The World Bank

in Moldova

World Bank Country Office in Moldova 20/1, Puskin Str., Chisinau

Phone: +373 22 200706, Fax: +373 22 237053 www.worldbank.org.md

March 2006

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A World Free of Poverty

O u r D r e a m i s M o l d o v a F r e e o f P o v e r t y The central objective of the World Bank in Moldova is to contribute to poverty alleviation and

sustainable economic growth. With this objective in mind, we are very pleased to be associated with the authorities and civil society in the design and production of a participatory Economic Growth and Poverty Reduction Strategy. We believe that poverty is a multi-dimensional phenomenon and, as such, requires a multi-pillar strategy to fight against it. The international experience and the prevailing situation in Moldova both suggest that pover ty reduction in the country could be based on three basic pillars: * Maintain macroeconomic stability and generate sustainable economic growth that generates productive employment and higher incomes. A prudent macroeconomic and fiscal program must be followed to avoid macroeconomic imbalances that lead to instability. The business environment needs to be improved, legal and judicial infrastructure modernized, and corruption minimized. Public services should be efficiently provided through proven commercial entities. An efficient, client-oriented public administration must be attained to facilitate development of the private sector. Potential sources of growth are: agro- industry, information technology, services, and small and medium size business in all areas. Attracting of foreign direct investment is a key to success. * An affordable social protection system targeted to the really needed. Present systems to protect the most vulnerable, particularly parts of the older population and the children, need to be reviewed. In order to channel limited resources to the really needy, remaining untargeted or unfunded benefits need to be eliminated. Targeting will require comprehensive and reliable information as well as proper administration mechanisms. A gradual approach may be required in many cases. Self- targeted assistance programs may need to be created to assist the very poor. Over the medium to longer term, sustainable and comprehensive targeting mechanisms would allow the expansion of a safety net to cover more eligible people. * Improve access to social services by the poor. Reforms in the social sectors are needed urgently, particularly in the health and education sectors. The focus of the health sector reform should be on improving primary health care and providing access to basic health packages by the poor, especially in rural areas. Reform measures may include: restructuring of the over-sized infrastructure to release resources from tertiary level health care to primary level, redefining the basic health care package in line with available resources and focusing on primary care; and formalizing the existing informal payments to avoid abuses which are especially burdensome for the poor. Public spending on education should concentrate on primary education. Reallocation of expenditures from tertiary to primary education will be needed to make this possible, measures to improve efficiency and reduce unit costs should be taken, and formalization of unofficial charges may be also needed. Emphasis should be placed in improving the quality of water, sanitation and heating in schools. The World Bank emphasizes projects and the activities connected with these three pillars to fight poverty in Moldova. This is pursued through support to the budget by policy -based operations (Structural Adjustment Credits), projects in agriculture, energy, education, health, community development, and supporting the private sector in general. We also expect to play a central role in donor coordination and assistance.

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TABLE OF CONTENTS

PROJECTS PORTFOLIO S UMMARY..................................................................................................................... 4

IBRD/IDA PROJECTS .................................................................................................................................................... 5 PROJECTS UNDER IMPLEMENTATION ..............................................................................................................5 PROJECTS UNDER PREPARATION .....................................................................................................................11 COMPLETED PROJECTS..........................................................................................................................................11

IFC PROJECTS ...............................................................................................................................................................15

PROJECTS UNDER IMPLEMENTATION ............................................................................................................15 COMPLETED PROJECTS..........................................................................................................................................16

GRANTS ............................................................................................................................................................................17

PROJECTS UNDER IMPLEMENTATION ............................................................................................................17 PROJECTS UNDER PREPARATION .....................................................................................................................19 COMPLETED PROJECTS..........................................................................................................................................20

REPORTS AND PUBLICATIONS ............................................................................................................................26

PUBLIC ECONOMIC EDUCATION.......................................................................................................................27

PARTNERSHIP WITH CIVIL SOCIETY..............................................................................................................27

PUBLIC INFORMATION CENTER ........................................................................................................................27

CONSULTATIVE GROUP MEETINGS (CG) ......................................................................................................27

WORLD BANK INSTITUTE (WBI) .........................................................................................................................27

THE WORLD BANK GROUP (GENERAL DATA) ............................................................................................28

THE WORLD BANK GROUP (ITS ORGANIZATIONS).................................................................................28

TERMS OF WORLD BANK LOANS.......................................................................................................................29

MOLDOVA COUNTRY OFFICE TEAM...............................................................................................................30

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PROJECTS PORTFOLIO SUMMARY

since Moldova joined the World Bank in 1992: (as of March 31, 2005)

TOTAL NUMBER OF PROJECTS 68 ? IBRD/IDA? 30 ? IFC? 6 ? TA / Grants? 32 Projects under implementation 25 ? IBRD/IDA? 13 ? IFC? 4 ? TA / Grants? 8 Projects under preparation 7 ? IBRD/IDA? 3 ? TA / Grants? 4 Projects completed 36 ? IBRD/IDA? 14 ? IFC? 2 ? TA / Grants? 20 COUNTRY LENDING SUMMARY US$ mio. ? Commitments? 613.36 ? Disbursed? 436.65 ? Undisbursed? 88.01

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MOLDOVA - WORLD BANK COOPERATION PROGRAM

March 2006

IBRD/IDA PROJECTS PROJECTS UNDER IMPLEMENTATION

1. Competitiveness Enhancement Project (CEP) Amount: USD 4.9M IDA credit and USD 4.9M IDA grant Co-financing Government of Japan – USD 4.5 M Disbursed: USD 0.6 M Objectives: The project’s objective is to assist Moldova in enhancing competitiveness of

enterprises through improvements in the business environment and modernization of the MSTQ system (national system of standards).

Status: Effective since February 2006 Closing date: 12/31/2009 Task Leader: Mrs. Irina Astrakhan, tel. +1 202 458-8243, iastrakhan@worldbank.org; (CO

Moldova) Mr. Victor Burunsus, tel. +373 22 200706, ext 258 Counterpart: Ministry of Economy and Trade, Minister - Mr. Valeriu Lazar, tel.: +373 22

227306; Fax: +373 22 240055; Competitiveness Enhancement Project Implementing Unit: Aureliu Casian, tel.: + 373 22 233140 / 234037

2. Public Financial Management Project (PFMP)

Amount: USD 8.55 M IDA credit

Co-financing Project preparation is financed through a PHRD grant - USD 0,53 M and a Dutch Government grant - EUR 0,59 M; project implementation is co-financed through grants from the Dutch Government - USD 3.5 M and SIDA - USD 2.02 M

Disbursed: USD 0.00 M Objectives: (i) improving fiscal discipline and strategic resource allocation by placing the

budget into a medium-term perspective ; (ii) ensuring effective budget execution and oversight by streamlining payment authorization arrangements, budget monitoring and reporting; (iii) improving efficiency of expenditure and financial management through better financial planning, centralization of cash balances and reporting; (iv) increasing transparency and accountability by strengthening financial and internal audit capacity at the Ministry of Finance level as well as at each line ministry level, improving accounting, and making budget documents and other general purpose public finance reports available to the public.

Task Leader: Mrs. Svetlana Proskurovska, tel. +1 202 473-0041, fax +1 202 614-7777; e-mail: sproskurovska@worldbank.org, (CO Moldova) Mrs. Elena Nikulina, tel. +373 22 200706, ext. 254

Status: Effective since January 2006 Closing date: 06/30/2010 Counterpart: Ministry of Finance, Minister - Mr. Mihail Pop;

Head of the PFM Project Office, Mr. Oleg Hîrbu, tel. : +373 22 238844

3. Trade and Transport Facilitation in Southeast Europe

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Amount: USD 7.21 M IDA credit

Co-financing: US Government - USD 1.3 M; Government of Moldova – USD 1.19 M Disbursed: USD 6.44 M Objective: The proposed project will adhere to a regional program under implementation for

Trade and Transport Fa cilitation in Southeast Europe that aims to strengthen and modernize the Customs administrations and other border control agencies in seven other Stability Pact countries The project seeks two development objectives: (i) to reduce non-tariff costs to trade and transport; and (ii) to prevent smuggling and corruption at border crossings.

Status: Effective since December 9, 2003 Closing date: 9/30/2007 Task Leader: Ms. Anca Dumitrescu, tel. +1 202 458-9754, e-mail:

adumitrescu@worldbank.org; (CO Moldova) Mr. Sandu Ghidirim, tel.: +373 22 200706, ext. 248

Counterparts: Mr. N.Vilcu, Director General of the MDC, tel.: +373 22 549460, e-mail: vilcu@customs.md; Ms. Ana Sura, Project Manager, tel.: +373 22 549595, e-mail: ttfse@customs.md, ttfse.proc@customs.md

4. Energy II Project

Amount: USD 35 M IDA credit Co-financing: Project preparation activities supported by two PHRD grants of USD 0.7 M for

electricity component and USD 0.4 M for heating component. Co-financing under the project: Swedish International Development Agency (SIDA) grant in an amount equivalent to USD 0.6 M; Gov’t of Moldova – USD 4.33 M.

