This report aims to support the development of a sound economic regulatory system (ERS) for the water supply and sanitation (WSS) sector in the Republic of Moldova (hereafter – “Moldova”). It was prepared to inform and facilitate the National Policy Dialogue (NPD) on water policy in Moldova. The NPD was conducted in co-operation with the European Union Water Initiative plus for Eastern Partnership (EAP) countries (EUWI+) and facilitated by the OECD GREEN Action Programme Task Force (former EAP Task Force) and the United Nations Economic Commission for Europe (UNECE). The report was made possible through the financial support of the European Union, which is gratefully acknowledged.

Structure of, and contributors to, the report

Chapter 1 provides the context within which the ERS for Moldova has to operate and formulates nine demands on ERS for WSS in Moldova. Chapter 2 analyses the performance of the ERS in Moldova and outlines three scenarios based on which policy makers can further develop it. These scenarios were discussed at an Expert Meeting held on 16 November 2016 in Chisinau as part of the project. Chapter 3 analyses good practices and experience from selected countries that is potentially applicable in Moldova. Chapter 4 provides recommendations, considering proceedings from the Expert Meeting and the NPD Co-ordination Council (CC) meeting in November 2016. An indicative implementation plan is also provided.

The principal author of the report is Giel Verbeeck, with inputs from Alexander Poghossian, Eugenia Veverita, Dumitru Budianschi and Oleg Utica. All of them worked together under the project implemented by the Consortium of Alpha Plus Consulting (Armenia), TreeVelop (Netherlands) and Business Research Company (Moldova).

The authors are grateful for contributions and useful ideas from Mr. Alexander Martusevich (OECD/GREEN Action Task Force), who supervised the study, and extend their thanks to Ms Maria Dubois (OECD) and Mr Mark Foss (copy-editor) for preparing this publication.

The authors are also thankful to all who have contributed to this report through discussion. Ideas and information have been provided by the Moldovan Ministries of Environment; Finance; Regional Development and Construction; Labour, Social Protection and Family; by the independent economic regulator for water supply and sanitation (ANRE), by the Congress (association) of Local Public Authorities and the Association of Public Water Utilities; and by several individual WSS operators in Moldova and the non-governmental organisation SEAM.

Many other individuals and also shared information on global best practice in economic regulation, including on the reference countries of Chile, Kazakhstan, the Netherlands and the Flanders region of Belgium.

The analysis, statements and any eventual errors and material omissions are, however, solely the responsibility of the consortium.

The views presented in this report are those of the authors and can in no way be taken to reflect the official opinion of the government of Moldova, the European Union (EU) and OECD or of the governments of the European Union and OECD member countries.

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