copy the linklink copied!6. Macro-economic and environmental overview
This chapter briefly describes the main demographic, macro-economic and environmental issues in Moldova of relevance to the transport sector. It presents an overview of the public transport system in the country as well as the level of greenhouse gas emissions and air pollution in its main urban centres. It also analyses the major health risks associated with the main air pollutants. This review forms part of the justification for the need for public support for investments in the transport sector.
copy the linklink copied!6.1. Demographic and macro-economic situation
6.1.1. Geographic location and territorial division
The Republic of Moldova is in south-east Europe, in the north-eastern Balkans, on a territory of 33 843 km2. To the west it shares a border with Romania, and to the north, east and south with Ukraine (Figure 6.1). The total length of the national boundaries is 1 389 km, including 939 km with Ukraine and 450 km with Romania.1 According to the data from National Bureau of Statistics (NBS), the population of Moldova as of 1 January 2018 was 3.55 million.2
The Republic of Moldova’s administrative-territorial organisation involves two local government levels: 3 1) LPA 1 (local public administration): villages (communes) and towns/cities (municipalities); and 2) LPA 2: districts (rayons), and two second-tier municipalities (Chisinau and Balti). Currently, Moldova is divided into 32 districts, 13 municipalities and 2 regions with special status: 1) Autonomous Territorial Unit Gagauzia; and 2) administrative-territorial units on the left bank of the Dniester River. Six development regions have been established, aiming to attract funds and investments and to ensure sustainable development.4
Source: National Bureau of Statistics (www.statistica.md).
6.1.2. Demographic and socio-economic development
The process of urbanisation is happening very gradually, and has even been reversing since 1989, as census data show (Table 6.1).5 Urbanisation, especially in smaller cities and towns, slowed down in the 1990s, either as a result of poor competitiveness of the old-style industry under free-market conditions (combined with mismanagement during the transition process) or administrative changes (a significant number of large villages were assigned the status of urban settlement). Also population decline (contrary to 1950-1990 growth) and emigration after 1990 have posed challenges to urbanisation, leading to a decline in the supply of public services, especially in smaller cities and towns (GoM, 2016[1]).
As Table 6.1 shows, the level of urbanisation in 2014 resembled the level in 1970.
In 2018, out of the total population of 3.55 million people, 51.9% were women, whereas in urban areas the ratio was 53.2%.6 Of the total population, 83.1% of men are of working age (16-61 years), whereas the ratio for women is 59.0% (16-56 years). The ratio of retired people is very similar for urban and rural areas: 19.4% and 18.7%, respectively.7
Moldova is one of the Eastern Europe, Caucasus and Central Asia (EECCA) countries whose population is declining (Figure 6.2). Compared with 1991 figures, in 2018 Moldova had 441 000 fewer females and 376 000 fewer males.8
Note: 2012 and 2013 data for Tajikistan not available.
Source: (CIS, 2014[2]), Commonwealth of Independent States in 2013 – Statistical Yearbook.
According to a 2013 household survey (based on a sample of 20 850 households), 12.4% of household members were abroad more than 12 months in previous year, 68.4% of whom came from rural areas (Nexus, 2013[3]). In total, 271 600 people were living abroad for a longer period (one year or more), whereas the foreign population living in Moldova reached only 21 700 people (at the end of 2014). In 2014, 26.4% of rural households and 20.6% urban households benefitted from remittances. In relative terms, rural households benefitted more from remittances as they accounted for 61.6% of their total disposable income, compared with 50.2% for urban households (IOM, 2017[4]).
Average disposable household income in 2017 stood at MDL 2 245 (USD 121) per capita per month. This figure is composed of MDL 2 671 (USD 144) per capita in urban areas and MDL 1 917 (USD 104) per capita in rural areas. In urban areas 55% of this income comes from employment, 22% from social payments, and 11% from remittances from abroad. In rural areas, employment accounted for just 30%, self-employment in agriculture 15%, social protection payments 25%, and remittances 22%. For the country as a whole, 43% comes from employment, 23% from social protection payments, and 16.5% from remittances.9
In 2016, employment was mainly in agriculture (33.7%); public administration, health care, education and social services (18.3%); trade (16.4%); and industry (12.1%). In urban areas, employment is chiefly in trade (26.8%); public administration, health care, education and social services (20.9%); and industry (17.3%). In rural areas on the other hand, employment in agriculture dominates (58.2%) followed by public administration, health care, education and social services (16.1%). In no other sector does employment in rural areas exceed 8%.10
In 2016, the annual unemployment rate was 4.2%. Men experienced a higher unemployment rate overall (5.5%), including an 8% rate in urban areas and 3.2% in rural areas. Women, in contrast, experienced unemployment rates of 2.9% overall, with 4% in urban areas and 1.9% in rural areas.11
6.1.3. GDP and energy intensity
Globally, the link between growing GDP and transport has been a major reason for increased greenhouse gas (GHG) emissions due to the greater movement of goods and people. The per capita emissions from transport correlate strongly with annual income (Sims and Schaeffer, 2014[5]).
The country’s estimated GDP in 2016 was USD 18.9 billion, measured according to purchasing power parity, and has been growing at an average annual rate of 5.3% since 2002. As shown in Figure 6.3, Moldova’s GDP per capita has multiplied by more than four in the period 2003-13 (according to purchasing power parity, it had almost doubled from 2 393 to 4 700 in current international USD12).
Source: World Bank (https://data.worldbank.org).
GDP is mostly generated by trade (15.2%), followed by mining and manufacturing (12.0%), agriculture (11.6%) and the public sector (11.6%) (NBS, 2018[6]). The country does not have any coal or natural gas production and is dependent on imports. Moldova produced 5 000 tonnes of petroleum products in 2017, which was sufficient to cover just 0.5% of its gross domestic consumption of these products (NBS, 2018[6]).
