ECO-BUS WEEKLY DIGEST–September 2-8. Most important Economy & Business news by IPN

● MONDAY, September 2

World Bank project "Improving Competitiveness" was prolonged

The grants component for the Small and Medium Enterprises of the "Improving Competitiveness" (PAC II) project was extended until July 30, 2021. At the request of the Ministry of Economy and Infrastructure, the World Bank decided to prolong the project. So far, over 100 beneficiary companies have increased their turnover within the project and created about 340 new jobs. Over 140 companies benefited from grants of $ 0.9 million, a Ministry of Economy and Infrastructure press release said.

● TUESDAY, September 3

End users are increasingly demanding 4G mobile internet

The number of users accessing mobile Internet through 4G networks increased in the first half of this year by 31.8% and totaled 1.343 million. The total number of mobile Internet access service users (via smartphone) and dedicated access (via modem and router) increased by 4.2% and constituted 2.259 million. In a press release, the National Agency for Electronic Communications and Information Technology Regulation stated that the traffic volume increased compared to the same period of 2018 by 18.1% and amounted to 48 million GB, while the total volume of sales in this sector has increased by 15.4%, amounting to 575.2 million lei.

Igor Munteanu: Privatization of Air Moldova was inefficient, non-transparent and illegal

The privatization of the company "Air Moldova" was an inefficient, non-transparent and illegal exercise, as the goals of the privatization have not been achieved. The statement was made at a press conference held on August 4 by MP Igor Munteanu, chairman of the Inquiry Committee on the privatization and concession of public property. "In 2017, the state tried to save Air Moldova company, offering help. At today's hearings, we noted that the aid was not even returned and it is not clear what restructuring measures were taken following the state aid,” said Igor Munteanu.

● WEDNESDAY, September 4

Treatment plants, with money accessed from Polish credit

The Cabinet of Ministers has discussed the possibility of granting loans to some economic agents from the assistance loan offered to Moldova by the Polish Government. Thus they will be able to build their own treatment plants, IPN reports. The discussion took place in the context of the unpleasant smell that persists in the capital. It has been found that several economic agents do not have sewage treatment plants or financial means for their construction, that is why they throw in an uncontrolled way their production and food waste into the Bâc river.

● THURSDAY, September 5

Landline telephone subscribers make up over one million

In the first half of 2019, the number of landline telephone subscribers decreased by 1.6% and amounted to 1.09 million. The total voice traffic constituted 616.2 million minutes, while revenue totaled 234.4 million lei, 17.7% lower compared to the same period of last year. In a National Agency for Electronic Communications and Information Technology Regulation (ANRCETI) press release it is mentioned that the number of subscribers of the national operator "Moldtelecom" decreased by 1.5%, amounting to 975.1 thousand. The number of subscribers to alternative providers decreased by 1.8%, totaling 115.5 thousand.

Moldovans’ over-indebtedness can shake the financial system

There is a risk of over-crediting the Moldova’s population, especially in the case of the so-called multiple lending. Individuals could take more loans and thus find themselves unable to repay them. The opinion was expressed by journalist Vlad Bercu on "15 minutes of economic realism" show. "For example, some companies offer an interest rate of 2 percent per day or 760 percent per year, while in the case of non-payment the interest rate doubles. And this happens in the case of small loans. When someone gets a loan of 5-10 thousand lei, he/she does not pay attention to the provisions of the contract and later has to deal with unpleasant and even unbearable situations”, notes the journalist.

● FRIDAY, September 6

Purpose of investigation of Air Moldova privatization is the return to state property, deputy

The purpose of the investigation carried out by the Parliamentary Inquiry Committee regarding how the privatization and concession of the Air Moldova company assets were conducted is the return of the assets to state property. State institutions will later decide how to manage the property, if the return is achieved. The statement was made by Socialist MP Petru Burduja, a member of the Inquiry Committee, during the NTV Moldova program "Acces direct". "The purpose of this investigation is, in fact, to return the assets of the state and of the people. Further, the state will decide to either improve the economic activity of this enterprise under state jurisdiction or to privatize if that provides the best outcome. However, this information should be made public and wide-spread so that all investors who can afford to bid on such an asset are informed", said Petru Burduja.

Maia Sandu: We run the risk of remaining without Russian gas after January 1st , but we have technical solutions

Prime Minister Maia Sandu says that there is a risk that from January 1, 2020, the Republic of Moldova will remain without Russian gas if Ukraine bans its transit on its territory. The head of the government says it is a difficult situation, but the Government has been preparing for it and has technical solutions. The statement was made on "In depth" show, PRO TV Chisinau. "We have solutions as regards the country’s natural gas supply. One of them is to store natural gas in Ukraine, to buy it earlier, at a lower price because it will get higher in winter. We also discuss identifying financial resources because substantial financial resources will be needed to accomplish this,” said Maia Sandu.

Moldova will apply for emergency loan to buy and store natural gas

The Republic of Moldova intends to request an emergency loan for the purchase and storage of nearly 400 million cubic meters of gas in January and February 2020. The Minister of Economy and Infrastructure, Vadim Brînzan, discussed this issue with the Deputy Director-General for European Neighbourhood Policy and Enlargement Negotiations, Katarina Mathernová, while accompanying the President of the Republic of Moldova, Igor Dodon, on a visit to Brussels, Belgium. According to a MEI press release, short and medium term energy development plans, energy security strengthening measures, as well as investment plans in energy efficiency were discussed at the meeting. Additionally, the idea to create a natural gas storage facility in the Republic of Moldova was introduced. The facility would allow the direct purchase of gas from competitive markets, thus ensuring the country's energy security.

● SATURDAY, September 7

Local road segment in Călărași will be repaired

The local road segment from Călărași district, which connects the R21 and L376 roads and which passes through the villages of Hârbovăţ, Sverida and Onişcani and has a length of almost ten kilometers, will be repaired. The State Road Administration signed the road improvement contract on Friday, September 6. The contract is worth over 88 million lei and was awarded to a consortium of companies. The road will be repaired along the entire corridor by reinforcing the base layers. Two types of road clothing will be used: asphalt concrete, laid out on cold-recycled asphalt, and two asphalt layers laid out on a crushed stone layer. Road safety will be improved by arranging intersections, installing road signs, metal railings, guide posts and road markings.