Experts say situation regarding strategic investments in Moldova’s economy for next two-three years is uncertain

The illusions shattered one year after Moldova’s European partners promised generous investments of about 1.2 billion euros: the money won’t come, say experts of the Institute for Development and Social Initiative (IDIS) “Viitorul”. The say that the funds that entered Moldova this year were allocated under decisions made in 2005. The sum of 1.2 billion USD announced in December 2006 seemed a beautiful story with no chances of becoming a reality and not because the foreign donors do not keep their promises, but because the current government does not have a reliable and modern infrastructure matching the European standards for assimilating the financial resources, the experts say. Moldova attracted almost nothing of the about 5 billion euros allocated for developing infrastructure in South-eastern Europe in 2007, except a project won by the Government of Romania that included Moldova (1 million euros). The value of the mentioned project is about 450 times lower than the resources attracted by Albania, which has similar economic and demographic potential as Moldova. According to IDIS, such a situation is typical of almost all the cases when the central authorities tried to attract foreign financing, especially in the last years. This is because the authorities lack capacities and experience in attracting foreign funds and sustainable financial investments. Therefore, it is projected that the situation regarding the strategic investments in Moldova’s economy will remain uncertain in the next two-three years. The Government recently announced that it worked out projects worth 800 million USD, of the 1.2 billion USD promised by the foreign donors. The authorities say that the lunch of the projects is delayed by pre-launch standard procedures like setting of relevant terms and finalisation of project documentation, the negotiating process, approval of the project’s budget by the donor and others. Prime Minister Vasile Tarlev even said that the foreign donors praised the Government for its capacities to put the financial resources (of the 1.2 billion USD) to good use. The Premier also said that the Government is conducting talks with the development partners over the rest of the money, experts of IDIS “Viitorul” said. The promised money is intended for reformation projects in the judicial system, public administration, education, healthcare and infrastructure; for creating new workplaces in the social system; for developing the rural sector, agriculture etc. The funds were to be used for implementing all kinds of projects – state, social or private. The European Union, the international financial organisations, including the World Bank and the International Monetary Fund as well as other foreign donors decided to provide financial assistance to Moldova at the Donors' Consultative Group Meeting for Moldova held in Brussels on December 12.