Disbursed: USD 8.25 M Objective: The project has two major components: (i) power system infrastructure –

investments in upgrade and rehabilitation of metering, dispatch and communications, and rehabilitation of the electricity transmission network; technical assistance for financial restructuring and corporate management of Moldelectrica, and operation, institutional development and regulation of the electricity market; (ii) heat supply and consumption – investments in improvement of heating supply and energy efficiency in selected public and residential buildings, after completion of USAID technical assistance on development of legal, institutional and regulatory framework for privatized residential sector; technical assistance for development of least cost options for improving efficiency of heating supply and consumption in Moldova, and institutional and regulatory reform of heat production and delivery.

Status: Effective since March 2, 2004 Closing date: 4/30/2008 Task Leader: Mr. Dejan R. Ostojic, tel.: +1 202 473-3507, e-mail: dostojic@worldbank.org;

(CO Moldova) Mr. Sandu Ghidirim, tel.: +373 22 200706, ext. 248 Counterparts: Mr. Antosii Vladimir, Minister of Ind. & Infrastruct., tel.: +373 22 278094/

278059; Mr. Vasile Plescan, Director General, Moldelectrica, tel.: +373 22 253350/ 228307; fax: 253142; Consolidated PIU for Energy projects, Mrs. Ludmila Burlui, Director; tel.: +373 22 234706 / 234756; Mr. Valeriu Isaico, Deputy Director for Heating Component, tel.: +373 22 233441; fax: 233441, mepiu@ch.moldpac.md

5. Pilot Water Supply and Sanitation Project

Amount: USD 12 M IDA credit

Co-financing: USD 1.5 M – JSDF grant; USD 0.5 M – Gov’t of Moldova Disbursed: USD 2.46 M

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Objective: The objective of the Project is to enhance the welfare of the population living in some of the poorest rural areas and medium-sized towns and cities by improving the quality, efficiency and sustainability of water supply and sanitation services through: (a) rehabilitating and improving operations of selected water and sewerage systems to increase service quality and efficiency; (b) strengthening Participating Apa Canals to improve sustainability; (c) improving the financial viability and commercial practices of the Participating Apa Canals; (d) starting to involve the local private sector in the above; and (e) rehabilitating water and sanitation services in rural areas.

Status: Effective since September 8, 2003 Closing date: 12/31/2007 Task Leader: Ms. Seema Manghee, tel.: +1 202 473-5702, smanghee@worldbank.org; (CO

Moldova) Mr. Sandu Ghidirim, tel.: +373 22 200706, ext. 248 Counterparts: Agency for Regional Development, Mr. Igori Semenovcher, tel.: + 373 22 228608

/ 221667; Ms. Aurelia Samson, Manager of the PIU, tel.: +373 22 228940 / 228932.

6. Quality Education in the Rural Areas of Moldova

Amount: USD 5 M IDA credit & USD 5 M IDA grant

Co-financing: Preparatory work funded by a USD 0.5 M PHRD grant from the Government of Japan; Government of Moldova - USD 0.19 M

Disbursements: USD 0.00 M Objective: The development objective would be to increase access to quality education for

children from poor families, particularly in rural areas, to improve efficiency in the use of resources and to strengthen the capacity of the system to plan and manage the delivery of educational services.

Status: Effective since March 14, 2006 Closing Date: 05/31/2010 Task Leader: Ms. Ana Maria Parchuc de Jeria Figueroa, tel.: +1 202 458-0369; (CO Moldova)

Ms. Ala Pinzari, tel.: +373 22 200706, ext. 241 Counterparts: Ministry of Education, Youth and Sports (MEYS), Mr Victor Tvircun, Minister,

tel.: +373 22 233348, Ms. Ludmila Stepan, Project Manager, MEYS, tel.: +373 22 232464, fax: +373 22 233034

7. Social Investment Fund II (SIF II)

Amount: USD 20 M IDA credit

Co-financing: The Gov’t of Sweden – USD 4.19 M, Soros Foundation Open Society Institute - USD 0.20 M, KfW - USD 5.58 M, Community contributions – USD 5.19 M, Gov’t of Moldova – USD 5.65 M

Disbursed: USD 4.7 M Objective: The project will contribute to the implementation of Moldova EGPRSP by

empowering poor communities and vulnerable groups to manage their own priority development needs by: (i) higher access and better quality of basic social and economic services and (ii) capacity building at community institutions level

Status: Effective since September 15, 2004. Closing Date: 03/ 31/2010 Task Leader: Mr. Yasser El-Gammal tel.: +1 202 473-2187, e-mail:

yelgammal@worldbank.org, (CO Moldova) Mr. Alexei Ionascu, tel.:+373 22 200706, ext. 247, e-mail: aionascu@worldbank.org

Counterparts: Moldova Social Investment Fund (MSIF) Mr. Boris Popadiuc, Executive Director, MSIF, tel.: +373 22 279121, fax: 279141, e-mail: office@msif.net.md

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8. AIDS Control Project Amount: USD 5.5 M IDA grant Co-financing: Global Fund Against AIDS, Tuberculosis and Malaria has allocated a grant of

USD 5.2 M for 2003-2004, USAID, Gov’t of Moldova – USD 0.23 M Disbursed: USD 2 M Objective: The proposed project aims to improve Moldova's health status and assist the

country to achieve its health-related Millennium Development Goals (MDG) through reducing mortality, morbidity and transmission of HIV/AIDS, other sexually transmitted infections and tuberculosis. Specifically, the project will support Moldova's National Programme for Prevention and Control of HIV/AIDS/STIs (NPAS) and National Programme for TB Control (NPTC) through: (i) scaling up HIV/AIDS/STIs prevention programs target date high-risk groups as well as the general population; (ii) strengthening treatment, care and support for persons living with HIV/AIDS (PLWHA); (iii) implementing DOTS strategy for TB control; and (iv) strengthening Moldova's institutional capacity to better respond to HIV/AIDS/STIs and TB

Status: Effective since October 8, 2003 Closing Date: 07/12/08 Task Leader: Mr. Jesse Maris, tel.: +1 202 458-1988, e-mail: mjesse@worldbank.org, (CO

Moldova) Mrs. Ala Pinzari, tel.: +373 22 200706, ext. 241, apinzari@worldbank.orgm

Counterparts:

PCU Executive Director, Mr. Victor Volovei, tel. : +373 22 202436 / 202437, e-mail: Vvolovei@ucimp.mdl.net

9. Health Investment Fund Project

Amount: USD 10 M IDA credit Co-financing: Project pilot phase supported by a PHRD grant of USD 0.5 M, USD 8.4 M Dutch

grant and USD 1 M SIDA grant, Gov’t of Moldova – USD 1.6 M Disbursed: USD 17.99 M Objective: Improve the health status of the Moldovan population, and to increase the quality

and efficiency of the public health sector by improving access to essential services to the poor. The project will also include support to strategic work aimed at controlling the Tuberculos is (TB) and HIV/AIDS epidemics.

Status: Effective since August 01, 2001 Closing Date: 08/30/06 Task Leader: Ms. Jesse Maris, tel.: +1 202 473-6927, e-mail: mjesse@worldbank.org, (CO

Moldova) Mrs. Ala Pinzari, tel.: +373 22 200706, ext. 241, apinzari@worldbank.orgm

Counterparts: Ministry of Health and Social Protection; PCU Executive Director, Mr. Victor Volovei, tel. : +373 22 202436 / 202437, fax: 238751, e-mail: Vvolovei@ucimp.mdl.net

10. Social Protection Management (SPM)

Amount: USD 11.1 M IDA credit Co-financing: Project preparation activities supported by a PHRD grant of USD 0.5 M from the

Gov’t of Japan, Gov’t of Moldova – USD 3 M Disbursed: USD 5.55 M Objective: Support the implementation of comprehensive reform of the public pension

system and the introduction of a regulatory framework for private pension funds; support implementation of the new organizational structure for social insurance.

