- Implementation Support Agency (ISA): World Bank
- Total project financing: $55 million
- Funding from GCFF: $5 million
- GCFF Financing Approval Date: 05/17/2024
- Status: Pending effectiveness
About the project
The proposed standalone Development Policy Operation (DPO) supports the Government of Moldova (GoM)’s efforts to assist refugees and households in the face of the fallout from Russia’s invasion of Ukraine while keeping momentum on the long-term agenda of economic convergence to the European Union (EU) and climate resilience. The operation consists of a loan in the amount of US$40 million and a further US$15.5 million amount including concessional support and a grant as described later in detail. The DPO comprises three pillars: strengthening resilience of refugees and households (Pillar 1); fostering sustainable growth through enhanced competition and private sector-led growth (Pillar 2); and supporting climate resilience (Pillar 3). Pillar 1 focuses on enhancing the last-resort social protection system ‘Ajutor Social’, supporting refugees and women’s participation in the labor market, and protecting the most vulnerable and refugee host families from rising energy costs. Pillar 2 aims to strengthen the regulatory framework for competition and the state aid system, enhance governance and competition in the energy sector, and strengthen the banking deposit guarantee scheme. Reforms in Pillar 3 promote energy efficiency, renewable energy uptake, and sustainable forest management. While this DPO is designed as a standalone operation in light of the upcoming elections, it is embedded in an ongoing policy dialogue and builds on the previous “Moldova Emergency Response, Resilience, and Competitiveness” DPO series, ensuring continuity in priority reform areas. The operation supports Moldova’s pathway toward EU accession, which will further support reform continuity and implementation.
Project Development Objective (PDO)
The DPO aims to (i) strengthen resilience of refugees and households, (ii) foster sustainable growth through enhanced competition and private sector-led growth, and (iii) support climate resilience.
Relevant Documents: