ECO-BUS WEEKLY DIGEST January 31 – February 5 . Most important Economy & Business news by IPN
● WEDNESDAY, May 11
Price of gasoline nears 29 lei/liter
During one week, the price of gasoline “95” grew by 1 leu. For May 12, the National Agency for Energy Regulation set a price ceiling of 28.95 lei per liter of gasoline, up 0.17 lei on Wednesday, May 11. The price of diesel fuel also rises. The ceiling for this was set at 27.84 lei per liter. The Agency noted that the latest increase in fuel prices reflects the reaction of stock exchanges to the growing demand of the Ukrainian market and the intense discussions inside the European Union about the plans to fully stop imports of Russian crude oil and derivatives by the end of this year.
CNAS warns about necessity of using new version of Occupational Classification
The central and local public authorities, enterprises, organizations and institutions, regardless of the type of ownership and legal form of organization, are warned to take into account the new version of the Occupational Classification of the Republic of Moldova when filling out official documents whenever it is necessary to indicate the occupation. The same is required of other legal entities and private individuals operating on Moldova’s territory, IPN reports, with reference to the National House of Social Insurance (CNAS). The Occupational Classification of the Republic of Moldova is used by business entities when completing Table No. 2 in the Report on the Consumption Payment Index 21. The new version of the Classification, which was approved by Order of the Minister of Labor and Social Protection No. 11 of November 12, 2021, is to be used in reporting by business entities starting with June 1 when presenting the Report on the Consumption Payment Index 21 for May 2022.
Energocom signs contract for purchase of 30% of necessary electricity
The joint stock company Energocom has signed a contract for the purchase of 30% of the necessary amount of electrical energy for May, with the Ukrainian company Ukrhidroenergo, in accordance with the ordinance made by the Commission for Exceptional Situations of April 29. The Ukrainian operator starts to supply electricity on May 12. “Under the terms of the contract, at the request of the Ukrainian side, the purchase price for this contract is a commercial secret and cannot be revealed, but I can confirm that this price is lower than the bids submitted at the previous tender contest,” said Vladimir Sadovoi, acting director general of “Energocom”, who is quoted in a press release of the Public Property Agency.
Program “Start for Young People” extended for three more years
The state program “Start for the Young People” that is intended for young people who want to start a business is extended for three more years, while the application procedure is simplified. There will be no calls for proposals. As of June, there will be ensured a continuous application process. The value of a grant intended for young people is raised to 200,000 lei. “We are adjusting the training mechanism by turning this into a guidance and mentoring process as the young people need this more than financial support. We also extend the period of applying to financing for those who already received training at ODIMM courses from one year to three years. Ultimately, we will enable private individuals who do not have a business to also apply, but they will need to register the business during the next three months,” Dumitru Pîntea, acting director of the Organization for the Development of the SME Sector (ODIMM), stated in a news conferences.
● THURSDAY, May, 12
MPs vote in favor of declaring Vulcănești-Chisinau power line as public utility
The works to build the 400 kV Vulcănești–Chisinau overhead power transmission line (OHL) and the Vulcănești Back-to-Back Substation were declared public utility of national interest. Parliament gave a final reading to a bill to this effect. The bill, which is envisioned by the Energy Strategy of the Republic of Moldova until 2030, stipulates the mechanism for resolving disputes related to the monitoring of the environmental and social impact of the planned works.
Andrei Spînu: Price of electricity in bills will remain unchanged
The average estimated price of electricity for May is US$66.7 MWh and the price of electricity in bills remains unchanged, said Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development. 70% of the electricity comes from the Kuchurgan Power Plant, while 30% from Ukraine’s Ukrhidroenergo. “Moldova needs to diversify the electricity supply sources. Regrettably, owing to this difficult period of time, the process is intricate and full of uncertainty. Yesterday, Energocom announced the signing of a contract for the purchase of 30% of the necessary amount of electrical energy from a Ukrainian company,” stated Andrei Spînu. The authorities continue to have discussions so as to identify the best purchase price of electricity for the next months.
Consumers urged to pay for natural gas in advance
The consumers are strongly asked to pay in advance for the consumed natural gas. SA “Moldovagaz” said this will enable it to fulfill its financial obligations to the foreign supplier and to this way ensure the uninterrupted delivery of natural gas to Moldova. The company said the contractual obligations include the payment, by the date of 20 of each month, of the equivalent value of the natural gas consumed the previous month and 50% of the value of natural gas contracted for the current month.
