COMMISSION DECISION. C (2008) 7804 of 11 December 2008

Transcription

1 COMMISSION DECISION C (2008) 7804 of 11 December 2008 on the ENPI Annual Action Programme 2008 in favour of the Republic of Moldova to be financed under Article of the general budget of the European Communities THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Regulation (EC) No 1638/2006 of the European Parliament and of the Council of 24 October 2006 laying down general provisions establishing a European Neighbourhood and Partnership Instrument 1, and in particular Article 12 thereof, Whereas: (1) The Commission has adopted the ENPI Country Strategy Paper for the Republic of Moldova 2 (hereinafter: Moldova) and the Multiannual Indicative Programme for the period , which indicates the priorities of Support for democratic development and good governance, Support for regulatory reform and administrative capacity building and Support for poverty reduction and economic growth. (2) The objectives pursued by the Annual Action Programme are as follows : Health Sector Policy Support Programme: To support the prioritisation and implementation of the Moldovan Health Sector Strategy To contribute to the improvement of the health of the population, expanding access, and improving the efficiency and quality of essential public health care services. Justice, Liberties and Security Improving border and migration management in the Republic of Moldova: To contribute to the improvement of standards in the Justice, Liberties and Security field in Moldova through targeted interventions in line with the EU-Moldova Action Plan OJ L 310, , p. 1. C(2007) 672 C(2007) 672 EN 1 EN

2 To improve border management capacity by increasing Moldovan Border Guard and Custom Services ability to detect trans-border crimes and by enhancing the interagencies cooperation at national and regional levels. To support to the implementation of the EU-Moldova Mobility Partnership for migration. Technical Assistance & Twinnings in support of the implementation of the EU- Moldova Action Plan: To support the Moldovan government administration and relevant institutions in the implementation and enforcement of the ENP Action Plan and any successor documents. (3) The EU-Moldova Action Plan was adopted in 2005, for a period of three years. As the current Action Plan is approaching the end of its term, the Commission, in close cooperation with the Government of Moldova, is in the process of preparing a successor to the 2005 Action Plan, the purpose of which will be to update the priorities of the EU-Moldova neighbourhood relations. (4) The present decision constitutes a financing decision within the meaning of Article 75 of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities 4 and Article 90 of Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of the Financial Regulation applicable to the general budget of the European Communities 5. (5) The present decision covers any possible interest due for late payment on the basis of articles 83 of the Council Regulation (EC, Euratom) No 1605/2002 and 106(5) of Commission Regulation (EC, Euratom) No 2342/2002. (6) The Commission is required to define the term substantial change in the meaning of Article 90 (4) of Regulation (EC, Euratom) No 2342/2002 to ensure that any substantial change in this decision shall follow the same procedure as the initial decision. (7) The measures provided for in this decision are in accordance with the opinion of the ENPI Committee set up under Article 26 of Regulation (EC) No 1638/2006. HAS DECIDED AS FOLLOWS: The actions Article OJEU L 248 of p. 1. Regulation last amended by Regulation (EC, Euratom) No1995/2006 (OJEU L 390, , p.1) ) and by Council Regulation (EC, Euratom) N 1525/2007 of 17 December 2007 (OJ L 343, , p.9.). OJEU L 248 of p. 1. Regulation last amended by Regulation (EC, Euratom) No1995/2006 (OJEU L 390, , p.1) ) and by Council Regulation (EC, Euratom) N 1525/2007 of 17 December 2007 (OJ L 343, , p.9.). EN 2 EN

3 "Health Sector Policy Support Programme", "Justice, Liberties and Security Improving border and migration management in the Republic of Moldova", "Technical Assistance & Twinnings in support of the implementation of the EU-Moldova Action Plan", which constitute the Annual Action Programme in favour of the Republic of Moldova, the text of which is set out in Annexes 1 to 3 to this decision, are approved. Article 2 The maximum contribution of the Community is set at EUR 62,300, to be financed from budget line of the general budget of the European Communities for This decision shall also cover any possible interest due for late payment. Article 3 Within the maximum indicative budget of all the specific actions, cumulated changes not exceeding 20% of the maximum contribution of the Community are not considered to be substantial provided that they do not significantly affect the nature and objectives of the Annual Action Programme. The authorising officer may introduce non substantial changes to the Action Programme in accordance with the principles of sound financial management Done at Brussels, [ ] For the Commission [ ] Member of the Commission EN 3 EN

4 ANNEXES ENPI Annual Action Programme 2008 in favour of the Republic of Moldova: Annex 1: action fiche, "Health Sector Policy Support Programme". Annex 2: action fiche, "Justice, Liberties and Security Improving border and migration management in the Republic of Moldova". Annex 3: action fiche, "Technical Assistance & Twinning in support of the implementation of the EU-Moldova Action Plan". EN 4 EN