Despite the fact that Moldova contributes relatively little to climate change – while the country accounted for 0.05% of the world’s population in 2012, it was responsible for 0.02% of the global GHG emissions13 – its economy is both highly energy and carbon-intensive. Moldova’s energy use is much higher than the averages for the European Union (EU), OECD, and the world. In 2014, Moldova’s energy use stood at about 195 kilogramme of oil equivalent (koe) per 1 000 USD of purchasing power parity (PPP) GDP, using 2011 prices, compared with about 88 for the EU, 110 for the OECD countries and 126 for the world as a whole.14
While in absolute terms Moldova’s carbon dioxide (CO2) emissions have significantly declined over the years, the carbon intensity of the Moldovan economy (or “CO2 emissions per GDP”) is still very high (0.276 kg CO2 per PPP GDP 2014 USD) compared to the EU (0.17 kg) and OECD countries (0.239 kg).15
6.1.4. The financial sector
Moldova’s financial sector is dominated by banks. The banking sector comprises the National Bank of Moldova (Banca Naţională a Moldovei – BNM) and 11 commercial banks (BC Moldova Agroindbank S.A., BC Comertbank S.A., BC EuroCreditBank S.A., BC Energbank S.A., BC Eximbank S.A., FinComBank S.A., BC Mobiasbanca - Groupe Société Générale S.A., BC Moldindconbank S.A., BC ProCredit Bank S.A., BCR Chisinau S.A., BC Victoriabank S.A.).
The BNM licenses, supervises and regulates the activity of financial institutions operating in Moldova. The shareholders of Moldova’s banking sector are mostly from abroad, as foreign investors own 86.1% of the banks’ share capital.16 Four Moldovan banks have full foreign capital (i.e. they are branches of foreign banks or foreign financial groups).
Currently, banks in Moldova do not play a significant role in the country's economic development and business activity. Moldova’s high sovereign credit risk combined with high inflation rates (up until 2016) have led to high interest rates and limited availability of affordable and long-term bank loans. The lack of funds with longer tenors is a particularly persistent problem in the country’s banking system.
One of the factors contributing to this situation was the off-the-scale bank fraud unveiled in November 2014, when it came to light that more than USD 1 billion – equivalent to 15% of the country’ annual GDP or half of the reserves of the BNM – had disappeared from three of Moldova’s leading banks (Banca de Economii,17 Unibank and Banca Sociala).18 The resultant bailout of these (suddenly bankrupt) financial institutions cost national authorities almost half Moldova’s annual budget and prompted an overdue clean-up of the banking sector.
This led to a currency “collapse” (from a European perspective) and put the national economy into its third annual GDP decline within a period of only six years (after 2009 and 2012). However, this third “collapse” turned out to be not as steep as the first one.19 Between November 2014 and November 2015, the Moldovan currency lost about 18% of its value against the Euro,20 also due to a run on Moldovan leu caused by the “missing” billion. This resulted in a general rise in prices (e.g. household electricity, which increased by 30%21), whereas salaries and pensions remained frozen. The World Bank, the International Monetary Fund of the European Union suspended financial aid to the country.
Since then, trust in the country’s banking sector has, to a large extent, been restored, though corruption still remains an issue. In October 2016, the BNM took measures to increase ownership transparency: its newly established Shareholder Transparency Unit (STU) took supervisory action in line with the new Bank Recovery and Resolution Law (No. 232 of 3 October 2016) and blocked and finally cancelled 43% of shares at Moldova Agroindbank – the largest bank in Moldova, holding almost a third of all the country’s retail deposits, and one of its oldest banks22 – and almost 64% at Moldindconbank – the second largest bank.23
The major reason behind this move was the need to improve transparency in the banking sector, rather than to improve solvency. The Law on Financial Institutions (No. 550 of 21 July 1995) now requires that shares in the banks should not be purchased without prior written consent of the BNM (IMF, 2016[7]); (NBM, 2016[8]). In October 2018, the European Bank for Reconstruction and Development (EBRD) and two private equity firms bought a 41% stake (EUR 23 million) in Agroindbank (Foy, 2018[9]). Since April 2018, the BNM has been trying to sell the majority stake in Moldindconbank (Banila, 2019[10]).
In November 2016, Banca Transilvania S.A. (the second largest bank by total assets in Romania) together with the EBRD (a leading investor in Moldova and previously a major lender to the country’s banking system) announced its intention to acquire 39.2% of shares in Victoriabank (Moldova’s third largest lender). The deal was closed in January 2018 – with EBRD’s minority share of 27.5%. The two foreign banks now hold a controlling stake of 66.7% and have demonstrated that the fraud-hit banking sector in Moldova has stabilised (previous foreign bank acquisitions took place in 200724). Victoriabank’s shareholders also plan to diversify their financial products and to offer, among others, SMEs longer-term lending options.25 Banca Transilvania (in which EBRD also owns 8.6% of shares) sees opportunities in the country’s SME, micro and retail sectors and is expected to bring necessary experience gained on the Romanian lending market (Fitzgeorge-Parker, 2017[11]).
