On February 5, 2013, the Millennium Challenge Account Moldova opened six

bids submitted by companies from France, Portugal, Romania and Austria for

the rehabilitation of the Criuleni and Lopatna irrigation systems in the rayons of

Criuleni and Orhei, respectively, with Millennium Challenge Compact funds.

The financial bids for the rehabilitation of the two irrigation systems range from

about 8 to 26 million USD. Experienced national and international experts have

already started reviewing the bids against criteria such as experience in similar

works, financial and technical capacity, and available equipment and staff.

According to MCA Moldova requirements, the winning construction company

will rehabilitate the central irrigation systems by replacing about 85% of the

pipes, restoring the premises of the pump stations and providing automated

equipment, replacing the asbestos-made pipes with modern high-density plastic

pipes compliant with the European Union’s environmental standards. The

construction works are expected to start this spring and last 18 months.

In the meantime, the review of the eight proposals submitted for the construction

supervision of the two irrigation systems is underway. The rehabilitation of these

systems will allow for the expansion of the irrigated areas in Lopatna from 50 to

509 ha, and in Criuleni from 120 to about 760 ha.

"COMPACT seeks to

contribute to poverty

reduction in the Republic of Moldova

through economic growth"

Newsletter, February, 2013

HEADING FOR SUSTAINABLE ECONOMIC GROWTH

Compact Moldova

N. Iorga str., 21, MD-2012;

mun. Chişinău, Republica Moldova;

tel.: +373 22 85 22 99;

fax: +373 22 85 22 94;

e-mail: office@mca.gov.md; www.mca.gov.md

Six bids were submitted for the rehabilitation of the

Criuleni and Lopatna irrigation systems funds

2

The farmers will be able to use as much irrigation

water as they need, when they need it, and due to

improved water metering and reduction of water

losses they will pay only for the amount of water

that they use.

Based on Moldova’s fresh fruit taste and a

distinctive booth design, Moldova received a very

positive response from buyers and traders at the

2013 Fruit Logistica show, the largest fresh

produce trade show in Europe. Moldova displayed

and provided samples of apples and dried fruit

during this three-day event in Berlin. The

Moldovan ambassador to Germany, Aureliu

Ciocoi, visited the booth and encouraged his

compatriots to embrace the quality practices

prevalent in the west and increase their efforts to

enter the European markets.

The Agricultural Competitiveness and Enterprise

Development Project (ACED), funded by the

United States Agency for International

Development and the Millennium Challenge

Corporation, in collaboration with the United

Nations Development Programme’s Improving

Trade and Productive Capacities of Moldovan

Fresh Fruit Producers Project, provided support to

Moldovan fruit producers for a first-ever exhibit at

this important international trade show.

Moldova showcased their high-value agriculture

(HVA) products under the slogan “taste makes the

difference” and was represented at the show by

farmers, producer groups, producer associations,

donor projects, and the Moldovan Ministry of

Agriculture and Food Industry.

At a follow-up meeting in Chisinau, the Moldovan

participants agreed to coordinate their activities in

order to catch up with the latest innovations in

fresh fruit production and improve their quality to

meet the European requirements. They also asked

ACED to continue its training program in fruit

production and marketing techniques and to

Moldova Makes a Splash at Europe’s Premier Fresh Produce Trade Show

3

continue support for the participation of Moldova

in international trade shows. “We need to keep a

strong hold on Russia, start selling in Romania and

other neighbouring countries, and think of the

Baltic and Scandinavian markets in the near term,”

said one participant when describing his marketing

strategy.

The status of the Compact irrigation sector reform

activities in 2012 and the priorities for 2013 were

addressed at the Annual Conference of the Water

Users’ Associations (WUA) on February 15.

The conference was attended by the representatives

of 11 Water Users Associations established in the

areas of the irrigation systems to be rehabilitated

with Compact funds, representatives of the central

and local governments engaged in the reformation

of the irrigation sector, NGOs and mass media.

