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Heading for sustainable economic growth

COMPACT Moldova. NewsletterQUARTER III, 2014

Valentina Badrajan: The countdown for Compact started on September 1

MCA Moldova started outreach campaign about the archaeological finds on Sarateni-Soroca road

New segments of local roads rehabilitated with Compact funds to facilitate access to social facilities

Veaceslav Vladicescu: Hopefully other investors will follow suit to rehabilitate irrigation systems

Compact loans have become increasingly popular

The Compact loan helped me become a good householder in my country

Anatolie Puțuntică: The upgrade of the water monitoring network will facilitate the planning of the irrigation process

Ion Gaber: MCA Moldova’s Consultative Group recommends putting in place mechanisms to ensure sustainability of Compact investments

World Food Moscow 2014 Shows that Russians Have Positive Perceptions of Moldovan Food Products

Performance of indicators in Compact implementation

Contracts awarded in July - September 2014

Photo Gallery

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СOMPACT PROGRAM. NEWSLETTER | QUARTER I I I, 2014HEADING FOR SUSTAINABLE ECONOMIC GROWTH

Content

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VALENTINA BADRAJAN: THE COUNTDOWN FOR COMPACT STARTED ON SEPTEMBER 1

This is the last year of Compact implementation. What results have been achieved so far?

The countdown for the Compact started on September 1. Now, more than ever, every day counts. Although a lot is yet to be done, today we can already speak not just about processes, but also about specific things that the people can see and appreciate.

In a couple of weeks we will inaugurate the Sarateni-Soroca road. This is a modern road and its infrastructure meets the needs of the communities along it and the quality and traffic safety standards. People use to call us or tell us during meetings that all the roads in Moldova

should look like our road. We are proud that the Compact is seen as a good example for similar programs.

At the end of the road project we will have about 100 km of national road and about 10 km of local roads rehabilitated or built to facilitate the access of communities to social facilities, such as schools, kindergartens, health centers and others. The rehabilitation of additional road segments is possible due to the savings made through transparent procurement processes.

Construction sites have been opened at ten irrigation systems. The first two irrigation systems – in Criuleni and Lopatna, will be put into operation this autumn,


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and starting next spring farmers will start fully using the rehabilitated systems.

Moreover, the rehabilitation of irrigation systems generates new investments in farming. There are entrepreneurs who invest own funds to expand the water supply network to enable them to expand the irrigated land. For instance, in Criuleni there are entrepreneurs who built and connected about 2 km of pipes to the new irrigation system. They also built two water reservoirs to be able to irrigate about 200 ha of farmland with intensive apricot, cherry and apple orchards. In Lopatna and Jora de Jos there are people who invest in planting intensive orchards that require irrigation to deliver high yields of good fruits.

To speed up the transition to the high value agriculture, the Compact has a Credit Facility that has disbursed loans amounting to about 7,8 million USD for post-harvest infrastructure development. On the other hand, we invest a lot in building the capacities of the Water Users’ Associations through targeted training, study tours, provision of advanced equipment. Two years ago, seven WUAs took over the management of irrigation systems that were partially operational. Since then they have demonstrated high performance, getting incomes from membership fees and irrigation services. Moreover, farmers paid less for the water they used than they used to pay in the past, when the system was managed by a public institution. Therefore we are confident that after the irrigation systems are rehabilitated and upgraded WUAs will manage these assets much more efficiently.

We couldn’t have got such achievements if the appropriate legislation, developed with the inputs of the Compact team, hadn’t been approved. It includes the Law on WUAs, Water Law and the secondary legislation.

When the Compact started four years ago, was the time constraint a major challenge given the program’s ambitious goals? Are you able to cope with it?

The time constraint is still a challenge. While the road is almost ready and the defect notification period is expected to start soon, there is a lot to be done in relation to the rehabilitation of the irrigation systems. Most of the rehabilitation contracts end in the summer of 2015. By that time all pipes, hydrants and pumps should be installed and pump stations fitted out. Since the construction works are done in the field, we are very much dependant on weather, because rainfall hinders

the works on sites and there are also specific rules for works in rivers, in particular when fish use to spawn.

Both the Millennium Challenge Account Moldova and the construction companies are aware of the completion risk. To mitigate it we have a plan of activities in place that makes us mobilize our efforts efficiently so as to complete the works in due time.

What are the lessons that you learned during the four years of Compact implementation?

Overall I could say that the Compact experience could serve as a case study showing how to design and implement other assistance programs in Moldova. I will highlight several practices that could be adopted.

First of all, as the manager of this program I should mention the coordination of several multinational and multicultural teams. The Compact gathered together international and local companies and experts. We also cooperate with a myriad of national local and international public institutions. This is why the coordination mechanism must work like a Swiss watch if we want to be effective.

