Moldova Approves Law on Industrial Parks at Final Reading
OREANDA-NEWS. July 16, 2010. It was developed by the Ministry of Economy to eliminate gaps and uncertainties in the legislation, governing the creation and operation of industrial parks. As soon as the Parliament passes this law, the previous law on industrial parks as of July 13, 2007 will be annulled.
The purpose of the new law is the formation of favorable conditions for socio-economic development of regions through creation and development of industrial parks, aimed to attract local and foreign investment, formation of competitive industry sectors on the basis of modern and innovation technologies, corresponding to European standards, development of small and medium-sized enterprises, creation of more employment opportunities. Industrial parks will have an adequate technical and production infrastructure.
The Ministry of Economy of Moldova notes that the Law on Industrial Parks, adopted in 2007, had not a positive effect hitherto. It was a de jure basis for establishing of industrial park in Cainari, which de facto didn’t operate, and economic activities in its territory were not carried out. The experts note the following drawbacks of the previous law: it basically did not provide incentives to the private sector to build industrial parks, but regulated in detail the creation of industrial parks based on the assets of government property.
In addition, current legislation allows privatization of park land by the residents only on expiration of the park functioning - not earlier than 15 years. The new law on industrial parks provides for the establishment of parks based on assets of both public and private property, provides a range of benefits for administrators and residents of the park.
In particular, it envisages change in the appointment of agricultural lands, intended for creation of industrial parks, with exemption from payment of the cost of the procedure, free provision of state property assets owned by the company-administrator for creation and development of industrial parks, providing residents of the industrial park with the right to privatization of land owned by the state after commissioning of buildings intended for the industrial park.
In addition, the delay of VAT payment on imported materials and equipment for construction of infrastructure and utility needs of the industrial park before being put into operation, financial contribution of the state in creation of technical and industrial infrastructure is being stipulated.