5 ANNEX 1: ACTION FICHE FOR THE REPUBLIC OF MOLDOVA ENP AAP IDENTIFICATION Title Sector Policy Support Programme Health Total cost 46.6 million, including 16.6 million from the Governance facility Aid method / management mode Sector budget support, centralised management CRIS Ref: ENPI/2008/ DAC-code Sector Basic health care 2. RATIONALE AND COUNTRY CONTEXT 2.1. Economic and social situation The macro-economic situation of the Republic of Moldova has improved steadily. Annual GDP growth was 7% and estimated at 4-5% in The Republic of Moldova remains the poorest country in Europe with GDP/cap of 937 USD in Life expectancy is low at 68 years (EU 79a). The IMF concluded recently that 'macroeconomic policies are sound [and] government finances are healthy'. A prudent 2008 budget is in place. Growth has been remarkably resilient in the face of external shocks: a wine-embargo and gas-price rises imposed by Russia in 2006, and a severe drought in 2007 (Article IV Consultation 21/12/2007). Investment is improving. Foreign Direct Investment in 2007 was 12% of GDP. Remittances are also expected to grow. The central government reported surpluses over the last four years owing to robust revenue from VAT and excises on import. Expenditures were kept in line with budget commitments. The 2008 budget deficit target of 0.5 % of GDP is 'appropriate'. Revenue growth has been squeezed by the reduction of corporate and personal income taxes. External debt, at ca. 2 billion USD in 2007, remains under control. The Republic of Moldova is expected to benefit economically as a new EU neighbour country since 2007 and the new EU Preferential Trade Agreements. Total health care expenditure is hard to calculate, as it includes direct payments by the population and largely non-budgetised international aid flows. Estimates range from 4.8% (Ministry of Health) to 10% (World Bank Public Expenditure Review 2006) of GDP. The government approved a Medium-term Expenditure Framework in May Slower public expenditure growth rate and a more efficient use of available resources are emphasised. Health, and social protection (supported by 2007 ENPI sector budget support), are emphasised in the budget. Healthcare is projected to rise from 13.9% of the national budget in 2008 to 14.8% in 2010 (from 196 MEUR to 245 MEUR). The public health budget is modest at approximately 50 Euro per person (2008). IMF and international analyses emphasis that: annual national budgets should be less incremental, more oriented towards capital investments and domestic growth, and better linked to the MTEF and the new National Development Strategy. The Health chapter of the MTEF is comprehensive but as overall, the challenge is to move from historical increments and the Annual Budget towards increased orientation on performance budgeting and MTEF. With a GDP of 3.35 billion USD in 2006, the Republic of Moldova remains a tiny east European economy, heavily dependent on external energy sources and remittances. Remittances have indirectly contributed to a huge trade-deficit at 50% of GDP. Inflation at 13% in 2007 remains an issue. EBRD transition and World Bank 'Doing Business' indicators EN 5 EN

6 still point to: a weak business environment, further need to streamline the regulatory environment, strengthen the independence of the judiciary, and counter-act reportedly widespread corruption. Poverty remains wide-spread in the Republic of Moldova. According to the UNDP Human Development Report 2007/2008, 20.8% of Moldovans live on less than 2 USD (PPP)/day. The new National Development Strategy stresses a positive trend and a close relation between poverty reduction and economic growth; this view is not fully shared by all analysts and civil society. Despite risks, it is considered that the Republic of Moldova fulfils the important eligibility criteria for EC budget support, as the macro-economic situation is challenging but stable. The government is on track concerning conditionality of its IMF Poverty Reduction and Growth Facility The third PRGF Review was completed successfully in March The country meets the general requirements set forth in Article 15 of Regulation (EC) No 1638/2006 of the European Parliament and of the Council. Public procurement practices are on track of alignment with EU practices, though improvements in on-line communication and introduction of e-procurement are essential. Health sector budget support is furthermore consistent with Priority Area 3 (Support for Poverty Reduction and Economic Growth) of the Republic of Moldova Country Strategy Paper and the National Indicative Programme Cooperation policy of beneficiary country The National Development Strategy of the Republic of Moldova was approved by Parliament in December 2007 and promulgated by presidential decree in January It follows the Economic Growth and Poverty Reduction Strategy The key objective of the new NDS is to ensure a better quality of people's lives by strengthening the foundation for a robust, sustainable economic growth. The strategy is based on five medium-term priorities: (i) Strengthen democracy based on the rule of law; (ii) Settlement of the Transnistrian conflict; (iii) Raising competitiveness; (iv) Developing human resources, employment, and promoting social inclusion; (v) Regional development. The Health sector is included under priority iv. MDG targets, including many for health, are included in the NDS. MDGs are considered necessary (but not sufficient) conditions to achieve the vision of the NDS. Commitment to and growth in social sector spending, including health care, need now to be matched by improvements in quality and access. As a major public employer and a large component of the state budget, the public health care sector will also be affected by the wider reform agenda particularly: fiscal discipline, PFM, Pubic Administration Reform. The NDS was prepared with public participation, including 25 public discussions. The quality and relevance of the Strategy will be tested on the basis of real achievements over the next years Government Sector Programme By 1999 the public health care sector in the Republic of Moldova faced melt-down (KPMG 1999). A first phase of reform saw significant and needed restructuring. By 2004 hospitals had decreased from 253 to 65. The number of beds decreased from to Progress was made in introducing Family ( general ) Medicine as the focus of primary care instead of the traditional fragmented primary care model based on specialized medicine. Future policy and strategy for the health sector are set out in two documents published by the Ministry of Health in The Health Policy aims to 1) increase the life expectancy and lengthen the healthy life, 2) ensure life quality and reduce health differences EN 6 EN