Secondly, I should stress the Compact’s transparency practices, our efforts in this respect being supported by the Millennium Challenge Corporation. The Compact is transparent due to its clear and unbiased procurement and contract management rules; to the public consultations held with communities and other stakeholders at all the Compact stages; involvement of stakeholders, including beneficiaries, in monitoring the construction works and others.

It is also worth noting that the Compact puts a great emphasis on the social and environmental impact of the rehabilitation of both road and irrigation infrastructures and, last but not least, it makes great efforts to encourage women to be proactive in making decisions at community level, in Water Users’ Associations and even in the farms where they work.

What are the Compact priorities till September 1, 2015?The priorities are certainly related to our objectives, in

particular rehabilitation of irrigation systems. Training for WUAs is critical, as they should become sustainable entities able to manage efficiently the irrigation systems, the rehabilitation of which costs about 80 million USD – funds given by the U.S. Government. Of course we will continue our Post-Harvest Credit Facility, because today, more than ever, the Moldovan farmers need investments to align to the demands of the European market.


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The Millennium Challenge Account Moldova (MCA Moldova), the National Agency for Archaeology and the National Museum of History of Moldova marked the European

Heritage Days by inaugurating a photo exhibition and a catalogue of the archaeological remains found along the Sarateni-Soroca road rehabilitated with Compact support. The inauguration event hosted by the National Museum of History of Moldova was attended by Monica Babuc, the Minister of Culture, and U.S. Ambassador Moser.

In his address, Ambassador Moser stressed that the road rehabilitation project places a great emphasis on compliance with the European quality construction standards and on the social, cultural and archaeological issues, preservation and promotion of heritage. „I am proud that the investments of the American people in the rehabilitation of the Sarateni-Soroca road opened a clearer perspective on the history of Moldova”, he said.

According to Valentina Badrajan, the Executive Director of MCA Moldova, MCA Moldova was pleasantly surprised by the archaeological remains found during

the road rehabilitation works. ”These finds have a great historical and cultural value and complete the picture of the life and occupations of the people who lived in this geographical area seven thousand years ago, the traditions and values shared by our predecessors. We wish that the people that live along the Sarateni-Soroca road learn about these finds and, to this end, we will soon open photo exhibitions in the villages and rayons near the rehabilitated road”, she added.

During the Sarateni-Soroca road rehabilitation works the National Agency for Archaeology conducted research at several archaeological sites:

The Eneolithic settlement at Rogojeni (Soldanesti rayon) (about 4900-4750 BC) – six archaeological complexes were discovered here (a dwelling, a hut and four pits), along with a rich and varied collection of things: pottery; flint, stone, antler and bone tools; finery.

Four tumuli were discovered at the prehistoric tumulus at Brinzenii Noi (Telenesti rayon), three of which belong to the Yamna culture (3rd millennium BC), and the fourth one belonging to the New culture (16th-13th centuries BC).

MCA MOLDOVA STARTED OUTREACH CAMPAIGN ABOUT THE ARCHAEOLOGICAL FINDS ON SARATENI-SOROCA ROAD


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Tumulus 1 at Rogojeni (Soldanesti rayon) has two Yamna graves (3rd mil. BC) and a stone platform possibly dating from the same period.

The ancient settlement at Brinzenii Noi. Archaeologists discovered five crowds of limestone rocks mixed with shards, bones, coal and ash, yet to be determined what they were used for. The ancient settlement at Brinzenii Noi belongs to the Sintana de Mures-Chernyakhov culture dating from the 3rd-4th centuries AD.

At Brinzenii Noi researchers discovered flint items (chips, knife blades and others) dating from the upper Palaeolithic (30000-10000 BC).

The archaeological site at Brinzenii Vechi I (Brinzenii Noi commune, Telenesti rayon) includes a settlement dating from the late Roman Era that belongs to the Sintana de Mures-Chernyakhov culture (3rd-4th century AD) and a cemetery with Christian inhumation graves dating from the late Middle Ages and the Modern Age.

Tumulus at Stoicani (Soroca rayon) - the experts of the National Agency for Archaeology found two levels and parts of the third level of the tumulus. At its base they found an inhumation grave belonging to the Yamna culture (3rd millennium BC).

Since the beginning of the Modern Age, the Giant’s

Mound Tumulus at Rublenita (Soroca rayon), has been popular as an important historical monument for the entire area between the Prut and Nistru rivers. Since 1864 a legend about it has been widespread among the local people.

The archaeological site at Alexandru cel Bun (Volovita commune, Soroca rayon) is an archaeological monument dating from the Eneolithic (4th millennium BC, Cucuteni-Trypillian culture) and the late Roman Age (3rd-4th centuries AD, Sintana de Mures-Chernyakhov culture). Researchers found etched ceramic pieces, a stone grinder, flint items, pieces of pottery and clay.

