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Modernization of Local Public
Services in the Republic of
Moldova
Overview of the project

2. Modernization of Local Public Services
in the Republic of Moldova
• Based on bilateral government negotiations Moldova-Germany Nov
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2009
• Duration 6 years: 1/2010 – 12/2015
• Main Institutional Counterpart: Ministry of Regional Development
and Construction and the Regional Development Agencies
• German contribution: €17.9 million
• Technical assistance – €10.6 million
• German Investment Support – €7.3 million
• Cofinancing by Romanian Government of €0.7 million
• Cofinancing by Swedish Government of €5.5 million
• Cofinancing by European Union €5.0 million

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German contribution of €17.9 million
• Overall: €17.9 million
• Technical assistance – €10.6 million
• 2010 – 2013: €5.1 Mio million
• 2014: €2.0 million
• Pilot Project Investments: €3.6 million
• German Investment Support – €7.3 million
• Investments
• 12 RDA staff (4 North / 5 Centre / 3 South)

4. Cofinancing by Romanian Government of €0.7 million
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Pilot project - capital investment and procurement of equipment
Improving water supply and sewerage in Rosu village, Cahul rayon

5. Cofinancing by Swedish Government of €5.5 million
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€3.3 million (2012 – 2014)
• Regional Operational Plans on WSS, SWM and EE in public buildings
developed (North, Centre and South RDAs).
• Regional indicators on a. m. areas established and data-bases
developed.
• Models of transparent and participatory design processes for
preparing Regional Operational Plans drafted, based on sector focus
groups with participation of key stakeholders from the respective sectors,
civil society and the private sector, as well as external specialists.
• Formal mechanisms and procedures for coordination and
collaboration with responsible sector ministries (Environment and
Economy) established.

6. Cofinancing by Swedish Government of €5.5 million
€2.2 million (2014)
• Support to regional development institutions and local public
authorities.
> Implementation of investment projects to improve local public
service delivery.
Benchmarks:
• Investment projects prepared for Regional Development to
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ready-for-procurement stage (volume €6 million).
• Project implementation management by RDAs without major
shortcomings (related investment funding provided by
Germany).
• Improved management of projects by LPAs, supported by
certified energy auditors, financed by the National Fund for
Energy Efficiency.

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Cofinancing by European Union €5.0 million
Overall
objec-tive
Support Moldova in advancing its economic, social and territorial cohesion with
focus on development of policy, legal, institutional and developmental
framework for an effective development policy for Moldova’s regions.
Purpose • Facilitate a regional planning process leading to the development of a
project pipeline relevant to specified areas and concerns of MD’s RD and
EU Cohesion Policy.
• Develop capacities essential to sustain the above objectives and support the
wider regional development process.
Expec-ted
results
• Detailed regional plans covering five thematic fields essential to the
development of Moldova’s regions (WSS, SWM, local roads of key
importance) from these updated regional operational plans for each
region (N, S, C).
• Updated regional operational plans for each region where RD institutions
are in place.
• Verified capacity among responsible bodies relevant to the above results,
including capacity to continuously manage a project pipeline.
• Pipeline of ready to go, ready to finance and ready to procure projects.

8. MLPS Project Objective
Improved Local Public Serviсes in selected villages and towns in the
Republic of Moldova
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• Intervention Area I
• Investments in innovative technologies and infrastructure;
• Increased capacities and modernised management of services;
• Enhanced inter-municipal cooperation and local participation.
• Intervention Area II
• Enhanced coordination between institutions at local, regional and
central levels through coherent planning and programming of
investments;
• Regional sector planning for WSS, SWM, EE in public buildings;
• Projects Pipeline, prioritised and ready for implementation.

9. Basic Assumption
• Planned activities lead to progress towards achieving
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the IA1 Objective:
Local Public Authorities effectively
cooperate and manage
improvements of
local public services
in the selected
communities in pilot rayons

10. Success Indicators
• 25 planned pilot measures for improvement of local
public services implemented in 3 project priority sectors
(WSS, SWM, EE).
• LPAs signed 70 formal agreements for joint delivery of
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local public services in 3 project priority sectors.
• In 35 communities, 50% of implemented measures in 3
project priority sectors have improved women’s access
to local public services.

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Energy Efficient Street Lighting in
Soroca rayon
Improvement of WSS services in
Riscani rayon
Improvement of Solid Waste
Management Services in Soldanesti,
Rezina and Floresti rayons
Energy Efficiency in Public Buildings
in Orhei rayon, Orhei Regional
Hospital
Energy Efficiency in Public Buildings
in Nisporeni rayon, Nisporeni
Regional Hospital
Improvement of WSS services in
Iargara, Leova rayon
Improvement of WSS services in
Cahul rayon
Background Map Source: MRDC

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1.
Integrated
local planning
and
programming
Efficient
Local
Public
Services
2.
Improvement of
cooperation
between
LPAs
3.
Investments to
optimise
infrastructure
to provide
local public
services
4.
Increased
capacities of
LPAs and
service
providers
5.
Mobilisation and
awareness
raising
of the
population
Support Model
Comprehensive
Approach
… for enhanced
sustainability

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Basic presumption
• Planned activities lead to the Result
Intervention Area 2:
Regional and local public authorities effectively plan
strategic investments in three priority sectors (water
supply and sanitation, solid waste management and
energy efficiency of public buildings).