ACC: Business entities that discharge wastewater will be checked nonstop
SA “Apă-Canal Chisinau” (ACC) said the companies that discharge wastewater in the public sewerage system will be checked round-the-clock. The supplier set the goal of reducing the discharged volumes that exceed the maximum allowable concentration. This leads to the pollution of water and the environment. As the temperatures are high and summer is close, the examination measures will be stepped up and will be taken both during working hours and at night. ACC warns that if business entities discharge water with high pollutant concentration, they will be issued with prescriptions warning them about the necessity of not discharging water with high pollutant concentration in the public sewerage system. In accordance with the legal norms, the entrepreneurs will be given a period of at most ten days to remove the faults. If it is determined that the business entities didn’t comply after samples are taken again, these will be issued with notices of disconnection from the water supply and sewerage services.
NBM: IMF welcomes central bank’s decisive policy response to increased inflation
Following the concluding of the ad-hoc review under the Extended Credit Facility and Extended Fund Facility Arrangements for the Republic of Moldova, the Executive Board of the International Monetary Fund welcomed the central bank’s decisive policy response to increased inflation, the National Bank of Moldova (NBM) has said. Directors noted that the financial sector has remained resilient despite temporary liquidity pressures. They emphasized that the program’s focus on addressing significant governance weaknesses and institutional vulnerabilities remains critical and welcomed the emphasis on strengthening the rule of law and financial supervision. They noted that continued reforms under the program—if appropriately sequenced and resolutely implemented—will boost productivity, unlock private investment and support inclusive, sustainable growth.
IMF approves augmentation and rephasing of access under ECF/EFF arrangements
The resources under the augmented ECF/EFF arrangements will help Moldova address challenges emanating from the war in Ukraine, catalyze additional external financing, protect social cohesion by providing needed budget support to most vulnerable, and give further impetus to crucial reforms. The immediate disbursement of US$144.81 million will help Moldova meet pressing war-induced balance of payments financing needs, IPN reports, quoting a press release issued by the IMF. The Executive Board of the International Monetary Fund (IMF) today concluded the ad-hoc review under the Extended Credit Facility and Extended Fund Facility Arrangements for the Republic of Moldova. This makes about USD 144.81 million (SDR 108.15 million) available to Moldova immediately. The Board also approved an augmentation and rephasing of access under the program.
● FRIDAY, May 13
Andrei Spînu: If transit trough Ukraine is stopped, Moldova will not remain without gas
Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development, is sure that the Republic of Moldova will not remain without natural gas if transit via Ukraine is stopped. The statement comes after Kyiv stopped the transit of 1/3 of the Russian gas transported to Europe. Andrei Spînu also said that if Gazprom decides to terminate the contract for the supply of gas and will stop delivering gas to Moldova, Chisinau will purchase gas from the international market. In May, Moldova purchases 70% of the necessary electrical energy from the Kuchurgan Power Plant and the rest of 30% from Ukraine’s Ukrhidroenergo. Even if Energorom announced that the purchase price is a commercial secret, Andrei Spînu made public the average purchase price for May, which is US$66.7. He assured that the electricity rates for end users will remain unchanged for now.
● SATURDAY, May 14
MP Alaiba slams Mayor Ceban for plans to raise Chisinau trolleybus and bus fares
MP Dumitru Alaiba, chair of the Economy Committee, is strongly against the Chisinau municipality’s plans to raise public transport fares and suggests that the government won’t offer funds to subsidies the municipal public transport companies. Alaiba in particular criticized Mayor Ion Ceban, saying that the municipality’s inability to manage public transport costs is due to Ceban’s “incompetence” to carry out internal reforms.
Moldovagaz head says gas should cost more in summer to offset winter prices
Moldovagaz could ask the National Agency for Energy Regulation to increase the household gas rate to 21 lei per cubic meter during the summer. Moldovagaz chairman Vadim Ceban says that, considering the lower consumption levels in the warm season, this could be a solution to offset prices in the winter, when consumption is much higher. Moreover, wholesale prices at which Moldovagaz buys Russian gas have gone up as well. “The current rate is based on a wholesale buy price of $620. All the costs of transporting gas to the end consumer, the billing costs, the supplier’s profit add to this buy price. In April-May, the price rose to $1,100. This means that we have to ask for a rate increase. We decided not to do this in March-April because this would have been a blow to consumers. Because in March consumption levels are still high, in April we gradually end the cold season, but in May, June and July household consumption is reduced”, Ceban told a talk show on RTR Moldova.
