Moldova may fail to fund projects from USD 1.2 bln pledged by donors

Moldova risks failing this year, due to the incapacity of functionaries from key-ministries, to fund projects from USD 1.2 bln promised to Moldova by international donors in late 2006 in Brussels, political analyst Igor Munteanu affirms. As the expert says, “beyond the authorities’ parade regarding the acceptance of this money, the Government did not take any money so far, because it did not present and was not able to present projects that would determine the European funds to finance projects in Moldova”, the expert says, specifying that there is a “biological cycle” of the projects: if they are not presented until mid-year, we will no longer enjoy them this year. In the context, the expert invoked the responsibility of the functionaries from the key-ministries for the lack of certain funding projects. “We are deeply concerned about the way the Government understands the technical response to the opportunities it has. December 2006 was a great chance that we may miss. The funds were obtained following certain complex technical procedures, which most of functionaries from strategically important ministries, as the Ministry of Transport and Road Management, do not know how to follow, and this is the big problem related to the reformation and modernization of the system of central public administration”, Munteanu stated. Half of the sum of USD 1.2 bln, pledged to Moldova by the European Union, international financial organisations and other foreign donors, was announced to be earmarked as grants. The other half of sum will be allocated as long-term loans, with an interest not exceeding 1.5% annually. The funds are meant to be used for the efficient implementation of the EU-Moldova Action Plan and Economic Growth and Poverty Reduction Strategy Paper and will be primarily aimed at carrying out projects designed to implement reforms in the judicial system, public administration, education, health, infrastructure, to create new jobs in the social sector, to develop the rural area, and the agricultural sector. The financial resources are expected to be directed to funding all types of projects: state, social or private. The sum of USD 1.2 bln is larger than the overall volume of financial assistance provided to Moldova by international donors in the last ten years. The EU, international financial organisations, including the World Bank and International Monetary Fund, as well as other foreign donors took the decision to provide financial assistance to Moldova on December 12, in Brussels, as part of the Consultative Group Meeting of Donors for Moldova.