Status: Effective since October 04, 1999 Closing Date: 12/31/06 Task Leader: Mr. Hideki Mori, tel.: +380 44 4906671 , e-mail: hmori@worldbank.org , (CO

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Moldova) Mr. Alexei Ionascu, tel.:+373 22 200706, ext. 247, e-mail: aionascu@worldbank.org

Counterparts: Ministry of Health & Social Protection (MHSP) Mr. Mandru, Deputy Minister, MHSP, tel.: +373 22 729690; Ms. Ala Scalschi, Head of Project Coordination Unit , tel.: +373 22 725300

11. Rural Investment and Services Project (APL II)

Amount: US$ 7.5 M IDA credit & US$ 7.5 M IDA grant Co-financing: Gov’t of Moldova, SIDA, DFID,TACIS Disbursed: USD 0.00 M Obje ctive: The project is the Second Phase of a two-phase Rural Investment and Services

Program. The Program objective, which remains unchanged, is to provide long-term support to accelerate agricultural recovery and growth so that Moldova’s agricultural and rural sectors can play their full role in providing the underpinnings for future income growth and poverty reduction.

Status: Effective since March 29, 2006 Task Leader: Mr. Pierre Olivier Colleye, Program Team Leader, tel.: +1 202 473-5039, (CO

Moldova) Mr. Anatol Gobjila, tel. +373 200706, ext. 259 Counterparts: Ministry of Agriculture and Food Industry and Ministry of Finance, Consolidated

Agriculture Projects Management Unit (CAPMU), tel./fax: +373 22 244469 / 223106

12. Rural Investment and Services Project (APL I)

Amount: USD 15.5 M IDA credit Co-financing: Gov’t of Moldova, TACIS, GEF, SIDA, DFID Disbursed: USD 19.07 M Objective: Increase rural incomes and living standards by promoting rural entrepreneurship,

agricultural production, economic diversification and trade in the rural areas. The project will seek to achieve these goals through: (a) providing public investment support to alleviate key institutional constraints in farmers’ group formation, supporting development of marketing institutions and infrastructure for improved access to input and output markets, and developing a rural advisory service capable of meeting the multiple demands of newly created, private rural entrepreneurs’ business needs; (b) providing investment and working capital at commercial terms to support a broad range of agribusiness through a commercial banking system (commercial banks and RFC through SCAs); (c) providing technical assistance to build capacity among newly created farm-organizations and groups, to strengthen the rural financial system through capacity building support for commercial banks, Rural Finance Corporation (RFC), and Savings and Credit Associations (SCAs); and (d), improving the legal and regulatory systems to support commercial lending to rural clients, including strengthening the regulatory and supervisory capacity of the State Supervisory Body and National Federations of SCAs.

Status: Effective since 30 August 2002 Closing Date: 12/31/06 Task Leader: Mr. Pierre Olivier Colleye, Program Team Leader, tel.: +1 202 473-5039, (CO

Moldova) Mr. Anatol Gobjila, tel. +373 200706, ext. 259 Counterparts: Ministry of Agriculture and Food Industry, (CAPMU), tel./fax: +373 22 244469 /

223106.

13. First Cadastre Project Amount: USD 15.9 M IDA credit, USD 3 M Additional Financing Co-financing: Preparatory work funded in part by two PHRD grants from the Government of

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Japan in a total amount of USD 1.2 M, Gov’t of Moldova USD 4 M plus USD 1.5 M for the Additional Financing, Government of Switzerland – USD 2.8 M; Government of Sweden – USD 1.8 M.

Disbursed : Main IDA credit – completed USD 15.85 M, Add. Fin. – USD 0.5 M Objective: In the long run - to promote the privatization of land and the development of real

estate markets in Moldova. To establish a national unified multi-purpose real estate registration system that will provide: (i) property owners with security of ownership rights such that they can sell or rent at fair market prices and pass on their holdings as inheritances; (ii) commercial banks with the confidence necessary to give secured credit against real estate; (iii) the real estate market with information on ownership and location of property as needed for the market to function effectively; (iv) government agencies and institutions with basic information for urban planning and land management; (v) the Government with a basis for future revenue generation mechanisms through property taxation (fiscal cadastre); and (vi) the private sector with opportunities to develop in areas related to real estate registration (surveyors, notaries, valuators).

Status: Effective since March 2, 1999 Closing Date: 06/30/07 Task Leader: Ms. Maha, J. Armaly, tel.: +1 202 473-7057, e-mail: marmaly@worldbank.org,

(CO Moldova) Mr. Sandu Ghidirim, tel.: +373 22 200706, ext. 248

Counterparts: Agency for Land Relations and Cadastre (ALRC) Mr. Stefan Crigan, Acting Director General, ALRC, tel.: +373 22 229598, fax: +373 22 226373; Project Implementation Office, Mr. Valeriu Ginju, Acting Manager, tel.: +373 22 226589 / 212719, fax: +373 22 224220; e-mail: info@pio.cadastre.md

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PROJECTS UNDER PREPARATION

1. Poverty Reduction Support Credit Amount: USD 10 M IDA financing Co-financing: SIDA, DFID, EU Objective: The proposed PRSO for the Republic of Moldova follows an intensification of the

Government’s reform efforts over the past several years and is intended to bolster and deepen those efforts. More specifically, it aims to enhance the Government’s ability to accelerating economic growth and improve the efficiency of its social programs and public administration – key elements in poverty reduction. To this end, the proposed PRSC will support selective areas of the Government’s reform agenda, as outlined in the PRSP and EU-Moldova action plan. Closely aligned with CAS, the PRSC will support the EGPRSP objectives of: improving the investment climate, improving the efficiency and management of public resources, strengthening pension and social assistance systems.

Status: Under preparation Task Leader: Mr. Lawrence Bouton, tel.: +1 202 473-9158 Counterparts: Government of Moldova

2. Prim Health Care Amount: USD 10 M IDA Co-financing: COE Development Bank Objective: The project would aim at: (i) increasing equitable access to quality health services

through strengthening primary health care and optimizing the hospital sector; and (ii) improving the policy making process through the development and implementation of a system for monitoring and evaluating health sector performance.

Status: Under preparation Task Leader: Dna Jesse Maris, tel.: +1 202 458-1988, (Oficiul din Moldova) dna Ala Pînzari,

tel.: +373 22 200706, ext. 241, apinzari@worldbank.orgm Counterparts: Ministerul of Health and Social Protection

3. Avian Influenza Control & human Pandemic Preparedness & Response Amount: USD 10 M IDA Co-financing: Gov’t of Japan Objective: The overall objective of the Project is to minimize the threat posed to humans by

Highly Pathogenic Avian Influenza (HPAI) and other infectious diseases that originate in animals. To achieve this, the Project will conduct surveillance for outbreaks of such diseases, prepare for outbreaks, and act to control outbreaks among humans and animals.

Status: Under preparation Task Leader: Dl Anatol Gobjila, tel.: +373 22 200706, ext. 259 Counterparts: Ministerul Agriculturii si Industriei Alimentare, dl Anatolie Gorodenko –

Ministru; Ministerul Sanatatii si Protectiei Sociale, dl Ion Ababii – Ministru COMPLETED PROJECTS

1. First Structural Adjustment Loan (SAL I) Amount: USD 60 M IBRD loan. Co-financing: Government of Netherlands: NG 10 M. Objective: To support the further implementation of the macroeconomic stabilization

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and structural reform program. Status: Closed in May 1997, fully disbursed.

2. Structural Adjustment Project II (SAL II) Amount: USD 55 M IBRD loan and USD 45 M IDA credit Co-financing: Preparatory work funded in part by a PHRD grant from the Government of

Japan. Associated TA program cofinanced by USAID, TACIS, GTZ, and the Government of the Netherlands.

Objective: Restore growth and sustain macroeconomic stabilization by deepening structural reforms and eliminating payment arrears.

Status: Closed. Last disbursement in May 1999.

3. Structural Adjustment Credit (SAC) Amount: USD 45 M IDA credit Co-financing: Government of Netherlands: USD 20 M Objective: Restore growth and sustain macroeconomic stabilization by deepening structural

reforms, with a special focus on agriculture and energy. Status: Closed in December 2001, fully disbursed.

4. Third Structural Adjustment Credit (SAC III) Amount: USD 30 M IDA credit Co-financing: Not determined. Objective: Support the Government’s reform program necessary to create conditions for

sustainable growth and improvement of the livings standards in Moldova. Status: Disbursed the first tranche, USD 10 M. Cancelled. Task Leader: Mr. Lawrence Bouton, tel.: +1 202 473-9158. Counterparts: Ministry of Finance (MOF), Mrs. Zinaida Grecianii, Minister of Finance, tel./ 233-575; f

22 228610, Ministry of Economy and Reforms (MOER), NBM.

5. Emergency Drought Recovery Project Amount: USD 26 M IBRD loan Co-financing: None. Objective: To alleviate the impact of the 1992 drought. Status: Closed in May 1994, fully disbursed.