The concentration of the banking sector is quite high in Moldova – the five largest banks account for 79% of capital and 84% of all assets. However, this concentration is not a major obstacle. Besides the above-mentioned transparency issues, the total assets of the banking sector in Moldova make up less than 40% of the country’s GDP.26 Also gross domestic savings have been in negative figures since 2000, having an average annual value of -10.1% of GDP until 2016.27
The loan-to-deposit ratio has decreased from 80% (September 2015) to the current 58% (March 2019), showing that banks have become more prudent in their lending operations after the banking crisis, and are keeping a larger portion of deposits in reserve.28 These requirements constrain bank lending, and the role of the banking sector in Moldova as a contributor to the growth of the national economy remains limited. Because banks do not function properly as financial intermediaries, access to credit for SMEs and private entrepreneurs is complicated. Conversely, banks face challenges in diversifying their clients, as well as channelling their large deposit base into healthy credits (Wrobel, 2019[12]). These challenges are amplified, among others, by the lack of good bankable projects and other (structural) issues, such as loan recovery.
On a positive note, the share of non-performing loans in the total loan portfolio decreased from 18.4% to 12.5% between 2017 and 2018 (ends of year).29 The average inflation rate stabilised in 2016 at 6.5% (from 9.7% in 2015) and was as low as 3.1% in 2018.30 This fall in inflation allowed for the base interest rate set by the BNM to be lowered to 6.5% from the end of 2017 from 19.5% in September 2015.31 The current single-digit interest rates might contribute to higher lending and an overall lending recovery.
In 2018, the average interest rate on long-term (over five years) credit for businesses equalled 9.76% p.a. (in national currency) and 4.60% p.a. (in foreign currency; see Figure 6.4). In terms of credit volumes, long-term loans totalled MDL 598.13 million out of the total of MDL 10 763.4 million granted to businesses (in national currency) and MDL 1 293.82 million out of the total MDL 10 015.14 (in foreign currency). This higher demand by the business sector for long-term credit denominated in foreign currency is largely due to the fact that foreign currency loans come with longer maturities.
Note: *Data until 03/2019.
Source: National Bank of Moldova (www.bnm.md).
Total loan volumes in 2018 were MDL 18 544.69 million (in national currency) and MDL 10 260.99 million (in foreign currency). Loans to businesses made up 58% of all loans in national currency and 98% of all loans in foreign currency. Thus, long-term loans in foreign currency can be considered more interesting for financing the CPT Programme.32 However, potential currency risk33 means that the government or a donor may want to set up a facility to hedge this risk for companies that choose to borrow in foreign currency. The required reserves ratio on liabilities in national currency was increased to 42.5% and the reserve ratio of the attracted funds in foreign currency was maintained at 14%.34
In November 2018, Moody’s investors service affirmed the Government of Moldova’s B3 rating (stable outlook) taking into consideration the country’s progress in financial stability on the one hand and persisting weaknesses and unpredictability of the domestic political environment (which also entail fiscal risks) on the other. However, Moldova's debt burden is relatively low (also due to small budget deficits35), with a government debt-to-GDP ratio of 31.5% at the end of 2017 (i.e. well below the B-rated median of 56% of GDP). Besides high debt affordability, the large share of foreign currency-denominated debt is currently balanced by the significantly appreciated Moldovan leu in 2017 on the back of stronger remittances and capital inflows.36
copy the linklink copied!6.2. Road and transport infrastructure in Moldova
Moldova ranks low among the EECCA countries for the number of passengers using public transport (both in total volume as well as percentage share of population). Moldova ranked second after the Russian Federation for its decrease in numbers of passengers transported (27.5% and 56.3% respectively) over 2000-2013 period (CIS, 2014 [2]).37
Moldova was the only country of its peers to see levels of passenger transport decline (Figure 6.5), which fell to the same level as Armenia in 2013 (both countries are comparable in terms of population size). The latest development (2014-2016), however, shows an increasing trend (Table 6.11).
Source: CIS (2014) [2].
The amount of transported goods, on the other hand, rose in Moldova from 28.9 million tonnes in 2000 to 36.9 million tonnes in 2016.
In January 2017, the total length of public roads in the Republic of Moldova was 9 352 km,38 comprising 3 336 km of national roads and 6 016 km of local roads (Table 6.2). The resulting road density is high for a country of the size and population of Moldova. The State Road Administration – a state enterprise within the former Ministry of Transport and Roads Infrastructure (which is now part of the Ministry of Economy and Infrastructure)39 – manages the national roads, and controls much of the financing of local road maintenance.
Table 6.2 shows that the public road density over the reference period has not undergone any major change. The structure of the public road network as of 1 January 2017 is presented in Table 6.3.
According to the Tourism Agency of Moldova, there are 20 tourist routes registered in the country. At present, agrotourism is developing, involving the organisation of festivals and fairs, as well as wine routes. The agency’s estimates show that over 25% of Moldovan residents travel around the country in their own cars. The liberalised visa regime with the EU and the Commonwealth of Independent States (CIS) has also boosted foreign tourism.40
6.2.1. Moldova’s vehicle fleet
This analysis provides a brief review of the current situation of Moldova’s existing bus stock (in terms of ownership status, vehicle age, emission norms, fuel type, etc.).
According to the State Information Resource Centre, “Registru” (Întreprinderea de Stat Centrul Resurselor Informaționale de Stat „Registru” – ÎS CRIS „Registru”), on 1 July 2017, 924 122 means of transport were registered in the country, including 281 349 transport units in Chisinau and 43 739 transport units in Balti (Table 6.4).41
While other official statistics present slightly different data (Table 6.5), the overall figures for buses and minibuses correspond. These are the main means of transport of concern for the proposed CPT Programme. The number of cars increased by 169 000 from 2010 to 2017; the number of buses decreased by 485 and the number of trolleybuses increased by 71 over the same period.
Table 6.6 categorises vehicles by type of diesel engine using the European emission norms (see Annex B to this report for information on Euro norms).
The data presented in Table 6.6 can be summarised as follows:
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11 790 buses (56% of the bus fleet) do not correspond to any Euro standard. According to Art. 153 par. (9) of the Road Transport Code, these units should be renewed or replaced by 2020.