7 between social groups, 3) strengthen inter-sector partnerships, and 4) increase the individual's responsibility. The Health Strategy outlines a large number of actions and indicators to improve four functions of the health care system: a) sector Stewardship ; b) Funding and payment mechanisms; c) Delivery of health care services; d) Resource management. The Strategy emphasises the continued development of primary care. Family Medicine is mentioned in the document. The MTEF is prepared in parallel to the annual State budget. Health financing as foreseen in the MTEF is predominantly based on government budget allocations (60%) and income from compulsory health insurance premiums (35%) to the Compulsory State Medical Insurance Company (CNAM). CNAM's budget was 2 bln Lei in 2007 (ca. 120 MEUR). Direct budget allocations to CNAM are expected to decrease in relative terms, as premium revenue will grow as a result of increased contributions from 5% (2007) to 7% (2009/2010) on salaries (equally divided between employer and employees); projected premium revenue increasing from approximately 70 (2008) to 100 (2010) MEUR. Expenditure in the Health MTEF is divided into eight Programmes. The programme for Individual services managed under the CNAM accounts for more than 80% of public expenditure. In the state budget salaries and utilities are estimated to account for approximately 70% of expenditures. The CNAM budget is approved separately by parliament, and is subject to scrutiny by the Court of Accounts. Approximately 24% of the population, mainly the self-employed and rural low-income groups, are reported as not being covered by the CNAM s Standard Package (Program Unic). A priority of a sector-wide approach will be to better capture data on these private health expenditures as well as from projects funding the sector from outside the Government Budget. The Policy, Strategy and MTEF fulfil the core eligibility requirements for an EC Sector Budget Support Programme (SPSP). A sometimes unclear link between the three documents as well as a lack of prioritised targets and timelines remain however problematic. Additional capacity building in policy development, strategic planning and development of agreed mechanism of priority setting to integrate budgeting and the longer-term sector policy strategy is considered essential. In terms of implementation, from January 2008, the administration of Primary Care providers was formally separated from hospitals (formerly all regular health services were integrated under Rayon Chief Doctor administrations). Commitments to strategic priorities, to the extent these are explicit, do not always, however, fit the facts on the ground. There are, for example, 1261 Primary Care facilities but currently all are managed under approximately 70 CNAM contracts to autonomous public non-profit PHC entities: among them 35 run by rayon and municipality level entities, ca. 20 run by larger institutions and only 2 private. Management authority under these contracts is subject both to: planning and spending norms under the MoH affecting almost all areas of operations and performance, and contractual obligations under the CNAM. Add other program reporting and the administrative burdens on facilities are as great as operational authority is small. SPSP targets are primarily focused on these issues. After the health crisis of the 1990s and declines in core indicators (life expectancy had fell to 66.6 years by 1999), concrete results have been reached over the period Maternal deaths per live births have dramatically decreased from 43.9 to 16 (however, such a EN 7 EN

8 large variation could potentially indicate data problems), and infant mortality has decreased by 26%. Having stabilized the sector, further improvement will require renewed effort. Another challenge will be to reverse an emerging trend of the exodus of medical personnel form the country and public health care systems. Overall wages are low as are differentials particularly for the skilled. Wage expectations of physician are widely regarded as, and surveys suggest, many multiples of actual salaries. Correcting this would have a strong potential to impact upon performance. Additional challenges will be to find mechanisms to avoid the risks and distortions of unregulated growth of the private sector (such as licensing, professional associations and ombudsmen) and to protect patient rights in line with European standards Lessons learnt Over the last years, domestic reforms as well as international support particularly under EU TACIS and World Bank have led to some improvements in the public health care sector, but from a low point of almost total collapse achievements are mixed. Capital investment and Technical Assistance programs in Family Medicine have failed to address the inefficiencies of out-dated functional and performance planning and management, and exaggerated infrastructure norms have lead to high capital (and subsequently maintenance) and upkeep costs. The same problems exist in the hospital sector, but with greater financial consequences. The relatively low cost and high benefits of particularly Family Medicine hence impact on overall sector performance, plus the relative tractability of the challenge would suggest continued emphasis on Family Medicine. This is adequately reflected in the SPSP benchmarks agreed. A sufficiently stable macro-economic framework as well as the willingness for further such reforms exists on the Government side. Further systemic improvements in the health sector depend however on increased levels of funding as well as on firm and well-targeted support to the sector strategy. The Health Sector Policy Support Programme can respond to these challenges. Program strategy and targets have been discussed with the Government in order to ensure relevance, feasibility and ownership. Limited technical assistance support as indicated in the sector analysis is foreseen Complementary actions Under the Health Service and Social Assistance project of the World Bank started in late 2007, 11.5 million USD is reserved for the health component and are to be spent in four subareas (capacity development and sector regulation; health-care financing and provider payment; primary health care development; hospital capacity assessment and modernization). A close co-operation between this project and all EC health interventions has been established. Other donors and international organisations active in the sector include Sweden, Netherlands, Switzerland, US, WHO, UNICEF, CoE Development Bank and UNFPA. Under ENPI NAP 2007, the Commission has funded a programme in support to the reform of social assistance. Finished TACIS projects include Support to the Ministry of Health ( ), Health Promotion and Disease Prevention ( , 2.3 MEUR) and Public Health Reform ( , 2 MEUR). TACIS health projects operational in 2008 are a 4.5 MEUR delivery of medical supply the PHC clinics and a 1.5 MEUR technical assistance component focusing on the elaboration of clinical protocols. Funds (up to a reported 20M$US) for capital investment in Family Medicine may be available under the Millennium Challenge Corporation subject to the finalization of feasible proposals. Programs for scaling-up access to HIV/AIDS prevention, treatment and care project (15.9MUSD) and Strengthening TB control project (11.7MUSD) are financed under the GFATM. EN 8 EN