Vlad Vornic, the Director General of the National Agency for Archaeology, said that it took great efforts and field and laboratory work to research the 8 archaeological sites along the Sarateni-Soroca road. The finds belong to an old culture and include unique items. ”I should say that the exhibited things are just a small part of what has been discovered. There are still hundreds of pieces left to research”, he concluded.

The remains found by archaeologists are exhibited at the National Museum of History of Moldova and the photos and the findings of the archaeological research will be exhibited throughout September and October in the rayonal centers and localities along the Sarateni-Soroca road.


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Given that the construction works at local roads have come to an end, on September 12, 2014 U.S. Ambassador Moser and Prime Minister Leanca undertook a field

visit to see the quality of the works and take part in the inauguration of the road to the school in Tintareni village, Telenesti rayon.

The construction of access roads for its 223 students included modern sidewalks, the access road that links the national road with the school and pavement of the schoolyard, as well as a sidewalk stretching on about 1

800 m between the Tintareni and Codru Nou villages to enable 48 children from the Codru Nou village to get safely to the school in Tintareni.

Having inspected the works, Prime Minister Leanca said that these achievements lead to the transfiguration of the Moldovan villages. From now on the road from Codru Nou to Tintareni will no longer be a burden for children. Until recently they had to walk on the road shoulder and were always at risk to be hit by cars. From now on parents will be sure that their children reach safely the school, Prime Minister added.

NEW SEGMENTS OF LOCAL ROADS REHABILITATED WITH COMPACT FUNDS TO FACILITATE ACCESS

TO SOCIAL FACILITIES


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He expressed gratitude to the United States of America for the support provided for the modernization of the Republic of Moldova and reminded that the Government decided this year, besides the rehabilitation of national road and roads that link villages, to pay more attention to the village roads. This year only, 400 million lei have been allocated for the rehabilitation of roads in 700 localities.

Ambassador Moser, in turn, stressed that the construction works at Tintareni are additional to the Sarateni-Soroca road. Three years ago, this place looked completely different. Today we see a modern locality. I am proud with your cooperation with the American people to bring this project to what we see today. I have a message for students – walk on sidewalk only. It is for your safety, Ambassador Moser said.

The teachers and students from Tintareni and Codru Nou stressed the benefits of a rehabilitated road and sidewalk for road safety and aesthetic reasons. According to Ana Smolnitchi, local teacher, children had to walk hundreds of meters through mud and, which is worst, on the road shoulders and they could have been crushed by

cars. The village now looks nicer and the people are more interested in landscaping their courtyards and gates, Mrs. Smolnitchi concluded.

It should be noted that the international companies contracted to rehabilitate the Sarateni-Soroca road are carrying out landscaping and construction works in the period of August-October on about 10 km of local roads in the localities along the Sarateni-Soroca road. The rehabilitated road infrastructure facilitates the access of pedestrians and drivers to social facilities such as kindergartens, schools, parking lots and markets in the villages of Codrul Nou, Tintareni, Rogojeni, Domulgeni, Gura Camencii, Volovita, Rublenita, Ghindesti town etc.

The reconstruction of segments of local roads, critical for the people living in these villages, is an additional activity of the road project for rehabilitation of a 93 km segment of the Sarateni-Soroca road. This activity’s budget is 6 million USD. Infrastructure projects with social impact were implemented in all the 14 localities along the road segment covered by the Compact and took into account the needs of every community.


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MCA Moldova will put into operation the first systems rehabilitated with the U.S. Government’s support this autumn – the Criuleni and Lopatna

systems. They will be the first systems that have been rehabilitated since put into operation. What can you say about it?

The rehabilitation of the irrigation systems is something new for Moldova. Unfortunately, no investments have been made in the years since independence. Unlike other areas, where investments have already been made, the Millennium Challenge

Account Moldova (MCA) was the first to invest in the rehabilitation of irrigation systems. The Criuleni and Lopatna irrigation systems are the first systems to be put into operation. There are more than 70 irrigation systems in Moldova, 10 of which will be rehabilitated with Compact support. The MCA’s experience is very good, first of all because foreign experts are involved in rehabilitation who share their experience and skills with the staff of the Apele Moldovei Agency.

Hopefully Moldovan and foreign investors will follow suit with other projects.

How does Apele Moldovei Agency cooperate with

VEACESLAV VLADICESCU: HOPEFULLY OTHER INVESTORS WILL

FOLLOW SUIT TO REHABILITATE IRRIGATION SYSTEMS

The rehabilitation of irrigation systems is one of the objectives of the U.S. Government’s Compact. The rehabilitation works are already underway at 10 irrigation systems. Veaceslav Vladicescu, director of Apele Moldovei Agency, elaborates

on possibilities to rehabilitate new irrigation systems from other sources.