6. Rehabilitation Loan Amount: USD 60 M IBRD loan Co-financing: USD 40 M JEXIM, USD 4.2 M Netherlands. Objective: To support the initial phase of economic reform. Status: Closed in March 1995, fully disbursed.

7. Energy Project I Amount: USD 9.1 M IBRD loan Co-financing: Technical Assistance from USAID. Objective: Improve the metering of gas consumption, and the efficiency of electricity

production and gas distribution. Support the implementation of a framework for ensuring the financial viability of the energy companies.

Status: Completed on 06/30/01 Task Leader: Ms. Jann Masterson, tel.: +1 202 473-5005, fax: +1 202 477-8518,

e-mail: jmasterson@worldbank.org.

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Counterparts: Ministry of Energy, Department of Energy (DOE), Moldovagaz, CHP II. Mr. Iacob Timciuc, Minister of Energy, tel.+373 22 278059; Consolidated PIU for Energy projects, Valeriu Stavinschi, Director, tel.: +373 22 234706 / 234756; fax: +373 22 233441; e-mail: mepiu@ch.moldpac.md

8. Agriculture Project I

Amount: USD 10 M IBRD loan Co-financing: Preparatory work funded in part by a PHRD grant from the Government of Japan. Objective: Support for the development of Moldova’s agricultural research system; and

technical assistance for strengthening agriculture knowledge system and preparation of future lending operations in agriculture.

Status: Completed on 12/31/2001. Task Leader: Ms. Hoonae Kim, tel.: +1 202 473-2550. Counterparts: Ministry of Agriculture and Food (MAF), Selectsia, Moldagroeco, National

Viticulture Institute, Research Institute for Fruit Production, Consolidated Agriculture Projects Management Unit (CAPMU), Mr. Eugen Revenco, Project Manager, tel.: +373 22 244469

9. Rural Finance Project

Amount: USD 5 M IDA credit Co-financing: Preparatory work funded in part by a USD 0.5 M PHRD grant from the

Government of Japan. Pilot phase co-financed by the Government of the Netherlands - USD 0.08 and the Soros Foundation - USD 0.08. Additional co-financing from GTZ - USD 0.5 TA for developing Savings and Credit Associations.

Objective: To develop rural credit delivery mechanisms for private farmers and finance on-farm private activities in the rural sector.

Status: Completed on 06/30/01 Task Leader: Ms. Hoonae Kim, Program Team Leader, tel.: +1 202 473-2550. Counterparts: Mr. Igor Gorasov, Director, CAPMU, tel./fax: +373 22 244469 / 223106,

e-mail: rfpiu@ch.moldpac.md.

10. Private Sector Development Project I (PSD I) Amount: USD 35 M IBRD loan Co-financing: Preparatory work funded in part by a PHRD grant of USD 0.412 M from the

Government of Japan. Netherlands: USD 2.1 M; Germany: USD 2.0 M; EC TACIS: ECU 3.4 M; USAID: USD 1.4 M

Objective: Support reform program in the enterprise and financial sectors, through post-privatization assistance, automation of the tax administration, credit line through local commercial banks to private enterprises, technical assistance to participating local banks, automation of tax offices automation of the NBM, and the further development of the payments, clearing systems.

Status: Completed on 06/30/02 Task Leader: Ms. Irina Astrakhan, tel.: +1 202 588-243 Counterparts: Agency for Restructuring and Enterprise Assistance (ARIA)

Mr. Gheorghe Efros, Executive Director, ARIA tel.: +373 22 278018 / 278069, fax: +373 22 278006, e-mail: gefros@aria.mldnet.com); Ministry of Finance, Ms. Olga Ponomariov, PIU deputy director), tel/fax: +373 22 226131, e-mail: piumd@piumd.mldnet.com; Ms. Veronica Jurminschi, Technical Unit Directorate, tel.: +373 22 238246 / 238247, e-mail: vmalai@yahoo.com.

11. Social Investment Fund (SIF)

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Amount: USD 15 M IDA credit. Co-financing: A PHRD grant of USD 0.37 M from the Government of Japan to support

preparation was approved in July 1997. Co-financing by Soros Foundation Open Society Institute - USD 0.15 M, the Government of Sweden - USD 1.25 M and the Government of the United Kingdom - GBP 2.74 M. The pilot phase was co-financed by USAID - USD 0.50 M and the Government of Sweden - USD 0.50 M.

Objective: To build local community and municipal capacity and skills through rehabilitation of social infrastructure; improve delivery of social services; create short-term employment opportunities in rural areas by financing small-scale public works; and support micro-business development.

Status: Completed on 11/30/04 Task Leader: Mr. Alexei Ionascu, tel.:+373 22 200706, ext. 247, e-mail:

aionascu@worldbank.org Counterparts: Moldova Social Investment Fund (MSIF),

Mr. Boris Popadiuc, Executive Director, MSIF, tel.: +373 33 279121; fax: +373 22 279141, e-mail: office@msif.net.md

12. General Education Project

Amount: USD 11.8 M IBRD loan and USD 5 M IDA credit Co-financing: Preparatory work funded partly by a USD 0.41 M PHRD grant from

the Government of Japan and a Trust Fund from the Government of the Netherlands

Objective: Support the introduction of new general education standards. Develop, test and implement new curricula, teaching materials, textbooks, teaching methodology, and teacher training.

Status: Completed on 06/30/04. Task Leader: Ms. Reema Nayar, tel.: +1 202 473-3468. Counterparts: Ministry of Education, Ms. Ludmila Stepan, PIU Director, tel.: +373 22

232464, fax: +373 22 233034.

13. Private Sector Development II (PSD II) Amount: USD 9 M IDA credit Co-financing: Preparatory work financed in part from a PHRD grant of USD 0,642 M from the

Government of Japan. Pilot phase co-financed by GTZ. Objective: Strengthen the competitiveness of private and privatized enterprises in Moldova

through the hands -on training of local managers abroad (human capital investment) and creation of a Competitiveness Center (market information and benchmarking)

Status: Completed on 03/30/05 Task Leader: Ms. Irina Astrakhan, tel.: +1 202 588-243 Counterparts: Competitiveness and Productivity Center(CPC)

Mr. Gheorghe Efros, Executive Director, CPC, tel.: +373 22 753945, fax: +373 22 753638, http://www.aria.md/cpc; Ministry of Finance, Ms. Olga Ponomariov, PIU deputy director, tel./fax: +373 22 226131, e-mail: piu@arax.md

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IFC PROJECTS PROJECTS UNDER IMPLEMENTATION

1. Union Fenosa Amount: USD 50 M. IFC Financing: USD 25 M on IFC’s own account Co-financing: EBRD Objective: The IFC/EBRD financing will support the plan to strengthen and expand current

distribution networks and achieve greater efficiencies in the electricity sector. Status Committed in December 2001. Partially disbursed. Contacts: Elena Corman, IFC Program Assistant, tel.: +373 22 200706, ext. 243 Task Leader: Mr. Adil Marghub, tel.: +1 202 473-7134 Counterparts: Mr. Ignacio Ibarra, General Manager, tel.: +373 22 431655

2. MEC Moldova Amount: USD 5 M TA – USD 2.2 M IFC Financing: USD 0.1 M – equity

USD 0.9 M – subordinated loan Co-financing: Dutch fund “Stichting DOEN”, German consulting company “IPC Internationale

Projekt Consult” GmbH, EBRD, Western NIS Enterprise Fund. Objective: IFC’s first transaction under a new microfinance capacity building facility, to

provide access to long-term credit to micro and small enterprise sector. Status Approved in July 2000. Partially disbursed. Contacts: Elena Corman, IFC Program Assistant, tel.: +373 22 200706, ext. 243 Task Leader: Mr. Aftab Ahmed, tel.: +1 202 473-8798 Counterparts: Mr. Philipp Pott, General Manager, tel.: +373 22 271707

3. Voxtel Project Amount: USD 65 M. IFC Financing: USD 15 M on IFC’s own account, USD 25 M – syndicated loan, USD 1.5 M. –

equity. Co-financing: Dresdner Kleinwort Benson, Societe Generale, WestLB, Banque Nationale de

Paris Objective: Establishment of a nation-wide Global Systems for Mobile Communications

(GSM) mobile telephone network in Moldova to help meet the urgent need for better telecommunications.

