ECO-BUS WEEKLY DIGEST July 20-25. Most important Economy & Business news by IPN

● MONDAY, July 20

New instrument for farmers

The Ministry of Agriculture and Food Industry and the National Food Safety Agency are piloting the Digital Agricultural Register, which is a new instrument for farmers. The Agricultural Information Center said the Register will provide access to operative data about the economic activity of agro-industrial companies and will facilitate the provision of public services of a high quality, including online, based on the one-stop shop principle. The economic entities will be able to apply online for authorizations and permits and to manage the internal production process more efficiently. The central and local public authorities will be able to access the Register through the Interoperability Platform (MConnect) so as to eliminate bureaucracy and the administrative burden on people and businessmen.

● TUESDAY, July 21

CALM: Principles of local autonomy are infringed by stopping public procurement

The Congress of Local Authorities of Moldova (CALM) issued a press statement, warning decision makers and the public opinion about the blocking of the public procurement process and investment projects at local level following the suspension of publication of invitations to the procedures for purchasing goods, services and works in the Public Procurement Bulletin. The CALM notes that the process of organizing tender contests is rather difficult and long-lasting and the blocking or postponement of the procurement process will prevent the local authorities from doing works or making investments on time. Besides, there were broken all the national and international legal provisions regarding the necessity of consulting the local public authorities and their associate bodies about all the matters concerning them.

Third call launched for Mac-P post-investment grants

The third call of the program of post-investment grants “Sustainable Land Management” of the World Bank-funded Moldova Agriculture Competitiveness Project (Mac-P) has been launched. The producers who invested starting with November 1, 2014 can apply for post-investment grants until December 31, 2015. Acting minister of agriculture Ion Sula told a news conference that the project aims to motivate the agricultural producers to balance their businesses and to mainstream sustainable land management practices. “Our goal is to offer the future generations a fertile soil and a healthy environment,” he stated. The maximum ceiling of grant funding within this call was established at US$20,000 per beneficiary, but the grant cannot exceed 50% of the made investment. The grants are intended for environment-friendly activities and technology, for planting trees, etc. As many as 129 agricultural producers submitted applications last year. Of these, 91 benefitted from grant funding of 14 million lei.

 ANRE publishes new electric power tariffs

The new tariffs for the distribution and supply of electricity, approved by the National Agency for Energy Regulation (ANRE) on July 18, have been published on the institution’s website. The electric power transportation tariff was increased from 8.02 bani/kWh to 14.5 bani/kWh (without VAT), even if the operator IS “Moldelectrica” asked for a tariff of 28 bani/kWh. The following distribution tariffs were set for the network operator ICS “RED Union Fenosa” SA: 15 bani/kWh for the high voltage power lines (35 and 110 kV); 42 bani/kWh – for the medium voltage power lines (6 and 10 kV); 63 de bani/kWh – for the low voltage power lines (up to 0.4 kV). The end-users connected to the low voltage power lines served by “Gas Natural Fenosa Furnizare Energie” (mainly household users) will pay a tariff of 2.16 lei/kWh. Those connected to the medium voltage power lines will pay 1.95 lei/kWh, while those connected to the high voltage power lines –1.68 lei/kWh.

Romania allocated US$70m for assistance projects to Moldova

In 2014 Romania allocated US$70.3 million for assistance projects, being the second bilateral donor, after the United States, and the third on the general list of donors, after the United States (US$121.5 million) and the European Union (US116.8 million). In a press release, the Embassy of Romania says that Romania is strengthening its position of the most powerful supporter of the efforts made by Moldova on the path of European integration, with major economic and social impact on the population’s welfare. Romania contributed financing for different projects with an important social impact such as the renovation and outfitting of nursery schools, with a total budget of €23 million benefiting half of the children of preschool age in Moldova, the rehabilitation of the Mother and Child Institute and renovation of such representative cultural facilities as the Organ Hall and the National Museum of Arts in Chisinau and the Theater “B.P. Hasdeu” in Cahul.

