OREANDA-NEWS. On May 13, 2008 the World Bank approved three credits worth a total of \\$30 million to Moldova through the International Development Association (IDA). The credits are targeted at bolstering efforts of projects that are already working to help farmers be more competitive, to improve access to clean water and sanitation services and to support reforms to make government more efficient and effective, reported the press-centre of World Bank.
 
“Moldova is making good progress on a variety of fronts,” said Melanie Marlett, World Bank Country Manger for Moldova. “All three of the projects approved today will target areas where we have already seen some real successes. We will continue to work with the government and other development partners to build on those successes with the aim of improving the quality of life in Moldova.”
 
Additional financing for Rural Investment & Services Project 2 was approved in the amount of US\\$6 million. The Program objective is to accelerate agricultural recovery and growth so that Moldova’s agricultural and rural sectors can generate greater income and reduce poverty in the process. The Program has been under implementation since June 2006. Additional financing is being sought to ensure that farmers have the resources and knowledge necessary to adapt and minimize losses from severe weather phenomena such as drought, in order to ensure the long-term viability of the country’s agricultural sector. An added Drought Adaptation Component will provide targeted investments for small-scale on-farm irrigation and the provision of technical assistance to farmers on drought adaptation.
 
“The agricultural sector has the potential to play a far greater role in job creation and the growth of the economy,” said Pierre Olivier Colleye, Task Team Leader for the project. “By building the capacity of farmers we are providing a boost to an important sector of the economy which could create jobs and reduce poverty in rural areas as a result.”
 
The World Bank is also supporting the Government of Moldova through the National Water Supply & Sanitation Program with an IDA credit of US\\$14 million.  Despite some of the successes of the Pilot Water Supply & Sanitation Project, there are still significant challenges that need to be overcome in the sector. Only about 66 percent of rural communities have piped water systems. Further, the quality of drinking water is generally poor and service is intermittent.
 
“There is no question as to how important this project is to people living in both rural and urban areas in Moldova,” said Takao Ikegami, Task Team Leader for the National Water Supply & Sanitation Program. “Working with the government and other development partners we will help to improve Moldovan infrastructure and build capacity in the government, so that clean, potable water is more widely available.”
 
In an effort to improve access to clean water, the National Water Supply & Sanitation Program’s objectives are: (i) to improve the coverage, quality, efficiency, and sustainability of water and sanitation services in selected urban and rural communities; and (ii) to enhance the capacity of the Ministry for Construction and Territorial Development to prepare and supervise the implementation of investment programs and to provide technical assistance to the operating Apa Canals.
 
Moldovans will also benefit from a US\\$10 million IDA credit to support the Second Poverty Reduction Support Credit (PRSC2) which will strengthen and deepen the reform efforts supported by the first PRSC. The credit will support the Moldovan Government’s efforts to accelerate shared economic growth and improve governance by addressing the efficiency and effectiveness of its expenditure programs and public administration – key elements in poverty reduction. To this end, PRSC2 will continue to support selective areas of the Government’s reform agenda in critical areas, including improvements in the investment climate, improving the efficiency and management of public resources and strengthening pension and social assistance systems.
 
“These reforms will help improve the efficiency and management of public resources and strengthen social protection systems,”said Lawrence Bouton, Task Team Leader for PRSC2. “The reforms also aim to make Moldova a better option for private investors.”
 
All three credits are offered on standard IDA terms, with 40-years maturity and a 10-year grace period.