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MCA in rehabilitation of the 10 irrigation systems?Apele Moldovei has an active cooperation with

MCA Moldova in rehabilitation of irrigation systems under a bilateral agreement signed in May 2011 and the Government Decision no.198 of 23.03.2013 on the approval of the Regulation on the transfer of the management of irrigation systems to water users’ associations (WUA). Apele Moldovei has already signed relevant agreements with 7 WUAs, while the other 3 are expected to be signed this year. Apele Moldovei’s role is to monitor the rehabilitation of the irrigation systems.

What do you think about the Compact’s rehabilitation model of irrigation systems and how useful the MCA Moldova’s experience of rehabilitation is for Apele Moldovei?

The Compact’s rehabilitation model is very useful for Moldova, because it focuses on quality and deadlines. This practice was successfully used by the former Minister of Improvements when there were enough financial and material sources. This is a very good practice. The Compact took over the commitments related to management, arrangements of procurements, selection of international companies for works and supervision services. The component of institutional capacity-building of Water Users’ Associations should also be noted. This model is very good because it enables Apele Moldovei Agency to learn from this experience and get technical support from the Compact’s consultants.

There are more than 70 irrigation systems in Moldova that are partially functional or broken at all. What funds are needed to upgrade them?

To upgrade these systems, that cover more than 65 thousand hectares of farmland, we need more than 3.5 billion lei. Our country does not have this money. We are trying to find financial sources, other than the state budget, for this purpose. We are negotiating with the private sector for investments. There are a lot of people that own irrigable land who would like to take over the management of irrigation systems. We are also thinking of renting out some assets, such as pump stations that are no longer used, and also attracting strategic investors in this sector.

According to the Law on Water Users’ Associations, associations of farmers may take over the management of irrigation systems. Are the Water Users’ Associations able, in your view, to manage these systems efficiently?

I don’t think there are major challenges in this respect,

but certainly the capacities of WUAs differ. In some cases our cooperation is more efficient, in others- less. Overall, we can definitely say that there is cooperation. In the future everything will depend a lot on their capacity to self-organize. The WUAs have all the chances to achieve good performances, as they will receive fully rehabilitated systems. Moreover, all the legal regulations are in place and they also received appropriate training to build their management capacities.

How does Apele Moldovei interact with WUAs?Apele Moldovei takes part in all the meetings of

WUAs. The management of the irrigation systems will be transferred based on an agreement. The owner of the rehabilitated systems will still be the state. Apele Moldovei represents the state and makes sure WUAs are functional, and the systems are not damaged. If the system breaks down or pieces of it are stolen, WUAs will be accountable for that. Yet, if such cases occur we will notify the relevant entities. The management transfer agreements state how many years WUAs will manage the systems. We consider that it should not be less than 30 years; yet it may depend on the WUAs’ requests.

The Compact provided assistance for establishment of 11 WUAs for the rehabilitated systems. Are farmers from other areas interested in establishing Water Users’ Associations? Is there any support for such initiatives?

We transferred the management of an irrigation system to the Dajida Prim Association based on the transfer agreement signed in June. This is the first system to be rehabilitated with funds other than the Compact ones following a similar model. I believe that as we put into operation the first rehabilitated irrigation systems – Criuleni and Lopatna - yields and harvest will increase, and other farmers will also be willing to establish WUAs.

Has Apele Moldovei the capacity to rehabilitate other irrigation systems following the MCA’s model?

At this point it does not have the appropriate funds to rehabilitate irrigation systems, but we are looking for funding opportunities. We have already received requests for management transfer of the Etulia system in the south of Moldova. Two farmers are interested in taking it over and rehabilitating to irrigate their lands. I have recently undertaken a field visit and met these farmers. Our institution provided them full consultancy, explaining them how to establish a WUA and what documents they need for that.


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By September 23, the Compact disbursed 47 loans totaling about 7.8 million USD that have been invested in the post-harvest infrastructure.

The Compact loans may be disbursed for procurement or construction of cold storage facilities or other storage, processing and packing facilities, as well as for procurement of equipment and/or associated land; equipment for sorting, washing, packing, processing of fruits, vegetables and grapes; procurement or construction of laboratory facilities and equipment for quality control; procurement of trucks compliant with the EURO 5 or 6 standards. Some of the Compact loans have been invested in the construction of greenhouses; procurement of equipment and/or associated land; multi-annual plantations (table grape vineyards,

orchards, berries) etc.The Compact loans may be disbursed to agricultural

businesses operating in the rayons of Ungheni, Nisporeni, Straseni, Hincesti, Leova, Cantemir, Cahul, Telenesti, Calarasi, Orhei, Criuleni, Dubasari, Anenii Noi, TAU Gagauzia and Chisinau’s outskirts through the following banks: Moldova Agroindbank, Energbank, Banca Sociala, FinComBank, Moldindconbank, Mobiasbanca Groupe Societe Generale, Victoria Bank and Comertbank.

