Moldova has fulfilled 90% of its water supply commitments

Moldova has fulfilled 90% of its water supply commitments for 2012. Minister of Environment Gheorghe Salaru told Info-Prim Neo that the evaluation was made by European experts who monitored the situation. In 2012, Moldova pledged to invest no less than 600 million lei in the sector. The money was to come from the local and central public authorities and from local and foreign investments. The Minister said that the EU provided Moldova with funding of €50 million in several installments to extend the access to drinking water and sewage systems. So far, two installments of €15 million and €12 million have been paid. The next one depends on the fulfillment of the country’s commitments. “For example, if we fulfill our commitment at a rate of 90%, then the next installment will also be of 90%”, explained the Minister. As regards the capacity of absorbing EU funds, deemed low by foreign experts, the Minister said that the situation is caused by several factors. “Water utilities from districts are used to promote a modern economic management. We are only at our first project with EBRD and EIB. We teach them to access credits, which must be reimbursed, but for this they need proper princing policies”. The Minister said there regions where water fees remained the same since 2007, while the prices of energy, diesel and spare parts changed. According to him, local councils often introduce rates that are more politically rather than economically grounded in order to satisfy their future voters and, as a result, water utilities end up in poor economic situation. Another problem is that the utilities serve a low number of clients and their payment capacity is low. The Minister thinks this is due to poor management and problems inherited from the Soviet era. He considers it is necessary to find a balance between the payment capacity and the rates. According to the Ministry of Environment, 45% of Moldovans don’t have access to quality drinking water supply systems and 65% don’t have access to sewage systems.