ECO-BUS WEEKLY DIGEST July 19-25. Most important Economy & Business news by IPN
● MONDAY, July 19
Intellinews: European spring starts in Moldova in autumn
After the elections, the leader of the Party of Action and Solidarity (PAS) Igor Grosu spoke about the task of unlocking the EU’s financial assistance and intellinews.com now reports the European Union is ready to provide €600m for the economic recovery of the country immediately after the establishment of the governing bodies of the Republic of Moldova. The statements are absolutely consonant, even if they give the impression of a gap. The quoted source says the Economic Recovery Plan is subject to strict conditionality. Investments will be made based on a ‘more-for-more' approach, with progress on structural reforms, in the field of justice and the fight against corruption notably, a prerequisite for financial assistance.
NAER asks for information from operators that raised fuel prices
The National Agency for Energy Regulation (NAER) requested the operators that raised the prices of oil products to provide relevant information for examination so as to exclude eventual situations of violation of the methodology for calculating and applying the prices of oil products. The Agency noted the decision adopted on July 16 does not refer to the profit margins on the retailing of fuels and it could not influence the pump prices at filling stations up. The average Platts quotations during July 1-16 grew by 567.85 lei/tone of gasoline, 209.6 lei/tonne of diesel fuel and 991.89 lei/tonne of liquefied petroleum gas and these influence directly the final price set by operators.
ACC inspected 12 companies, one to be disconnected from water supply
SA “Apă-Canal Chisinau” (ACC) last week inspected 12 producing business entities and took water samples from them. Depending on the examination results, the companies that will exceed the maximum allowable concentrations in discharged wastewater will be issued with prescriptions by which they will be warned against discharging wastewater with increased concentrations of pollutants into the public sewerage system. A company that didn’t comply after samples were collected again from it will be disconnected from the public water supply and sewerage system this week, ACC acting director general Anatolie Lichii informed in the ordinary meeting of officials of Chisinau services. Anatolie Lichii said the administration of “Apă-Canal Chisinau” will step up field inspections, including on the weekend, so as to identify irregularities. Specialists of ACC daily inspect the internal water supply and sewage systems and the own pre-treatment installations, artesian wells at industrial companies.
● WEDNESDAY, July 21
ACC accepts water meter readings transmitted by message or phone call
Over 450 consumers since the start of July used the self-reading platform and transmitted the water meter readings to the supplier. SA “Apă-Canal Chișinău” (ACC) said that this way the invoicing for an approximate volume of water is avoided. The readings can be transmitted through Viber, WhatsApp and also by SMS or phone calls. “This way the consumer will pay for the real consumption the given month. The readings transmitted by consumers will represent the calculation basis for the bill. If the readings are not passed on by the deadline indicated in the bill, invoicing will be based on the approximate monthly water consumption,” the company said in a press release.
Soros Foundation creates enterprise to expand affordable global access to health care
A group of philanthropic funds and investors led by the Soros Economic Development Fund (SEDF), with support from the Bill & Melinda Gates Foundation, announced the launch of Global Access Health (GAH), a social enterprise that will seek to expand access to affordable state-of-the-art medical technology through decentralized research, development, and manufacturing in and for the Global South. According to Soros Foundation Moldova, the GAH consortium aims to strengthen the global rollout saving medical technology and the subsequent acquisition of Mologic, best known today for the deep-nostril technology used to deliver rapid COVID-19 tests. The technology can also be used to test for dengue, bilharzia and river blindness. The members of GAH will invest at least $41 million (£30 million) in this deal.
● THURSDAY, July 22
Victor Parlicov: Oil sellers prefer to cause panic until they find dialog partner
The crisis on the oil market and the fluctuations of prices are aimed at creating panic among the consumers and at influencing the politicians to invite the oil sellers to a dialog, said the former director of the National Agency for Energy Regulation (NAER) Victor Parlicov. According to him, the oil sellers try to call the tune and to make PAS invite them to discussions, as it happened until now in the case of the previous governments. According to the ex-NAER director, the fuel crisis was created artificially and is designed to generate a feeling of uncertainty in society so as to exert pressure on the party that took over after the July 11 elections. “What happened now, in July, was due to the fact that the oil sellers didn’t have a dialogue partner. In the absence of a Government and a Parliament, the oil sellers preferred to cause panic. Now that PAS holds power, it has to choose between having a dialogue and coming to terms with them, as it happened until now, and perpetuating the chaos,” Victor Parlicov stated in the talk show “Black Box” on TV8 channel.
Harvesting of grain crops started with a delay of 10-14 days
The harvesting of first group grain crops and other crops this year started with a delay of 10-14 days. Wheat was harvested from about 59,000 ha, the crop totaling 268,414 tonnes, the average productivity level nationwide being 4.5 tonnes of wheat per hectare, IPN reports, quoting the Ministry of Agriculture, Regional Development and Environment. There were collected 23,400 tonnes of wheat in Orhei district, 20,250 tonnes in Ungheni district, 19,238 tonnes in ATU Gagauzia, with an average productivity level of 5.5 tonnes per ha in Criuleni, 5 tonnes per ha in Drochia and Fălești, 4.9 tonnes per in Florești, up to 3.8 tonnes per in Orhei. According to the preliminary reports, barley was harvested from an area of 37,054 ha, the crop totaling 148,887 tonnes, with the average productivity level nationwide being 4 tonnes of barley per ha.