Status Committed in April, 1999. Partially disbursed. Contacts: Elena Corman, IFC Program Assistant, tel.: +373 22 200706, ext. 243 Task Leader: Mr. Pascal Leccia, tel. +1 202 473-3980. Counterparts: Mr. Francis Gelibter, General Manger, tel.: +373 22 590365

4. Moldovan Banks Credit Line Amount: For Moldindconbank – USD 3 M.; for Finance and Trade Bank – USD 1.5

M IFC Financing: USD 4.5 M on IFC’s own account. Co-financing: None. Objective: Two privately-owned Moldovan banks, receive comprehensive technical

assistance (TA) and credit lines to provide term loans to small and medium-sized enterprises.

Status Moldindconbank-fully disbursed.

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FinComBank-approved in July, 2000. Contacts: Elena Corman, IFC Program Assistant, tel.: +373 22 200706, ext. 243 Counterparts: Moldindconbank, Victor Cibotaru, Chairman, tel.: +373 22 225521 and

FinComBank, Victor Hvororstovschii, Chairman, tel.: +373 22 227435 COMPLETED PROJECTS

5. Victoriabank

Amount: USD 8 M IFC Financing: USD 4 M Co-financing: EBRD Objective: Credit line for on-lending to small and medium-sized enterprises in the country Status: Fully disbursed. Contacts: Elena Corman, IFC Program Assistant, tel.: +373 22 200706, ext. 243 Task leader: +373 22 200706 Counterparts: Victor Turcanu, Chairman, tel.: +373 22 233065

6. INCON Investment Amount: USD 22.6 M IFC Financing: USD 4.04 M - loan, USD 2 M - equity. Co-financing: Moldova Agroindbank. Objective: Post-privatization restructuring, modernization and expansion of three fruit and

vegetable processing plants in Moldova. Status Completed in December 1997. Contacts: Elena Corman, IFC Program Assistant, tel.: +373 22 200706, ext. 243 Counterparts: Mr. Ion Zgarcibaba, Chairman, INCON, tel.: +373 22 249143

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TA / GRANTS PROJECTS UNDER IMPLEMENTATION

1. Energy Conservation and Emissions Reduction Amount: USD 2.18 M will be paid to the participating in the project municipalities by

CDCF pending verification that the Emissions Reduction are delivered as planned Co-financing: -- Objective: The main objective of the project is to improve the quality and efficiency of

heating in selected priority public buildings and thus reducing energy consumption and greenhouse gases emissions. This will also enable Moldova to benefit from the carbon market.

Status: Under preparation Task Leader: Mr. Samir Suleymanov, tel.: +1 202 473-0943; fax: +1 202 522-1164, (CO

Moldova) Mr. Anatol Gobjila, tel.: +373 22 200706, ext. 259 Counterparts: Ministry of Ecology and Natural Resources; Mrs. Stela Drucioc, tel.: +373 22

226847 / 226860

2. Public Heating Biomass in Rural Communities Amount: USD 1.5 M, Carbon Fund Co-financing: SIF, community Objective: The central idea of the project is to use carbon values as the catalyst for clean

technology and renewable energy (biomass) fuelled systems to be made widely available and on affordable terms to poor rural communities to heat public service buildings. The present project will generate an added value to Moldova Social Investment Fund (SIF) II Project, under implementation in Moldova, through gained greenhouse gas emissions (GHG) reduction benefits, directed towards SIF project participants, thus creating incentives for further implementation of GHG mitigation measures.

Task Leader: Mr. Anatol Gobjila, tel.: +373 22 200706, ext. 259 Status: Under implementation Counterparts: Ministry of Ecology and Natural Resources, Mrs. Stela Drucioc, tel.: +373 22

226847 / 226860

3. Sustainable POPs Stockpile Management Amount: USD 4.5 M, Global Environment Facility (GEF) Co-financing: WB Energy II project; Government of Moldova; Other donors Objective: The main development objective of the project would be sustainable POPs

stockpiles management and disposal for their future final destruction and ensuring that the POPs pollution will not recur in the future. The global project objective is to prevent the POPs pollution of the environment and to protect the human health by the environmentally safe packaging and storage of obsolete pesticides and PCBs; by improving the overall management of POPs; and by creating national capacities for the implementation of the Stockholm Convention requirements, and of those stipulated under other relevant international Conventions and Protocols ratified by Moldova.

Task Leader: Mrs. Rita Klees, tel. +1 202 473-0522; fax. +1 202 522-1164; (CO Moldova) Mr. Anatol Gobjila, tel.: +373 22 200706, ext. 259

Status: Under implementation. Approved by the Board at 12/15/2005 Counterparts: Ministry of Ecology and Natural Resources, Minister, Mr. K. Mihailescu;

Mr. Valentin Pleasca, tel.: +373 22 226254

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4. Renewable Energy from Agricultural Wastes Amount: USD 1 M Global Environment Facility (GEF) Co-financing: WB RISP; Japanese 2 KR grant Disbursed: USD 0.13 M Objective: The main project development objective is to overcome barriers to the update of

biomass technology by providing examples of best practice in the use of biomass fuelled energy systems as a viable alternative to gas, oil and coal and as a sustainable means of addressing the energy supply problems that rural communities and agro-enterprises face.

Task Leader: Mr. Anatol Gobjila, tel.: +373 22 200706, ext. 259 Status: Effective since July 05, 2005 Closing date: June 30, 2007 Counterparts: CAPMU; A. Catanoi, tel.: +373 22 244465

5. Soil Conservation Project

Amount: USD 5.18 M Carbon Fund grant Co-financing: State Forestry Agency “Moldsilva” and local authorities (in kind). The project will

also generate revenues from the sale of timber from thinning and harvesting, as well as from non-wood forest products.

Disbursed: USD 0.36 M Objective: The project proposes to afforest 14,500 ha of degraded lands and thus to increase

the country's forests cover and protect most valuable national resources – soils. The Project will also achieve carbon sequestration and mitigation of greenhouse gases concentration, as well as will enable Moldova benefit from the carbon market.

Status: Effective since January 23, 2004 Closing date: March 30, 2006 Task Leader Mr. Anatol Gobjila, tel.: +373 22 200706, ext. 259 Counterparts: State Forestry Agency “Moldsilva”, Mr. A. Popusoi, General Director, tel.: +373

22 277349, Mr. Dumitru Galupa, tel.: +373 22 432808 / 432805

6. Agricultural Pollution Control Project Amount: USD 4.95 M Global Environment Facility (GEF) Co-financing: Gov’t of Moldova – USD 1.04 M, local communities USD 0.72 M, local Gov’ts –

USD 0.1 M, WB RISP Project – USD 3.93 M Disbursed: USD 2.16 M Objective: The overall project development objective is to increase significantly the use of

environmentally friendly agricultural practices by farmers and agro-industry and thereby reduce nutrient discharge from agricultural sources in Moldova to the Danube River and Black Sea. In support of this objective, the project will assist the Government of Moldova to: (i) promote the adoption of mitigating measures by farmers and agro-industry for reducing the nutrient loads entering the water bodies; (ii) strengthen national policy, regulatory enforcement and institutional capacity for agricultural nutrient pollution control and organic farming; and (iii) promote a public awareness campaign and replication strategy. The project provides a mix of investments and policy related activities to mainstream environmental concerns in the agriculture sector. It is implemented in close association with the IDA-funded Rural Investment and Services Project (RISP) and harnesses synergies between the two projects, assisting farmer and agro-industry beneficiaries of RISP to put in place the mitigating measures necessary to reduce nutrient discharge.

Status: Effective since March 22, 2004 Closing date: December 31, 2009

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Task Leader: Mr. A. Nacev, tel.: +1 202 473-0522, fax: +1 202 522-1164; (CO Moldova) Mr. Anatol Gobjila, tel.: +373 22 200706, ext. 259

Counterpart: Ministry of Ecology and Natural Resources, Mr. Alexandru Jolondcovschi, tel.: +373 22 221586

7. Youth Voices Group

Amount: USD 0,045 M Objective: Youth Voices Groups is an initiative intended to establish a mutual learning

process between young people and the World Bank. The initiative provides a platform for members to bring fresh ideas to the work of the World Bank; make recommendations based on their experiences, perspectives and priorities; provide inputs during preparation of the Bank's analytical and advisory activities; and participate in monitoring and evaluation activities. In addition, the initiative provides a vehicle for the World Bank to support leadership and professional skills development by helping young people participate in events that increase their knowledge base, support their professional development and leadership skills, and empower them to become agents of change in their own countries and regions.

Status: Effective since March 27, 2004. Closing Date: 7/1/06 Task Leader: Gloria La Cava , tel.: +1 202 458-7646 Local Coordinator: Ala Pînzari, Operations Officer, tel.: +373 22 200706, ext. 241,

apinzari@worldbank.orgm; Mr. Igor Casapu - consultant, tel.: +373 22 237065 / 232737

8. Development of Public Procurement Infrastructure

Amount: USD 0.375 M IDF grant Disbursed: USD 0.2 M Objective: Strengthen institutional capacity for public procurement as a necessary

prerequisite for successful implementation of an ambitious program of government procurement reform measures agreed in the action plan attached to the 2003 Country Procurement Assessment Report.