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In total, 326 767 vehicles do not meet any Euro norms (40.1% of the vehicle fleet).
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321 806 vehicles comply with Euro 1/I to Euro 3/III (39.5% of the vehicle fleet).
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114 443 vehicles comply with Euro 4/IV (14% of the vehicle fleet).
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52 303 vehicles meet Euro 5/V and 6/VI (6.4% of the vehicle fleet).
As of May 2017, 840 companies involved in road freight transport were registered in Moldova, according to information provided by the National Agency of Road Transport (Agenția Națională Transport Auto – ANTA). Nearly three-quarters of the registered trucks are between 11 and 20 years old. In total, 2 638 units are up to 10 years old (45.7% of the fleet), while 1 237 units are over 16 years old (21.4% of the total fleet). Thus, much of the fleet will require replacement in the near future.
On the other hand, nearly half of the trucks comply with Euro V norms, as this is required for international transport activity (Table 6.8). Just over 6% of the truck fleet (359 trucks) only comply with Euro 0 norms and these must be renewed or replaced by 2020, according to the provisions of Art. 153, par. (9) of the Road Transport Code.
The ANTA keeps track of the regular route network according to approved transport programmes. At present, the Moldovan route network includes 480 operators serving 11 130 regular routes, including 6 890 district (rayon) routes, 3 368 inter-district routes and 872 international routes. Regular routes are served through railway stations and bus stations.42 The State Enterprise “Railway and Bus Stations” – which operates under the Public Property Agency (PPA) of the Ministry of Economy and Infrastructure – provides bus services in Moldova and includes 28 branches and 9 private bus stations.43 According to the data submitted by ANTA, 540 transport operators are registered in the State Register of transport operators to provide services for road passenger transport through regular, special regular and occasional services, including 6 179 owned or leased buses.
The data in Table 6.9 show that 98.6% of the public transport vehicles on inter-city routes were manufactured in 2010 and before, including 50% with a high degree of wear (exceeding the average useful life of 7 years for minibuses, 12 years for buses and 15-20 years for trolleybuses, depending on mileage and service). The high wear rate of the bus fleet increases environmental pollution and maintenance costs and reduces road safety. The renewal of the bus vehicle fleet is a vital issue for Moldovan transport operators.
From Table 6.10, it can be seen that 38.5% of the inter-city bus fleet has a capacity of up to 20 seats, 48% has a capacity of 21 to 40 seats and only 13.5% has a capacity of 41 seats or more.
Table 6.11 shows that the number of passengers transported by public transport in Moldova increased by about 4% from 2014 to 2016. Buses and trolleybuses account for nearly 97% of public transport in 2016 (with 105 988 passengers travelling by bus and 137 708 by trolleybus). That said, the number of bus passengers decreased by 6%, whilst trolleybus passengers increased by 14% in the period 2014-2016. This is due to the modification of the public transport networks in Chisinau and Balti, where the number of bus routes has been reduced in favour of the trolleybus network.44
In 2016, three municipal enterprises that operate in Moldova (two in Chisinau and one in Balti) accounted for 63% of transported passengers (Figure 6.6). In terms of passenger kilometres, the situation is the opposite – private transport operators provided 60% of total passenger journeys by length. This high share is influenced by the fact that trolleybus transport is solely publicly operated (both in Chisinau and Balti), whereas inter-city transport is provided only by private companies.
Note: Data from July 2017.
Source: National Bureau of Statistics (www.statistica.md).
6.2.2. City of Chisinau’s public transport fleet and network
Public transport fleet
At present, in Chisinau municipality, passenger transport services are provided by the municipal enterprises Chisinau Electric Transport Company (Regia Transport Electric Chișinău – RTEC) and Urban Bus Park (Parcul Urban de Autobuze – PUA),45 as well as by 15 private operators (administrators of light class buses, also known as minibuses). Taxi services are carried out through 35 economic agents which hold the licences. General information on the city’s urban transport set up is presented in Table 6.12.
As of July 2017, the RTEC owned and operated a total of 366 trolleybuses, including 88 units with a service life of up to 5 years, 124 units aged 5 to 10 years, 30 units with a service life of 11 to 15 years, 13 units with a service life of 16 to 20 years and 111 units with a service life of above 20 years. If we assume the operational lifespan of a trolleybus is 15 years (depending on the manufacturer), then 124 trolleybuses, or approximately 36% of the vehicle fleet, should be replaced as they have met or exceeded their operating terms. Every year RTEC organises the repair of 80 trolleybuses. The total of 366 trolleybuses includes 191 new AKSM-321 trolleybuses, accounting for around 52% of the trolleybus fleet, according to information provided by RTEC.
Also in July 2017, PUA had 136 buses, 60 of which had a service life of 10 to 15 years, 49 with a service life of 16-20 years and 7 with a service life of more than 20 years. The remaining 20 buses are reserve units either requiring capital repairs or scrapping. The normal lifespan of a bus is 12 years according to statements by PUA officials based on the recommendations of manufacturers. Thus, at least 56 vehicles (48%) in the running fleet and 76 vehicles (56%) of the total fleet should be replaced. Although the PUA mentions that it has not obtained sufficient funds from local public authorities, it has managed to keep its fleet in operation.
Another four bus routes are managed by private transport operators (No. 23, 10, 28 and 122). On these routes there are 42 bus stops with increased capacity, including route No. 23 (22 units), route No. 10 (2 units), route No. 28 (8 units) and route No. 122 (12 units).
There are 15 private transport operators serving 55 suburban bus routes with a total fleet of 1 290 light class buses (minibuses). Although these have a nominal transport capacity ranging from 11 to 21 seats, it is well-known that this capacity is typically exceeded, in particular during peak hours. The most common light class buses are Mercedes-Benz Sprinters. The age structure of the light class fleet is shown in Figure 6.7. As mentioned above, the typical life of a minibus is around 7 years.
