Mr Sergiu Ciobanu, Deputy Minister

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Ministry of Economy
Sergiu CIOBANU,
Deputy Minister of Economy
May 25 – 26, 2012
Medium Term Priorities of Ministry
of Economy




Ensure sustainable economic growth;
Increase competitiveness of national economy;
Address the administrative constraints for businesses;
Ensure SME development and facilitate access to
funds;
 Promote exports and investments;
 Develop quality infrastructure and ensure consumer
protection;
 Ensure energy security and promote energy efficiency
in all the sectors of the economy.
Foreign Aid Coordination Platform
Purpose
 Improve efficiency, effectiveness and sustainability of
foreign aid;
 Improve communication among stakeholders;
 Engage all stakeholders in planning and implementing
foreign assistance.
Foreign Aid Monitoring and Coordination in
Ministry of Economy
Sector council for foreign aid in the
sectors coordinated by Ministry of
Economy
created in 2010
Task Force no. 2:
Task Force no. 1:
Developing entrepreneurship
and attracting investments
Commercial policies, quality
infrastructure and consumer
protection
Task Force no. 3:
Energy security and efficiency
Assistance in 2010-2012
 In 2010-2012 the foreign assistance in the sectors of the Ministry
of Economy amounted to about 240 mil. Euros;
 Type of assistance: - Budget support;
- Technical assistance;
- Financial assistance.
 37 projects funded by 11 development parteners were
implemented
 Key beneficiary sectors:
- Development of entrepreneurship and investments;
- Commercial policies;
- Quality infrastructure and consumer protection;
- Energy security and efficiency.
Breakdown of Assistance by Donors
2.50%
12%
UE
6%
43%
7.50%
Banca Mondială
SUA
Japonia
Suedia
Alţi donatori
29%
Breakdown of Assistance by Sectors
70%
60%
60%
50%
40%
32%
30%
20%
8%
10%
0%
Sectorul politicilor economice şi comerciale
Sectorul energetic
Sectorul infrastructura calităţii
Development of Entrepreneurship
and Investments
Strategic Objective:
Enhance economic stability of Moldova
through improved capacities for
development of small and medium
enterprises
 Number of projects– 15
 Global budget– 83 000 000 euros
 Key donors – EU, USA, Government of
Japan, Government of Norway
Projects implemented in 2010 - 2012
Project
Competitiveness enhancement and
enterprise development II (CEED)(2010
2014)
Technical assistance to Public
Procurement Agency in Moldova (20072010)
Sector Budget Support Program
„Economic Stimulation in Rural Areas”
(2010-2014)
Technical assistance for the
implementation of Budget Support
Program on Economic Stimulation in
Rural Areas (2011-2014)
Practical tools to support the small and
medium enterprise sector in Moldova,
cluster development (2010)
Support for use of remittances to start
new businesses and create jobs
(Contribution from Czech Republic)
(2011-2014)
Donor
USA
GERMANY
EU
EU
CEH
CEH
EU
Total
Outcomes
Amount
(Euro)
5 343 511 - Increased sales in relevant sectors
- Increased investments in relevant sectors.
320 000 Increased efficiency of Public Procurement Agency in Moldova
42 000 000 Balanced economic growth in Moldova with emphasis on the rural areas
through efficient national and sector economic policies and coordination,
transparency and financing mechanisms.
3 000 000 Improved performance of beneficiary entities (ME, MF, MAFI, MTRD) in
their efforts to implement the key components of the actions included in
the Matrix for Sector Budget Support Program on Economic Stimulation in
Rural Areas.
61 594 - Organization of two study trips in the Czech Republic
- Organization of a trip of the Czech experts to Chisinau, Moldova.
- Development of a concept of SME integration in clusters in Moldova.