They range from 5 000 USD (or the equivalent in lei or Euro) to 600 000 USD, while the loan term ranges from 3 to 7 years. On the other hand, the goods/ works/ services procured with Compact funds are exempted from VAT and customs duties.

The interest rates for the Compact loans are shown in the table below.

COMPACT LOANS HAVE BECOME INCREASINGLY POPULAR


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I decided to come back home from abroad. I am a patriot. I don’t like living abroad, I want to stay at home and be a good householder, although it is quite difficult. This is just the beginning for me –

I started a fruit drying business in 2013, but before that I closely researched the market and loan opportunities, Ion Gaber says.

The young businessman found out about the Compact loans in Internet. I realized that my business idea was perfectly eligible for the Compact loans. Moreover, the VAT exemption of imported equipment is a huge benefit for me, he adds.

Ion Gaber built fruit drying facilities. This decision didn’t come by accident. The Calarasi and Nisporeni rayons are famous for their plum orchards. Yet there are few drying facilities in this region because producers preferred to sell their produce right in orchards.

”There is only one drying facility in the Sadova village. This is why, for a start, I decided to deliver plum drying services for the local producers. I admit that for some reasons, including the embargo imposed by Russia, there is a lot of demand for such services, both from locals and producers from other localities. This year we dried 15 tons of plums and we will possibly dry other 15 tones. Later, as the people will start harvesting apples, we will probably dry apples as well. There are four people working for us now. Unfortunately, we are facing a shortage of workforce. All the people are looking for workers, but nobody is looking for jobs, in turn. We have to bring workers from other villages”, complains the young businessman.

He procured drying equipment with a Compact loan amounting to 42 thousand Euros and the premises with his own money. The total investment in the drying facility is about 1.3 million lei. The fruit drying tunnel was procured from Serbia. It needs gas to work and has a 6-ton capacity.

The price of drying services reaches 8-10 lei/kg, depending

on the ripeness of plums.I think that the risks are very small in the fruit drying

business. The dried fruits last longer without losing their taste and nutritional value and it is easy to store them, because they decrease in size. There are no special requirements to their storage, but a dry room. This is why I would like to procure raw material in the future to dry vegetables and maces besides plums and apples. I am also going to research the market of the dry onion, Mr. Gaber adds.

He is ready to face any possible challenges. He owns a plum orchard stretching on 60 acres and a strawberry plantation stretching on 1.5 hectares. Last year he did not receive the expected income from strawberry and, therefore, he is going to plant plum trees instead of strawberry. Yet, the young man thinks that similarly to other areas, in farming there should be a clear division – producers should produce, while the processing businesses should process.

You have to work very hard to get income from farming. I am positive about my business. I intend to buy 2-3 tunnels to allow me to increase the amount of fruits and negotiate a better price, he concludes.

ION GABER: THE COMPACT LOAN HELPED ME BECOME A GOOD HOUSEHOLDER

IN MY COUNTRYIon Gaber is a 30-year old young man living in Sadova, Calarasi rayon, who after years spent abroad, decided to come

back home and start his own business.


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ANATOLIE PUȚUNTICĂ: THE UPGRADE OF THE WATER MONITORING NETWORK

WILL FACILITATE THE PLANNING OF THE IRRIGATION PROCESS

Tell us something about the equipment you received from the Compact?

The State Hydro-Meteorological Service inherited outdated water monitoring

equipment dating from the Soviet times. This is why to replace the outdated equipment with new one was a priority and MCA Moldova came in handy, because it helped us upgrade the network of hydrological stations on the Nistru, Botna, Bic and Ichel rivers. Overall, our institution added to its network 8 hydrological stations that deliver on-line information about the speed, level

and the water flow rate in these riverbeds, requiring no involvement of the human factor. These data are also useful for the sub-component related to the rehabilitation of the irrigation systems. Our institution will provide accurate data received from the upgraded hydrometric stations necessary for the operation of the irrigation systems.

What is this equipment used for in practice?We use this equipment to calculate the amount of

water that flows in a one-year period in the riverbed and compare data with the previous years to see if the water

One of the Compact objectives is to help improve the management of water resources in Moldova. To this end, MCA Moldova provided to the State Hydro-Meteorological Service modern water monitoring equipment procured with Compact funds the cost of which is about 92 thousand USD. Anatolie Puțuntică, the director of the State Hydro-

Meteorological Service, told us more about the donated equipment.


