Strategy of the Slovak Republic for Development Cooperation with Moldova for 2014-2018

Strategy of the Slovak Republic for Development Cooperation with the Republic of Moldova for 2014 – 2018

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SUMMARY The year 2014 should be important for Moldova in terms of confirmation of its efforts towards EU integration and continuation in reforms. Since 28 April 2014, Moldovan citizens who hold biometric passports have had visa-free entry to the EU and this year the country should also sign an Association Agreement with the EU and an Agreement on DCFTA. Despite that, Moldova remains one of the poorest European countries, its economy is greatly dependent on remittances and its development requires the continuous support of donors. In the next few years, Moldova is facing the challenge of building a stable, democratic state with a functioning market economy, and improving the living conditions of its inhabitants.

In October 2013, the Government of the Slovak Republic and the Government of the Republic of Moldova signed an Agreement on Development Cooperation. The Agreement, concluded for an undetermined period, states the general conditions for development cooperation between the Slovak Republic and the Republic of Moldova.

Within Slovak development cooperation, from 2009 - 2013, Moldova was supported as one of the Eastern Partnership project countries. Development activities mainly focused on the process of transforming public administration, democratisation and building a civil society.

In compliance with the Medium-Term Strategy for Development Cooperation of the Slovak Republic for 2014 - 2018, as of 2014 Moldova has become a programme country (together with Kenya and Afghanistan). Apart from increased financial allocations, the application of a programmatic approach means more systematic and targeted development cooperation. This strategy is based on analysis of Moldovan development needs, consultation with relevant entities from the governmental and nongovernmental sectors as well as communication with donor organisations acting in Moldova.

An important factor for effective implementation of the Strategy is the presence of a Slovak Embassy in Chisinau and establishment of the position of development diplomat. The Embassy was opened in Chisinau in July 2013 in order to strengthen the relationship and cooperation between both countries.

Creation of the position of development diplomat acting within the Embassy, being piloted in Moldova, arises from the Medium-Term Strategy for Development Cooperation of the Slovak Republic for 2014 - 2018. His main task is to manage the project cycle directly in the receiving country. Such positions could later be set up in all three programme countries.

The basis for crafting development cooperation strategy with the Republic of Moldova also included an evaluation of four selected projects implemented in Moldova from 2009 - 2013. The evaluation was carried out by an external entity at the end of 2013.

The main goal of the Strategy of the Slovak Republic for development cooperation with the Republic of Moldova for 2014 - 2018 is: To support Moldova in building a stable, functioning, democratic state and improve the living conditions of its inhabitants.

The Strategy will be implemented within two sectoral priorities with the following specific objectives: 1. Good Governance: 1.1 Improve the performance of local self-governments and strengthen their significance in local and regional development 1.2 Strengthen the effective functioning of state administration and civil society 2. Water and sanitation 2.1 Improve the efficiency of the drinking water supply system, sanitation and waste management 2.2 Improve the environment and quality of life of inhabitants via interventions in the area of water and sanitation 2.3 Increase environmental awareness and information in the area of protecting water resources

SITUATION ANALYSIS

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2.1 Political, economic and social context Moldova has been one of the poorest states in Europe for many years. Within approximately the last 20 years, the country has suffered economic recession, conflict with Transnistria, political instability and significant emigration of labour force abroad.

Moldova confirmed its pro-reform efforts and direction towards European integration by endorsing the Association Agreement with the EU on 29 November 2013, expected to be signed in 2014. Other important steps in getting closer to the EU were the implementation of a visa-free regime for Moldovan citizens with the EU and the expected signing of the DCFTA. In 2010 and 2011, the Moldovan economy grew by approximately 7%. Moldova could not avoid a significant decrease in economic growth due to the global economic crisis (a GDP decrease of 0.8% in 2012). In 2013, the economy recovered again resulting in the GDP growth of 5.5%.

In terms of the economic structure, Moldova still remains a predominantly agricultural country. Approximately 27% of the working population are employed in agriculture. The average salary in the economy in 2013 was approximately EUR 2101.

The Moldovan economy is not sufficiently competitive and, for a long time, has not produced jobs which would guarantee an adequate standard of living for its citizens. This fact results in significant emigration of labour force abroad. According to estimates of the International Organisation for Migration, there are as many as 600,000 Moldovans working abroad on a long-term basis. According to data from the World Bank, in 2012, remittances flowing to Moldova represented more than 24% of GDP. The exodus of people of productive age is mainly related to rural areas. According to various estimates, approximately 25% of children are growing up without one parent (working abroad) and approximately 10% of children live without both parents on a long-term basis.

In terms of the Human Development Index, Moldova is in 113th place worldwide (0.66, the lowest of European countries).2According to the World Bank, as much as 16.6% of the population lived below the poverty line (in 2010, this percentage was 21.9%).

A significant challenge for the country is also an insufficiently developed infrastructure with a negative impact on the health of the population. In 2012, only 60.5% of households were connected to the water network (only 36.8% in rural areas), 34.7% of households were connected to the drainage and sewage system (there is almost no draining system in rural areas – 1.5%)3.

In terms of development, Moldova will still remain dependent on financial aid from abroad in the coming years. Apart from continuing in economic and social reforms, a significant challenge in building stable, favourable development in Moldova will be strengthening the rule of law as well as removing the polarisation of society and ethnic tension. In the long run, the ongoing integration process with the EU itself will be a significant driver for further development of Moldova.

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Statistical Office of the Republic of Moldova UNDP Data 2013 Statistical Office of the Republic of Moldova

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2.2 The National Development Strategy of the Republic of Moldova The basic medium-term strategy document of Moldova is the National Development Strategy “Moldova 2020: Seven solutions for economic growth and poverty reduction”, approved by law in July 2012.

The document identifies the seven most significant barriers to be overcome by Moldova in order to ensure a long term stable increase in economic performance and poverty reduction. The goal of the strategy is to ensure qualitative economic development and implicitly, poverty reduction. This goal will be achieved by removing the greatest obstacles on which the seven priority areas of the strategy focus: 7 priority areas of the strategy focus Aligning the education system with labour market needs in order to enhance labour productivity and increase employment in the economy Increasing public investment in the national and local road infrastructure in order to reduce transportation costs and increase the speed of access Reducing financing costs by increasing competition in the financial sector and developing risk management tools Improving the business climate, promoting competition policies, streamlining the regulatory framework and applying information technologies in public services for businesses and citizens Reducing energy consumption by increasing energy efficiency and using renewable energy sources Ensuring financial sustainability of the pensions system in order to secure an appropriate rate of wage replacement Increasing the quality and efficiency of justice and fighting corruption in order to ensure equitable access to public goods for all citizens

Implementation of the strategy is coordinated and monitored by the Government of the Republic of Moldova which is responsible for regular reporting to the Moldovan parliament, the Government, the National Council for Participation and the Committee for Strategic Planning as well as for evaluation of the strategy.

Strategic documents relevant for the sectoral priority Good Governance In 2012, a National Decentralisation Strategy4 was adopted as the initial document for transferring part of public competencies to municipalities. This strategy follows the principles of the European Charter of Local Self-Government5 and its main goal is: “To achieve independent and democratic functioning of municipalities which have sufficient capacities and resources to provide public services for the needs and requirements of their final recipients, whilst maintaining the principles of efficiency, effectiveness and equality, including enforcing the rights of vulnerable groups and maintaining financial discipline.”

The Strategy determines the main direction and priority activities necessary to implement the decentralisation of competencies, financial decentralisation and decentralisation of assets. At the same time, it defines objectives and activities for ensuring effective and sustainable local development, building administrative and institutional capacities as well as the principles of democracy, ethics, human rights and gender equality at local level.

Implementation of the National Decentralisation Strategy in 2012 – 2014 hardly took place and the only step taken was adoption of the Law on Local Public Finance6 based on which, in 2014, a pilot test of financial decentralisation is taking place in four municipalities with estimated widespread implementation from 2015.

A key document in the public finance reform is the Strategy for Development of Public Finance Management 2013 – 20207, implemented by the Ministry of Finance of the Republic of Moldova. Via this strategy, the Moldovan government undertook to maintain high standards in accountability and transparency in the public sector which are necessary for providing public services and other activities falling under the government’s mandate.

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National Strategy for Decentralisation and Action Plan on implementation of the National Strategy for Decentralisation for 2012-2015. The document was enacted by Act No. 68 of 5.4.2012.

The Republic of Moldova adopted the European Charter of Local Self-Government on 16.7.2007, effective from 1.2.1998.

Law on Local Public Finance, of 1.11.2013.

Strategy for the Development of Public Finance Management for 2013-2020. Document approved by the decision of the Government of the Republic of Moldova of 6. 8. 2013.

Republic of Moldova is one of the largest ODA recipients in Europe.

In 2012, the ODA for Moldova totaled 473 million USD (of which 32% was bilateral aid).

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Strategic documents relevant for the sectoral priority Water and Sanitation In terms of this sectoral priority of the Slovak development cooperation with Moldova, the key strategic documents in the area of environment are: Waste Management Strategy of the Republic of Moldova 2013 – 20278 and the Strategy of the Republic of Moldova for Water Supply and Sanitation9. The Ministry of Environment of the Republic of Moldova is responsible for implementing both documents.