The participants learned about the actions taken to

build the capacities of WUAs and improve the

administrative and legislative framework required

for their efficient operation. Eleven WUAs were

It was also noted that market diversification is

necessary because Russia, which is currently the

largest consumer of Moldovan fruit, is looking for

alternative supplies of fresh produce, and Poland

has now become the biggest supplier of apples to

Russia.

established in 2012 in compliance with Law No.

171 on Water Users’ Associations for irrigation.

Their members are over 6700 agricultural

producers who work about 15.5 thousand hectares

of farmland in the areas of those eleven Central

Irrigation Systems.

Also, in 2012 the members and the management

and executive bodies of WUAs (Administration

Boards, executive directors, accountants and

operators) received training meant to build the

institutional and managerial skills required

following the transfer of the management of the

irrigation systems from the technological stations

of the State Agency “Apele Moldovei” to WUAs.

The WUA members also received training in

specific areas such as bookkeeping and accounting,

irrigation management, water user’s registries,

technical operation of the irrigation systems, and

they were introduced to the reformation

experiences of Portugal and Poland.

In order to make sure that WUAs are operational,

seven WUAs (Agro Rufeni – SCI Lopatna, Jorile –

SCI Jora de Jos, Agroacvila – SCI Roscani, Acva

Grup – SCI Puhaceni, Pruteni II – SCI Grozesti,

Criuleni – SCI Criuleni, and Cosnita – SCI

Cosnita) have already been provided with office

furniture and equipment, and accounting software.

In her address at the conference, Valentina

Badrajan, the Executive Director of MCA

Moldova, said that Moldovan agriculture will be

competitive on the Eastern and Western markets

only when the agricultural producers will form

associations.

The status and outlook of the irrigation sector reform started under the Compact program were addressed at a conference

4

In February 2013 the Water Users’ Associations

started holding their annual General Assemblies.

Meetings of the General Assemblies have already

been held by 7 out of the 11 associations

established with the Compact support.

At these meetings WUAs approved their

performance reports and work plans for 2013,

made amendments to the charters and internal

regulations, discussed the provisions of the

management transfer agreements which will

govern the transfer of the management of the

central irrigation systems from the „Apele

Moldovei” State Agency to WUAs, set the annual

membership fees and the price per cubic meter of

water, and addressed other issues related to the

efficient operation of WUAs. These meetings are

also a community exercise meant to enhance and

explore the development opportunities, and take

responsibilities in the irrigation sector reformation

process.

In terms of the development opportunities, the

WUA members were informed about the Compact

Post-Harvest Credit Facility. Today these credits

are meant only for the agricultural producers and

groups of producers, cooperatives, associations,

exporters and other players in the agriculture value

chain operating in the areas of the irrigation

systems (Criuleni, Orhei, Anenii Noi, Dubasari,

Nisporeni, Ungheni, Leova and Cahul rayons) or

from other rayons in Moldova, but with emphasis

on investments in the above-mentioned rayons.

Businesses owned or managed by women are

highly encouraged to take Credit Facility loans.

According to the law on water users’ associations,

the General Assembly is responsible for defining

the WUA’s main directions of activity, amending

its regulation, revising the borders of the command

area, electing and dismissing Board members,

setting the amounts to be paid by the WUA

members and non-members, and other issues.

The Water Users’ Associations have agreed on priorities for 2013

5

Ion Plamadeala, Chairman of the ”Acva-Grup”

Water Users’ Association

What have you managed to do since your WUA

was established? What are your expectations

from it?

The year of 2012 was a year full of responsibilities.

Fortunately, we have managed to hold association

organization meetings, approve the work plan and

budget, elect the administration boards with

members from all the three villages covered by the

irrigation system – Puhaceni, Delacau and Serpeni.

Our office has been equipped with the MCA

Moldova support.

I would also like to mention the training that we

received in technical issues related to the

management of irrigation equipment. We provided

recommendations to the design of the irrigation

system, including the location of the tertiary

system, which will facilitate the access of water

users to the irrigation hydrants. Our wishes were

considered when developing the technical

parameters with further revision of the design

documents. We have high expectations and hopes.

We are quite positive and we are trying to be

consistent in terms of what we do in the

Association.

