WASHINGTON, March 14, 2023-The World Bank Group Board of Executive Directors discussed today a new Country Partnership Framework (CPF) for Moldova for the 2023-2027 period, aimed at supporting the country's sustained recovery from the impacts of the COVID-19 pandemic, energy and refugee crises due to Russia's invasion of Ukraine, focusing on reforms to support job creation and a greener, more inclusive economy. The new strategic framework builds on 30 years of strong partnership between the Republic of Moldova and the World Bank Group.
The volatile regional and global environment calls for reforms and institutional changes that will make Moldova's economy more sustainable and resilient to shocks. Through the new framework, the World Bank Group will support reforms in three broad areas: 1) increased opportunities for formal employment; 2) improved human capital development; and 3) increased resilience to climate change and crises. The framework includes a cross-cutting theme of strengthening systems and institutions, including through digitalization and capacity-building. The Moldova Country Partnership Framework is well aligned with Moldova's National Development Plan European Moldova 2030.
"Moldova should seize the opportunity to move to a more sustainable growth path - one that leads to shared prosperity and a more inclusive economy, especially since now it is approaching the aspired integration with the European Union," said Inguna Dobraja, World Bank Country Manager for Moldova. "The World Bank Group stands ready to support Moldova in transforming its economy and helping the country raise the living standards of its people."
The new World Bank Group CPF will provide analysis, advice and financing for implementation of reform programs designed to restore economic growth and job creation. Over the next five years, Moldova will have access to new lending from the World Bank, for both investment projects and budget support, depending on the country's demand and progress in reform implementation. The International Finance Corporation (IFC), a member of the World Bank Group, will contribute with investments in selected sectors and facilitate more private investment in the country. The Multilateral Investment Guarantee Agency (MIGA) will provide investment insurance for cross-border private sector investors and lenders. Additional Trust Fund resources will be sought to complement the World Bank Group's lending and analytical work.
Lisa Kaestner, IFC's Regional Manager for Ukraine and Moldova, said: "Optimizing the private sector's potential will help Moldova resume its growth trajectory. Boosting the country's competitiveness through investments in energy, transport, the financial sector, and agricultural export value chains would be key. IFC aims to support Moldova across these areas with advice and investments, helping strengthen efficiency, improve productivity, and develop those value chains."
The new Country Partnership Framework was prepared based on the analysis of Moldova's overall development challenges, as outlined in a series of core analytical products, namely the Systematic Country Diagnostic Update, Country Private Sector Diagnostic, Completion and Learning Review of the outgoing CPF, and consultations with a range of stakeholders at various levels of government, private sector, civil society, and development partners. The resulting framework reflects a consensus of stakeholders on the reform process and a shared understanding of development priorities and challenges facing the country.
Since Moldova joined the World Bank in 1992, close to $2 billion has been allocated to more than 60 projects in the country. Currently, the World Bank portfolio includes 12 active projects with a total commitment of $650million. Areas of support include regulatory reform and business development, modernization of government services, tax administration, land registration, education, roads, health and social sectors, including the COVID-19 emergency response, agriculture, water and sanitation, and energy.
Since Moldova joined IFC in 1995, IFC has supported its development priorities with investments in telecommunications, energy distribution, the financial sector, health, municipal infrastructure, agribusiness, as well as with advice in key reforms to support private sector growth.