125 600 900 migrants or recipients of remittances received training in enterprise
management and starting new business
500 000 150 repatriated individuals and/or recipients of remittances received
assistance in starting their own businesses and post-creation support
Project
Donor
Total
Outcomes
Amount
(Euro)
Efforts to promote structural
JAPAN
14 782 609 Procurement and import of equipment by leasing at zero interest rate for one
economic adjustments (JNPGA)
year (no pledge). Payment of 60% of the cost of equipment in 4 tranches. 40% of
(2005-2012)
the cost is covered from grant funds.
ENTRANSE 2 your business (2006NORWAY 1 000 000 - Business incubator in Soroca - established and operational;
2011)
- SME portal designed and deployed – works as an interactive information center
for businesses.
Promotion of development policies HOLLAND
606 100 - development of a relevant and well-structured package of policies in SME
for small and medium enterprises in
sector.
Moldova (2010-2013)
- development of the institutional framework in SME sector and introduction of a
SME policy consultation, implementation and monitoring mechanism.
Development of public-private
UN
1 282 733 Development of infrastructure and public service in the poor rural and urban
partnership (2007-2010)
areas.
Program for attracting remittances in UN
50 000 - Delivery of entrepreneurship training and provision of free of charge assistance
the economy (PARE 1+1) (2010for start-ups.
2012)
- Provision of funding for viable businesses through grants that will cover 50% of
investments, but less than 200 thousand lei.
- Support and reintegration of returned migrant workers through advice on the
employment opportunities and funding available for start-up programs;
- investment of remittances in the development of economy
The Business Regulatory and Tax
USA
6 521 739 - Reduced administrative burden on the private sector
Administration Reform Project
- Improved fiscal system
(USAID|BIZTAR) (2007-2011)
- Less opportunities for corruption
- Improved access of individuals and businesses to government data
- Improved public-private dialogue.
Project
Donor
Support to Export
EU
Promotion and Investment
Attraction in Moldova
(SEPIA) (2008-2010)
Competitiveness
enhancement and
enterprise development
(CEED) (2005-2010)
USA
Euro
Outcomes
1 600 000 - Support for Ministry of Economy and its entities in coordination and improvement of the
export promotion and investment attraction system;
- Support for Ministry of Agriculture and Food Industry in improving its lab system;
- Support for Moldovan businesses in accessing funds for export development;
- Promotion of exports;
– Promotion of investments.
6 073 714 Development of the industrial sectors of the Moldovan economy, such as the wine,
textile/clothing, ICT industries.
Support and development program for small and
medium enterprise sector, funded by the Government
of Japan (2005-2012)
Objective: Create conducive environment for small and medium businesses to develop production in the
Moldovan rayons.
Funding scheme:
 the first two tranches , 5% and 20%, accordingly, of the equipment price, before shifting to leasing
scheme;
 tranches III and IV, 15% and 20%, accordingly, of the equipment price, during one year from receipt of
equipment in case of grant component in the amount of 40% of the equipment price;
 tranche V amounting to 40% to be paid after 18 months from the receipt of the equipment only if
there is no grant component under the leasing contract provisions.
Outcomes:
 138 beneficiaries
 175 leasing contracts
 Price of equipment 205,3 mil. lei.
ENTRANSE 2 Your Business Project (2006-2014)
 Funded by Government of Norway
 Total budget - 1.215 mil. USD
 Objective: Support economic growth, increase employment
and reduce poverty through support for SME sector development
in Moldova through: creation of pilot business incubators in
Soroca, support to other business incubators and their
institutional development, enhancement of institutions,
associations and business incubator networks, facilitation of
access of SME to information by putting in place the Informative
Portal for SME.
17
resident
compani
es
3 years –
incubation
period
119
jobs
created
50%
start-ups
Commercial Policies, Quality
Infrastructure and Consumer Protection
Strategic Objectives:
 Negotiate and implement the Deep and Comprehensive





Free Trade Agreement between Moldova and the EU;
Strengthen the National Accreditation System;
Develop the National Standardization System;
Adopt and promote the European metrology standards;
Ensure protection of consumers;
Develop the market supervision capacities.
