Improved water supply and wastewater disposal in Moldova

The Republic of Moldova has become the focus of public and political attention following the Russian war of aggression in neighbouring Ukraine. The country is one of the poorest in Europe, with a poor quality of life in many places, especially in rural areas, and a dilapidated municipal infrastructure. In order to improve the living conditions of Moldovans and contribute to environmental protection, KfW Development Bank has been active for more than 30 years in the areas of economic development, municipal development and good governance. As a result of the energy crisis, the energy sector is now also being promoted.

The commitment includes a programme to improve water supply and wastewater disposal in the Cahul region - on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and in cooperation with the European Union as part of the "Team Europe" initiative. In mid-April, a delegation visited two construction sites in the Cahul region that are part of the project: the new wastewater treatment plant for Cahul and the expansion of the wastewater network in the municipality. Finally, the official ground-breaking ceremony for the rehabilitation and expansion of the drinking water networks took place. The delegation included Andrei Spinu, Minister for Infrastructure and Regional Development (MIDR), Nicolae Dandis, Mayor of the municipality of Cahul, representatives of the German Embassy in the Republic of Moldova and representatives of KfW Development Bank. The programme also included discussions with the residents of Cahul about their expectations - which are high! - and about the technical challenges involved in installing the house connections. The BMZ and the EU are providing a total of EUR 46 million for improved water supply and wastewater disposal in the Cahul district.

The investments will ensure safe access to hygienically safe drinking water and effective wastewater disposal - a contribution to the economic and social development of the entire region. Another important aspect of the project is the reduction of water pollution and the preservation of groundwater resources in the south of the Republic of Moldova. This will improve the health situation of the population - especially newborns and children.

"These investments are a decisive step towards improving the quality of life and revitalising economic activity in the southern region of the country, while ensuring the protection of our water resources and the ecosystems that depend on them," said Andrei Spinu, Minister of Infrastructure and Regional Development.

With currently around 100,000 people, the Republic of Moldova hosts the largest number of refugees from Ukraine in terms of population size. The majority of them live in host families who do not have much themselves. In this context, the BMZ has launched a support package for Moldova. It comprises a total volume of EUR 149 million. Funding is being provided for acute crisis response measures and for the medium-term stabilisation and development of the country. At the same time, assistance and support services for refugees and other particularly vulnerable groups were set up and refugees were supported in their integration into the labour market.