The main goals of Waste Management Strategy are: 1. The development of integrated systems for handling communal waste by harmonising the legal, institutional and regulatory framework with EU standards based on a regional approach and the regional division of the country into eight regions in terms of waste management 2. The development of a regional infrastructure for handling solid communal waste (landfills and collection stations) 3. The development of systems of collecting and processing specific flows of waste (packaging, waste for electronic and electrical equipment, tires, batteries, etc.) via enforcing the implementation of the “producer responsibility” principle, including dangerous waste (clinical waste, waste oils, etc.) via a single collection point at regional level The specific objectives of the strategy are elaborated for individual types of waste (communal waste, packaging, waste of livestock and plant origin including waste from wood processing, tires, waste from electronic and electrical equipment, dangerous waste, waste oils, batteries and accumulators, and motor vehicles).

The main goal of the Republic of Moldova’s Water Supply and Sanitation Strategy is to provide a framework for achieving a coverage of services related to a water supply and drainage network compatible with quality and efficiency indexes, and/or access to improved drinking water sources and an improved sanitation system for all localities by 2027.

Development cooperation for Moldova Moldova is one of the largest recipients of official development assistance (ODA) in Europe. According to OECD data10, ODA for Moldova in 2012 reached 473 million USD (of which 32% was bilateral ODA) which represents the sixth largest recipient of official development assistance in Europe (behind Turkey, Serbia, Ukraine, Bosnia and Herzegovina and Kosovo). The ODA share as a % of its Gross National Product is 6%.

The most significant donors are the European Union (179 million USD), the International Monetary Fund (71 million USD), the World Bank (67 million USD), USA (40 million USD), Sweden (18 million USD), Romania (18 million USD) and Germany (17 million USD).

The most supported sectors are: 1. Transport and storage, 2. Public administration and civil society, 3. Other social infrastructures and services, 4. Business and other services, 5. Agriculture, 6. Energy production and storage, 7. Water and sanitation, 8. Healthcare11.

Chart No. 1: Major International Donors in Moldova (ODA share in mil. USD) 200 180 160 140

EU

120

IMF

100

World Bank

80

USA

60

Sweden

40

Romania

20

Germany

0

EU

8

IMF

World Bank

USA

Sweden

Romania

Germany

National waste management strategy of the Republic of Moldova 2013-2027. Document approved by the decision of the Government of the Republic of Moldova of 10.4.2013.

9 When preparing this Strategy, the Republic of Moldova’s Water Supply and Sanitation Strategy was in the form of a draft only.

10 http://www.oecd.org/dac/stats/documentupload/MDA.JPG 11 Source: State Chancellery of the Republic of Moldova: 2012 Annual Report on external assistance provided to the Republic of Moldova

Donors active in sectors related to the Slovak official development assistance12: Good Governance

EU

in 2011 – 2013, for the priority Good Governance, rule of law and fundamental freedoms, the EU, via the programme document National Indicative Programme, allocated approximately 100 million EUR. Support for this sector will continue in the next period via the currently under preparation Single Support Framework for Moldova 2014 – 2017 programme under which one of the three priorities will be the Reform of Public Administration.

Sweden

approximately half of the annual budget (12 million EUR) of the Swedish International Development Agency (SIDA) is designated for the priority area of Democracy, Human Rights and Gender Equality.

UNDP

within the Democratic Governance priority, the UNDP implemented seven projects in 2013 with an annual allocation of almost 7 million USD.

USA

within the Governing Justly and Democratically priority, the USAID (US Agency for International Development) implemented four programmes with a total budget of 30 million USD for 2012 – 2018.

Water and Sanitation

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Germany

the GIZ development agency implements the Modernisation of Local Public Services programme in Moldova (in cooperation with the EU, Sweden and Romania).

The programme also focuses on infrastructure and building capacities in the area of drinking water supply and waste management. The total allocation for 2014 represents 29.1 million EUR (Germany 17.9, Sweden 5.5, EU 5.0 and Romania 0.7 million EUR).

EU

via its programmes (MD-04 Water Utilities Development Programme in the Republic of Moldova and Sector Policy Support Programme in the water sector ENPI AAP 2009) and projects in the area of water infrastructure, the EU has allocated 57 million EUR in 2009 – 2016.

USA

the Compact programme, implemented via the Millennium Challenge Corporation, has allocated a total of 262 million USD for 2010 – 2015 for projects of road infrastructure development, renovation of irrigation systems, drinking water supply management and supporting farmers. From a Slovak development assistance viewpoint, the mainly relevant activities are in the area of the Integrated Dniester River Management Plan.

Switzerland

water and sanitation is one of the three main priorities of the Swiss Agency for Development and Cooperation (SDC). Projects focus on building infrastructures as well as upon strengthening institutional capacities. 15.3 million EUR has been allocated for this priority for 2014 – 2017.

