Experts of the independent think tank “Expert-Grup” call on the authorities to suspend the contract that enables the U.S. company Frontera Resources to explore for hydrocarbons on 40% of Moldova’s territory and to assess the bidding. In a news conference at IPN, the experts made a public call to the Government and Ministry of Environment in reaction to a series of identified irregularities.
“We consider the procedures based on which the decision to allow the company to explore was taken are defective. The provisions concerning decisional transparency weren’t respected. The concession bill wasn’t sufficiently consulted. The concession contract is rather inexact and contains vague provisions that are permissive in parts for the company,” stated “Expert Grup” executive director Adrian Lupusor.
Expert Dionis Cenusa said there are a series of incongruities and contradictions in the way in which the public consultations were held. The fact that the protection of the environment will not be ensured as a result of exploration works is the most serious one. “The contract clauses are permissive as to the use of toxic or inflammable substances, the company being obliged to only reduce the use of toxic substances, not yet to exclude these. The contract does not specify penalties for polluting the environment,” he stated.
Another concern expressed by the experts is related to the exclusive right to explore provided by the Government to the U.S. company. The latter has the right to subcontract other companies to execute exploration works by simply notifying the executive. “Having already a monopolist position for exploring 40% of the country’s territory, Frontera Resources International will be able to sign contracts with other companies outside any contest. But the authorities will be unable to intervene in the selection process and, consequently, to reject the companies chosen by Frontera Resources, regardless of their profile,” said Dionis Cenusa.
The experts demand that the contract signed on January 2, 2017 should be suspended and that a joint commission should be set up to investigate the conditions in which the tender contest was held. If the procedural deviations are confirmed, the contract should be terminated, while the authorities should announce a new public contest, in conditions of maximum transparency and competition.
The public call of “Expert Grup” is supported by a number of organizations that monitor the public policies, including the Legal Resources Center of Moldova, Center for Energy Sector Analysis, Surveillance and Protection, Partnership for Development Center, Transparency International as well as civic activists.
