OECD Studies on Water

English
ISSN: 
2224-5081 (online)
ISSN: 
2224-5073 (print)
http://dx.doi.org/10.1787/22245081
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Water is essential for economic growth, human health, and the environment. Yet governments around the world face significant challenges in managing their water resources effectively. The problems are multiple and complex: billions of people are still without access to safe water and adequate sanitation; competition for water is increasing among the different uses and users; and major investment is required to maintain and improve water infrastructure in OECD and non-OECD countries. This OECD series on water provides policy analysis and guidance on the economic, financial and governance aspects of water resources management. These aspects generally lie at the heart of the water problem and hold the key to unlocking the policy puzzle.

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

Improving Domestic Financial Support Mechanisms in Moldova's Water and Sanitation Sector You do not have access to this content

English
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    http://oecd.metastore.ingenta.com/content/9716031e.pdf
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Author(s):
OECD
23 Oct 2017
Pages:
140
ISBN:
9789264252202 (PDF) ;9789264252196(print)
http://dx.doi.org/10.1787/9789264252202-en

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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.

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  • Foreword

    This project was undertaken by the OECD with the financial support of the European Union, which is gratefully acknowledged.

  • Abbreviations and acronyms
  • Executive summary

    Due to poor financial status and insufficient capital investment, the water supply and sanitation (WSS) sector in Moldova is operating beyond its optimum level. To compensate for the lack of domestic financing, development partners have invested significantly in the sector over the past 20 years. However, Moldova cannot rely upon external support indefinitely. The country must increase domestic investment and spending in the sector to meet ambitious national targets for expanding WSS infrastructure and improving service quality, while keeping services accessible and affordable, not least for the poor.

  • Socio-economic context, sector trends and methodology

    This chapter briefly presents the socio-economic context and recent trends in water supply and sanitation (WSS) in Moldova; it concludes on the need for stronger domestic financial support mechanisms for WSS in Moldova, including for addressing social aspects, and outlines the methodology applied in this report.

  • Financial performance of, and external support to, the water supply and sanitation sector in Moldova

    This chapter presents data on overall financial flows in the water supply and sanitation (WSS) in Moldova; then it focuses on own sources (user charge revenues) and external support to the sector from international development partners; domestic support-related financial flows will be discussed in the next chapter.

  • Public finance management system and domestic financial support to the water supply and sanitation sector in Moldova

    This chapter presents data on financial flows that represent domestic support to the water supply and sanitation (WSS) sector in Moldova on the supply and demand side, i.e. to WSS systems and operators on the one hand, and to customers on the other hand.

  • Social support systems in Moldova related to water supply and sanitation

    This chapter presents social support systems in Moldova related to water supply and sanitation (WSS) (direct and indirect support, on the supply and demand side) and assesses them.

  • Social support systems in reference countries

    This chapter briefly overviews social support systems related to water supply and sanitation in four reference countries: Armenia, France, Romania and Ukraine, and draws some lessons from their experience relevant for Moldova.

  • Enhancement of domestic financial support mechanisms for water supply and sanitation in Moldova: Scenario analysis

    This chapter outlines four imaginary yet realistic scenarios with respect to both supply-side and demand-side support measures. Further, it presents ex ante analysis and prioritisation of the scenarios to inform the choice to be made by local decision makers.

  • A summary of key findings, conclusions and recommendations

    This chapter presents a short summary of key findings and conclusions of the report, as well as key recommendations. It was drafted to serve (and de facto was used) as a stand-alone short policy summary of this study to be circulated and discussed with key local stakeholders in the framework of the National Policy Dialogue on water policy in Moldova.

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