Austria

the strategy of the Austrian Development Agency (ADA) for 2011 – 2015 states the water and sanitation as one of the two main priorities. Apart from infrastructure projects, the ADA focuses on improving the system-wide framework for water supply and drainage system services. The annual allocation for this priority is approximately 1 million EUR.

Czech Republic

the development cooperation programme of the Czech Development Agency focuses on the protection and use of water sources, sanitation, waste management and the elimination of ecological burdens. The allocation for this priority for 2011 – 2017 is 7.1 million EUR.

Source: State Chancellery of the Republic of Moldova: 2012 Annual Report on external assistance provided to the Republic of Moldova; strategy documents of individual donors

The European Union has allocated 57 million EUR in the area of water infrastructure for a period of 2009 – 2016.

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DEVELOPMENT COOPERATION OF THE SLOVAK REPUBLIC WITH MOLDOVA TO DATE DEVELOPMENT COOPERATION OF THE SLOVAK REPUBLIC WITH MOLDOVA TO DATE

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Up to 2013, in terms of the Medium-Term Strategy for Official Development Assistance of the Slovak Republic for 2009 – 2013, Moldova was a project country (together with other Eastern Partnership countries: Belarus, Georgia, Ukraine). Since 2009, twelve projects have been implemented in Moldova based on SAIDC calls proposals (including projectsStrategy whose for implementation continued in 2014). majority of projects Up to for 2013, in terms of the Medium-Term Official Development Assistance of theThe Slovak Republic for 2009 focus on technical in strengthening civil society and building democratic institutions.

2013, Moldova was aassistance project country (together with other Eastern Partnership countries: Belarus, Georgia, Ukraine).

Since 2009, twelve projects have been implemented in Moldova based on SAIDC calls for proposals (including projects

In two implementation cases, these are ongoinginprojects with subsequent activities lasting several years:in strengthening civil whose continued 2014). The majority of projects focus on technical assistance • National Convention on the European Union in Moldova – 3 projects society and building democratic institutions.

• Projects in the area of handling electrical and electronic waste – 2 projects In two cases, these are ongoing projects with subsequent activities lasting several years:

• National Convention onimplemented the European Union in Moldova - 3 projects From projects already in Moldova to date, all except one focused on technical assistance.

• Projects in the area ofproject handling electrical and electronic waste - 2 projects The only investment was the Drinking Water for Dezhingja Village project.

From projects already in Moldova cooperation to date, all except one focused on technical assistance. only An important activityimplemented in Slovak development in Moldova is a project financed from theThe budginvestment project was the Drinking Water for Dezhingja Village project. et of the Ministry of Finance of the Slovak Republic within the Programme for Strengthening Public Finance Capacities in the Western Balkans and Commonwealth of Independent States – Public Finance for DevelAn important in Slovak development cooperation in Moldova a project from CIS. the budget of the opment.

This activity programme is implemented by the UNDP RegionalisCentre forfinanced Europe and In Moldova, Ministry of focus Finance the Slovak Republic within the Programme for Strengthening Public Capacities in the activities onof programme budgeting and are implemented in partnership withFinance the Ministry of Finance Western Balkans of and Commonwealth of Independent States - Public Finance for Development. This programme of the Republic Moldova.

Other institutions of state administration and self-governments (regional as wellis implemented theincluded UNDP Regional for Europe and CIS. Inbeen Moldova, activities focus on 2011 programme as local) are by also in the Centre activities.

The project has implemented since and itsbudgeting continuand are implemented in partnership Ministry of Finance of the Republic of Moldova. Other institutions of state ation is planned until 201613. The with totalthe allocation for Moldova for 2011-2014 represents USD 600,000. The administration and self-governments (regional as well as local) are also included in the activities. The project has been allocation for the period up to 2016 will be clarified after agreement on the implementation plan for this implemented since 2011 and its continuation is planned until 2016. The total allocation for Moldova for 2011-2014 period. represents USD 600,000. The allocation for the period up to 2016 will be clarified after agreement on the implementation plan for this period.

Development assistance for Moldova was also provided via small financial contributions (up to EUR 5,000) in cooperation with thefor Slovak Embassy accredited A totalcontributions of 42 small (up grants with5,000) a total Development assistance Moldova was also providedfor viaMoldova. small financial to EUR in value of EUR 201,573 were provided in 2009 – 2013.

Small grants are mainly used for purchasing equipment cooperation with the Slovak Embassy accredited for Moldova. A total of 42 small grants with a total value of EUR and minor reconstructions in school facilities, implementation projects in the socialequipment area for vulnerable 201,573 were provided in 2009 - 2013.