Modernized trains will be back on rails

The modernized trains will be put again into circulation by the end of August, the director of the state-run Moldova’s Railways Vladimir Cebotari said in a meeting called by acting minister of transport Vasile Botnari. In a communique, the Ministry says the procedure for certifying the five trains that were earlier modernized in Romania will be completed by August 10, while the technical trial was already performed. The repairing plant will carry out a number of repair and maintenance works on the trains at its own expense so that the trains could be used in conditions of safety and maximum efficiency.

● WEDNESDAY, July 22

Four banks experience technical faults in operations with bank cards

Four commercial banks has announced that technical problems appeared in the performance of operations with bank cards, namely the impossibility of temporarily withdrawing cash from ATMs and POS-terminals and of making payments with cards. These are Banca Sociala, Unibank, Moldova-Agroindbank, and EuroCreditBank. Moldova Agroindbank said that despite the technical situation created, money can be withdrawn through the one-stop shops of any of its local branches. The bank will make an additional announcement immediately after the company processing the cards issued by the banks removes the technical glitches from the system.

● THURSDAY, July 23

Card reading problem at four banks not yet solved

The holders of cards issued by Banca Sociala, Unibank, Moldova-Agroindbank and EuroCreditBank cannot yet withdraw cash from ATMs and POS-Terminals or make payments with cards. The problem reported by the banks on July 22 hasn’t been yet solved. Representatives of the banks have told that the card processing company’s specialists work to remove the technical faults from the system and the situation will be most probably remedied in the afternoon. Head of the Cards Section of Banca Sociala Vladimir Muntean said that they worked at night so as to restore the system as soon as possible. They received no complaints from clients, but dissatisfaction most probably exists among the clients who are abroad because those who are in the country can withdraw money from the branches of the bank. The representative of EuroCreditBank Anastasia Holban said that according to the responsible company, the solving of the problem will last for several hours. Their clients haven’t submitted complaints either, but some of them called the bank to find out what is going on.

Romania provides €100,000 to National Food Safety Agency

About €100,000 is to be invested in increasing the institutional capacities of the National Food Safety Agency (ANSA) of Moldova within a project financed with Official Development Assistance – a financial and expertise transfer instrument of the Ministry of Foreign Affairs of Romania. A memorandum to this effect was signed by Romania’s Ambassador to Moldova Marius Lazurca and ANSA director general Iurie Carp in Chisinau on July 23. “We aim to increase the administrative and operative capacity of the National Food Safety Agency in order to develop an efficient system for monitoring and reporting animal diseases. The development of such a system in accordance with the European standards and requirements represents a first step towards conquering new markets for exporting live animals and products of animal origin from Moldova,” said the ambassador.

Use of resources from Road Fund must be optimized, “Expert-Grup”

The financial resources allocated for maintaining and repairing roads over the last two years increased from 1.033 billion lei to 1.366 billion lei. The Road Fund in Moldova accounts for a larger part of the state budget and GDP than even in the states with a developed road network and with a greater payment capacity, says the study “Purchases financed with money from Road Fund” that was presented by the independent think tank “Expert-Grup” on July 23. ”In this connection, the challenge is to ensure the efficient use of this money,” said “Expert-Grup” program director Dumitru Budianschi. The main problems highlighted by the independent experts are related to defective income planning, which leads to the non-collection of at least 4 million lei a year, to the arbitrary allocation of resources from this fund and lack of transparency. The practice of misusing money from the Road Fund continues. Relevant examples are the building of streets in the new quarter of Nemteni village of Hancesti district, to the value of 22m lei, and of the noise prevention wall on the Soseaua Hancesti St in Chisinau, of 3.3m lei.

