EU to allocate €7 million to Moldova for regional development plans

The European Union will allocate to Moldova €7 million for regional development activities that are to be carried out in during 2012-2013. The launching of a pilot Regional Development Program, under which the funds will be allocated within the framework of the Eastern Partnership, was discussed today, June 28, by the Moldovan Ministry of Regional Development and Construction and the European Commission's Regional Policy Directorate. Minister Marcel Raducan noted that currently regional development projects in Moldova are financed from the National Regional Development Fund, with the support of external partners and local authorities. Diversifying financial instruments in the area is a desideratum for the Moldovan Government, it was said in a press release from the Ministry. The National Regional Development Fund consists of 1% of the incomes to the State Budget (approximately 10 million euros in 2011), which isn't enough to cover the costs of regional development projects, said Marcel Raducan. Charles White, the representative of the EC's Regional Policy Directorate General, noted that the it is important that regional development projects are based on a sectoral strategy and with the contribution of the beneficiaries. Activities financed under the program include development of design studies, auction documentation, development of human resources through training provided to public authorities and SMEs, creation of incubators, and creation of statistic databases to be used for regional development purposes (with the possibility to cooperate with Eurostat and state agencies from EU member countries).