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Enhancing the Economic Regulatory System for Moldova’s Water Supply and Sanitation

image of Enhancing the Economic Regulatory System for Moldova’s Water Supply and Sanitation

This report aims to support the development of a sound economic regulatory system for the water supply and sanitation (WSS) sector in the Republic of Moldova (hereafter “Moldova”). The prevailing policy framework calls for drastic developments in WSS to modernise and optimise WSS systems and improve operational efficiency (non-revenue water, staff-output ratios etc.) – in line with domestic and international commitments (including the Association Agreement with the European Union, the Sustainable Development Goals, the Paris Agreement and the national WSS strategy). This report outlines ways and means for strengthening the capacity of the Moldovan government to provide sound regulation and that of WSS operators to deliver higher standards of service while ensuring the affordability of WSS services. Such a transition cannot happen overnight. It requires a sound economic regulatory system conducive to affordability, cost recovery and debt servicing, and a realistic performance improvement path for water utilities.

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Moldova’s economic regulatory system for water supply and sanitation

This chapter describes the economic regulatory system (ERS) for water supply and sanitation (WSS) in the Republic of Moldova (hereafter “Moldova”). This includes its legal and institutional frameworks, main actors and their competences, activity and capacity. It analyses the performance of the ERS, contrasting it with the demands on the system formulated in Chapter 1. The chapter concludes with three scenarios that can help policy makers further develop Moldova’s ERS varying from addressing the shortcomings of the ER present system to taking step back to rethink the objectives of WSS policy, regulation and the roles of various stakeholders and eventually redesign the whole ERS. These scenarios were discussed at an Expert Meeting and at the National Policy Dialogue meeting held in November 2016 in Chisinau as part of the project.

English

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