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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Recommendations and conclusions

This chapter provides a set of recommendations on establishing a sound economic regulatory systemfor water supply and sanitation in the Republic of Moldova. They are based on analysis in previous chapters of this report and consider proceedings from the Expert Meeting and the National Policy Dialogue (NPD) Co‑ordination Council meeting in November 2016. It outlines an indicative implementation plan, with references to Annexes for further information. Finally, it makes a wide range of recommendations, including ones with respect to institutional set up, facilitating performance improvement, regionalisation, business models, tariffs, the use of economic instruments, access to finance and social measures. Implementation of the proposed recommendations is discussed at the end of the chapter.

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