One-third on donor money will be used to narrow budget gaps
One-third, or about €650 million of the €1.9 billion offered to Moldova by foreign donors in loans and grants will be used to sustain the budget and narrow budget gaps, Finance Minister Veaceslav Negruta told a news conference on Tuesday.
According to the minister, the biggest foreign contributors to the budget are the World Bank, with $40 million; the European Commission, with €90 million; and the IMF, with $150 million. The funds from the IMF are planned only for 2010, unlike those from the WB and the European Commission, which will be stretched through 2013.
The money will be purposed for road rehabilitation, water supply and sewer services, health care, agriculture, the energy sector, public services, social protection, education, etc.
“During the next 3 or 4 years Moldova will actually have to pass a test of its absorption capacity and of its ability to make efficient and transparent use of the funds offered by the foreign donors. This will take place in the light of signing of the Association Agreement with the EU and our efforts to obtain access to the European Structural Funds. And we talk about a much bigger pot of money here. It is key that we are able to make the best use of these funds for Moldova's prosperity”, said Veaceslav Negruta.
To enhance the absorption capacity the Government intends to launch public-private partnerships dealing with infrastructure, energy, utilities, etc., the minister said.