Between 2014 and 2017, the Public Transport and Communications Directorate optimised the public transport route network following the Chisinau Transport Strategy. This seeks to minimise the duplication of trolleybus and bus routes with secondary bus routes. Thus, 12 secondary bus routes have been cancelled, reducing the number of light class buses from 1 850 units in 2014 to 1 290 in 2017.
Note: July 2017.
Source: Authors’ depiction based on information from minibus operators.
Street and transportation network
The Municipality of Chisinau owns and maintains 102.8 km of public roads.46 The public road transport network is a radial type, which provides relatively short direct links on the radial routes between the suburbs and the city centre. Links between peripheral districts involve tangential paths. Most routes are made to or through the city centre and radial routes are the most requested; thus, over 70 streets and boulevards in the city centre are overloaded. The trolleybus network also includes two ring routes. The scheme of the trolleybus network in Chisinau is shown in Figure 6.8.
Urban highway sections are characterised by high traffic density, involving 7 to 12 bus routes. Thus, about 50% of public transport vehicles cross the city centre, creating a number of traffic problems. Public transport vehicles are not separated from other traffic and there are no high-speed buses, although there are some low-floor buses in service. Low-floor buses not only speed up passenger embarkation and disembarkation, but they are also user-friendly for older people, people with disabilities and people with pushchairs.
The development of urban public transport in Chisinau has been influenced by the fact that the relatively small historical part of the city is quite distant from the four contemporary residential sectors (Botanica, Buiucani, Ciocana, and Riscani), which are connected with the city centre by a few magistral (arterial) roads. Interconnections across the sectors is underdeveloped. The situation is complicated by the fact that there are very few alternative routes to redirect traffic (lack of ring roads for transit, especially north-south), which causes 50% of the inter-urban transit to flow through central Chisinau. For these reasons, during peak hours all the bridges connecting the periphery with the centre are congested.
Source: Chisinau Electric Transport Company (http://rtec.md).
Of the 24 bus routes, only 7 are urban; the others serve the suburbs of Chisinau. The bus route scheme is shown in Figure 6.9.
Source: Urban Bus Park (www.autourban.md).
Light class buses serve 55 routes, representing 54% of the public transport network (in terms of the number of routes, not their total length), and predominantly serve streets and districts that are hard to reach by larger public transport vehicles. The characteristics of the public transport network in Chisinau are shown in Table 6.13.
There are 17 dispatchers in the regular public transport network: 4 on the bus routes and 13 on the trolleybus routes. There are 752 intermediate public stops along the routes, of which 520 are in urban areas and 232 in suburbs or along routes to them. In 330 public stations, bus shelters are installed, including 132 that are located in common with commercial units. It should be noted that 422 public stations are not equipped with a roof or pavilion. Some stations even lack name signs to indicate location, despite this being required under the Road Traffic Regulation, approved by the Government Decision No. 357 of 13 May 2009 (see Section 7.1.15).
6.2.3. City of Balti’s public transport fleet and network
The public transport network in Balti municipality comprises 4 trolleybus routes (Table 6.10), 11 main bus routes and 9 secondary bus routes (minibuses). The first trolleybus line in Balti was opened in 1972, with a length of 15 km. Twenty trolleybuses were run by the Trolleybus Directorate, which was reorganised in 1992 as a municipal enterprise called the Trolleybus Directorate of Balti. At the beginning of the 1990s, three routes covering 40 km were served by 90 trolleybuses.
Over time, however, insufficient funds led the trolleybus fleet in Balti to become outdated. Failure to replace vehicles meant that they fully exceeded their useful operating lives. Eleven trolleybuses were older than 10 years, while 24 had a working age of over 30 years. In order to renew the trolleybus stock, on 17 October 2012, Balti signed a EUR 3 million loan agreement with the European Bank for Reconstruction and Development (EBRD) for the purchase of 23 new trolleybuses. At the same time, the EBRD provided a EUR 1.6 million grant to improve the infrastructure of the Trolleybus Directorate of Balti.
In 2013 and 2014 EBRD assisted in replacing 23 trolleybuses with new and used buses. By 2014 there were 35 trolleybuses, including 22 ZIU-9 trolleybuses, 3 AKSM-20101 trolleybuses from Belarus, 11 AKSM-30101 trolleybuses from Belarus, 1 Škoda 14Tr13/6M trolleybus from the Czech Republic and 7 VMZ-5298 trolleybuses from the Russian Federation. Today the age of the trolleybus fleet is as follows: 23 units are less than 5 years old and 11 are more than 10 years old. The others are not operational.
In July 2014, two new routes (No. 4 and 5) were opened. In 2015, the opening of route No. 6 to link the Dacia neighbourhood to the "Bessarabia - North" sausage plant was proposed, but the project was not implemented. Moreover, in January 2016, the trolleybus traffic was stopped on route No. 4 due to unprofitability.
Today the city of Balti has 48 trolleybuses. Thirty operate daily, while four are reserve buses. The remaining 14 buses are in various stages of disrepair and disuse. The trolleybus network is 47.8 km long and includes 66 stations.
Public transport is also provided by 48 regular buses and 116 minibuses. All are diesel-powered and the vast majority are 15 years or older.
copy the linklink copied!6.3. Greenhouse gas emissions and air pollution in Moldova
6.3.1. Greenhouse gas emissions and transport
In 2015, overall GHG emissions in Moldova amounted to 13.95 million tCO2e, excluding land-use change and forestry (LULUCF), or 11.11 million tCO2e including the LULUCF sector (total net emissions are lower as Moldova’s LULUCF sector is a net carbon sink). GHG emissions from the transport sector accounted for 2.2 million tCO2e, (accounting for 23.2% of GHG emissions from the energy sector, which totalled 9.5 million tCO2e) (GoM, 2017[13]).