Small grants are mainlyofused for purchasing and minor groups of citizens, minor investment activities to improveinthe of village infrastructure, etc. reconstructions in school facilities, implementation of projects the quality social area for vulnerable groups of citizens, minor investment activities to improve the quality of village infrastructure, etc.

Chart No. 2: Slovak Development Projects in Moldova to date

8% 8% democratic participation and civil society drinking water supply

17%

advanced technical and managerial training environmental policy and administrative management

67%

Table No. 1 ODA SR for bilateral projects in Moldova (in thousands of EUR) 2009 2010 2012 Table 1 – ODA SR for bilateral projects in2011 Moldova (in thousands of EUR)

2013

TOTAL:

70 2009

335 2010

196 2011

197 2012

212 2013

1total 010

70

335

196

197

212

1010 Source: SAIDC database

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An extension for the period July 2014 – December 2016 is under negotiation with the UNDP.

Another development cooperation instrument used in Moldova is the CETIR Programme (The Centre for Experience Transfer in Integration and Reforms). This programme of the Ministry of Foreign and European Affairs of the Slovak Republic is implemented via study visits by Republic of Moldova representatives of state administration to Slovakia, as well as visits by Slovak experts to Moldova. Within the CETIR programme, four study visits took place in 2011 – 2013 (in the area of combatting illegal migration and standardisation and normalisation in agriculture).

The Slovak Republic also provided Moldova with humanitarian aid in the total amount of EUR 167,770. This included three projects from 2007 – 2010 in the area of water supplies, supporting farmers after periods of drought and eliminating consequences of floods.

Moldova is a part of the Slovak Government Scholarship Programme via which two to three new scholarships are awarded annually. This number will be increased to six as of the 2014/2015 academic year.

In course of 2009-2013, SlovakAid supported bilateral development projects in Moldova in total amount of 1,01 mil. EUR.

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Territorial Priorities of the Slovak Devel

Programme countries: Afghanistan Kenya Moldova Project countries: Albania Belarus Bosnia and Herzegovina Georgia Kosovo* Ukraine Country with exceptional humanitarian and development needs: South Sudan * In compliance with the UNSCR No. 1244/99.

lopment Cooperation for 2014 – 2018

BELARUS UKRAINE BOSNIA AND HERZEGOVINA

MOLDOVA

KOSOVO

*

GEORGIA

ALBANIA

AFGHANISTAN

SOUTH SUDAN

KENYA

STRATEGY OF THE SLOVAK REPUBLIC FOR DEVELOPMENT COOPERATION WITH MOLDOVA FOR 2014 – 2018

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4.1 The basic approach and principles of Slovak development cooperation

with Moldova The Strategy of the Slovak Republic for development cooperation with the Republic of Moldova for 2014 – 2018 follows the basic principles of effective development cooperation, formulated at international forums for effective development cooperation which took place in 2003 (Rome), 2005 (Paris), 2008 (Accra) and 2011 (Busan).

The main cooperation framework is based on the Medium-Term Strategy for Development Cooperation of the Slovak Republic for 2014 – 2018 (Medium-Term Strategy) which included Moldova (together with Afghanistan and Kenya) amongst programme countries for Slovak official development assistance. Within the Medium-Term Strategy, Moldova falls under the Development Interventions Programme the goal of which is to develop human potential in partner countries, primarily by supporting education and employment, supporting democracy and good governance including dialogue between civil society and state institutions.

An important aspect contributing towards achieving this goal in Moldova is Slovakia’s similar experience, particularly changes related to successful transformation of a post-socialist country and subsequent EU integration process.

Slovak development cooperation interventions will be in full compliance with the national strategy documents: Moldova 2020, Waste Management Strategy of the Republic of Moldova 2013 – 2027, Strategy of the Republic of Moldova for Water Supply and Sanitation, National Decentralisation Strategy and Strategy for the Development of Public Finance Management 2013 – 2020 (more details in part 2.2).

A large number of foreign donors act in Moldova and the majority have significantly greater financial means than Slovakia. Permanent coordination with other donors is necessary in order to ensure the most effective use of financial means via Slovak development cooperation. This will provide mutual complementarity of development interventions and prevent activities from overlapping. Special attention will be paid to coordinating and implementing joint activities with the V4 countries.

Slovak development cooperation will mainly follow complementarity with the priority areas of EU cooperation with Moldova defined in the Single Support Framework for Moldova 2014 to 2017: • • •

Reform of public administration Agriculture and rural development Reform of the police and border control

Due to limited financial means, Slovak development cooperation with Moldova will focus on those specific sectors where Slovakia has comparative advantages and in which activities will be continuous and will achieve results over a longer time horizon.