Are you ready to take over the management of

irrigation systems? What are, in your view, the

benefits of, and impediments to, this process?

In 2012 we completed the inspection of the

irrigation system and we are ready to take

responsibility for managing it. We discussed the

provisions of the transfer management agreement

that will govern the transfer. I admit that we will

need some other training in WUA management,

and in technical administration of irrigation.

Following the inspection, we will manage only the

functional equipment; the damaged equipment will

not be accepted. The management of all the

technical installations, including the facilities of

pump stations and other facilities of the central

irrigation system, is expected to be transferred to

our association for a 30-year period. This is a test

of responsibility that we hope to pass.

What are the major challenges for the WUA in

2013?

It is critical that we share the available information

with all the WUA members. We are a large

association with more than two thousand members.

The sector representatives have a huge amount of

work to do. During the meetings with the 50-70

landowners in every sector they must manage to

discuss the annual membership fees and the price

per cubic meter of water for irrigation.

We first believed that it would be difficult to

collect the membership fees, but now I can say that

it was not so hard and that the people demonstrated

discipline. That is what is required of us –

discipline and hard work.

What does your WUA need in order to continue

to develop?

Starting something is always difficult. Once we

agreed on the logistical arrangements for the WUA

operation, we obviously wanted it to develop.

Hopefully we will enjoy support, receive

appropriate training and our views will be heard.

Most of all I wish that the members of our WUA

understand how critical our inputs are for the

successful implementation of the irrigation system

rehabilitation project, which has been much

anticipated.

6

Nicolae Plamadeala, Director of the”Acva-Grup”

WUA

What can you say about the performance of

your association?

Two years after its establishment, I can say that our

WUA is functional and we have put in place

practices to debate issues and make decisions. I

believe that in the future it will be much easier for

us to agree on issues related to the irrigation

system management.

The people must understand that the rehabilitation

of the irrigation system will provide many benefits,

including attractive land prices and the possibility

of increased income from agriculture.

What motivates a young person to become

involved in the development of an irrigation

association and to take on such a responsibility?

The decision to stay in my native village and try to

do something here is not a challenge. It was driven

by family circumstances. I mean that I have to help

my father in growing vegetables and I am

responsible for marketing the produce.

I also have a technical education and I can use my

knowledge in the technical management of

irrigation equipment.

Larisa Ciobanu, member of the Board of the ”Acva

Grup” WUA, and an accountant

A WUA cannot exist without a budget. Defining

the budget and its management entails

responsibility…

Our association has approved the 2013 budget. It is

not big, but it represents a compromise – it is able

to meet the needs of the WUA yet not to be too

burdensome for the WUA members.

Are the members committed, are they willing to

provide funds for WUA development?

The people definitely demonstrate responsibility in

paying the membership fees. They sometimes even

stay in queue to pay. I truly want to believe that

they are aware of the benefits.

We are facing some challenges given the large

number of members who own small land plots and

these circumstances do cause some problems. I

believe that for an efficient management of funds

in the WUA, in general, both the land and the

people should be consolidated.

7

In March 2013 MCA Moldova, together with its

contractors, will start a large road safety campaign

in the localities crossed by the Sarateni-Soroca

road. Therefore, over 2000 people from 14 villages

will receive training in road safety.

The key purpose of the training is to prevent and

mitigate risks and injuries, deaths, and damages

that might be caused to the car drivers, passengers

and pedestrians. It should be noted that similar

activities will be carried out both during and after

the rehabilitation works, thus ensuring

sustainability in compliance with the road safety

requirements.

To facilitate the sharing of information, trainers

from the local communities will be prepared as

instructors so as to be able to deliver training to

different categories of population in these

localities. The training sessions will also contain

two modules dedicated to children and pupils,

designed based on the peculiarities of juvenile

behavior and psychology.

The children and teachers at school and

kindergarten will learn to comply with the road

traffic rules, and will receive relevant materials,

including reflective tapes that can be imprinted on

clothes or bags. The road safety campaign will also

entail publishing outreach materials targeting

children, adults, drivers of low-speed vehicles and

animal-drawn carts.