Status: Effective since May 01, 2004 Closing Date: April 21, 2007 Task Leader: Ms. Anna Wielogorska, tel.: +380 44 490-6671, e-mail:

awielogorska@worldbank.org Counterparts: National Public Procurement Agency, Mr. Gheorghe Axenti, Deputy Director, tel.:

+373 22 234135, e-mail: axenti@moldova.md PROJECTS UNDER PREPARATION

9. Environmental Protection project Amount: USD 5 M Global Environment Facility (GEF) Co-financing: WB Pilot Water Supply and sanitation project,

Gov’t of Moldova – USD 3.5 M Objective: To reduce the discharge of nutrients from municipal and rural sources into the

Nistru River and the Black Sea. The purpose is to proceed with investments that have low operating costs, limited energy consumption and relatively good nutrient-removal rates. The project will also assist Moldova in beginning to develop a Transnational Nistru River Basin Management System. The aim is to replicate the project at other priority sites in Moldova, Ukraine, Russia and other countries of the region.

Status: Under preparation

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Task Leader Ms. Seema Manghee, tel.: +1 202 473-5702, (CO Moldova) Mr. Sandu Ghidirim, tel.: +373 22 200706, ext. 248

Counterparts: Agency of Regional Development , Ms. Aurelia Samson, tel. +33 22 228940 / 228932

10. Courts Reform (IDF Grant)

Amount: USD 0.38 M IDF grant Co-financing: None Objective: Support to the Courts Reform Task Leader: Mrs. Lubomira Zimanova Beardsley, tel.: +1 202 458-8164, e-mail:

Lbeardsley@worldbank.org Status: Under preparation Counterparts: NA

11. TA on Public Administration Reform Amount: NA Co-financing: Multi-donor trust fund Objective: Support to the Public Administration Reform Task Leader: Mrs. Svetlana Proskurovska, tel. +1 202 473-0041, fax +1 202 614-7777; e-mail:

sproskurovska@worldbank.org, (CO Moldova) Mrs. Elena Nikulina, tel. +373 22 200706, ext. 254

Status: Under preparation, expected to become effective end of 1st half of 2006 Counterparts: NA

12. TA for the Court of Account Amount: NA Co-financing: Identification mission funded by DFID, multi-donor trust fund Objective: Supplemental to Public Financial Management Task Leader: Mrs. Svetlana Proskurovska, tel. +1 202 473-0041, fax +1 202 614-7777; e-mail:

sproskurovska@worldbank.org, (CO Moldova) Mrs. Elena Nikulina, tel. +373 22 200706, ext. 254

Status: Under preparation, expected to become effective beginning of 2nd half of 2006 Counterparts: NA COMPLETED PROJECTS

1. Institution Building for Energy Sector Reform Amount: USD 0.47 M of which USD 0.38 M IBRD IDF grant Co-financing: None Objective: Develop capacity of the Department of Energy; develop principles of tariff

regulation and strengthen billing and payments systems of the energy utilities. Status: Completed in December 1997

2. Water Quality Study Amount: NA Co-financing: Grant from the Environmental program for the Danube River Basin (GEF). Objective: An applied research study on the quality of rural drinking water. Status: Completed end-1997.

3. Environment Compliance and Enforcement Capacity Building

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Amount: USD 0.36 M of which 0.31 – IDF grant Co-financing: USD 0.05 M from UNDP Objective: Identify and prepare initial description of environmental projects, in the context of

the National Environmental Action Plan, to be considered by donors and investors, and manage the implementation of environmental projects funded by the government.

Status: Completed in July 1997

4. Development of Public Procurement Legislation Amount: USD 0.09 M IBRD IDF grant Co-financing: None. Objective: To prepare a draft public procurement law for Moldova. Status: Completed on 5/1/97

5. Enterprise Accounting Reform Amount: USD 0.56 M of which USD 0.47 M IBRD IDF grant. Co-financing: None Objective: Strengthen the accounting and financial reporting framework for private and state-

owned enterprises in Moldova; establish an institutional framework to coordinate and assist with the implementation of accounting reforms.

Status: Completed on 10/1/97

6. Health Care Reform Amount: USD 0.43 M of which USD 0.37 M IBRD IDF grant Co-financing: None Objective: Support the design and implementation of a health care reform strategy, with a

specific focus on rationalizing health care expenditure, defining a basic benefits package, and designing and testing a sustainable health care financing mechanism.

Status: Completed on 8/1/98

7. Household Survey Reform Amount: NA Co-financing: UNDP and the Government of the Netherlands Objective: Support the design and initial implementation of an integrated household survey

which will produce nationally representative data to monitor household welfare and access to social infrastructure and services.

Status: Completed in June 1998.

8. Social Expenditure Reform (IDF Grant) Amount: USD 0.56 M of which USD 0.49 M IBRD IDF grant Co-financing: None Objective: To support the Government’s efforts to promote social sector reform through a

combination of stronger expenditure management and deeper structural reform of basic social services

Status: Completed on 10/30/2000 Task Leader: Mrs. Elena Nikulina, tel.: +373 22 200706, ext. 254 Counterparts: Ministry of Finance (MoF), Mrs. Zinaida Grechanii, Deputy Minister, MoF

9. Y2K Grant

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Amount: USD 0.35 M of which USD 0.1 M National Action Plan grant (grant #1: 1999-2000) and USD 0.25 M Implementation grant (grant #1: 2000-2001)

Objective: Y2K Grant has two components: the National Action Plan grant and Implementation grant. The major objectives are: gathering international information and experiences on Y2K; conferences for all stakeholders on the significance of the Y2K problem; database of the information on all stakeholders to (i) facilitate communication flow; and (ii) itemize Y2K related equipment and software problems of each stakeholder; risk assessment and classification of the data in terms of risk exposure and impact, remediation options, resource requirements; develop strategies and priorities for inclusion in the National Action Plan; develop the National Action Plan including methodologies for addressing the Year 2000 problem; Y2K Hot-line and Technical Support Centre that will develop compliance and reporting standards, methods for data collection, solution sharing; web page for information gathering and dissemination. The critical systems are: information systems of energy, railway sectors, Ministry of Labor, Social Protection and Family, etc.

Status: Completed in 2001. Task Leader: Mr. Carlos Braga, tel.: +1 202 473-3927 Counterparts: Ministry of Transport and Communications (MOTC), Mr. Nicolae Cristea, tel.:

+373 22 224086

10. Strengthening Moldova Statistics (IDF Grant) Amount: USD 0.45 M IBRD IDF grant Co-financing: None Objective: To strengthen institutional capacity for data collection, implementation of system

of national accounts, forecasting of major macro indicators and information dissemination.

Status: Completed Task Leader: Ms. Olga Ivanova, tel. : +1 202 473-3818, fax. +1 202 522-3669. Counterparts: Department of Statistics (DoS), Mr. Vitalie Valkov, Director of DOS tel.: +373 22

262010 / 233549

11. Strategic Studies Center Amount: USD 0.4 M as Project Preparation Facility for the Second Structural Adjustment

Project. Co-financing: USD 0.5 M from UNDP Objective: Establish a Strategic Studies Center: (i) support the preparation and

implementation of the SAL II program, (ii) carry out research on the economic reform process, (iii) provide scientific basis for structural transformations, (iv) determine economic development prospects, (v) promote economic reforms, and (vi) prepare a medium-term strategy for development.

Status: Completed Task Leader: Mr. Mark Davis, tel.: +1 202 473-2330. Counterparts: Strategic Studies Center (SSC), Mr. Anatol Gudym, Director, SSC,

tel.: +373 22 232237/232238, fax: + 373 22 248607, e-mail: lcaras@un.md

12. Public Sector Reform Preparation (PHRD grant) Amount: USD 0.49 M grant for the preparation of the First Credit for the Public Sector

Reform Objective: Support the preparation of the Public Sector Reform Credit (PSR) 1.

PSR project was expected to have three major objectives: (i) public sector reform – build a market-oriented public administration which meets EU “best practice” standards; (ii) private sector development – build a public sector which

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provides a supportive partner for the private sector, and an appropriate framework for private sector development; (iii) public expenditure management – build a robust, sustainable and effective public sector resource management system which provides for high levels of (1) fiscal control, (2) strategic prioritization and, (3) technical efficiency in budget execution. PHRD grant was expected to finance project preparation activities under the following three components: public expenditures management, public administration reform, reforming the role of the state in the social sectors.

