The EBRD increased investments in Moldova in 2012, continuing its strong support for the country via both its projects and its support for reforms.
Investments by the end of 2012 are expected to reach €94 million in 13 projects, compared with €69 million in 2011. Through its investments in Moldova, the EBRD aims to foster Moldova’s transition towards an open market economy. The EBRD’s strategy for Moldova places a high priority on developing the business environment, competition, energy and infrastructure – specifically municipal as well as further consolidation of the financial sector.
In 2012 the Bank’s particular focus was on supporting Moldova’s Energy Action Plan by both direct investment and work through its partner banks, supporting the country’s strategic focus on regional development and by expanding the Bank’s support towards new municipalities and further development of its presence in the financial sector, with particular emphasis on corporate governance and shareholder transparency.
In following this direction, in 2012 the EBRD has put in place further Energy Efficiency Frameworks to support industrial and residential clients implementing energy saving projects. These include the second Framework for commercial sector (MoSEFF for €22 million) and notably the first in the Moldova Framework for the residential sector (MoREEFF for €35 million) to help home-owners and businesses cut their energy bills. These financing frameworks are supported by grants from the Swedish government and the European Commission to ensure technical support and affordability for end-borrowers. Furthermore, the EBRD is working closely with the Ministry of Construction and Regional Development to support them in upgrading the relevant legislation and housing codes. This will enable collective borrowers such as condominiums and associations to benefit more from financing available through the banks.
Furthermore, the EBRD has also extended a €16 million loan for the Moldovan state-owned transmission company Moldelectrica, to improve the efficiency and reliability of its transmission network.
Supporting the development beyond the capital city, Chisinau, the EBRD has provided a €3 million loan alongside a €1.6 million grant from the Neighbourhood Investment Fund (NIF) of the European Commission, to enable the municipality of Balti, Moldova’s second biggest city, to buy 23 new low-floor trolleybuses and modernise the municipal transport company.
The Road Rehabilitation Framework I for €75 million in total was completed by committing the last tranche of €23 million this year and the work on the new Framework has started. This financing is being implemented jointly with the European Investment Bank and supported by grants of NIF, which demonstrates the close cooperation of government, international financial institutions and the European Commission in tackling Moldova’s infrastructure challenges.
Furthermore, the EBRD has been actively working with the private sector, the core of the Bank’s activities, to complete a financing for two sizable private companies in the agriculture and logistics sectors. The EBRD will continue to support both private investors coming to Moldova and local companies.
The EBRD also continues to support the Moldovan private sector through the successful work of its local Small Business Support Team (SBS). In 2012, the SBS team continued to support small and medium-sized enterprises (SMEs) in enhancing their energy efficiency within the Energy Efficiency programme. At the same time a new Women in Business programme was launched in 2012 to support women’s participation in private business development, including start-ups. Both initiatives are supported by the Swedish government. In addition in 2012, 71 SMEs received support from the EBRD’s Business Advisory Services, benefiting from €428, 936 in total grants. These consultancy projects are supported from funds provided by the European Union.
Throughout its activities in Moldova, the EBRD has continued to engage in policy dialogue with the government and authorities to encourage legal and regulatory environment conducive to further investment and economic development in the country.
Looking forward to 2013, the EBRD will continue its strategy of supporting Moldova in improving transparency in the business environment and competition through financing, investment and policy dialogue in various sectors of economy.
Since the beginning of its operations in Moldova, the EBRD has signed 92 investment projects, covering energy, transport, agribusiness, general industry and banking sectors, for a cumulative amount of almost €713 million.