Commercial Policies, Quality
Infrastructure and Consumer Protection
 Number of projects – 3
 Global budget – 32 400 000 euros
 Key donors –EU, World Bank
Projects implemented in 2010 - 2012
Project
Competitiveness improvement (20042012)
Donor
WB
Twining. Support to Main State Tax
EU
Inspectorate for market surveillance,
metrology and consumer protection
(2012-2013)
Twinning. Support to the Accreditation EU
Center for Compliance Assessment
(2012)
Euros
Outcomes
30 396 825 The B component of the project aims at upgrading the National Metrology,
Standardization, Testing and Compliance Assessment Systems (MSTQ).
- Compatible EU standards adopted– 1700
- Testing organizations available for enterprises – 100
- Number of calibration services delivered to businesses by NISM - 750
1 000 000 Support to Consumer Protection Agency.
1 040 000 Support to the Accreditation Center for Products Compliance Assessment
for the signing of Multilateral Recognition Agreement with the European
Cooperation for Accreditation.
Competitiveness Improvement Project
2006-2012
Assistance provided by:
International Development Association: Credit 33,8 mln USA;
Government of Japan: grant 4,9 mln USD.
Project components:
 Improvement of business environment;
 Upgrade of MSTQ system (ISO co-funding grant scheme);
 Facilitation of access of businesses to MSTQ services (ISO co-funding grant
scheme)- 1,2 mln USD;
 Facilitation of access to funds;
 Credit Line for exporters - 22,5 mln USD;
 Expansion of the co-funding grant scheme in order to improve competitiveness
of businesses – 1,5 mln. USD
Competitiveness Improvement Projectoutcomes
Improvement of
business environment
(component A)
Upgrade of MSTC
system
(component B)
Facilitation of access
of businesses to MSTC
services
(component C)
Facilitation of access
to funding
(component F)
•Inspections per
year for each
company <12
•Number of civil
servants and
experts trained in
RIA - 1000
•Adapted
compatible EU
standards – 1700
• Available testing
organizations– 100
•Number of
calibration services
delivered by NISM
to businesses - 750
• Subsidies paid
for International
Quality
Certificates - 190
• Subsidies for
business
development - 200
• Approved subloans - 120
• Share of
nonperforming
loans <5%
Energy Security and Efficiency
Strategic Objectives:
 Promote energy efficiency in all the sectors of the economy and use of
renewable energy sources,
 Build the energy connections with Ukraine and Romania;
 Integrate the national energy system in the European energy system;
 Diversify the country’s energy supply sources;
 Improve use of energy and fuels in their production, transport,
distribution and supply;
 Settle the debts and stabilize the financial situation of enterprises
operating in the energy sector;
 Bring in private investments in the rehabilitation and construction of
energy enterprises.
Energy Security and Efficiency
 Number of projects – 12
 Global budget– 160 700 000 euro
 Key donors –EU, World Bank, EBRD
Key pillars of Energy Sector
Security
Efficiency
Sustainability
1
Building the capacities of
authorities for regulation,
policy development and
implementation;
Aligning the legal framework
to EU standards;
Economic, institutional and
technical re-engineering of
the thermo-energy sector;
Encouraging private
investments in energy
infrastructure based on PPP
mechanism
Implementation of
National Energy
Efficiency Program by
2020;
Ensure smooth operation
of Energy Efficiency
Agency;
Creation of the Energy
Efficiency Fund;
Financing of energy
efficiency projects and
use of renewable energy
sources.
Interconnection of the
national energy system to
the European network of
transmission system
operators for electricity
ENTSO-E;
Diversification of primary
energy sources;
Investments in energy
infrastructure projects (LEA
400 kV Balti-Suceava, LEA
330 kV BaltiNovodnestrovsc, UngheniIasi interconnection gas
pipeline).
Projects implemented in 2010 - 2012
Project
Donor
Total amount
Outcomes
40 mil. Euro
Energy Strategy of Moldova till 2030 to be made public officially on
11.06.2012
Creation of Energy Efficiency Fund under way.