9 2.6. Donor coordination Regular donor co-ordination meetings have been instituted by MOH since These meetings are chaired by the Minister and enjoy broad participation amongst staff. There is strong commitment from the Government to further broaden donor coordination; as part of the conditionality for this budget support, the EC will insist on the regularity, good preparation, and the quality of this donor coordination (TOR, SWAP, donor mapping). 3. DESCRIPTION 3.1. Objectives The objective of this Sector Policy Support Programme is to support the concrete prioritisation and implementation of the Moldovan Health Sector Strategy towards improving the health of the population, expanding access, and improving the efficiency and quality of essential public health care services Expected results and main activities The results and activities of the programme are those of the GoM s own Sector Policy and Strategy. For practical reasons discussed, improving overall public health care sector efficiency, quality and performance is to be primarily achieved by focusing on Family Medicine and agreeing more concrete targets. Technical Assistance will consist of technical expertise and capacity building. One long-term expert in strategic planning and budgeting will be provided to MoH and another to the CNAM and/or Ministry of Finance. Additional expertise will be seeking to support the monitoring system, disseminate information and implement reviews and evaluation of the programme. Results and targets for monitoring implementation and disbursement are incremental over 4 years and are formulated in a Policy Matrix under the headings of the MoH s own Sector Strategy but also taking into account the broader PFM and public stewardship agenda: Stewardship (1): harmonized, comprehensive sector reporting and coordination benchmarks (including donor (and donor indicators) mapping); performance benchmarks in key service (output) and disease (outcome) areas; Stewardship (2): Fiscal discipline and operational performance (inputs/outputs): audits of key entities (including CNAM) and PFM benchmarks, service provider autonomy targets Improved Services: Access targets, service quality proxies, satisfaction indicators Human and Physical Infrastructure Resources: Family Medicine training completion and numbers of licensed physicians; Improved efficiency in infrastructure investment Stabilization and Funding Diversification: Budget variance and legislative acts A monitoring system is established, involving relevant Government and, to all possible and feasible extent, non governmental institutions as well as research centres; lessons learnt from the monitoring process are used by the Government to improve over time the effectiveness and efficiency of the strategy Stakeholders Ministry of Health, Ministry of Finance, Court of Accounts, Compulsory Medical Insurance Company, EC, other donors and international organisations, Rayonal Health Authorities, Healthcare providers, representatives of staff, patients and the private medical sector Risks and assumptions The main assumption is that the Moldovan government remains committed to efficient reforms in the health sector. This commitment might be distracted by the elections in 2009, EN 9 EN