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Main success indicators
• The three Regional Development Agencies have facilitated the
development of viable project concepts in priority sectors,
equivalent to the total amount of EUR 170 million.
• 70% of stakeholders from 30 Local Public Authorities involved in the
Local Planning and Programming expresses their satisfaction
regarding the capabilities to facilitate/promote Regional
Development Agencies.
• 75% of the project concepts promoted by the Regional
Development Agencies are examined in detail in terms of
environmental impact, taking into account national regulations.

15. Scope of Work Regional Planning and Programming
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• Development of Regional Sector Programmes for:
• Water Supply and Sanitation (WSS);
• Solid Waste Management (SWM);
• Energy Efficiency (EE) in Public Buildings ;
• Regional and Local Roads.
• Project pipeline of ‘ready to finance projects’ (including feasibility studies,
environmental impact assessments, technical design documents, etc.) for
investments in the above sectors.
• Capacity development of local and regional development actors.

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Regional Planning and Programming
Activities (2012 – 2014):
• Update Regional Development Strategies through inclusion of new
priority area Energy Efficiency in Public Buildings.
• Update Regional Operational Plans in Water and Sanitation, Solid
Waste Management and Energy Efficiency in Public Buildings.
• Capacity Development for Regional Development Agencies and Regional
Development Councils.
Partners and Mediators:
• Financial support through Swedish Sida.
• Three Regional Development Agencies.
• Three Regional Development Councils.
• MRDC, Ministry of Economy, Agency for Energy Efficiency, Ministry of
Environment.

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Intervention’s
logics Regional
Regional
planning (A1)
Planning (1)
Project
Project’s
identification
Identification
(B1)
Project
Project’s
development
Development
(A2)
Targeted
Sector
Reform (3B)
Reform in the
concerned area
Financing
(3)
(B2)
Sustainable projects and services
introduce sustainable changes

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Stages of Progression in Project Development
Swedish Contribution
EU
Possible
Project
Concept (PPC)
Viable Project
Concept
(VPC)
‘Ready -to –Go’ Project
(RGP) (final project)
proposed for funding
EU Contribution
Stages and donors

19. Key stages in project concepts identification and
development, according to the RSP approach
• PPC – project idea that is relevant to and consistent with the Regional
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Development Strategy
• VPC – project idea which has been sufficiently developed to clearly
identify key features; sound understanding of the results/positive
change the project can bring;
• RGP – final project proposal, not necessarily a full feasibility study, but
has all the required documentation, tender books, local commitments,
etc.
• Project Pipeline – a mechanism whereby a series of projects is
developed from conception towards readiness. Projects in the pipeline
can have different degrees of readiness, qualities, and speeds, but it
must be ensured that poor quality projects do not progress through the
pipeline.

20. Regional Sector Working Groups with representatives of LPAs, public service providers, line
ministries, and specialised decentralised nstitutions formed by the RDAs under the auspices of the
MRDC in each sector, each region.
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Introduction: sector regional planning
and programming as an instrument,
participatory and integrated approach
Current sector status, legal, institutional
framework,
development of the RD vision for
improved services,
The elaboration and discussion of
scenarios,
facilitating project concepts development
Drafting of Regional Sector
Programmes, consultation and
approval, project concepts
development
Regional Sector Working Groups

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Regional Sector Programmes
The Regional Sector Programme is an operational tool which will be used to
support the development of better investment projects in Moldova.
• Align the respective Sector Policies, Regional Development Strategies and
local priorities;
• Facilitate sound decision-making based on transparent criteria;
• Contribute to investment attraction in the covered sectors:
• Solid Waste Management ;
• Water Supply and Sanitation;
• Energy Efficiency of Public Buildings;
• Regional and Local Roads.

22. Next stages: 2014 – 2015
Develop projects:
• From concept to as ready to go as possible.
• At least estimated €140 million for projects.
• Likely investments of around €80 million in SWM, €30 million in WSS,
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€25 million in EE (PB), €40 million in roads.
To complete this work. It is likely that at some stage:
• Further assistance will be needed from other donors/IFIs (i.e. to take
over some projects from us at an appropriate point).
• There should be an alignment between the medium-term public
investment programme and the developing pipeline of ‘real’
investments.
• Substantial and prioritised sector reform needs to move in tandem (as
already indicated in part in Regional Sector Planning documents).
In short , we need ‘an agenda for change’ and for ‘gear shift” .

23. MLPS Project Pipeline
Projections for project development volumes ready by end of 2015
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Requirements for
implementation:
Sector ~ No. of
Projects
>>> Capacitated implementing agencies > RDAs
>>> Funding
~ Million €
(totals)
EE (Jan 2014)
EE (end 2015)
9
13-15
9
12
SWM 3 30
WSS 10 28
Roads 10 30
Total 47 109

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Visualisation of a Project Pipeline
15 concepts
10 projects
7 projects
20 concepts
Possible
Project
Concept
Viable
Project
Concept
‘Ready -to –Go’ Project
(final project) proposed
for funding

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Capacity Development for Regional and Cross-
Border Cooperation in the Republic of Moldova
• Strengthening the capacity of the LPAs for identification and
development of project proposals;
• Training courses conducted by the RDAs, in cooperation with local
NGOs;
• Assistance in launch of project proposals for EU and National Fund for
Regional Development programmes;
• Medium-term collaboration with the Public Administration Academy by
mainstreaming elements of training and lessons learnt in a national
curriculum;
• Support to the Antenna Office for implementation of EU Programs;
• Support in implementation of the EU Strategy for the Danube region.

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Welcome to invest.
German Development Cooperation through GIZ
Chișinău, 31a Bulgară str.,
T + 373 22 22-83-19
F + 373 22 00-02-38
Internet: www.giz.de, www.serviciilocale.md