In the area of technical assistance, Slovak development cooperation will not concentrate on activities

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which could be more effectively implemented using specific EU instruments (the Twinning instrument). The Slovak Embassy in Chisinau will play a coordinating role in involving Slovak entities in such EU projects in order to share specific Slovak experience.

From a territorial viewpoint, development cooperation with Moldova will focus on the whole territory of the country with emphasis on developing rural areas. Slovak development cooperation activities are aimed at improving the living conditions of Moldovan citizens regardless of their nationality or the language they speak. In line with this, development activities will also be implemented in Transnistria and other Russianlanguage regions taking into account current security and political situation.

The application of a programmatic approach during the implementation of development cooperation activities will be supported by activities of a development diplomat at the Slovak Embassy in Chisinau. The tasks of the development diplomat main lay in activities related to the project cycle (selection and specification of Slovak development priorities in the partner country, selection of projects, their monitoring and evaluation), ensuring contacts with government institutions and local self-governments, donor coordination and cooperation with EU Delegation in the country.

4.2 Sector priorities and objectives The main goal of the Strategy of the Slovak Republic for development cooperation with the Republic of Moldova for 2014 – 2018 is: To support Moldova in building a stable, functioning, democratic state and improving the living conditions of its inhabitants.

The Medium-Term Strategy for Development Cooperation of the Slovak Republic for 2014 – 2018 defines two sector priorities for cooperation with Moldova within which activities focusing on achieving the abovementioned goal shall be implemented: 1. Good Governance 2. Water and Sanitation.

Good Governance Main objective: By sharing Slovak transformation experience, support building of stable and democratic Republic of Moldova with effective state administration, self-governments and strong civil society.

Specific objectives: 1.1 To improve efficiency of local self-governments and strengthen their role in local and regional development, mainly via supporting decentralisation processes 1.2 To improve transparent, responsible and effective state institutions via supporting the implementation of reforms 1.3 To strengthen public participation in good governance by raising awareness and supporting effective dialogue Significant added value which the Slovak Republic will apply within this sector priority is the recent experience in the transformation to a democratic state, transfer to a market economy and the EU integration process.

Public sector reforms have not been sufficiently implemented despite the fairly long period since the break up of the Soviet Union and establishment of an independent Republic of Moldova. The position of a civil society, mainly direct participation of citizens in good governance, is not yet sufficiently firm and indicates several shortcomings.

The Moldovan self-government does not have a strong enough position to play an active role in local and regional development. This is mainly caused by slow decentralisation process, resulting in a poor financial and institutional framework for performing the tasks of local and regional self-governments. A remarkable shortcoming is also low awareness of citizens of the need and options for active participation in good governance at local level.

Within development cooperation with Moldova in the area of self-government, the Slovak Republic will apply its experience in implementing territorial and financial decentralisation process, as well as strengthening the active role of self-governments and their citizens in local and regional development.

Particular activities will focus on: 99 Building the capacities of local self-governments in reforming public finances (linked with the decentralisation process) 99 Supporting effective communication (dialogue) between self-government and citizens, strengthening citizens’ active participation in local development and improving transparency in the performance of local self-governments

99 Increasing self-government capacities in planning social and economic development and territorial planning In relation to the EU integration process, a great challenge for Moldova is successful management of public sector reforms and proceeding in democratisation of the country. In this area, Slovak development cooperation will focus on: 99 99 99 99

Increasing transparency and combating corruption Building the rule of law and supporting judicial reforms Public finance reform focusing on programme budgeting Supporting the implementation of reforms related to the EU integration process (technical assistance in achieving EU levels of standards) 99 Supporting communication on the theme of EU integration towards the public as well as communication between the government and civil society and other actors Slovakia seeks to achieve primarily the following five results in the sector priority Good Governance: Good Governance - intervention results Result No. 1

Self-government capacities in planning social and economic development and territorial planning increased

Result No. 2

Self-government capacities in the public finance reform increased

Result No. 3

The level of transparency, responsibility and participation within state administration increased

Result No. 4

Interest of citizens increased and their awareness and active participation in good governance improved

Result No. 5

The level of cooperation between the governmental and non-governmental sectors increased

Water and sanitation14 Main objective: To improve the quality of life and health of Moldovan citizens via effective and sustainable management of water sources and waste Specific objectives: 2.1 To improve the access of rural inhabitants to good quality drinking water by building an infrastructure 2.2 To strengthen the effective functioning of the water and waste management system via building institutional capacities 2.3 To protect water sources via building awareness of methods for sustainable and effective management of water sources and waste The situation in Moldova’s drinking water supply and sanitation is characterised by a poor quality or totally absent infrastructure and often by an unfit quality of water. Just over one third of rural households are connected to the water network and the drainage and sewage system in the countryside is non-existent.

