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Moldova
The vineyard of Europe
Moldova was always known for its substantial wine-growing areas. After the country became independent in 1991, agricultural production remained an important source of income for local families and the economy. In recent years, economic growth picked up and sources of income became more diversified. However, Moldova is still Europe's poorest country. According to the World Bank, approximately one fifth of Moldova’s population lives below the poverty line, whereas the living conditions in the capital and the other regions, especially in rural areas, differ considerably. A third of the potential workforce emigrated to seek work abroad. Development is not least hampered by the unresolved status of Transnistria, where traditionally most of the country’s heavy industry was located. With a population of 600,000, this region to the east of the Dnister river broke away in 1992 and has since then been under Russian control. Deficits in governance and the rule of law, powerful oligarchic structures and a high level of corruption in the public and private sectors hamper Moldova’s further democratic and economic development. The difficult formation of a government after the parliamentary elections in February 2019 brought Moldova to the brink of a state crisis, but ultimately produced a new government which gave rise to great hopes. In June 2014 the Republic of Moldova has ratified a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU. This emphasizes the significance of closer cooperation with the EU and favors the future development of the country.
KfW Development Bank supports Moldova on behalf of the German Federal Government in the area of good governance.
Inadequate capacities and poor performance of public institutions in Moldova are a central reason why public services such as water supply and sanitation are only inadequately provided. The water and sanitation infrastructure in Moldovan towns and municipalities dates back predominantly to the Soviet era and is no longer adequate either quantitatively or qualitatively. Ailing supply pipes and heavily polluted water sources, as well as inadequate sewage supply pose a threat to the health of the affected population, especially children, women and the elderly. The goal of German development cooperation in Moldova is that public institutions which act according to principles of good governance ensure an improved access to local public services in sectors of priority for the population. To improve living conditions and make a positive contribution both to the efficient use of energy and an improved quality of the environment, KfW finances the upgrading of water supply and waste water management systems in small- and medium-sized municipalities, for example in the towns of Cahul, Calarasi and Straseni. The purpose of the projects is to provide the population of the municipalities with improved water supply with regard to water quality and supply period. To strengthen municipalities, KfW Development Bank has since 1999 also been co-financing the Moldova Social Investment Fund (MSIF) which, in consultation with citizens and municipalities, implements small-scale infrastructure projects such as rehabilitation measures in schools, kindergartens and social facilities or repairs of roads and bridges.
Project information – Water supply (PDF, 146 KB, non-accessible)
Further information
Local office
KfW Office Chisinau
Director KfW Office: Lutz Horn-Haacke
66 Bernardazzi St.
Chisinau, MD-2009
Moldova
Phone: +373 22996030