Tour operator fined over 21m lei

The Competition Council fined the tour operator “Scavolin” SRL over 21 21 million lei for taking over “Anesto-Tur” SRL. The act was classified as non-notified economic concentration that is incompatible with the competition rules. The Council decided that the involved companies must dissolve the concentration so as to restore the situation that existed earlier. Competition Council head Viorica Carare, in a press briefing on July 23, said both “Scavolin” and “Anesto-Tur” are tour operators that provide tourist packages. As a result of economic concentration, the companies of the newly formed group, which includes other companies too, obtained a dominant position on the market providing tourist packages for Turkey. This seriously affected the effective competition on the given market.

Kazakhstan interested in Moldovan corn seeds

The Republic of Kazakhstan showed interest in the corn seeds produced in Moldova. In the fifth meeting of the Moldovan-Kazakh intergovernmental meeting for economic cooperation, held in Chisinau on July 22 and 23, the sides agreed to improve the legal framework with a view to fostering the import of Moldovan seeds into Kazakhstan. Acting deputy minister of agriculture Nicolae Olaru said after the meeting that they agreed to develop and deepen the relations in the area of corn and sunflower seeds cultivation. Moldovan experts, in concert with Kazakh experts, will work to create new sorts of seeds that will be appropriate for the conditions in Kazakhstan.

Card problem faced by four banks solved

The technical problems in the processing of the cards of four banks reported on July 22 have been solved, said representatives of the banks. Head of the Sales Division of EuroCreditBank Alexandru Frantsuz said the card processing system was restored in the afternoon of July 23 and the bank now functions as usual, with all the clients being informed about this. On its website, Banca Sociala says the bank cards processing service is now fully functional. Unibank also informed that the fault in the card processing system was dealt with and now each card holder can withdraw cash from ATMs and can make payments with cards.

● FRIDAY, July 24

Tariff rise request of “Apa-Canal Chisinau” rejected

The National Agency for Energy Regulation (ANRE) rejected the request to adjust the tariffs for the public water supply and sewerage services made by the public utility SA “Apa- Canal Chisinau” (ACC), dismissing it as groundless. In a communique, the ANRE says that before submitting the tariff rise application, the ACC must have first presented the basic costs, data about technological consumption and water losses in the public water supply and sewerage system and other justificatory documents.

ACC will demand again adjusting tariffs

The Chisinau public utility hasn’t yet received an official notification from the National Agency for Energy Regulation (ANRE) concerning the rejection of its request to adjust the water supply and sewerage tariffs, but intends to submit a new application and will attach all the requested justificatory documents to it. “We can say that a normal work process between “Apa-Canal Chisinau” (ACC) and ANRE started and we will continue to present the documents needed for adjusting the tariffs,” ACC press officer Elena Danu has told.

Farmers in Cosnita have new irrigation systema

The irrigation system in Cosnita village of Dubasari district, which was rehabilitated within the Compact financed by the U.S. Millennium Challenge Corporation, was put into operation on July 24. The irrigation system in Cosnita is one of the ten irrigation systems that will be renovated within the Compact. It covers an area of 2,400 hectares of farmland that is owned by about 2,300 farmers. The reconstruction works included the construction of new water pumping stations and the repair of the existing ones, equipment of the system with ten modern pumps, laying of 85 km of steel and polyethylene pipes with a life expectancy of 60 years, and installation of water absorption systems by protecting fish in the Nistru.

● SATURDAY,  July 25

 Transnistria’s GDP forecast to shrink by 10-15% 

The Gross Domestic Product in the Transnistrian region in 2016 is expected to decrease by 10-15% if the special trade regime with the EU is not maintained. According to an economic forecast, endorsed by the so-called executive of Transnistria, if the negative scenario does not come true, the region’s GDP will rise by 0.4% next year. The Transnistrian press reported that the current fiscal regime favors importers to the detriment of exporters. For this reason, a fiscal reform is needed. Otherwise, when the trade preferences with the EU enjoyed by Transnistrian economic entities are abolished in 2016, the local industrial production will decline by 25-35%, as the exports will do.

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