The same applies to a system for communal waste collection and handling in rural areas which is often undeveloped or completely absent. This very negatively influences the quality of life and represents a risk in terms of the health of citizens.

Alongside the undeveloped infrastructure, the non-effective system in terms of legislation, institutional security and management is also a significant problem in this area. National sector development strategies in the area of waste management and water and sanitation are responding to these problems. Slovak development cooperation will support interventions focusing on systemic changes in the area of water and waste management, based on national development documents as well as international agreements to which Moldova has acceded (e.g. the Protocol on Water and Health).

A limiting factor in implementing effective changes in improving the environment is the low public environmental awareness. This problem arises from insufficient awareness by the public, as well as self-governments, of environmentally suitable methods of waste handling and the need to adopt effective measures focusing on protecting water sources.

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In line with OECD DAC statistical reporting, we also include waste management under the term ‘water and sanitation: communal and industrial solid waste including dangerous and toxic waste, collection, handling and disposal, landfills, composting and recycling.

„One of the main objectives is to improve the quality of life and health of Moldovan citizens via effective and sustainable management of water sources and waste.“

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In the sector priority Water and Sanitation, development cooperation interventions will focus on the following: 99 Management of drinking water sources, securing accessible drinking water of an adequate quality 99 Implementing a system of collection, processing and disposal of dangerous waste 99 Supporting a system of widening the responsibility of producers when handling waste and effective inclusion of the business sector in collecting and processing waste 99 Improving access to drinking water in rural areas without the opportunity to connect to the central supply systems (revitalisation of local water sources, treatment plants for drinking water in schools) 99 Improving or implementing systems for handling and processing waste, including waste water, with emphasis on rural areas 99 Increasing the public’s environmental awareness (mainly in the protection of drinking water sources and preventing the creation of illegal landfills) Slovakia seeks to achieve primarily the following three results in the sector priority Water and Sanitation: Water and sanitation- intervention results Result No. 1

The number of rural households with access to good quality drinking water increased

Result No. 2

The institutional capacities and systematic functioning in the area of water and waste management strengthened

Result No. 3

The level of awareness of the public and representatives of self-governments about the need and methods for protecting water sources increased

Cross-cutting priorities In compliance with Medium-term Strategy for Development Cooperation of the Slovak Republic for 2014 – 2018, development cooperation with Moldova will apply the following cross cutting priorities: 99 Environment protection and climate change – supporting the protection of the environment, sustainable use of natural resources, climate change mitigation and adaptation 99 Gender equality – applying the principle of gender equality with particular emphasis on women empowerment 99 Good governance – a responsible, efficient and effective government sector, independent judiciary, a rule of law, and effective and fair public administration 99 Human rights and human dignity – respecting human rights and strengthening the role of civil society when enforcing human rights and democratic reforms

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IMPLEMENTATION OF THE STRATEGY

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Slovakia will implement the Strategy using the following tools and modalities: Block grants

Block grants are awarded based on framework agreements with the entities who are active in providing development assistance, have proven experience at intervention programme level, sufficient human and financial resources and a positive evaluation within implementing development projects.

Small grant scheme

Bilateral projects for small grant schemes will be approved based on grant applications in compliance with existing legal regulations. Calls for proposals will be based on sector focus and the objectives of this strategy.

Financial contributions of Slovak Embassies (micro-grants)

Financial contributions up to 5,000 EUR will be provided to local organisations via the Slovak Embassy in Chisinau, in compliance with existing legal regulations. The awarding of financial grants will be based on sector focus and the objectives of this strategy.

Supply of goods and services

Projects within this instrument will be put to tender based on particular submissions as a response to the current development needs of Moldova. The tender will be defined by the Slovak Embassy in Chisinau/a development diplomat, after consultation with Moldovan partners, the donor organisations present and the MFEA SR. The use of this tool will allow definition of the project conditions and ensure its implementation in such a way that the particular development needs will be resolved as far as possible.

The CETIR Programme

The CETIR programme will also be used in cooperation with Moldova in the form of short term educational and study trips by Moldovan representatives to Slovakia and trips by Slovak experts and consultants to Moldova. The cooperation will focus on transferring experience to Moldova, mainly in those areas which arise from the sector focus of this strategy.

Start Up

The Start Up instrument is the main instrument for cooperating with the private sector and serves for financing the start of business activities by Slovak entities in partner countries. For example, the following may be financed in this way: identifying and seeking partners in developing countries, paying costs related to presentation, certification of products, feasibility studies, a business plan, market and marketing analysis, or initiating cooperation with local public institutions.

Trilateral cooperation

Slovakia will identify areas for possible trilateral cooperation with selected donors. Trilateral cooperation will give priority to cooperation by the V4 countries.

