European Commission Cooperation and Development assistance in Moldova

Kaido Sirel Head of Operations EU Delegation to Moldova

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Summary

• Sources of funding • Projects/Assistance areas

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Sources

• • TACIS • Macro-financial assistance

European Neighbourhood and Partnership Instrument

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Bilateral program for Moldova

(~15) (90)

(225, +273, + EaPIC) -------------------------------------------------------------------------------

– Inter-regional programmes (NIF bilateral - 80, NIF regional) – Regional program ENPI East (~100) – Cross-border cooperation programmes (44, ~150) -------------------------------------------------------------------------------- • Development Cooperation Instrument - Thematic Budgets – bilateral, – regional, – global • External programmes from Commission Directorate General’s • Internal EU programmes opened and to be opened to Moldova.

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ENPI Bilateral National Indicative

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Programme 2011-2013

• Priorities for MOLDOVA (273,14 MEUR) – Good governance, rule of law, fundamental freedoms – Social and human development – Trade and sustainable development Confidence Building Measures. Regional Cohesion pilots

REGIONAL PROGRAMME EAST :

Democracy, Good Governance and Stability

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Economic Development Climate Change, Energy and Environment Advancing Integration with the EU and Regional Co-operation

Inter-regional

Priority Area 1: Promoting reform through European advice and expertise – SIGMA, TAIEX Priority Area 2: Promoting higher education and student mobility TEMPUS, Erasmus Mundus Priority Area 3: Promoting cooperation between local actors in the EU, and in the partner countries – CIUDAD Priority Area 4: Promoting Investment projects via Neighbourhood Investment Facility (NIF)

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Cross Border Cooperation

• CBC Moldova – Romania - Ukraine (2007-2013) 126 million euro 44 million for Large Scale projects decided

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• Black Sea Programme 26 million euro • CBC South East Europe

CBC Programs for land borders (9) and sea crossings (3) EU

CBC Sea Basin Programs (3) EU

5 Global Thematic Programmes

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”Investing in people” Human and social development

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Protection of the environment and sustainable planning/cultivation of natural resources, energy

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Non-state actors and local authorities in the process of development

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Food security

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Migration and asylum policies Projects selected via Call For Proposals

Bilateral Thematic calls

• European Instrument for Democracy and Human Rights • Non State Actors and Local Actors in Governance and Civil Society Facility

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Other external programmes from European Commission

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• • • • • • • •

Instrument for Nuclear cooperation (DEVCO) Humanitarian aid (DG ECHO) Instrument for Stability (EEAS) Cohesion Pilots (DG REGIO) SME programme (DG ENTR) 7 th Framework Programme for Research (DG RTD) New EU Internal Programmes to be opened to MD ENPARD – Neighbourhood Agriculture and Rural Development (DG AGRI)

EU Internal programmes which can

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be opened to Moldova

• Customs 2013 • Competiveness and Innovation Framework Program (CIP) • Intelligent Energy Europe • Entrepreneurship and Innovation; • ICT Policy Support • Consumer Policy • SESAR (Air Traffic) • Public Health

Additional Strategies/Initiatives

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• Eastern Partnership –

Comprehensive Institution Building

– EaPIC - Integration and Cooperation Programme – Regional Development Pilots (PRDP) – Agriculture and Rural Development (ENPARD) • Black Sea Synergy (ENPI East + Russia + Turkey) • Danube Strategy •

Mobility Partnership - Moldova as pilot case

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European Endownment for Democracy – Support for Civil Society

Projects state of Affairs 2012

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Around 150 programmes and projects ongoing or in preparation in Moldova

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Phasing out of TACIS and TACIS Cross Border Coopertion

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6 Budget Support programmes ongoing or in preparation

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Technical Assistance (social, health, economy, mobility partnership, water, justice, public administration, etc)

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Twinnings and Comprehensive Institution Building

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Thematic Budget lines projects (media, anti-torture, legal protection, elections, migration, energy, environment, etc)

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Cross Border Cooperation projects (water, infrastructures, tourism, historic towns, etc)

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Macro-Financial Assistance

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Neighbourhood Investment Facility roads, – Roads, Water, Health, Air Logistics, Airport, Trolleybuses, - in pipeline wine sector, EU

Budget Support

• ENPI 2007 Social sector € 21 million • ENPI 2008 Health sector € 46 million • ENPI 2009 Water and sanitation sector € 50 million • ENPI 2010 Economic Stimulation in Rural Areas € 45 million • ENPI 2011 Energy € 42 million • ENPI 2012 Justice reform € 52 million • ENPI 2013 Vocational Education and Training

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Macro-Financial Assistance

2007-2008: 45 M EUR grant, paid in 3 tranches 2010 – 2012: 90 M EUR grant, paid in 3 tranches – support provided as response to financial crisis.

Conditions: • Public expenditure management and fiscal reform procurement • Enterprise restructuring and business environment SME development • Financial sector reform regulation, insurance legislation : implementation of Treasury Systems, customs & taxation reforms, public : privatisation of state-owned firms, bankruptcy legislation, competition legislation, : privatisation of banks, supervision • Specific sectoral issues : public utilities, statistics, export promotion.

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Neighbourhood Investment Facility

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Providing blending grants for the loans

• – – – – – –

11 projects blending in the loans of around 700 m eur with 87,96 m eur grants in Moldova

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Modernisation of the Republican Clinical Hospital

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Airport Modernisation Project

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Road Rehabilitation project Feasibility Study for the Improvement of Water and Sanitation System in Chisinau Water Utilities development programme Chisinau Transport project Vine sector upgrading Roads rehabilitation project 2 Energy efficiency projects Moldelectrica Regional NIF grants

Twinnings

• Annual envelope of 5-7 MEUR (~3 new Twinnings per year) • Requests from state institutions can cover all aspects of EU approximation process where there is EU acquis.

Concluded Twinnings: Parliament (FR, HU) Penitentiary system (D, NL) Ongoing Twinnings Procurement (RO) Intellectual Property Rights (DK, RO), Competition and State Aid (LV, A, RO) Regional development (F) Public internal financial control (S, NL) Accreditation of product conformity assessment (S, NL) Market surveillance (UK, LT) Several more Twinnings in preparation

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Comprehensive Institution Building

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EaP framework jointly developed and implemented with the partner country to ensure effective institution building of a limited number of core institutions which are central to the preparation and implementation of future Association Agreement and DCFTA.

CIB- Indicative list of Beneficiary Institutions

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• • • Public Administration Reform: State Chancellery Public Procurement Agency Ministry of Finance • • • Ensuring rule of law, human rights and fundamental freedoms General Prosecutor's Office Ministry of Internal Affairs Centre for Combating Economic Crimes and Corruption • • • • • • • Preparing Moldova in view of future DCFTA Ministry of Economy Ministry of Agriculture Ministry of Health (Public Health Service) Inspectorate for Phyto-Sanitary Surveillance and Seed Control Sanitary-Veterinary and Animal origin Food Safety Agency Agency for Protection of Competition Agency on Intellectual Property of the Republic of Moldova

Conclusions

• Assistance increased around 10 fold • Moldova is often pilot and praised as most advanced reformer in the EU Neighbourhood • Lots of new cooperation programmes opened and more in view from the European Institutions • New logic of assistance – move from committed development assistance grants to co-funded competition/cooperations grants and loans.

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Additional info

http://www.delmda.ec.europa.eu

http://eeas.europa.eu/moldova/index_en.htm

Funding: http://ec.europa.eu/europeaid/work/funding/index_en.htm

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