10 by external economic shocks or other unforeseeable factors. A further risk is that Ministry of Health does not succeed in prioritizing its National Health Policy and Health System Development Strategy into well-structured shorter-term action plans. These risks have been taken into consideration and minimised by design namely by allowing for an additional year of duration for the programme implementation Crosscutting Issues It can be expected that the Programme will have a positive effect upon women and children. Improving access to PHC particularly in rural areas should reduce exclusion. Good governance will indirectly be fostered through support to further reforms in the field of Public Finance Management. Limited environmental impacts are foreseen. 4. IMPLEMENTATION ISSUES 4.1. Implementation method Following the adoption of the financing decision by the Commission, a Financing Agreement (FA) will be signed with the Government of the Republic of Moldova. Modality of aid delivery will be untargeted sector budget support under centralised management. Funds will be channelled to the State Treasury. Arrival of funds in the Treasury Account will be verified by the Commission. The technical assistance component of the programme will be managed centrally and directly by the Commission Procurement and grant award procedures All contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by the Commission for the implementation of external operations, in force at the time of the launch of the procedure in question Budget and calendar The budget of the programme is allocated to the following two components: Budget support component: 42.0 million Technical assistance: 4.6 million The amount of 16.6 million awarded to the Republic of Moldova under the Governance Facility have been added to the Budget Support component of this action and will increase disbursements subject to benchmarks/progress indicators on Public Finance Management and Public Administration related reforms being fulfilled throughout the duration of the programme. The implementation period of the Programme will extend over 48 months. It is anticipated that three annual disbursements of respectively: 12, 15 and 15 million will be made, in principle in different fiscal years. A number of pre-conditions have been laid down including the initiation of critical improvements to sector statistics, and legislative requirements related to normative planning and PFM. The endorsement of the FA, and satisfaction of preconditions, for the Programme by the Government of the Republic of Moldova shall create the condition for disbursement of the first instalment. Disbursement of the following instalments will be contingent on the Republic of Moldova meeting the indicators detailed in the FA and its policy matrix. Partial and negotiated disbursements may occur in case of delays in meeting indicators: a final fourth disbursement would then be made on the successful attainment of all targets. Programme and sector evaluation activities will continue over a post intervention period of up to 1 year after the last disbursement Performance monitoring and criteria for disbursement The monitoring, evaluation and audit systems and framework for the Programme will reinforce MoH efforts to unify, harmonize, and improve the quality, comprehensiveness and EN 10 EN

11 transparency of sector reporting, analysis and management. Whenever feasible and possible, the Commission shall rely on existing monitoring system and review mechanisms implemented by the GoM with other donors involved in relevant sector policy support programme in order to minimise transaction costs. The criteria for disbursement are the attainment of results as specified in the Financing Agreement (see section 3.2.) Extremely large numbers of performance monitoring indicators are proposed in health and health care in the Republic of Moldova (the strategy alone includes more than 500!) and a specific and agreed objective is to bring this first under an annual donor coordination report (year 1 and 2) and move toward harmonization across the many GOM departments and donor partners and various programs and projects of both - under an Annual MoH Strategy Review report (subsequent years). This will include: MDG, AIDCO standard health, and NDP indicators. These reports should include all indicators needed for the Delegation to monitor performance. Achieving this is itself a benchmark (set). Evaluation, monitoring and audit Technical Assistance is included to support the MoH, Statistical Office and other statistics agencies in this process of indicator data quality, focus, and harmonization. Control against the attainment of targets for disbursement remains the task of the delegation. An indicator on satisfaction is included but will not duplicate similar efforts currently supported under the MCC Threshold program. From the technical assistance component of this project, independent reviewers will be recruited that will assist in gathering evidence concerning the level of fulfilment of indicators/conditionalities and subsequently disbursement Evaluation and audit Prior to the completion of the sector budget support programme, the Commission will mandate consultants to carry out an independent final evaluation of the programme. The programme will be subject to independent reviews that will assess the level of compliance/ performance with its conditions/indicators set forth in the Financing Agreement. The European Commission might mandate consultants to carry out, in close cooperation with the Chamber of Accounts of the Republic of Moldova, an audit of a sample of expenditures related to the implementation of the GoM health care policy Communication and visibility In the Financing Agreement, the Government shall commit itself to ensure that the visibility of the EC contribution to the Programme is at least equivalent to that given through media to other donors supporting the implementation of GoM reforms in the area of PFM and health. EN 11 EN

12 ANNEX 2: ACTION FICHE FOR THE REPUBLIC OF MOLDOVA ENP AAP IDENTIFICATION Title 2. RATIONALE Total cost Justice, Liberties and Security Improving border and migration management in the Republic of Moldova CRIS Ref: ENPI/2008/ million Aid method / management mode Project approach centralised management and joint management with an international organization DAC-code Sector Technical cooperation provided to parliament, government ministries, law enforcement agencies and judiciary to assist review and reform of the security system to improve democratic governance and civilian control 2.1. Sector context The Project is in accordance with the ENPI Republic of Moldova Country Strategy Paper , stipulating that EU assistance shall support " measures to bring the border guards and the asylum system fully in line with European standards and effective management of migratory flows". The EU Republic of Moldova Action Plan foresees cooperation in priority JHA issues including migration (legal/illegal migration, readmission) and border management. Its December 2006 Progress Report noted several legal and administrative improvements (EUBAM, programme on migration), but also highlighted weaknesses: corruption, need for further institutional reforms etc. The Bureau of Statistics indicates that out of a total population of 4.2 million, there are around 300,000 Moldovans abroad, while independent studies show that approximately one quarter of the economically active population works overseas (IOM 2006); remittances from migrants have been estimated at up to 30 % of the country GDP. Migration can be accompanied by a set of negative phenomena, such as illegal border-crossing, trafficking, smuggling etc and there are indications that the Republic of Moldova has become a transit country for illegal migration directed to the EU. Therefore, there is a need to step up efforts to develop the country's capacity to manage increasing numbers of illegal and transit migrants. A Readmission Agreement between the EU and the Republic of Moldova entered into force on 1 st of January Since 1st of January 2007, the Republic of Moldova shares a border of 450 km with the EU. As Europe's poorest state, the Republic of Moldova is a significant origin country for migrants towards the EU. The Republic of Moldova's border control and surveillance capacity is hampered by a lack of communication infrastructure and modern technical resources at operational/tactical level as well as a lack of appropriate capacity and skills in modern border and migration management. This fact is encouraging criminal groups to misuse the Moldovan Ukrainian and Moldovan Romanian borders, as well as the internal boundary with Transnistria for criminal activities. The EUBAM Special Reports "Fight against cross-border crimes" (December 2007) and "Security at Moldovan-Ukrainian Border 2006/2007" (November 2007) show that smuggling is a systematic and highly organized process with precise division of labour among the organizers. The control of various forms of smuggling (persons, drugs, illegal substances, weapons, ammunitions, cars etc.) is under the responsibility of the Border Guards. Besides initiatives to improve the Moldovan border management system, another measure initiated by the authorities is the introduction of biometric passports starting 1 st of February EN 12 EN