SR and UNDP cooperation instrument

The SR and UNDP cooperation instrument in Moldova will focus on supporting the implementation of a programmatic approach, inclusion of the private sector and self-governments in development cooperation, involving Slovak experts in UNDP projects, increasing effectiveness and transparency. Activities in public finance reform will follow the Public Finance for Development Programme implemented by the UNDP Regional Centre.

SR and EBRD fund for technical cooperation

This is a regulated fund designed for financing technical assistance for Slovak entities, with the aim of assisting transforming countries (including Moldova) during their transfer to a market economy. A priority is to ensure full development of cooperation in developing countries between the EBRD on one side and Slovak business entities and local self-governments in SR on the other side.

Financial contributions

Financial contributions will be used to provide humanitarian aid and for sending development workers, volunteers and civilian experts.

Financial scholarship instrument

This tool serves for financing scholarships in Slovak public universities and financing scholarships in universities in partner countries.

MONITORING AND EVALUATION

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An important component of Strategy of the Slovak Republic for development cooperation with Moldova is the system of regular monitoring and evaluation at programme as well as project level which facilitates evaluation of the effectiveness of the use of ODA SR. At the same time, this system will provide transparent control and evaluation of the implementation of the Strategy, the effectiveness of the use of financial means and the impact of Slovak development cooperation with Moldova. Evaluation mechanisms at programme and project level allow feedback from the implemented Slovak development cooperation with Moldova to be obtained, based on which it will be possible to determine its further direction.

Programme level The MFEA SR will carry out an annual evaluation of fulfilment of the goals and objectives of the Strategy as part of the Report on Slovak Development Cooperation for the previous year. Data and the information necessary for monitoring progress in the priority areas of this strategy shall be collected from Moldovan government sources (e.g. national monitoring and assessment systems, annual reports on progress in implementing the National Development Strategy and relevant sector strategies), as well as from analytical documents from the significant donor organisations acting in Moldova (EU, UNDP, World Bank, etc.).

Sources of information will mainly come from monitoring carried out by a development diplomat acting within the Slovak Embassy in Chisinau.

A mid-term evaluation will be carried out in 2016 in order to evaluate Slovakia’s success in implementing the Strategy in 2014 and 2015. Independent experts shall prepare an evaluation report with recommendations and possible proposals for corrections. After completing the implementation of the Strategy in 2018, a final evaluation will take place in order to objectively evaluate the impact of Slovak development cooperation with Moldova, mainly from the viewpoint of the final recipients.

Project level Monitoring of the implementation of projects directly on the spot will be carried out by a development diplomat acting within the Slovak Embassy in Chisinau. He will participate in more significant short term project activities (workshops, coordination meetings, presentations, etc.) and, at the same time, he will regularly monitor progress in project implementation (including monitoring visits where projects are being implemented) and actively communicate with Moldovan project partners.

Assessment of the implementation of project activities and the effective use of financial means shall be carried out by the SAIDC in compliance with internal regulations related to the rules and methods for the application, approval and use of grants/financial contributions including determining the accounting method in compliance with valid Slovak legal regulations.

Evaluation at project level will take place in several phases. The SAIDC, or an external expert in the respective sector, shall carry out an ex-ante evaluation – an evaluation of the project design in terms of relevance, the effectiveness of the proposed strategy, the effectiveness of means spent, sustainability and the grant applicant’s professional capacities. An important part of the evaluation at project level will also be an ex-post evaluation, the goal of which, at the end of the project, is to evaluate the project’s impact and its contribution from the viewpoint of the final recipients. This form of evaluation will be carried out by an external evaluator who will evaluate selected projects within both sector priorities. The MFEA SR/SAIDC shall prepare documentation for the external evaluation of selected projects in compliance with the evaluation plan for official development cooperation activities for the respective year.

List of abbreviations used CETIR Centre for Experience Transfer in Integration and Reforms CIS Commonwealth of Independent States CSP Country Strategy Paper DCFTA Deep and Comprehensive Free Trade Agreement EU European Union GDP Gross Domestic Product MFEA SR Ministry of Foreign and European Affairs of the Slovak Republic ODA Official Development Assistance OECD Organisation for Economic Cooperation and Development SAIDC Slovak Agency for International Development Cooperation SR Slovak Republic UNDP United Nations Development Programme V4 Visegrad Four countries

Ministry of Foreign and European Affairs of the Slovak Republic Hlbokรก cesta 2 833 36 Bratislava Slovak Republic www.mzv.sk / info@mzv.sk

Slovak Agency for International Development Cooperation Grosslingovรก 35 811 09 Bratislava Slovak Republic www.slovakaid.sk / info@slovakaid.sk Facebook: SlovakAid / ISSUU: SlovakAid