PPP Development Stage in Republic of Moldova Presented by: Ion Potlog Head of PPP Division CAPACITY BUILDING WORKSHOP ON PUBLIC PRIVATE PARTNERSHIPS (PPPs) IN SOUTH EAST EUROPE 7-8 February, 2011 Regent Esplanade, Zagreb, Croatia

Steps in Moldavian PPP Development 2007 Agreement between MoE of Republic of Moldova and UNDP Moldova on development and promotion of Public-private Partnership Agreement between MoE of Republic of Moldova and UNDP Moldova on development and promotion of Public-private Partnership 2007 till 2010 Elaboration of legal and institutional framework, legislation harmonization and initiation of pilot projects for testing the job done Creating PPP Direction at Public Property Agency under the MoE.

Primary PPP legal framework Basic Law no. 121-XVI of on the administration and privatization of public property Law no. 534-XIII of on the concession Law no. 179-XVI of on Public Private Partnership has been submitted for approval by the Moldovan Parliament a new bill provides for amendments to nine laws and includes 40 amendments in order to harmonize the relationship between private and public partners.

PPP’s principles in Republic of Moldova Equal treatment and choice of partners, impartiality and non-discrimination Transparency Balance Grant compensation Cooperation Contractual freedom

Structure of institutional framework  Government  Ministry of Economy  Public Property Agency  Ministry of Finance  Local authorities  National Council of public-private partnership (CNPPP) The functional structure of general jurisdiction, without legal personality, formed under the Government to assess the state policy on public-private partnership to define priorities and strategies for implementation of PPP in the Republic of Moldova The functional structure of general jurisdiction, without legal personality, formed under the Government to assess the state policy on public-private partnership to define priorities and strategies for implementation of PPP in the Republic of Moldova

PPP Direction  1 Head of Direction  1 Deputy  2 Consultant  1 Specialist in Communication MoE responsible for PPP policies PPP Direction within Public Property Agency responsible for PPP implementation

Initiation of TWINNING project with the propose of Initiation of TWINNING project with the propose of Strengthening of the Administrative Capacity of the Public Property Agency in relation to Implementation of Public-Private Partnership policy. Initiate the process of cooperation and preparation for accession to the EPEC platformInitiate the process of cooperation and preparation for accession to the EPEC platform To provide more technical assistance to public authoritiesTo provide more technical assistance to public authorities To support the promotion and implementation of PPP policy by state public institutionsTo support the promotion and implementation of PPP policy by state public institutions To increase the efficiency of public investments in the infrastructure and the operation and management of public services as part of the Republic of Moldova economical reformTo increase the efficiency of public investments in the infrastructure and the operation and management of public services as part of the Republic of Moldova economical reform Development of financial instruments for mobilization of financial resources and directing them to PPP projectsDevelopment of financial instruments for mobilization of financial resources and directing them to PPP projects

PPP priorities by Sectors  Energy infrastructure  Alternative energy resources and energy efficiency  Transport and road infrastructure  Logistics development  Organic agri-business and food processing  Creation of industrial parks  Quality infrastructure  Outsourcing services

Projects under construction, preparation for selecting the private partner Project of multi-level parking concession, Chisinau International Airport Project of multi-level parking concession, Chisinau International Airport Capacity up to 800 parking stands next to the terminal Capacity up to 800 parking stands next to the terminal Concession of 20 years Concession of 20 years Operating income (the principle BOT - Build- Operate-Transfer) Operating income (the principle BOT - Build- Operate-Transfer)

“MOLDOVA HEALTH PPP PROJECT ” prepared by (IFC) International Finance Corporation and provides: - The construction, financing, equipping and operation of a new radiotherapy center (“Radiotherapy Center”) -the equipping and operation of a diagnostic imaging center (“Diagnostic Imaging Center”) in Republican Hospital

PPP – Family Center (Leisure and recreation center for families) Public Partner- Chişinău City Hall Private partner- Moldovan- American Athletic Association Contract Terms– 10 years Investments – over 200 thousands Euro PPP – Family Center (Leisure and recreation center for families) Public Partner- Chişinău City Hall Private partner- Moldovan- American Athletic Association Contract Terms– 10 years Investments – over 200 thousands Euro 11 Projects in operation phase

PPP – public transport  Goal: Increase comfort and quality of public transport passengers  Public Partner - Chişinău City Hall  Private Partner - Trading Company „Ruta-Prim” JCK  Contract Terms – 1 year, with the possibility to resign the contract  Investments – over 500 thousands Euro PPP – public transport  Goal: Increase comfort and quality of public transport passengers  Public Partner - Chişinău City Hall  Private Partner - Trading Company „Ruta-Prim” JCK  Contract Terms – 1 year, with the possibility to resign the contract  Investments – over 500 thousands Euro 12

The Government of the Republic of Moldova is open for effective collaboration