No regional development project financed in 2010

Only 1.7 million lei of the 113.7 million lei allocated in 2010 in the National Regional Development Fund (1% of all the state budget incomes) was used - to maintain the regional development agencies, Info-Prim Neo reports, quoting the fund management audit report presented by the Audit Office. Neither the foreign donations transferred to the fund (the equivalent of 28 million lei) have been put to good use. “It is not a positive signal for the foreign backers as they can question Moldova’s ability to use the allotted resources,” said Valentina Madan, department head at the Audit Office. In 2010, the three development agencies - North, Center and South – submitted the first regional development projects. Fourteen of them were approved for financing. According to Minister of Regional Development and Construction Marcel Raducan, the law on regional development was adopted in 2006, but steps to implement it started to be taken only at the end of 2009 and in 2010. There was created the institutional framework for regional development and approved the first regional development projects. “There are a number of objective and subjective reasons why the money earmarked for financing these projects has not bee used, including the lack of experience in implementing such projects. It is regrettable that the National Regional Development Fund is not cumulative and the money not used in 2010 cannot be transferred for 2011,” said Marcel Raducan. He stressed that the regional projects are implemented during over a year and the unused resources should be available for use the next year. “The Government Decision on the implementation of the law on regional development envisions such a possibility, but runs counter to the general rules according to which the budget expenditure and revenues are approved for a year,” said Marcel Raducan. A bill to amend the law on regional development was already submitted to the Government and will be sent to Parliament. The funds for 2011 have been used successfully. About 60% of them have been allocated for financing regional development projects. Audit Office chairman Serafim Urecheanu said the amendments to the legislation must be made as soon as possible as the non-use of the money earmarked in the fund in 2010 means that the people were deprived of services of a high quality to the value of about 130 million lei (which was allocated from internal and external sources). He urged the officials of the Ministry of Regional Development and Construction and of the regional development agencies to devote greater attention to the training of the personnel drafting regional development projects.