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flow has dropped or increased or what amount of water can be used to irrigate.

With all these data received from the new stations we can predict and plan.

To make full use of this equipment, the institution’s employees received training, in particular how to use the software that enables getting information about contours, the automatic calculation of the level and amount of water that flows in the monitored riverbeds etc.

How do you use the information received from the water monitoring stations?

This information and analyses are shared with various ministries – Ministry of Agriculture and Food Industry; Ministry of Economy; Ministry of Transport and Road Infrastructure and the Ministry of Regional Development and Constructions, which further take the appropriate actions.

What countries are involved in the water monitoring process?

Moldova collects the data and further shares them with other states that signed cooperation agreements with us in this sense and under the international regulation framework. The weather information is free. The upgraded water monitoring network is quite large today. There are other programs that installed hydrometric stations on the Prut River and other 7 hydrographic stations are being installed on the Nistru River.

To what conclusions has the Hydro-Meteorological Service come based on the data collected from the monitoring stations?

Given the climate changes happening worldwide, the country faced severe droughts back in 2000, 2003, 2007 and 2010. If we look back - 20 years ago, the temperatures in Moldova never went above 40 degrees. In the 90s they went above 40 degrees during 9 days, 5 of which were in 2007. On August 7, 2012 the temperatures reached the peak of 42.4 degrees in Falesti. This temperature is specific to the Arabic countries.

Because of these changes, the water flow is below the multiannual level. It is quite low this year as well, in spite of the rainfall that we had. There is an explanation – the rainfall has probably compensated for the shortfall of underground water and less for the water in rivers. The average multiannual level of the

water flow remains unchanged in the Danube only, while the water flow in the Prut and Nistru rivers is below the required level.

With this equipment, what is Moldova’s position compared to other countries?

We are somewhere above the average level compared to the CIS countries, many of which don’t have modern monitoring stations. We have recently held a meeting in Sankt Petersburg during which our colleagues from other countries were surprised to learn that our institution has modern equipment due to the technical assistance projects of various international organizations, including automated water monitoring stations. Even the Russian Federation is behind us with the modernization process.

What other investments does the State Hydro-Meteorological Service need to improve its perfor-mance?

I think that the monitoring network on the large rivers is enough. However, it does not cover the small rivers, which, in case of rainfalls, can become large rivers causing material damages and even casualties. The problem with the small rivers is that some of them in the warm season can remain without water and the equipment is not functional in this case.


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MCA MOLDOVA’S CONSULTATIVE GROUP RECOMMENDS PUTTING IN PLACE

MECHANISMS TO ENSURE SUSTAINABILITY OF COMPACT INVESTMENTS

The Consultative Group of MCA Moldova gathered together on Friday, September 26, to learn about the performances of MCA Moldova over the past 3 months. The agenda included

issues such as the status of the rehabilitation works on the Sarateni-Soroca road and at irrigation systems and the findings of the archaeological excavations from the end of 2013 in the localities along the Sarateni-Soroca road.

Therefore, according to the reports delivered by the MCA Moldova team, the works on the local roads that are rehabilitated additionally to the 93 km of the national road segment and are about 10 km long are at a final stage. The Consultative Group suggested that an efficient maintenance mechanism should be designed jointly with the public institutions that will take over these roads to secure the sustainability of investments and road safety. In the view of Sergiu Harea, the CG chairman, the focus should be on maintenance of the local roads rehabilitated with the Compact support. It is critical that the local governments involve in works related to the maintenance of local roads, street lighting, drainage of channels etc.

Moreover, the CG members learned that the Criuleni and Lopatna irrigation systems are expected to be put into operation soon, and were also informed about the status

of the rehabilitation works at the other irrigation systems. They also addressed the issue of the compensations paid to the farmers who incurred losses because of the construction works and stressed that the works must be completed in due time and the legal procedures for paying compensations to the affected people must be fully complied with.

During the meeting, Sergiu Popovici, the representative of the National Agency for Archaeology, delivered a report on the findings of the archaeological excavations at 8 archaeological sites in the Telenesti, Soldanesti and Soroca rayons. Besides excavations and research, the National Agency for Archaeology drew the archaeological maps of the localities targeted by the archaeological project that may serve as milestones for further research. The CG members, in turn, recommended that outreach activities should be carried out in order to highlight the cultural importance of these finds and the positive initiative of MCA Moldova to bring its input in our country’s cultural and social life.

The CG members agreed to meet in the near future in one of the Compact localities to learn about the quality of works and materials used for the reconstruction of irrigation systems.