13 2008. This activity is in line with EU policy as stated in Council Regulation (EC) No 2252/2004 of and Commission Decision C(2006)2909 on biometrics. In February 2008, the Ministry of Information Development started issuing biometric passports through a pilot-project on the issuance of 5000 passports which was largely financed by the national budget The issuance of such passports, placed in the context of the new EU Mobility Partnership on migration with the Republic of Moldova, constitutes a prerequirement for facilitating the movement of Moldovan citizens abroad and within the EU borders in the long-term and aims to improve the efficiency of fighting trans-border crime and irregular migration. It is in the strong interest of the EU to raise standards of document security in the Republic of Moldova. According to the Government Decision dated 8 February 2008, a range of institutions are made responsible for implementation of biometric passports, such as: Border Guard Service (BGS), State Enterprise "Centre for Special Telecommunications", Service for Information and Security, etc. Although the process of introduction of biometrics has started and the infrastructure of the Ministry is set up, other relevant institutions are not fully prepared and equipped to fulfil the assigned tasks. For instance, the Border Guard Service, responsible for checking the passports, lacks appropriate reading and scanning equipment, capacities and abilities to use equipment and standard procedures for the daily work. In the area of JLS, security issues (border management, biometric passports, and freedom of movement of goods) as well as freedom of movement of persons are a major priority for the Government of the Republic of Moldova and the Moldovan population in general. The achievement of tangible outcomes will contribute to the facilitation of the movement and easier access to the EU. In this regard, the Republic of Moldova has been selected by the European Union Council, in December 2007, as one of the first two countries with which the Commission has to test the concept of "mobility partnership". The mobility partnership is a framework consisting of a coherent and coordinated package of initiatives combining measures aimed at facilitating legal migration opportunities with those reducing illegal immigration and those addressing the migration and development dimension. The mobility partnership with the Republic of Moldova was launched formally in June Many of the initiatives included in the Joint Declaration are to be addressed through Member States bilateral initiatives or through the intervention of the EC thematic programme for Migration and Asylum. However, the objectives related to migration and development that constitute a priority for the Government of the Republic of Moldova are not addressed through these means, and further resources are needed to support their appraisal and their implementation. Following intensive consultations with Moldovan authorities, partner organisations in the country, and headquarters, the following areas were identified as priorities within this JLS Project: (i) improvement of capacities in border management and (ii) improvement of capacities in migration management Sector context The need of continued EC-funding for the JLS-sector in the Republic of Moldova is undisputed. Funds should be focused on activities which already have been initiated and are in need of continuous resources in order to achieve a more significant impact (EUBAM Flanking Measures, migrant centre), as well as to new priorities and areas of intervention (biometrics, Mobility Partnership) which are interlinked and complementary. Until now the JLS sector in the Republic of Moldova was funded through a multitude of EC instruments: CBC, thematic programmes, regional and national Tacis projects. The advantage of this approach is that activities are well delimited and can be relatively well planned in advance. The disadvantage is that a comprehensive view of the sector becomes difficult and that, due to different contractual basis of projects, adaptation of projects contents and shifting of budgets is cumbersome, which leads to inflexibility in the project portfolio and a difficulty to react to new developments and priorities. The fragmentation of the portfolio induces significant transaction costs and prevents the emergence of a systemic approach to the issue of border management, border control and migration. Hence, it is EN 13 EN

