Gilca, secretary general of state at the Ministry of Health, Labor and Social Protection, said the mandatory health insurance premium in the form of percentage contribution paid from the salary and other recompenses remained at the level of 9%, which is 4.5% for employers and as much for employees. The premium in fixed sum also remained at this year’s level of 4,056 lei. The 50% reduction if the health policy is purchased by April 1 was kept. The reduction for farmland owners is of 75%.

Dräxlmaier extends presence in Moldova

Dräxlmaier Automotive in 2018 will implement an investment project in Cahul subzone of the Free Economic Zone “Balti” to the value of €30 million. The fourth auto electrical cables factory of the company, which will be 20,000 square meters in area, will be built by the end of next June and will start to produce next July. According to the Ministry of Economy and Infrastructure, the investment plan provides that 1,500 persons will be employed at the new factory by the end of 2018. Next year the German company will create another 2,000 jobs at its enterprises situated in the subzones of Balti municipality, raising the number of jobs to 6,500.

African swine fever affects wild boars

The African swine fever expanded to the wild fauna, affecting wild boars. Earlier, the National Food Safety Agency reported cases of African swine fever in private farms in Palanca and Tudora villages of Stefan-Voda district. Three new hotbeds were reported now in forestry companies in Orhei, Cimislia and Cahul districts. In a press release, the National Food Safety Agency says the virus was detected in wild boars caught during hunting. Samples were transmitted to the Reference Laboratory for African Swine Fever in Madrid for determining the viral genotype.

Central bank puts modernized 5 lei banknote into circulation

Starting with December 11, 2017, the National Bank of Moldova puts into circulation on Moldova’s territory the modernized banknote with the face value of 5 lei. The modernization of banknotes by introducing new security features is a common practice applied by most central banks with the aim of reducing the risks of national currency forgery and counterfeiting. Thus, the “BNM” text will now appear on the metallic thread embedded in the paper to show blue fluorescence in ultraviolet light. The fluorescence may be also seen on the blank area of the obverse, where a green rectangle will be observed in ultraviolet light. The BNM logo and the “BNM” text are inserted inside the rectangle.

SATURDAY, December 9

Farmland not cultivated during two years will be managed by local authorities


The farmland that will not be cultivated during two years by owners will be transferred under the management of the local public authorities. The authorities will be able to lease this land out for a period of up to five years. The Ministry of Agriculture, Regional Development and Environment drafted a law to amend the Land Code and proposed it for public debates. The informative note to the bill says the massive privatization of farmland led to the appearance of many uncultivated plots and farmers, as a result, practice inefficient farming. The uncultivated land stimulates the appearance of more pests and farmers have to use chemicals and fertilizers to combat these. The initiative is designed to support the people who have farmland near uncultivated land. These will be able to request the local authorities to cultivate this land too.

Insured apartments in Moldova represent less than 1%

The apartments insured by private individuals in Moldova constitute less than 1%. On September 30 this year, the Moldovans insured their apartments in the amount of almost 9 million lei, the value of the insured property being of over 1 billion lei. The data were provided by the National Commission for Financial Markets, which makes reference to Donaris Vienna Insurance Group. The Commission says the insured apartments are mainly situated in urban areas. In most of the cases, there are insured pledged apartments for which banks impose such a condition. As regards the profile of persons who use this type of insurance, the persons of an average age prevail.

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