From these data it can be seen that the energy sector contributed the largest share of total emissions (68.1% without LULUCF in 2015). Emissions from the transport sector are included in the energy sector. The agriculture, waste management, and industrial production sectors account for the remainder of the emissions (15.2%, 11% and 5.7% in 2015, respectively).
Figure 2.11 presents the transport sector’s contribution to overall GHG emissions in Moldova in 1990 and 2015. Although in absolute terms GHG emissions (both overall and those from transport) decreased over the period – mainly due to the fall in GDP and population decline – the transport sector’s share in total emissions increased from 10.3% in 1990 to 15.8% in 2015.
Figure 2.12 shows that emissions from road transport make up the bulk of GHG emissions from the transport sector. Whereas in 1990, road transport was responsible for 87.3% of transport emissions, by 2015 it had reached 98.1% (GoM, 2017[13]).
Note: *Including pipeline and off-road transportation
Source: (GoM, 2017[13]), National Inventory Report 1990-2015: Greenhouse Gas Sources and Sinks in the Republic of Moldova, p. 98, www.clima.md/download.php?file=cHVibGljL3B1YmxpY2F0aW9ucy80MjAwODJfZW5fbmlyNV9lbl8yOTEyMTcucGRm.
Note: LULUCF: land use, land-use change and forestry.
Source: (GoM, 2017[13]), National Inventory Report 1990-2015: Greenhouse Gas Sources and Sinks in the Republic of Moldova, pp. 57, 97. www.clima.md/download.php?file=cHVibGljL3B1YmxpY2F0aW9ucy80MjAwODJfZW5fbmlyNV9lbl8yOTEyMTcucGRm.
GHG emissions per capita decreased by 65.2% between 1990 and 2015 (i.e. from 9.95 tonnes of CO2e to 3.46 tonnes of CO2e). GHG intensity decreased in the same period by 54.5% (i.e. from 4.39 kg CO2e to 2.0 kg CO2e 2010 USD). However, these values are still among the highest of the transition economies (GoM, 2017[13]).
In Table 6.14, we see that CO2 and NOx emissions also decreased by half and SO2 emissions by more than 65% in the period 1990-2015.
Between 2010 and 2015, direct GHG emissions from transport increased by 7%: from about 2.05 million tCO2e in 2010 to 2.2 million tCO2e in 2015 (Table 6.15).
In the period 2010-2015 the road sub-sector experienced an 8% increase in total direct GHG emissions, while those from the railway sub-sector decreased by 58% (Table 6.16).
The emission factors outlined in Table 6.17 were used to estimate the GHG emissions from transport in Moldova presented in the tables and graphs above, which use data from the National Inventory Report 1990-2015 (GoM, 2017[13]). According to the revised 1996 and 2006 IPCC Guidelines (IPCC, 1996[14]) (IPCC, 2006[15]), the carbon intensity of natural gas and petroleum gas is lower than for diesel and petrol fuels, even if we consider the high global warming potential (GWP) coefficients for methane (CH4), nitrous oxide (N2O) and most probably GHGs among the non-methane volatile organic compounds (NMVOCs).47 In terms of air pollution, natural gas provides the best (i.e. the lowest) combined value of CO and NOx emissions per energy used.
6.3.2. Nationally appropriate mitigation actions
Moldova has submitted to the UNFCCC Secretariat its intended nationally determined contribution – INDC (GoM, 2015[16]). The INDC sets out the expected environmental goals and actions after 2020. The main goals are as follows:
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Unconditional goal: 64-67% reduction of GHG emissions by 31 December 2030 from the baseline year 1990.
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Conditional goal – 78% reduction of GHG emissions by 31 December 2030 from the baseline year 1990. This goal is conditional on additional international investment, and access to the mechanism for the transfer of low-carbon technologies, green climate funds and the “flexibility” mechanism for countries in transition.
Nationally appropriate mitigation actions (NAMAs) refer to a set of policies and actions that countries undertake as part of their commitment to reduce greenhouse gas emissions. These aim for transformational change within a single sector or across two or more sectors of the economy. Developed countries can support the implementation of NAMAs in transition countries by financing technologies or capacity building activities.
The UNFCCC website provides a NAMA Register – a publicly accessible platform for uploading all countries’ NAMAs. This makes it possible to inform the public where financial or other support for the development or implementation of NAMAs is needed.
The UNFCCC Register contains three NAMA projects for Moldova:
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1. “Use of energy willow for heat generation in the Republic of Moldova” in the section “NAMA Seeking Support for Implementation”. Implementing agency – Ministry of Agriculture, Regional Development and Environment.48 The total project cost is about USD 94 million, with expected international support of about 90%. The project has not yet received support.
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2. “Afforestation of degraded land, riverside areas and protection belts in the Republic of Moldova”, in the section “NAMA Seeking Support for Implementation”. Implementing agency – Ministry of Agriculture, Regional Development and Environment.49 The total project cost is about USD 151 million, with expected international support of about 73%. The project has not yet received support.
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3. “Implementation of soil conservation tillage system in the Republic of Moldova”, in the section “NAMA Seeking Support for Implementation”. Implementing agency – Ministry of Agriculture, Regional Development and Environment.50 The total project cost is about USD 258 million, with expected international support of about 70%. The project has not yet received support.
6.3.3. Air pollution
Law No. 1422 of 17 December 1997 on Atmospheric Air Protection, as amended, is the main legislation regulating atmospheric emissions. Art. 17 regulates emissions from transport. It states that maximum emissions standards must not be exceeded.
