Regional, rural and urban development

Improving Domestic Financial Support Mechanisms in Moldova's Water and Sanitation Sector

In series:OECD Studies on Waterview more titles

Published on October 23, 2017

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The water supply and sanitation (WSS) sector in Moldova is not financially sustainable: tariffs do not typically cover operational costs and capital investments are heavily funded by external development partners. This report analyses several options for streamlining and strengthening domestic financial support mechanisms (DFSMs) in terms of both supply and demand, discusses different scenarios and recommends a number of actions to ensure effective DFSM implementation, notably: 1) sufficient investment for the implementation of targets and obligations set in the national strategies, the Association Agreement with the EU, as well as Moldova’s international commitments (water-related Sustainable Development Goals, and the “Water-to-all” commitment); 2) the financial sustainability of operators; and 3) the affordability of WSS services for end-users, especially low-income segments of the population.

TABLE OF CONTENTS

Foreword
Executive summary
Socio-economic context, sector trends and methodology
Financial performance of, and external support to, the water supply and sanitation sector in Moldova
Public finance management system and domestic financial support to the water supply and sanitation sector in Moldova
Social support systems in Moldova related to water supply and sanitation
Social support systems in reference countries
Enhancement of domestic financial support mechanisms for water supply and sanitation in Moldova: Scenario analysis
A summary of key findings, conclusions and recommendations
Annexes5 chapters available
IBNET data on water supply and sanitation performance in Moldova and reference countries
Financial flows and performance of selected Apacanals in 2013
Survey of stakeholders' perceptions regarding social support systems
Social aspects of ANRE 2015 tariff methodology
Elaborated example of a rebate system in tariff methodology
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