March 2016. 4Assist successfully completed the Operational Assessment of the financial circuits and procedures in Moldova on behalf of DG ECFIN. A three-person expert team was mobilised for this assignment.

The assignment was carried out within the Framework Service Contract ECFIN/012/2011 for Operational and PEFA Assessments. The specific objectives of the Moldova PEFA 2011 Assessment were to:

  • Track the progress since last PEFA assessment of 2008 needed to measure PFM performance over time, and to inform and strengthen the dialogue between the Government of Moldova and EU, but also the donor community, on strengthening PFM;
  • Assist the Government of Moldova and donor community to assess current PFM reforms and to identify potential PFM areas where further institutional support is required;
  • Assist the EU and other interested donors in determining the eligibility of Moldova for future budget support and macro-financial assistance programmes.

EU Technical Assistance Project

“Support the Moldovan Government in identifying and preparing projects linked to the implementation of the Association Agreement”

 

OVERVIEW

 

4Assist is a core partner of a consortium that was recently awarded the 6mEUR Project to provide Support to the Moldovan Government in identifying and preparing projects linked to the implementation of the EU-Moldova Association Agreement. The EU – Moldova cooperation framework is governed by the EU-Moldova Association Agreement (AA) and the Deep and Comprehensive Free Trade Area (DCFTA). The cooperation framework aims at stronger political association, economic integration, and growing trade. This Project is one of the many pieces in the greater chessboard of this cooperation framework. The objective of the Project is to strengthen the capacity of the national authorities to plan, prepare and manage public investment projects, both domestically and externally financed. Particular attention will be paid to capital projects that support the implementation of the EU-Moldova Association Agreement.

The Project consists of 4 components:

 

Component 1 – Strengthening national external assistance coordination system.

This Component is about assisting the Government of Moldova (represented by the Ministry of Finance) improve the management and coordination of external assistance. Externally funded projects and programmes need to contribute effectively to the Moldovan development objectives, and to Moldova’s obligations to the EU and other international partners. A key area under Component 1 is about making sure that external assistance is embedded into the budget process i.e. the MTBF and Annual Budget preparation. Using country systems in the delivery and management of external assistance is the most appropriate way to ensure the sustainable development of national systems responsible for aid management and coordination. Improvement and enhancement of existing IT systems, and development of new ones, is foreseen where necessary to increase efficiency in aid management and public investment management.

 

Component 2 – Strengthen the capacity of the national authority for external assistance.

The primary responsibility for managing external assistance rests with the Ministry of Finance as national coordinator. Under the second Component the Project will develop the capacities in the Ministry to ensure that proposed capital projects are linked to national and sectoral priorities, and that they are considered within the framework of a sound appraisal procedure. Capacity building efforts will be focussed on ensuring that projects are identified, appraised and formulated in a rational, systematic and technically sound way. This will include intensive customised and on-the-job trainings and workshops on project appraisal procedures, financial analysis and risk assessment, and costing. The Project will also assist the MoF to enhance technical knowledge of available financial instruments and alternative sources of financing for capital projects. Special attention will be paid in increasing awareness and knowledge of MoF personnel on the available options for financial instruments offered by development partners (the EU in particular) as well as what may be sourced from the Moldovan and international financial markets.

 

Component 3 – Enhancing the capacities of the line ministries in management and implementation of projects financed from external sources.

Under the third Component the Project will reach out to selected line ministries (primarily those benefiting most from external assistance and managing big investment projects) in order to improve skills and capacities in identifying, designing and managing capital investment projects. Organisational reviews of capabilities on the cycle of management of public investment in the selected ministries will be carried out on the basis of PIMA 2019 analysis and recommendations. This will be followed by a series of capacity building interventions including and trainings in project appraisal, financial analysis and risk assessment and costing. Continued on-the-job assistance will be provided to these ministries in the identification, prioritisation, appraisal, costing and design of projects.

 

Component 4 – Enabling the preparation of a pipeline of high quality and financially viable projects.

Under Component 4 of the Project will assist in developing and undertaking standardised and systematic project feasibility studies required for the operation of a ‘Project Pipeline’. This process will adhere to good practice principles set by the PIMA framework and the analysis of the PIMA assessment conducted in Moldova at the end of 2019. At the same time, the Project will assist the MoF in the creation of a ‘Project Pipeline’ process on the basis of a public investment programme incorporated into the mainstream MTBF and Annual Budget process. Special attention will be paid to appraising sizeable capital project proposals that are linked to the EU-Moldova Association Agenda as part of the ‘Project Pipeline’.

 

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