Government improves financing mechanism for regional and local development projects

The Government has approved amendments to the Regulation on the management of the National Fund for Regional and Local Development (NFRLD), to make project financing more efficient, transparent, and tailored to community needs. The new provisions also cover amalgamated localities, projects financed from external sources, and investments in water supply and sewerage infrastructure. 

The provisions adapt the financing mechanism to the voluntary amalgamation process. Administrative-territorial units undergoing amalgamation or already amalgamated will be able to submit one local development project for each constituent locality. Large-scale regional development projects may be implemented in stages, provided that each funded stage is functional and can be used independently.  

For the water supply and sewerage sector, the types of eligible investments have been expanded to include the digitalization of operating systems, laboratory modernization, equipment procurement, and the use of renewable energy by operators serving at least 25,000 consumers. 

At the same time, the rules on transparency in project evaluation, conflict-of-interest prevention, appeals against results, and beneficiaries’ responsibility for maintaining completed investments have been strengthened. 

Currently, 657 regional development projects have been approved for financing through the mechanism provided by the Regulation: 69 in the Central Development Region, 491 in Chisinau Municipality Development Region (including 469 under the European Courtyard Programme), 44 in the Northern Development Region, 38 in the Southern Development Region, and 15 in Gagauzia Development Region. Of the total number of projects, 12 concern the development of business infrastructure, 36 the enhancement of tourism attractiveness, 2 urban connectivity and mobility, 3 competitiveness and support for economic activities, 518 urban revitalization and the development of public-space infrastructure (including the European Courtyard Programme), and 85 water supply and sanitation, as well as the modernization of technical and municipal infrastructure and public utility networks. 

In the area of local development, 579 projects have been approved under the Europe Is Close Programme, focusing on the modernization, capital repair, or rehabilitation of local roads. A further 1,244 projects have been approved for financing under the European Village 2 Programme. Of these, 27 concern renewable energy sources, 116 are intended for the construction of nurseries, 74 for tourism development, 230 for the construction or renovation of public institutions, playgrounds, and sports grounds, 243 for water supply and sanitation, 58 for street lighting, and 496 for urban planning schemes.