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