The European Investment Bank (EIB), EU’s nonprofit lending institution, has supported projects in Moldova in a wide range of areas running the gamut from infrastructure and roads, to agriculture and wine industry, to energy efficiency, to support for small and medium-sized enterprises. In the Eastern European Neighborhood, Moldova is the biggest EIB beneficiary per capita, far above others.
Of the roughly 500 million euros’ worth operations in our country, some 200 million euros were in 2013 alone, meaning the EIB is “catching up” in Moldova. To further underpin its operations in our country, as we prepare for signing an Association Agreement with the EU and potentially need more investment, the EIB will open a representative office in Chisinau by autumn, as announced on Thursday by EIB Vice President Wilhelm Molterer.
Visiting Chisinau for the International Investors’ Conference, Mr. Wilhelm Molterer talked to IPN’s and Radio Moldova’s correspondent Maria Trifan.
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- In 2007 Moldova and the EIB signed an agreement funding a project to rehabilitate roads connecting Moldova’s capital with the EU border, this being the first EIB operation in our country. Almost 7 years have passed since then and now the EIB is financing a number of projects in our country. How would you rate the Moldovan authorities as cooperation partners?
- What we appreciate very much is the hands-on approach of the Government here in the country. It is really fascinating to see how deeply involved the Prime Minister and the respective Ministers are in the progress of the projects, in creating ideas, and in sorting out problems, because to have an idea is one thing, but to implement it and to overcome obstacles is another thing. And we appreciate this. This is the reason also why Moldova is the per capita number one (EIB beneficiary) in the Eastern Neighborhood.
- The projects financed by the EIB mostly concern infrastructure rehabilitation, public transport renovation, or improved water supply in many parts of our country. Thousands of people enjoy the benefits of these projects. However, there is still much to be done so that the Moldovan people could reach European standards in terms of access to such services. Which of the completed or maybe ongoing projects have had the best results? Is the Bank interested in further funding such projects?
- Of course we are. I think we are extremely careful in selecting and preparing projects. This is the reason why we are proud to say that the projects here in Moldova are working pretty well. There is of course a huge need still in infrastructure, in water supply and the environmental sector. For sure, this will remain one of the main topics. But it’s crystal-clear also that we have to develop in parallel additional efforts for supporting competitiveness, in the SMEs sector, in agriculture. It means that the infrastructure track remains important; and, of course, support for the business sector and economic infrastructure, on the other hand, is the second track.
As concerns the question about the projects that showed the best results. I can say, based on my personal experience here in the country, that the urban transport rolling stock (project) in Chisinau was fascinating. Because I was there (at the launching ceremony), it was heavily raining and we were sitting in this old rolling stock with an umbrella. We changed into the new ones and you could really see the difference.
The water supply projects, you can also see it day by day. With the infrastructure projects also: we were driving yesterday (June 11) from an old road to a new road, and you can see the difference.
This Filière du Vin project I find to be extremely fascinating, because of the high-quality approach here in the country, from management up to selling issues.
However, I would not rank any of the projects as number one; all of them are good.
- The upcoming signing of the Association Agreement with the EU, including the Deep and Comprehensive Free Trade Area, on June 27, will not just create new opportunities for Moldova, but also imposes requirements such as enhancing the competitiveness of Moldovan goods that are both exported or marketed domestically. Of special importance in this respect is, for example, the project to support the wine-making sector. Is the EIB pleased by how this project is being implemented?
- First of all, I think you are right; this Association Agreement is opening a new chapter in the history of the country. I say it because I’m deeply convinced that this is, in the long-term perspective of the country, a key date.
As always, it’s opening a lot of chances, but also carries a lot of challenges for sure, because you can have access to markets, but it’s on you if you are ready to take the chances. And this challenge of course is leading to investment.
The wine sector is an example where we can show that investment in the infrastructure, in the laboratory, in the cellar equipment, in the vineyards, and alongside the value chain is improving quality and competitiveness. And therefore this implementation of the Filière du Vin project is pretty well done. It’s also a role model for other ideas in agriculture here in the country.
- There have been plans to start a new project in the agricultural sector to improve processing of agrifoods, including of animal origin. How much progress has been made so far to launch this project, which also includes the creation of an Agrifood Center in Chisinau?
- Our negotiating team is here and we even negotiated last night (June 11). I hope we have approval in our governing bodies before summer and this means that we could sign this operation in early autumn this year. It is similar in structure with the Filière du Vin project, meaning a framework loan of up to 100 million euros. We start – and therefore the name is the Fruit Garden Moldova – with horticultural goods, with walnuts, all these classical products of the country. And we are also intensively investigating in the Agrifood Center as a part of this project.
- Which other projects would be the EIB interested in financing, and in what areas?
- The areas are crystal-clear: it’s infrastructure, it’s energy and environment, water supply, the SMEs sector, and agriculture. These are the main sectors of our activity also in the future here in Moldova.
- There were also plans to support the combined heat-and-power plants and push them out of a dead end.
- Energy is a sector in which we are very interested to be active here in Moldova, as the dependence on imports is serious. Therefore we are discussing these cross-border projects, the gas interconnection, the whole range of potential projects here. We understand pretty well that this is a priority and I am supportive.
- We are doing this interview as our country holds an investment week called the Moldova Business Week 2014. In the EIB’s opinion, what should the Moldovan government and business community do to make Moldova an attractive destination for investment, including foreign direct investment?
- It is based on the experience that is relevant of course for all the countries. You have to have an attractive business climate, a sound legal system, a strong financial system, and of course you have to make the best use of EU and EIB sources in combination. There is this Neighborhood Investment Facility, for instance, which is one instrument of the European Union, and if it is planned with EIB loans it can be interesting. Or there is this ENPARD Program offering agricultural funds.
I think it’s a huge opportunity for the country. This investment conference is taking place at the right point in time. We as the EIB are not just supporting this via money. I will announce today (June 12) that the EIB is ready to open a permanent representative office here in Moldova to help the businesspeople and to step up EIB activity. I hope we can open it also in early autumn this year.