Article 56 of Law No. 1515 of 16 June 1993 on Environmental Protection, as amended, states that the management bodies in the energy, industry, agriculture sectors, as well as the local public administration authorities and the environmental and health authorities, are obliged, among others, to:
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define and propose to the government for approval the annual limits of energy production and consumption, and the admissible annual limits of harmful emissions in the atmosphere from fixed and mobile sources, and to not allow the established limits and norms to be exceeded
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create and ensure the functioning of an air quality surveillance system throughout the country, based on international standards.
The Environmental Audit Report on Air Quality in the Republic of Moldova (GoM, 2018[17]), as approved by Government Decision No. 65 of 30 November 2017, reviews the situation with regard to addressing air quality problems in the country. While the report notes that air pollution from vehicles has declined (8-10 times below the levels 30 years ago), it also cites transport as the main source of air pollution, in particular in urban areas. It also states that on the country level transport accounts for 86.2% of all harmful substances emitted into the air. This results from the increase in the number of vehicles, exacerbated by the fact that old used vehicles – those in operation for seven years or more – are being imported. The report states that between 2014 and 2016, the number of vehicles registered increased by 51 200 units.
However, total pollution from combustion engines decreased by 13 000 tonnes in 2016 from 2014 levels (from 179 000 to 166 000 tonnes), due to the increased in registered electric and natural gas-powered vehicles. But a significant proportion of registered vehicles still in circulation use diesel as fuel (35%), including those in urban public transport.
Figure 6.13 shows the emission trends of harmful substances from road transport in key cities in Moldova for 2010-2016.
Source: (GoM, 2018[17]), Environmental Audit Report on Air Quality in the Republic of Moldova, p.12, http://lex.justice.md/UserFiles/File/2018/mo18-26md/raport_65.doc (based on data from 2016 IES Yearbook on Environmental Protection in the Republic of Moldova).
The audit report cited the lack of timely information on air quality as an important problem to be addressed. In 2015, the State Environmental Inspectorate submitted a proposal to the National Environmental Fund to finance the project "Strengthening the material and technical basis of ecological investigation centres (in Chisinau, Balti and Cahul)", valued at MDL 2 million (USD 108 000). The project objective was to modernise environmental monitoring equipment, including equipment capable of measuring emissions from road transport. The project was not funded.
The audit report points out that the existing institutional organisation is not integrated, is characterised by poor co-operation among public authorities and institutions responsible for air quality management, and does not ensure an organised or unified approach to problems related to air quality. Moreover, measures taken to prevent and mitigate air pollution are inefficient. In the past, the Ministry of Environment did not have a division responsible for air pollution. Following government reforms, however, the Ministry of Agriculture, Regional Development and Environment (MARDE) has established the Air and Climate Change Office.
The audit revealed weaknesses in vehicle testing, including the failure, or even absence, of particular meters and gas analysers. Automobiles “imported” from abroad, with foreign registration numbers, are often not tested for their technical condition, instead relying on technical inspection certificates from the country of origin. Moreover, information on vehicle testing is general and therefore it is difficult to assess the impact of vehicle traffic on air quality.
Moldova does not apply EU standards for vehicle emissions. These are still regulated according to regional, Commonwealth of Independent States (CIS)-administered, formerly Soviet, GOST (Russian for “state”, “national”) standards, which require the removal of 50% of particulates from diesel engines (ГОСТ 17.2.2. 03-87 and ГОСТ-21393-75).51 According to experts cited in the audit report, emissions do not exceed current GOST standards, largely because they are equivalent only to Euro 0 or Euro 1/I standards.
The audit found no real environmental factors in the strategic documents in the transport sector, such as the National Transport Strategy 2008-2017 (GoM, 2008[18]) and the Transport and Logistics Strategy 2013-2022 (GoM, 2013[19]).
There are two main public entities in Moldova responsible for air monitoring:
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1. The State Ecological Inspectorate (Inspectoratul Ecologic de Stat – IES52)
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2. The State Hydrometeorological Service (Serviciul Hidrometeorologic de Stat – SHS53).
Both of these fall under the remit of the Ministry of Agriculture, Regional Development and Environment (MARDE). According to Government Decision No. 847 of 18 December 2009 on the Approval of Regulation on Organisation and Operation of the Ministry of Environment, as subdivisions of MARDE, the IES and SHS are responsible for air pollution monitoring and air protection.
The monitoring network comprises 17 stationary monitoring stations located in five industrial centres (Chisinau – 6 stations; Balti – 2; Bender – 4; Tiraspol – 3; and Ribnita – 2). These collect air samples for testing for 8-9 pollutants: particulates, sulphur dioxide (SO2), carbon monoxide (CO), nitrogen dioxide (NO2) and four to five specific pollutants.54 The daily values as well as seasonal maps of atmospheric air pollution for these five cities (urban areas) are published on the SHS website.55
The audit report noted, however, that the results from the 17 stations do not sufficiently reflect the real air quality situation because they are collected only three times a day. Moreover, the results are not live, but processed and presented the following day (GoM, 2018[17]).
The Ministry of Health, Labour and Social Protection sets out the norms for the maximum allowed concentrations of pollutants in the atmosphere, while compliance with air quality standards is monitored by the Ministry’s National Agency for Public Health.
Road transport is the main source of air pollution in Moldova, in particular in urban areas. According to measurements carried out by the Municipal Centre of Preventive Medicine in eight points in Chisinau, and the data of the national meteorological service "Hydrometeo", the air in Chisinau is polluted with one or more types of toxic gas on 50% of the days of the year (BCI and TUM, 2006[20]).