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WORLD FOOD MOSCOW 2014 SHOWS THAT RUSSIANS HAVE POSITIVE PERCEPTIONS

OF MOLDOVAN FOOD PRODUCTS

Moldovan food products, especially fresh fruit, are of good quality and will be in high demand in the Russian market if the import ban is lifted. This conclusion

has been confined by statements made to ACED Project representatives, and Moldovan producers, by Russian wholesalers and retailers at the World Food Moscow show which took place between September 15th and 18th, 2014.

ACED marketing specialist Adrian Cojocaru, who assisted the Moldovan participants at this trade show, said there is a positive perception for Moldovan produce in the consumer market in Russia. ”Our apples were the stars of the show. Everybody took pictures of them, and tasted them. Visitors to the Moldovan booth, mainly Russian business people, noticed an improvement in the quality of Moldovan apples, and their appearance can compete successfully with the best fruit from other European countries. The Moldovan fruit also has an advantage of having a better taste. These people are not happy at all with the fact that they are unable to buy our fruit directly at the moment,” Mr. Cojocaru said. Visitors from Egypt, Tunisia, Turkey, Jordan, Mongolia, and South Africa, too, spoke of the “taste advantage.”

One of the participants at the show, Ion Tulei, a Moldovan producer of table grapes, apples, plums, sweet cherries, and peaches, sees big chances for the expansion of fresh produce exports from Moldova. ”Everyone is waiting for the ban to be lifted and the Russian market to open again. On the other hand, the quality of our fruit now allows us to compete successfully in other markets too. My company, for example, uses the most advanced technologies in fruit production and post-harvesting, and we have received all of the necessary sanitary and phytosanitary certificates. Our message to customers is that we are not giving up on the Russian market, and we will be looking for other markets as well,” Mr. Tulei stated.

In his opinion, Moldovan farmers need to get rid of the stereotype that “our apples are the cheapest” and they must carefully study market trends and consumer preferences: if there is a demand, if the quality is good, and if you can guarantee shipment, why not ask for a higher price?

The Moldovan participants at the show held discussions

with representatives from more than 30 countries. As a result of the show, a South African trader, who exports fresh produce to other African countries, announced plans to visit Chisinau after the event in order to negotiate the delivery of Moldovan apples to one of his customers. “This year apple production in South Africa has declined by a considerable extent,” explains Wiehann Vermeulen from Bonaire Group, ”and I will be studying the possibility of importing apples from Moldova. After an assessment of the quality of the apple samples at this exhibition, I think the apples from Moldova have a real chance to generate sales on the African continent.”

A trader from Turkey, too, plans a trip to Moldova to assess the prospects of shipping Moldovan apples to the Middle East.

A group of Kazakh traders has already arrived in Chisinau to explore cooperation opportunities with Moldovan fruit producers. Another two companies from Egypt, two companies from Turkey, one company from Tunisia, one company from Uzbekistan, and one company from Mongolia have also announced their intention to buy Moldovan agricultural products, including processed food.

This was the fourth time that the ACED Project has supported Moldovan agricultural company exhibits in the Russian capital. The participation of 12 Moldovan producers at World Food Moscow 2014 was organized in collaboration with the Moldova Fruct Association, which is a partner of the ACED Project in a number of activities. Visitors also commented on the distinctive design of the Moldovan booth and its good position within the exhibition hall. The booth was visited by, among others, the Moldovan Agriculture Minister, Vasile Bumacov, who was in the Russian capital to negotiate the removal of the embargo on Moldovan food products.


16

PERFORMANCE OF INDICATORS IN COMPACT IMPLEMENTATION

53 900 000

79 906 386

11

11

9

11

11

7


Planned Actual

The value of all signed construction contracts for agricultural irrigationinvestments using Compact funds. US Dollars

Number of WUAs registered under newspecific WUA law

Number of WUAs having at least 20% of board member positions filled by women

WUAs that have Management TransferAgreements signed

17

93 000 000

51 139 606

2 000

3 250

9 500 000

6 653 126

10 500

18 580


Planned Actual

The value of disbursement for all contracts signed with contractors for construction orrehabilitation of Sarateni- Soroca road. US Dollars

Number of participants in the road safety trainings for women and children

The value of agricultural loans and rural loans disbursed for on-farm, off-farm, and rural investments within AAF. US Dollars

Operational cold-storage capacity of high value agriculture post-harvest structures financed under the AAF. Unit: Metric tones

18

CONTRACTS AWARDED IN JULY - SEPTEMBER 2014

Procurement Ref. Number: NPP/PA&A/NCS/S/149Contract Nr.: NPP/PA&A/NCS/S/149/321Project Name: Program Administration and AuditMethod of Procurement: ShoppingAwarded To: Auto Tyres SRL (Moldova)Total Amount of contract: based on tariffs Duration of Contract: August 31, 2015Summary scope of the contract: Auto tires repair servicesDate of Award: June 26, 2014

