The World Bank approved a US$17.0 million Health Services and Social Assistance Project for Moldova, under IDA credit terms. The project will assist the Government in reducing premature mortality and disability, as well as improving the targeting of social transfers and services to the poor. According to sources within the WB Office in Moldova, health sector reforms, accomplished by the Government in recent years risk being undermined as the population continues to be affected by a low average life expectancy, high mortality rates and the re-emergence of tuberculosis and other illnesses. Access to quality health care services remains skewed in favour of the largely better-off urban population. The country still lacks universal health insurance coverage, while informal payments to obtain medical treatment are common procedure. Moreover, poor conditions in numerous hospitals and policlinics, and the widespread lack of nurses and doctors lead to inadequate health care. The project consists of three component parts. The first component, Health System Modernisation, which builds on on-going reforms in the health sector are also part of the National Health Strategy 2007-2017. The second component, Social Assistance and Welfare supports Government plans to improve the effectiveness of cash benefits and social welfare services in combating poverty. The third component, Institutional Support, envisages the provision of institutional support for the implementation of the reform strategies. The project is part of a larger and long-term programme of the Government to improve the efficiency and effectiveness of social spending in Moldova being supported by other donors such as the European Union, the Swedish International Development Cooperation Agency (SIDA), the United Kingdom’s Department for International Development (DFID), the Council of Europe Development Bank, and by UN agencies. The project will be accomplished over a four-year period, from September 2007 to February 2011, and will be implemented by the Ministries of Health, and of Social Protection, Family and Child. The credit is provided by the International Development Association (IDA). IDA is the World Bank’s grant lending arm. It focuses on world’s poorest countries, which have a per person income of less than $885 annually. IDA credits are interest-free, repayable in 40 years, and include a grace period of 10 years. Since Moldova’s 1992 adherence to the World Bank, commitments to the country consist an approximate US$672.4 million for 41 operations.