Moldovan legislation being aligned with the EU Directives and
standards in energy sector
National Program for Energy Efficiency approved in November
2011.
Development of the feasibility study for interconnection of EU
energy systems of Moldova and Ukraine with ENTSO-E
(indicative June 2012-2015)
7,067 mil. Euro
Final European Commission approval for funding a feasibility
study on interconnection of the national energy system to the
European one ENTSO -E
Construction of Ungheni – Iasi gas pipeline (indicative
June 2012-2015)
20 mil. Euro
Feasibility and environmental impact study conducted for construction
of gas pipeline.
Construction expected to end in 2013.
20 mil. Euro
EUR 25 mln. agreement signed for MOREFF program – residential
sector
Budget Support Program in energy sector reforms (20112014)
EU
EU
Financing Line for Energy Efficiency in (MoSEFF) (period BERD
– 2009 -….)
Energy and Biomass project (period – 2011-2014)
EU and UNDP 14 mil. Euro EU; 35 biomass heating projects implemented in 7 rayons and TAU
0,56 mil. Euro
Gagauzia.
UNDP
Technical assistance for project beneficiaries. Leasing mechanism for
biomass processing equipment developed
Technical assistance for the implementation of the Budget
Support Program in energy sector reforms (period –
indicative September 2012-2015)
EU
2,6 mil. Euro
To be launched in June 2012
Energy Sector
Project
Donor
Regional Program „SYNENERGY” (period 2008 -
Greece – 50%,
USAID – 50%
Capacity building for sustainable energy management
(period - 2012-2015)
SIDA
Energy Performance of Buildings Directive
Transposition/Law on EPB
Revision of feed-in tariff methodology
EBRD
Modernization of local public services in Moldova
(MLPS)
GIZ, co-funding
from SIDA
Energy II
World Bank,
Sweden
EBRD
Total Amount
8 mil. Euro
Outcomes
Law on the heating is at its final stage of development.
MARCAL Program was officially launched to make energy
forecasts.
1,6 mil. Euro
Energy Strategy of Moldova till 2030 made public on
11.06.2012
Institutional capacity-building for ME and ME and EEA
Draft Law on energy performance of buildings developed and
submitted for comments
3 surveys on ESR support mechanisms were developed and made
public on April 11, 2012
2,1 mil Euro (including Rayonal hospital in Orhei town was upgraded in terms of energy
for Energy Efficiency efficiency under the energy component of the project.
of Public Buildings
component)
44,8 mil. Euro
- Improvement of supply and cosumption of heat in the selected
public buildings
- Improvement of security and reliability of the energy
transmission system and wholesale energy supply and, therefore,
facilitation of the free industrial operation of the energy system at
national and international levels.
- Rehabilitation and development of the Central Station and
Telecommunications for energy system
Energy and Biomass Project – Success Stories...
• Energy and Biomass project –
implemented in 16 rayons and
Gagauzia
• Projects approved for 58
communities, including 72 schools,
kindergartens, community centers, etc.
• Capacity of biomass heating systems is
about 15 MW
• Implementation of the approved
projects will benefit 43643 individuals,
including 13135 children
Briquette boiler from Community Center in Carbalia
village, TAU Gagauz-Yeri. Beneficiaries: 555 individuals
Bale boiler in the lyceum in village of Olanesti, Stefan
Voda rayon. Beneficiaries: 600 individuals
Energy and Biomass Project – Success Stories...
•
1543 LPA representatives and local leaders, 76
suppliers of biomass fuel and 176 operators
acquired new skills and knowledge in modern
biomass production and use technologies for
energy purposes
•
About 1 million individuals covered by
actions and events meant to promote biomass
energy (public events, media campaigns,
discussion clubs, onsite trips, video and audio
spots, outreach materials etc.)
•
The first edition of MOLDOVA ECOENERGETICĂ - annual event to grant awards
in renewable energy and energy efficiency
sector - successfully held
Thank you for your
attention!
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