All the campaign activities are laid down in the

social and environmental plans – documents

required by the Millennium Challenge Corporation

from the companies engaged in the rehabilitation

and infrastructure works. These plans lay down

actions and events meant to ensure compliance

with the social and environmental requirements of

the Road Rehabilitation Project implemented by

MCA Moldova.

The children and adults from the localities crossed by the Sarateni-Soroca road will receive road safety training

8

The rehabilitation works on the Sarateni-Soroca

road funded through the Millennium Challenge

Compact will largely be carried out in 2013. Also

this year the most complex associated works will

start, such as building of five bridges, including the

grade separation at Sarateni, relocation of the

railway bridge next to the town of Ghindesti, and

reconstruction of Soroca’s bypass road damaged by

landslides.

According to the road rehabilitation contracts

signed for the 93-km Sarateni-Soroca road

segment, the latter is expected to be fully

rehabilitated by June 2014.

Both the consortium of Turkish companies ONUR

and SUMMA, and the Austrian company Strabag,

have mobilized and are ready to start the

rehabilitation works once the weather allows for it.

The consortium of the Turkish companies has

about 130 items of equipment, including trucks,

bulldozers, excavators, light towers, rollers, soil

compactors, emulsion plant, dump trucks, and

mobile cranes. In September it put an asphalt plant

into operation, with a capacity of 280 tons per

hour.

This winter the consortium ONUR and SUMA

procured about 70 thousand tons of construction

materials, such as sand, pebble, gravel and granite,

and employed about 120 workers, 63 of whom are

from Moldova, and the others from Turkey.

Strabag, the Austrian company, in turn, has

mobilized its equipment and team to start the

rehabilitation works, and is expected to put its

asphalt plant into operation by the end of March.

According to the contracts signed with MCA

Moldova, the Turkish consortium ONUR and

SUMMA will rehabilitate a 44.9-km road segment

starting at the Sarateni junction and stretching to

the entrance to the town of Ghindesti, and will

build the grade separation at Sarateni, while

Strabag AG will rehabilitate a 48.1-km road

segment from the entrance to Ghindesti to the

Drochia junction (R7 and R9 junction).

The rehabilitation works on the Sarateni-Soroca road will largely be carried out in 2013

9

The Institute of Zoology of the Academy of

Sciences of Moldova formulated several

recommendations for the Water Users’

Associations meant to reduce the impact of

irrigation on the fauna in the Nistru and Prut Rivers

in a recent ichthyologic study commissioned by the

Millennium Challenge Account Moldova. The

survey also estimated the damage expected to be

caused to the river fauna by the rehabilitation of

the irrigation systems.

The construction companies contracted to

rehabilitate the irrigation systems Blindesti (Prut)

and Jora de Jos (Nistru) are expected to pay for the

damages caused to the fish population through

works like excavation around the suction pipes in

the riverbeds. The impact of the excavation works

on the fish and fish food is expected to amount to

73 thousand lei to be paid by the construction

companies.

The compensations paid for the damages caused by

the construction works will be transferred to the

Fishery Service, according to low. The

Fishery Service will then use these funds to grow

fish fries and put them back into the rivers.

The local experts also recommend that the Water

Users’ Associations check the filtration capacity of

the fish protection structure during the

rehabilitation of the irrigation systems. Appropriate

mitigation measures will minimize the damage

caused to the fish population by water intakes and

will help evaluate the protection level and identify

the measures necessary to protect the water

resources and maintain the environmental balance.

According to an ichthyologic and hydrobiologic

study, all actions that have an impact on the water

fauna require consultation with the State Fishery

Service, as stipulated in the law on fishery and

fishing.

No survey of this kind has been conducted since

the 1980s, while application of the

recommendations made by researchers will help

prevent possible natural disasters with adverse

impacts on the ecosystem.

Rehabilitation of the irrigation systems will focus on the protection of fish and plants in the Nistru and Prut Rivers

The newsletter is produced by the Millennium Challenge Account Moldova.

The information provided in this newsletter does not represent the views or positions of the

Millennium Challenge Corporation or the US Government.