Procurement Ref. Number: NPP/PA&A/NCS/S/106Contract Nr.: NPP/PA&A/NCS/S/106/322Project Name: Program Administration and AuditMethod of Procurement: ShoppingAwarded To: MOLDASIG SA (Moldova)Total Amount of contract: 8,193.96 MDLDuration of Contract: July 01, 2015Summary scope of the contract: Vehicle insurance servicesDate of Award: July 01, 2014

Procurement Ref. Number: NPP/PA&A/NCS/DC/35Contract Nr.: NPP/PA&A/NCS/DC/35/324Project Name: Program Administration and AuditMethod of Procurement: Direct ContractingAwarded To: CANDELUX-COM SRL (Moldova)Total Amount of contract: N/ADuration of Contract: August 31, 2015Summary scope of the contract: Services for destroying scrap paper documentsDate of Award: June 30, 2014

Procurement Ref. Number: NPP/PA&A/NCS/S/154Contract Nr.: NPP/PA&A/NCS/S/154/325Project Name: Program Administration and AuditMethod of Procurement: ShoppingAwarded To: ACORD GRUP SA (Moldova)Total Amount of contract: MDL 20,556.00Duration of Contract: July 23, 2015Summary scope of the contract: Optional insurance services for goods and equipment procured under CompactDate of Award: July 24, 2014

Procurement Ref. Number: PP9-NMA1/PA&A/CS/IC/32Contract Nr.: PP9-NMA1/PA&A/CS/IC/32/326Project Name: Program Administration and AuditMethod of Procurement: Individual ConsultantAwarded To: Eugeniu Ciolacu (Moldova)Total Amount of contract: $23,400.00Duration of Contract: August 31, 2015Summary scope of the contract: Environmental and Social Consultant ServicesDate of Award: August 04, 2014

Procurement Ref. Number: PP9/THVAP/CS/IC/33Contract Nr.: PP9/THVAP/CS/IC/33/327Project Name: Transition to High Value AgricultureMethod of Procurement: Individual ConsultantAwarded To: Marin JosanuTotal Amount of contract: $23,125.00Duration of Contract: August 31, 2015Summary scope of the contract: Resettlement Consultant ServicesDate of Award: August 18, 2014

Procurement Ref. Number: PP9-NMA1/PA&A/CS/IC/31Contract Nr.: PP9-NMA1/PA&A/CS/IC/31/328Project Name: Program Administration and AuditMethod of Procurement: Individual ConsultantAwarded To: Liliana Beregoi (Moldova)Total Amount of contract: MDL 6,800.00Duration of Contract: December 19, 2014Summary scope of the contract: Outreach Consultant ServicesDate of Award: August 19, 2014

Procurement Ref. Number: NNP/PA&A/NCS/DC/36Contract Nr.: NNP/PA&A/NCS/DC/36/329Project Name: Program Administration and AuditMethod of Procurement: Direct ContractingAwarded To: CIE Moldexpo SA (Moldova)Total Amount of Contract: € 694.13Duration of Contract: October 25, 2014Summary Scope of the Contract: Expo Farmer 2014Date of Award: September 01, 2014

Procurement Ref. Number: PP9-NMA1/M&E/G/S/49Contract Nr.: PP9-NMA1/M&E/G/S/49/330Project Name: Program Monitoring and EvaluationMethod of Procurement: ShoppingAwarded To: Reliable Solutions Distribuitor SRL (Moldova)Total Amount of contract: $5,563.00Duration of Contract: October 17, 2014 (30 working days)Summary scope of the contract: System for Analyzing Data – Statistical Package for Social Sciences (SPSS) SoftwareDate of Award: September 05, 2014


19

US Ambassador at school in Tintareni

Children in Prodanesti

Sidewalks for children in Prodanesti

Installation of electronic irrigation system Criuleni

Sarateni Bridge

Sarateni-Soroca Road

Cucumbers grown in greenhouses in Mascauti

Tomatoes grown in a greenhouse in Mascauti

Sarateni-Soroca Road


The newsletter is produced by the Millennium Challenge Account Moldova.The information provided in this newsletter does not represent the views or positions of

the Millennium Challenge Corporation or the US Government.

Editorial team:Inga Burlacu, Information and communication director, MCA Moldova

Ana Racu, Outreach officer, MCA Moldova

Victor Garstea, photographer

Сornelia Ursu, translator

MCA Moldova21, N. Iorga street, MD-2012;

mun. Chishinau, Republic of Moldova;

tel.: +373 22 85 22 99;fax: +373 22 85 22 94;

e-mail: [email protected];www.mca.gov.md

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