Moldova

Since 2021, AFD has been supporting the Republic of Moldova in its convergence towards European Union standards and the implementation of the Paris Agreement. The AFD office was opened in Chisinau in February 2022.
AFD provides technical assistance in this small landlocked country in Eastern Europe to build its capacities in the energy and rail sectors. It also plans to support the sustainable development of the forestry, irrigation and water and sanitation sectors in the coming years.
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AFD's action in Moldova
AFD and Moldova: Supporting the convergence towards European standards and the transition to asustainable economy
AFD's action in Moldova

Strengthening energy security

 Strengthening energy security in Moldova, AFD

Strengthening energy security

AFD focuses its activities on ensuring universal access to efficient and low-carbon energy services. It has extensive experience in supporting energy efficiency and renewable energy projects and improving the sustainability of urban heating systems.

Moldova is still largely dependent on gas imports from Russia and electricity imports from Transnistria, a dependency that makes the country more vulnerable to market price fluctuations. AFD is therefore supporting Moldova in its transition towards fair energy. For example, it is supporting the Moldovan government in its efforts to structure the electricity market, in line with the European Union's Third Energy Package by developing a regulatory framework adapted to the advancement of renewable energies and energy efficiency. 

AFD funds technical assistance by the French electricity network operator RTEi to support its Moldovan counterpart Moldelectrica in its preparation to join the European electricity network.

Safeguarding and promoting the railway network

Safeguard and promote the Moldovan railway network, AFD

Safeguarding and promoting the railway network

AFD supports Moldova's regional planning, notably through the development of reliable and sustainable transport infrastructure. The country wishes to take advantage of its strategic position and of the expansion of its port infrastructure located along the Danube in Giurgiulesti. The country has recently launched projects to renovate, modernize and develop its transport infrastructure in the context of regional integration. 

As part of the Association Agreement signed with the European Union in 2014, the Republic of Moldova has committed to aligning with a number of European standards for rail transport. 
In order to promote rail as a sustainable alternative to road for the transport of goods and people and to develop Moldova's railway sector, AFD supports the railway company through a technical assistance program.

Protecting natural resources

Protecting natural resources in Moldova, AFD

Protecting natural resources

Moldova is an agricultural country, as agriculture accounts for nearly 30% of its GDP and 60% of its total exports.

AFD is exploring the possibilities of supporting Moldova's agricultural sector in order to encourage employment, food security and rural development.

1.2
million euros in grants committed in one year
2022
Opening of the AFD office in February

Moldova is a small country bordering Romania and Ukraine and situated between two distinct spheres of influence: the European Union (EU) and the Commonwealth of Independent States (CIS).

Several decades of economic growth have enabled Moldova to join the category of upper-middle income countries, although it remains one of the poorest in Europe. 
Moldova's economy is characterized by high imports, financed in part by remittances from the diaspora, mainly located in EU and CIS countries. The emigration of young people contributes significantly to the demographic decline of an aging population, half of which lives in rural areas. The country has lost a quarter of its population since its independence in 1991. 

The Soviet legacy is still strong: the country mainly hosts Moldovan nationals, as well as Romanian, Ukrainian, Bulgarian, and Russian nationals.  Although the rule of law is fragile, the State has a strong presence, notably through numerous state-owned companies. 

The country is also marked by the persistence of a “frozen conflict” in the predominantly Russian-speaking region of Transnistria, which attempted to secede in 1990 and declared itself independent following a violent conflict in 1992.

Despite these challenges, Moldova has many strengths, such as its ambitious reform agenda and its sustained economic growth (prior to the Covid-19 crisis and the war in Ukraine). The election of the pro-European, anti-corruption candidate Maia Sandu in November 2020, as president of the Republic of Moldova, has raised high expectations. Following several decades of oligarchic and Russian influence, the president has pledged to reverse this trend by putting the country back on the path of reform, to strengthening the rule of law and ending corruption, as planned in the ambitious Association Agreement signed with the European Union in 2014. 

In this context of renewed bilateral relations between France and Moldova, AFD started its operations in June 2021. AFD’s intervention mandate targets the convergence towards European standards and compliance with the Paris Agreement. Potential avenues of cooperation have been identified in the fields of energy, railway, forestry and irrigation. Since the outbreak of the conflict in Ukraine and its consequences on Moldova's finances, AFD has positioned itself as a trusted partner by preparing an initial budget support loan.

AFD's Moldova office is directly attached to the Eurasia regional office in Istanbul. 

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