● FRIDAY, July 23
Degree of covering net demand for currency declined
The degree of covering the net demand for currency from business entities by the net supply of currency from private individuals in June was 83.4%, as opposed to 101.4% in May. According to the National Bank of Moldova, the net supply of currency from private individuals last month rose by US$34.9 million (+16.3%), while the net demand for currency from business entities – by US$87.6 million (+41.5%) on a month before. Under such circumstances, the Bank intervened and bought currency totaling US$20.0 million on the local interbank market. The Moldovan leu in June depreciated by 0.2% on average against the U.S. dollar to 17.7808 USD/MDL, as against 17.7430 USD/MDL in May. According to the values at the end of June, the leu depreciated by 2.1% against the U.S. dollar.
ACC: Consumers who do not allow access for inventorying risk being disconnected
”Apă-Canal Chișinău” SA will step up the checks so as to prevent and end cases of illegal connection to the municipal water supply and sewerage system, cases of discharge of wastewater with concentrations that exceed the admissible limits, absence of meters or expiry of their period of validity. The consumers are informed beforehand about the visit of the company’s specialists. Those who do not allow these to enter for inventorying works risk being disconnected, IPN reports, quoting a press release of the company. During the last inspections carried out on several streets in Râșcani district, 218 consumers didn’t open the door. In accordance with the framework regulations concerning the organization and functioning of the public water supply and sewerage service, which were approved by the National Agency for Energy Regulation, the consumers are obliged to provide access to the operator’s personnel on the presentation of the relevant permit for taking water meter readings, for installing or taking away the meter for examination, for performing disconnection works. The specialists must also be ensured access to the internal water supply and sewerage networks for taking samples, in the presence of the consumers or their representatives.
Considerable quantities of diesel fuel are introduced into Moldova, but operators refuse to sell it
A number of operators the last few days introduced large quantities of diesel fuel on the territory of the Giurgiulești Free International Port, but they refuse to sell it at gas stations, the National Agency for Energy Regulation said. According to it, the state institutions should analyze the situation and determine the causes, with all the relevant consequences. According to the Agency, 11,600 tonnes of gasoline and 32,000 tonnes of diesel fuel were introduced into Moldova, including into the Giurgiulești Free International Port, during July 1-22. The Agency condemns any attempt to exert pressure on the decisions it adopted earlier, given the last legislative changes and the modification of the regulatory framework and the public statements made by oil companies or experts and opinion leaders. The current legislative framework developed particular vulnerabilities in this sector, which are to be remedied in the nearest future so as not to offer the possibility of using these in the own interests in the future. A number of filling stations, including Tirex, Bemol and Rompetrol, didn’t post the fuel prices on boards.
Minibuses will no longer run on streets of Chisinau from next September
The municipal councilors adopted a decision on quality standards in the public transport in the municipality of Chisinau. Among others, this envisions the removal of the minibuses from Chisinau as from September 1, 2022. More exactly, the decision stipulates that there will be implemented minimum standards concerning the size of the units of transport so that only vehicles of the “city bus” category form part of public transport. Only units of public transport that meet the Euro 4 standard will be able to run in Chisinau. The access of persons with reduced mobility to public transport will have to be ensured. “The minibuses should disappear from Chisinau and they will disappear on September 1, 2022. They should be replaced with modern buses purchased by the municipality or acquired under service provision contracts signed with private companies,” said bill author Alexandru Trubca, PAS councilor.
Trade unions formulate proposals for government program
Trade unionists consider that only by implementing coherent and balanced policies, the country’s economy can be revitalized so as to ensure decent living conditions for salary earners from the country and the members of their families. In this connection, the National Trade Union Confederation of Moldova (CNSM) formulated a set of proposals for the government program IPN reports. In particular, the trade unions consider it is opportune for the government program of the new Executive to include a separate chapter entitled “Labor, salary policies, employment security and health, social protection and social dialogue”. A national strategy for fighting illegal labor and the illegal payment of salaries should be worked out and adopted and efficient policies to support the national producers should be promoted. Measures should be taken to support the creation of jobs and to prevent the diminution of the rights and guarantees of salary earners in state-run enterprises under reformation.
● SATURDAY, July 24
Moldovan apricots exported to Hungary for first time
The Republic of Moldova this year has exported apricots to Hungary for the first time. Three national producers signed contracts with a Hungarian company and exported apricots for processing and for consumption in fresh form to this country, IPN reports. Octavian Olaru, director of the marketing department of the Fruit Producers and Exporters Association “Moldova Fruct”, said that the apricot orchards in the Republic of Moldova expand annually and the national producers make effort to enter new markets. They earlier sold their products primarily to the Russian Federation, but now aim to also conquer EU markets. The Moldovan apricots have been exported to Germany, Austria, Romania. The Moldovan apricots for processing were exported at the price of €0.7 per kg. The price of fruit for consumption in fresh form is twice higher – €1.4 per kg.
After administration of CFM was replaced, situation continued to worse, ex-MP
After the replacement of the administration of the state-run enterprise “Moldovan’s Railways” (CFM), the situation at the enterprise continued to worsen. CFM’s debts exceed 800 million lei and the salary arrears represent about 180 million lei of this sum. The new CFM director hasn’t established an efficient dialogue with the staff, former PPPDA MP Alexandru Slusari posted on Facebook. Alexandru Slusari noted that except for the aberrant proposal for the employees to take out loans from banks for clearing the salary arrears, the current director Oleg Tofilat didn’t formulate any other proposals.