Status: The grant expired and closed. Task Leader: Ms. Alma Kanani, tel. +1 202 473-7659, Mrs. Elena Nikulina , tel.: +373 22

200706, ext. 254 Counterparts: Mr. Pentelei Tiltu, Head of the State Chancellery, tel.:+373 22 232290, fax:

+373 22 242696; Mr. Stefan Odagiu, Deputy Prime Minister, Minister of Economy and Reforms, tel.: +373 22 23267; Ms. Zinaida Grecianii, Minister of Finance, tel.: +373 22 233575.

13. Biodiversity Strategy Development

Amount: USD 0.125 from the Global Environment Facility (GEF). Objective: Assist the Republic of Moldova in implementing Article s 6 and 8 of the

Convention on Biological Diversity. Support formulation and adoption of strategies and actions for the protection and sustainable use of bio-diversity, through a participatory process involving the public and private sectors and local NGOs.

Status: Completed Task Leader: Mr. Phil Brylski, tel.: +1 202 473-7031; fax: +1 202 522-1164. Counterparts: Ministry of Environment (MOEnv), Mr. Ion Raileanu, Minister, MOEnv, tel.:

+373 22 226161, fax: +373 22 233806, Mr. Alexandru Teleutsa, Grant Manager, MOEnv, tel.: +373 22 265112

14. Agriculture Restructuring Agency

Amount: NA Co-financing: Netherlands USD 1.5 M, TACIS ECU 2.5 M, USAID. Objective: Create a non-governmental agency to support rural households in the process of

land reform and the restructuring of the former kolkhoz in order to fit into the market economy. To advise the Government and the decision making factors on the needed changes in the law system and the agricultural policy in order to promote the privatization in the agricultural sector.

Status: Closed Task Leader: Dl Csaba Csaki, tel: +1 202 473-8099, fax: +1 202 522-1164. Counterparts: Agriculture Restructuring Agency (ARA), Mr. Victor Moroz, ARA Director, tel.:

+373 22 223111 / 248662 / 248-541, fax: +373 22 248662, e-mail: ambros.dotzer@ara.moldova.net

15. The Creditors Committee Secretariat

Amount: NA Co-financing: USD 0.4 M from the Government of the Netherlands. Objective: Offer support services to the Creditors’ Committee in the enterprise isolation

program, which provides for out-of-court procedures for creditor-led enterprise restructuring.

Status: Completed Task Leader: Ms. Sonja Brajovic -Bratanovic, tel.: +1 202 473-2985 Counterparts: Ms. Elena Botsan, Director of the Secretariat, tel.: +373 2243425 / 225279

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16. Real Estate Reform Amount: USD 0.2 M IBRD IDF grant Co-financing: Technical assistance of USD 0.6 M from the Government of Netherlands.

Japanese PHRD grant of USD 0.5 M Objective: Support the design of a comprehensive national real estate reform strategy in

Moldova; support the transition to a market-oriented system of housing finance, construction and management.

Status: Completed Task Leader: Mr. Mats Andersson, tel.: +1 202 458-5578, fax: +1 202 522-3641.

17. Strengthening Analytical Capacity and Participation for Economic Growth and Poverty Reduction Strategy Paper (PRSTF)

Amount: USD 0.42 Trust Fund Co-financing None Objective: To assist the Government in the preparation and implementation of the EGPRSP

through (a) strengthening analytical capacity of Government officials and filling knowledge gaps necessary for developing sector strategies and EGPRSP; and (b) strengthening participation by institutionalizing the participatory process and enabling participation and consultations with key stakeholders.

Status: Completed on 6/30/04 Task Team Leader: Mrs. Jariya Hoffman, tel:. +1 202 458-9561 Counterparts: Ministry of Economy, Mr. Marian Lupu, Minister, tel:. +373 22 250107

18. MSP GEF Biodiversity Conservation in the Lower Nistru River Amount: USD 0.98 M from the Global Environment Facility (GEF), USD 0.5M – IDA Objective: The main objectives are to address to the needs of improvement of water

management, pollution control and conservation of the biodiversity of the Nistru River. Within the project are planned different activities at the local level on soil quality improvement, development of protected areas, territories, afforestation, preparation and implementation of a good management that will allow sustainable conservation and utilization of natural resources in the project area. It is also proposed a large involvement of the local population participation in the biodiversity conservation activities, by promoting a special program of small grants.

Status: Closed on 4/3/2005 Task Leader: Mr. S. Suleymanov, tel.: +1 202 473-0943; fax: +1 202 522-1164. Counterparts: Biotica NGO, Mr. Piotr Gorbunenko, Director, tel./fax: + 373 22 243274

19. Reconciliation Through General Secondary Education in the Transnistrian Region

Amount: USD 0.80 M JSDF grant Co-financing None Objective: (i) address the issue of access to mother tongue education through rehabilitation of

school infrastructure in schools affected by military conflict; (ii) promote reconciliation and integration of communities separated by civil strife; (iii) demonstrate that co-existence is feasible and mutually advantageous.

Status: Completed on 9/5/2005 Task Leader: Ala Pînzari tel.: +373 22 200706, ext. 241 Team Leader: Anush Bezhanyan Counterparts: MSIF, Mr. Popadiuc, Director, tel. +373 22 279121; fax: +373 22 279141, e-mail:

office@msif.net.md

20. Grant for Strengthening the National Statistical System (TFSCB)

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Amount: USD 0.225 M IDA Trust Fund for Statistical Capacity Building Co-financing None Objective: To assist in the strengthening of the institutional capacity of the national statistical

system in providing reliable and timely statistical data on economic, social, and demographic developments to government bodies, mass media, and other category of users.

Status: Completed on 3/26/2002 Task Team Leader: Ms. Barbro E. Hexeberg, tel. +1 202 473-3733, fax +1 202 522-3645 Counterparts:

Department of Statistics (DoS), Mr. Vitalie Valkov, General Director of DoS tel.: +373 22 733774, fax: +373 22 226146.

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REPORTS AND PUBLICATIONS 1. Country Economic Memorandum: Moldova-Moving to a Market Economy, March

1994. 2. Moldova: Between East and West-a Review of the Foreign Trade and Exchange

Regime, July 1994. 3. Moldova: Agriculture Sector Review, February 1995. 4. Moldova: Country Financial Accounting Assessment, May 1995. 5. Republic of Moldova: National Environmental Action Plan, August 1995. 6. Staff Appraisal Report, Private Sector Development Project, November 1995. 7. Moldova: Transport Sector Review, February 1996. 8. Staff Appraisal Report, First Agriculture Project, April 1996. 9. Staff Appraisal Report, Energy Project, May 1996. 10. Moldova: Agriculture Policy Update, September 1996. 11. Moldova: Public Expenditure Review, October 1996. 12. With Farmers’ Eyes, A Grassroots Perspective on Land Privatization in Moldova,

October 1996. 13. Land Reform and Private Farming in Moldova, January 1997. 14. Staff Appraisal Report, Education Project, March 1997. 15. Staff Appraisal Report, Second Private Sector Development Project, May 1997. 16. Land Reform in Moldova, October 1997. 17. Project Appraisal Document, Rural Finance Project, December 1997. 18. Project Appraisal Document, First Cadastre Project, March 1998. 19. Moldova: Economic Review of the Transnistria Region, July 1998. 20. Moldova: A Diagnostic Review of the Environment for Foreign Investment, April 1999 21. Poverty Assessment, May 1999. 22. Moldova: Banking Sector Review, October 1999. 23. Moldova: Private Sector Review, 2000 24. Moldova: Public Economic Management Review, 2003 25. Moldova: Investment Climate Assessment, 2004 26. Recession, Recovery and Poverty in Moldova, 2004 27. Moldova Country Economic Memorandum: Opportunities for Accelerated Growth,

September 2005 28. Family Medicine in Moldova, May 2005 29. Cost of Doing Business in Moldova, June 2005 30. Financial Sector Assessment, March 2005

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PUBLIC ECONOMIC EDUCATION This program includes a large number of activities aimed at enhancing public understanding of the economic reform process including: (i) economic round tables for mass media with the participation of the World Bank experts and Moldovan officials, (ii) economic round tables held in cooperation with the Academy of Economic Studies, (iii) economic seminars with local officials, entrepreneurs and media in various regions of Moldova, (iv) provision of lectures, materials, organizational support and other inputs to central and regional agencies to support economic education activities, (v) production, printing and dissemination of books and other materials, (vi) seminars and workshops discussions with policy makers, academicians and parliamentarians, (vii) conferences, and (viii) economic training, notably through WBI courses. This program is coordinated by the Bank’s Country Office.

