CEB Cooperation with the Republic of Moldova
24 March 2010
Consultative Group Meeting: Moldova Partnership Forum
• Some introductory general remarks about the CEB:
- The CEB is placed under the authority of the Council of Europe;
- The CEB is a multilateral development bank with a social vocation owned by 40 European member States as per today;
- The Republic of Moldova became a member of the CEB in 1998.
• Thanking the World Bank and the European Commission for having organized today’s meeting we would also congratulate the Government of Moldova for its Report for the Consultative Group Meeting “Rethink Moldova” which gives an excellent roadmap of its priorities for the medium term development of the country. CEB expresses its full and continuing support to the country’s development objectives and reform agenda, especially in the sectors Health, Water supply and Wastewater and in the Judiciary sector.
• CEB’s present cooperation with Moldova in the health sector is fully in line with the Government’s proposed lines of action: The CEB has supported Moldova to improve the quality and efficiency of the blood transfusion system. Together with the World Bank, the European Commission, SIDA and UN agencies, CEB co-finances the modernization of the Republican Clinical Hospital in Chisinau.
• CEB stands ready to continue its support to Moldova in the health sector through the financing of improvement of health infrastructure. It is nevertheless of utmost importance for CEB that even in times of severe economic crisis key national health programmes should be protected from budget cuts.
• In order to increase the proportion of the population having access to good quality water supply and sewerage the Government of Moldova considers the development of water supply and sewerage facilities among its top priorities. On the other hand the water and sanitation sector present the greatest challenges of all infrastructure sectors because of its capital intensity.
• For CEB it is of utmost importance that new water and sewerage infrastructure investments be designed in a way to minimize the cost of energy consumption during later operation. Tariff policies need also to be restructured so that they reflect, at least in the medium term, the real cost of operation and maintenance whilst taking into account the ability to pay of the poorest parts of the population. And last, but not least, donor coordination is most needed in this sector.
• CEB is presently preparing, together with the competent authorities, and in close cooperation with the EU, the EBRD, the EIB, and the World Bank, a water supply project which would allow to better use existing water resources infrastructure and extending access to clean water for a large number of populations.
• Social cohesion of a society finds its expression namely in the way how the weakest parts of it are being dealt with. The prison population in each European country is in need of suitable conditions of detention which should be in conformity with the European Prison Standards. The Government of Moldova envisages important reform steps in the Judiciary sector, covering also the improvement of prison infrastructure. CEB welcomes this effort and could offer its support in this field under its sectoral line of action “Supporting public infrastructure with a social vocation”, if so requested by the Government.
• To conclude, CEB stands ready to support infrastructure investments in the aforementioned sectors. Close cooperation among all donors and coordination of donors’ efforts by the Government are indispensable. In view of the country’s difficult economic situation, Moldova’s development partners will have to combine different forms of contributions, e.g. loans, grants, interest subsidies, and technical assistance, in order to offer suitable and sustainable financing for the most needed social infrastructure investments. Moldova qualifies for CEB’s financing on concessional terms, with subsidized interest rates. CEB can thus offer favourable financing conditions and additionally combine contributions of other donors (grants) with CEB’s loans.