14 preferable to put in place a larger NAP-financed JLS-project that groups together 'under one roof' the most important JLS support measures from the EC. According to the Country Level Evaluation of the EC Assistance in the Republic of Moldova (November 2007), the EC projects have contributed significantly to the Moldovan efforts to combat trafficking/irregular migration and to enhance border management. For the JLS area, it recommends: improvement of inter-agencies cooperation, adequate application of the legal framework etc. Assessments of the EC independent monitors (MONIS) point out that generally projects operate transparently and are coordinated; beneficiaries have access to project results, ownership is ensured; commitment of authorities is high. However, the most common deficiencies relate to non-provision in due time of inputs/resources, late cofinancing contributions, and absorption capacity that sometimes needs improvement Complementary actions The new JLS-Project builds on a number of on-going and recently terminated projects and it will complement vital national, regional and sub-regional projects by addressing the Republic of Moldova-specific needs and priorities. The ENPI National Indicative Programme for the Republic of Moldova specifies that 25-35% of ENPI funds in that period shall go to 'Priority area 1, Democratic Development and Good Governance'. The Project is in conformity with the National Development Strategy (NDS) ( ) which indicates the need to regulate migratory flows and to strengthen border management. The Project incorporates aspects of the EU Vision for an integrated European border management system (February 2008) which aims at ensuring the integrity of the Schengen area, while keeping the crossing of the external border as simple as possible for third country nationals fulfilling the entry conditions. The Project aims at implementing the EUBAM Needs Assessment and Recommendation Report (May 2006) which provides a set of (42) recommendations on improvement of border management. The Project is also consistent with the "National Action Plan to Protect the Citizens of the Republic of Moldova Residing Abroad", approved by the Government in January Finally, the Project intends to respond to the EU Council Conclusions of which identify the Republic of Moldova as a pilot country for the establishment of a Mobility Partnership and to the wish stated by the Moldovan government authorities to be part of such a Partnership. In this regard, the project will support the issuance of biometric passports with the aim to facilitate the movement of Moldovan citizens abroad and complement other measures related to legal labour migration and reduction of illegal immigration that are already foreseen in the Mobility Partnership. The EC is already financing a number of projects related to border and migration management: EUBAM assists to prevent customs fraud and crimes by providing advice and training to improve the capacity of the border guard and customs services. The mandate of the Mission was extended until November The Mission will be funded by 10 MEUR per year. "Improving border control and surveillance capacity in the Republic of Moldova" (EUBAM-Flanking Assistance, NAP 2007, Budget 11 MEUR) aims at establishing a communication network and equipping Border Guard and Custom Services. "Improvement of Border Controls at the Republic of Moldova-Ukraine border" (BOMMOLUK, TACIS 2003, 3 MEUR) focused on equipment procurement; risk analysis development and capacity building. MIGRAMOL Project (IOM, TACIS 2005, Budget 700,000 Euro), has established a Temporary Accommodation Centre for Migrants. "Elimination of human trafficking through labour market based measures in Ukraine and the Republic of Moldova" (ILO, AENEAS 2005, Budget 700,000 Euro) aims to improve migration management. EN 14 EN

15 However, so far, the EC did not address the relation between migration and development in the Republic of Moldova. The International Organization for Migration (IOM) implements a large project portfolio sponsored by Swedish, USA, Austrian, and Norwegian Governments and related to migration, prevention of human trafficking, assistance to victims of trafficking, raising awareness, returning migrants in the country etc.. The International Labour Organisation (ILO) runs a project on labour migration funded by Irish Aid Donor coordination Donor-government coordination in JLS area and most of its sub-sectors is still insufficiently developed. Although the Ministry of Justice has initiated a dialogue with donors and organized coordination meetings in 2006 and 2007, these meetings are not yet regular and deserve a higher level of representation of stakeholders. On border management, coordination is achieved through quarterly EUBAM Advisory Board and monthly EUBAM Coordination meetings. A Technical Coordination Group on Anti-Trafficking exists under the auspices of the OSCE Mission. The UN Country Team on Justice and Human Rights is confined to the UN family only. In 2006, the Government has established a Commission for Coordination of Migration, chaired by the Ministry of Foreign Affairs and European Integration. Although it was planned to invite donors as observers to its meetings, this did not occur until now. The Mobility Partnership on migration, once established, could contribute to increase coherence, coordination and synergies between migration initiatives of the Member States and Commission in the Republic of Moldova, inter alia by establishment of a cooperation platform. 1. DESCRIPTION 1.3. Objectives The overall objective of the Project is to contribute to improvement of standards in the Justice, Liberties and Security field in the Republic of Moldova through targeted interventions in line with the EU-Republic of Moldova Action Plan. The specific objectives reflect the two main components of the project: 1. To improve border management capacity by increasing Moldovan Border Guard and Custom Services ability to detect trans-border crimes and by enhancing the interagencies cooperation at national and regional levels. 2. To support the implementation of the Mobility Partnership. 3.3 Expected results and main activities Expected results are: 1. The Project will contribute to complete the provision of border control/surveillance equipment as a mean to comply with the recommendations formulated by the EUBAM in relation to information and data 2. As a result, the capacity of BG and CS to exchange timely and relevant information related to migration, movement of goods and border management is improved. 3. Capacity of relevant institutions to deal with the implementation of biometric passports is strengthened and the process is in line with international and European technical and legal norms, 4. A broad initiative on migration is launched under the auspices of the Mobility Partnership, aiming at maximising its benefits for the socio-economic development of the Republic of Moldova 5. A Migration Cooperation platform is established 6. A country Migration Profile provides a basis for developing policies and formulating strategies on migration EN 15 EN

