OREANDA-NEWS. February 02, 2009. The World Bank Board of Directors approved the Country Partnership Strategy (CPS) for the Republic of Moldova for 2009-2012. The CPS is the main assistance framework at the country level, which will guide the World Bank’s interventions in Moldova over the next four years, reported the press-centre of World Bank.
 
“In a challenging global environment, the Republic of Moldova has set the course to modernize its economy and build a prosperous European future,” said Melanie Marlett, World Bank Country Manager for Moldova. “The new Country Partnership Strategy aims to build on our previous successes and provides a flexible framework to help Moldova weather global risks.”
 
Development assistance efforts in Moldova over the next four years will aim to support a sustainable growth strategy, which capitalizes on opportunities for remittance flows to be used productively to allow the country to increase private savings and investment.
 
“Moldova’s greatest asset is its people”, said Martin Raiser, World Bank Country Director for Moldova, Belarus and Ukraine. “We aim to support the country in harnessing this strength for business opportunities at home.”
 
The new CPS aims to lay the foundations for inclusive economic growth in Moldova by:
improving economic competitiveness to support sustainable economic growth;
minimizing social and environmental risks, building human capital, and promoting social inclusion; and improving public sector governance.
 
These areas of World Bank support are consistent with Moldova’s national development priorities for 2008-2011 and other development efforts.
 
The CPS foresees total commitments of around US45-50 million per annum, part of which will be channeled through direct budgetary support. The CPS will also support investments in modernizing Moldova’s infrastructure and improving access to public services, as well as projects with regional or global environmental benefits.
 
In addition to its lending operations, the World Bank Group will provide a range of analytical and advisory services in support of Moldova’s development agenda set forth in the National Development Strategy (NDS). These efforts will be complemented by an ongoing commitment to promote and provide investments and guarantees, through Bank Group institutions (IFC and MIGA), to strengthen and expand financial and private sector growth. 
 
Moldova’s Development Results
Moldova has made great strides over the last four years. The World Bank has been active supporting Moldova in areas as diverse as rural business development, energy efficiency, and investment in community initiatives.
 
Water Supply
The World Bank is supporting Moldova as it increases connectivity to water and improves the quality. Approximately 20 percent of city dwellers lack access to clean water and 37 percent lack access to sewerage. In areas where the World Bank has supported pilot programs, water supply per day in the pilot areas is now 18-24 hours.
 
Water losses due to leaks and decaying infrastructure have been reduced, and water consumption per capita has almost doubled. Another important improvement in pilot areas is evident in the quality of the water ? 100 percent of microbiological water quality samples in pilot areas passed inspection, whereas previously 10 percent of samples were contaminated with coliforms.
 
Education
The Bank is supporting the rehabilitation of 33 kindergartens and 15 alternative community based centers – repairing buildings that were damaged or aging. Teaching quality is set to improve as well, with training completed for 2,600 managers and pre-school teachers. Their efforts are bolstered by new teaching materials and equipment that were delivered in early 2008.
 
The Environment
There are a number of successes being made in Moldova in protecting the environment. 11 biomass boilers were installed in demonstration sites under the Renewable Energy from Agricultural Waste Project to act as catalysts for the introduction and promotion of the use of agricultural waste. Soil conservation projects will lead to a reduction of CO2 emissions of 4.3 million tons over the next 10 years. Further, 100 percent of Persistent Organic Pollutants have been managed or destroyed entirely, a total of 1,272 tons of pesticides and 17,300 capacitators of PCBs.  
 
Business Reforms
To make it easier to do business, as part of the Competitiveness Enhancement Project the Government completed a review of relevant legislation and proposed amendments to some 80 laws affecting business operations. Because of its capacity to cut red tape, the law was named Guillotine II. In addition, business owners will also be able to voice their views through a committee set up to address new policies affecting the business environment.
 
The Rural Investment and Services Project has overseen 194 new businesses created in rural areas during 2006-2007, and 149 loans have been provided to rural beneficiaries in 2006-2007, through the same project. 
 
Property rights have also been strengthened, and a unified real estate cadastre for urban and rural land established. The affects have been evident in the surge in activity in the now fully functional real estate market. The number of transactions grew from 23.6 thousand in 1999, to 201.6 thousand in 2006.