PARTNERSHIP WITH CIVIL SOCIETY

The partnership is focused on the development of dialog and cooperation with the Moldovan NGO community. It is carried out through a broad range of contacts with NGOs concerning the activity of the World Bank and possibilities of cooperation. These contacts include exchange of information, regular meetings and "roundtables" with the most active NGOs, consultations and dissemination of World Bank materials to the NGO community. Several local NGOs have participated in the preparation and implementation of the World Bank projects in Moldova. In 2004 a large participatory process with the involvement of civil society was carried out, under the support of the World Bank, for finalizing the Moldova Economic Growth and Poverty Reduction Strategy. Also in 2004 the first CAS consultations process with civil society was conducted by the World Bank in Moldova. The Small Grants Program (SmGP) is a key component of the partnership. First two Moldovan NGOs received SmGP grants in 1997, approved by the WB Headquarters. Since 1998 the SmGP is coordinated and implementing by the WB Moldova Country Office as a result of the SmGP decentralization. The overall SmGP funding granted to Moldovan NGOs during 1997-2005 amounts to approximately USD 300,000 for 75 projects pertaining to 78 NGOs (44 - national and 34 - local). The main topic of the SmGP in the last two years was the civic engagement and social partnership for empowerment of marginalized and vulnerable groups. For additional information, please contact: Mr. Slavian Gutu, External Affairs Officer, tel.: +373 22 200706, ext. 242.

PUBLIC INFORMATION CENTER The Public Information Center (PIC) of the Moldova RM was set up in 1996 with the purpose of providing access to basic information on economic development and major WB publications in different sectors of the world economy as well as the macroeconomic and sector studies and reports on WB projects in Moldova. The PIC has selected information on other Donor Agency activities in Moldova and on the various institutions of the World Bank Group. It also offers access to worldwide databases through the internet. The PIC is open to the public. For additional information, please contact: Mrs. Elena Sosnovschi, PIC Assistant, tel.: +373 22 200706, ext. 238.

CONSULTATIVE GROUP MEETINGS (CG)

The World Bank organizes and chairs CG meetings where Moldova and countries and multilateral donors with assistance programs in Moldova discuss the overall reform program and future plans. The first full CG meeting took place in March 1995 (following a pre-CG meeting in 1994). The second CG meeting took place in December 1997. It helped raise fresh financing pledges for economic assistance based on the Government’s economic strategy, technical assistance requirements, and public investment program which were presented to the international donor community.

WORLD BANK INSTITUTE (WBI)

WBI, an affiliate of the World Bank, offers a range of courses and other training activities in Moldova (grant funded), and also regional activities in neighboring countries which are open to Moldovan participants. In 1996, the WBI SPRITE program began its operations in Moldova. It's main objective is to support the Government of Moldova in promoting reforms in the social sector by organizing WBI sponsored training courses (workshops,

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seminars, etc.) for senior and mid-level Government officials. The Manager of Moldova SPRITE team is Mrs. Viorica Carare.

THE WORLD BANK GROUP (GENERAL DATA)

? is a multinational development institution whose purpose is to assist its member countries in furthering their economic and social progress

? finances its lending operations for Moldova and other middle -income members from borrowing in the world’s capital markets

? is owned by its 184 member states and is governed by a Board of Executive Directors representing the member states. Moldova is a member and shareholder of the Bank.

? has provided financing amounting to USD 340 billion for over 6,000 activities in 164 different countries since it was founded after the Second World War

? has in the past five years expanded greatly its work in the countries of the Commonwealth of Independent States (CIS).

THE WORLD BANK GROUP (ITS ORGANIZATIONS)

The International Bank for Reconstruction and Development (IBRD) IBRD provides loans and development assistance to middle-income countries and creditworthy poorer countries. Voting power is linked to members’ capital subscriptions, which in turn are based on each country’s relative economic strength. The IBRD is not a profit-maximizing organization but has earned a net income every year since 1948. The International Development Agency (IDA) IDA is the Bank’s concessional lending arm and provides key support for the Bank’s poverty reduction mission. IDA assistance is focused on the poorest countries, to which it provides interest-free loans (termed “credits”) and other services. Moldova became eligible for a blend of IDA credits and IBRD loans in April 1997. The International Finance Corporation (IFC) IFC is part of the World Bank Group and promotes economic development in the member countries by encouraging the growth of productive private enterprise. IFC’s primary activity is the provision of loan and equity financing in partnership with private investors, sharing in the risks and rewards. It operates on a commercial basis, without government guarantees, and prices its finances in line with the market. In addition to its direct and profit oriented financial activities, IFC also provides technical assistance in privatization and capital market development. Moldova joined IFC in March 1995. IFC is preparing a program of further investments and activities in the country. In May 1998, the IFC opened a local office in Moldova at the Bank’s Country Office. The Multilateral Investment Guarantee Agency (MIGA) MIGA is part of the World Bank Group and promotes private foreign direct investments in its member countries. MIGA does this by guaranteeing investors against political risk, and also by providing promotional and advisory services. To complement MIGA's work, the World Bank is designing mechanisms for providing guarantees as a part of its regular lending. No guarantees have been issued by MIGA for investments in Moldova. MIGA has launched an electronic investment marketplace on the Internet to promote investment in emerging markets. This Investment Promotion Agency Network (IPANET) offers on-line marketing, information and a communications network to link private investors, investment mediators and other interested parties. IPANET can be reached at: www.ipanet.com or at www.ipanet.net. The International Center for Settlement of Investment Disputes (ICSID)

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ICSID provides facilities for the settlement – by conciliation or arbitration – of investment disputes between foreign investors and their host countries.

TERMS OF WORLD BANK LOANS

Moldova is no longer eligible for IBRD loans;

IDA credits are interest free. A service fee of 0.75% is charged on disbursed amounts. IDA credits have a maturity period of 35 years, and repayment of the principal of the credit starts after ten years. A commitment fee is also charged, payable on the undisbursed amount of the credit at a specific rate falling between 0 and 0.50 percent;

Since Moldova joined the World Bank in 1992, IBRD/IDA commitments (less cancellations) have totalled

approximately USD 613.36 M.

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MOLDOVA COUNTRY OFFICE TEAM

World Bank Country Office 20/1 Puskin Str., 2012, Chisinau

Phone: +373 22 200706, Fax: +373 22 237053

NAME PPOOSSIITTIIOONN 1. Baclajanschi Iaroslav EEccoonnoommiisstt 2. Berdos Dumitru CCoommmmuunn iiccaattiioonnss AAssssiissttaanntt 3. Brown Edward K. CCoouunnttrryy MMaannaaggeerr 4. Burunsus Victor PPSSDD OOffffiicceerr 5. Busuioc Ana OOffffiiccee AAssssiissttaanntt 6. Butnariuc Rodion DDrriivveerr 7. Caldare Igor DDrriivveerr 8. Calugher Diana AAddmmiinniissttrraa ttiivvee OOffffiicceerr 9. Ceban Carolina TTrraannssllaattiioonn CCoooorrddiinnaattoorr 10. Corman Elena EExxeeccuuttiivvee AAssssiissttaanntt 11. Cosuleanu Valeriu JJuunniioorr PP rrooffeessssiioonnaall AAssssoocciiaa ttee 12. Ghidirim Sandu IInnffrraassttrruuccttuurree aanndd EEnneerrggyy 13. Gobjila Anatol SSrr.. OOppeerraa ttiioonnss OOffffiicceerr,, RRuurraall SSeeccttoorr 14. Gutu Slavian EExxtteerrnnaall AAffffaa iirrss OOffffiicceerr 15. Ionascu Alexei OOppeerraattiioonnss AAnnaallyysstt,, SS oocciiaa ll SSeeccttoorr 16. Istrati Zinaida OOffffiiccee AAiiddee 17. Jantuan Ludmila PPrrooggrraamm AAssssiissttaanntt 18. Martinov Victor EElleeccttrriicc iiaann eennggiinneeeerr 19. Menon Rekha SSrr.. EEccoonnoommiisstt 20. Nikulina Elena SSrr.. EEccoonnoommiisstt 21. Paghinu Silvia PPrrooggrraamm AAssssiissttaanntt 22. Panaghiu Sergiu IITT SSppeecciiaa lliisstt 23. Pinzari Ala OOppeerraattiioonnss OOffffiicceerr 24. Sosnovschi Elena IInnffoorrmmaattiioonn AAssssiissttaanntt 25. Strah Viorica RReesseeaarrcchh AAssssiissttaanntt 26. Ursu Tamara TTeeaamm AAssssiissttaanntt 27. Vinaga Olesea TTeeaamm AAssssiissttaanntt