16 7. Coordination among institutions is improved and the movement of Moldovan citizens abroad is facilitated, in accordance with the objectives of the Mobility Partnership with the Republic of Moldova. Main activities: The activities of the project related to the achievement of the two specific objectives of the project are: 1.1. Upgrade the communication network for border guards (BG) and customs services (CS) and integrate the network within the Republic of Moldova s integrated information system on national security; 1.2. Through the network, strengthen the existing the CS Integrated Customs Information System Provide training and capacity building for BG and CS on efficient border and customs controls and surveillance on inter-agency cooperation and effective fight against criminal cross-border activities and organised crime management procedures 1.4. Tendering of equipment (limited to the budget available and in line with EUBAM recommendations) 2.1. Provision of training, capacity building and supply of new technology in support of the introduction of biometric passports at the Moldovan border crossing points; thorough test of the conditions for their introduction and elaboration of manuals and standards for an integrated control regime 2.2. Establishment of a Migration Profile (i.e. a detailed analysis of the migration characteristics, situation and impact of out- and in-flows on the Republic of Moldova) 2.3. Support the establishment of a Cooperation Platform 2.4. Support the identification and prioritisation of further measures in the area of migration and development: sustainable reintegration, creation of opportunities of managing entrepreneurial activities, support the establishment of policies and programmes for encouraging return, preventing youth migration, remittances, diaspora links, labour-market matching for potential migrants etc Implement priority measures agreed upon by the Commission. Stakeholders: A stakeholder analysis has been undertaken during the identification and formulation stages, where capacities were assessed thoroughly during a permanent dialogue with EC experts and consultants: BGS and CS hold regular meetings with the EC Delegation and EUBAM. Ministry of Economy and Trade and the Ministry of Interior are closely consulted in the process of designing the Mobility Partnership. Ministry of Information Development: Coordinates the governments' efforts to make the Republic of Moldova an information society. It supervises several subordinated enterprises, notably the state enterprise 'Registru' issuing passports. It administers 44 local offices and possesses a well-developed infrastructure. Ministry of Interior: includes Migration Bureau in charge with administration of the Temporary Accommodation Centre for Migrants and implementation of the Readmission Agreement UE - Republic of Moldova. Ministry of Economy and Trade (MET): Comprises the Migration Policies Unit dealing with development of labour migration policies. The Unit consists only of four staff members. National Employment Agency, subordinated to the MET, is in charge with implementation of migration policies. Border Guard Service (BGS): It is structured into four regional departments, manages circa 90 state border posts and has 5500 border guards. Its transformation from a military structured entity into a fully professional law enforcement service should be completed by The Service still includes a proportion of conscripts, being gradually replaced by professional border guards. Operational staff currently does not possess the necessary knowledge and skills to deal with all issues expected from a professional guard. EN 16 EN

17 Customs Service (CS): It is structured in a Central Administration, Customs offices and Customs posts. The Service employs about 1800 customs officers. The Service has overall adequate administrative capacity/staffing and adequate knowledge of custom rules; procedures appear to be in line with international standards. However, processing capacities are low and certain aptitudes are lacking (e.g. implementation of transit procedures, the use of modern techniques of selectivity of risk analysis etc.).both BGS and CS are central administration authorities reporting to the Government and are not subordinated to a particular Ministry. The Medium-Term Expenditure Framework of the Republic of Moldova provides for a total of 42 MEUR for CS and 23 MEUR for BGS for the period Other possible stakeholders involved in the implementation of the migration and development component of the mobility partnership include the Ministry of Foreign Affairs and European integration and the Ministry of Social Protection, Family and Child Risks and assumptions Risks: Deficiencies in the reorganisation process of the Border Guards and Custom Service caused by slow decision making, in particular as regards the adoption of a new legislative framework. The Government's limited financial resources required for a successful reform process could create some obstacles which could have a negative impact on the implementation of the project. High price of biometric passport prevent people to apply for it Limited number of trained staff in certain areas (i.g. migration management) The level of corruption in all services could reduce the positive impact of operation Possible lack of capacity to coordinate and implement necessary reforms Delay in the implementation due to the elections in 2009 Assumptions: Commitment to European integration and to reforms in the JHA sector remains high among major parts of the Moldovan government. The Republic of Moldova and the EU Member States continue their commitment to the Mobility Partnership on migration The Republic of Moldova is committed to public administration reform and continues supporting the Border Guard Service's Development Strategy up to The Republic of Moldova pursues its objective of improved relations with the EU. The government continues its donor coordination effort and supports improvement of decision-making process. In order to mitigate these risks, the EC Delegation, the implementing partners and the responsible Moldovan authorities will closely monitor them and propose the necessary corrective actions, if need be. Given the sectors' peculiarities, continuous policy dialogue on sufficiently high level will be maintained Crosscutting Issues The Project has a strong good governance dimension since consolidation of administrative capacities and awareness of EU policies contribute to improvement of democratic standards of governance while the human resources management will tackle the beneficiaries' service culture towards better client orientation. EN 17 EN