Laboratory surveys of air samples carried out by the Municipal Centre for Preventive Medicine on the orders of Chisinau’s chapter of the non-government organisation (NGO) Ecological Movement of Moldova (Mișcarea Ecologistă din Moldova – MEM)56 showed that high levels of pollution are recorded near the main routes, such as in the area of Bănulescu-Bodoni Street, Vasile Alecsandri St. – Hancesti St., Iu. Gagarin Bd., Tighina St., Ismail St., Alba-Iulia Street; and transport node Ismail - Calea Basarabiei - Varniţa - Calea Moşilor. In these locations, the maximum concentrations of formaldehyde – CH2O (1.2–5.7 times the maximum allowable concentrations – MAC), particulates (1.2–3.6 times MAC), sulphur dioxide (1.2–7.0 times MAC), and ozone (1.1–3.6 times MAC) are exceeded substantially. Heavy concentrations of formaldehyde have been detected even in the air samples in the middle of Valea Morilor Park. Another acute environmental and health problem is the increased amount of dust in the atmosphere due to the poor state of roads (BCI and TUM, 2006[20]).
While air pollution data in other Moldovan cities are not readily available or reported,57 they too experience air pollution problems typical of cities in the eastern part of Europe. Of particular concern are levels of PM2.5 and PM10 from using wood and coal for home heating and from diesel fuels.
According to the WHO database (2018), every year ambient air pollution in Moldova causes about 3 500 deaths, most of which are due to ischaemic heart diseases.58 This is a significant increase on the figure stated in the 2009 WHO Moldova profile, which estimated that outdoor air pollution had caused 1 000 deaths a year since 2004 (WHO, 2009[21]). As can be seen in Table 6.5 above, in 2010-2017 the number of registered vehicles in Moldova increased by 37.8%. It is therefore not surprising that in 2018 road transport emitted 31 times more carbon monoxide (CO), 14 times more nitrogen oxides (NOx) and 9 times more sulphur dioxide (SO2) than stationary sources (Figure 6.14).
Note: Values for the last three categories (hydrocarbons, particulates, others) were available only for one source group. Data on districts on the left bank of the Dniester River and the Bender Municipality not included.
Source: National Bureau of Statistics (www.statistica.md).
6.3.4. Influence of air pollution from diesel engines on human health
Diesel engines emit carbon dioxide (CO2), carbon monoxide (CO), nitrogen oxides (NOx), sulphur dioxide (SO2) and particulate matter (PM). The air pollution from diesel engines, especially older ones, poses major environmental and health risks to the population (Box 6.1). Increased air pollutants carry a risk of mortality, in particular among people of over 65 (Pope et al., 1995[22]). Above all, diesel exhaust is a Group 1 carcinogen,59 causing lung cancer and being linked to bladder cancer.
Carbon dioxide (CO2): non-toxic, but as a greenhouse gas it causes climate change.
Carbon monoxide (CO): a temporary atmospheric pollutant in some urban areas, chiefly from the exhausts of internal combustion engines. Carbon monoxide is absorbed through breathing and enters the bloodstream through gas exchange in the lungs. It is toxic when encountered in concentrations above about 35 ppm.
Nitrogen oxides (NOx): NOx refer to a mixture of nitric oxide (NO) and nitrogen dioxide (NO2). They are produced during combustion, especially at high temperatures. Due to reactions and photolysis by sunlight, they are the main source of tropospheric ozone. NOx may react with water to make nitric acid, which may end up in the soil where it makes nitrate, which is of use to growing plants. NOx in combination with other pollutants creates urban smog. High concentrations of nitrogen dioxide are harmful to humans because they cause inflammation of the airways.
Sulphur dioxide (SO2): SO2 pollution levels from diesel mainly depend on the quality of the fuel. If the fuel contains more sulphur, the diesel exhaust will contain more SO2. Sulphur dioxide emissions are a precursor to acid rain and atmospheric particulates. Inhaling sulphur dioxide is associated with increased respiratory symptoms and diseases, and difficulty in breathing.
Particulate matter (PM): the major pollutants with negative health effects are PM (2.5 and 10). The particles are so small they can penetrate into the deep regions of the lungs. It is estimated that approximately 3% of cardiopulmonary and 5% of lung cancer deaths are attributable to PM globally. Exposure to PM2.5 reduces life expectancy by about 8.6 months on average.
Since 2000, PM pollution has been estimated to cause 22 000 to 52 000 deaths every year in the United States. It also contributed to about 370 000 premature deaths in Europe in 2005, and 3.22 million deaths globally in 2010, according to a study of the global burden of disease (Lim et al., 2012[23]).
There is no evidence of a safe level of exposure to PM, or a threshold below which no adverse health effects occur. The World Health Organization Air Quality Guidelines values for PM in 2005 were as follows (WHO, 2013[24]):
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for PM2.5: 10 micrograms per cubic metre (μg/m3) for the annual average and 25 μg/m3 for the 24-hour mean (not to be exceeded on more than 3 days/year)
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for PM10: 20 μg/m3 for the annual average and 50 μg/m3 for the 24-hour mean.
Figure 6.15 and Figure 6.16 compare the increased emissions of health-damaging substances by old diesel-powered engines (especially those aged at least 15 years) with modern diesel engines and alternative fuels, compressed natural gas (CNG) and liquefied petroleum gas (LPG).
Note: *for a discussion of normative and real pollution factors, see Section 2.3.1.
Source: (DieselNet, 2016[25]), “EU: Heavy-Duty Truck and Bus Engines: Regulatory Framework and Emission Standards”, DieselNet website, www.dieselnet.com/standards/eu/hd.php (last accessed 30 March 2017).
Note: *for a discussion of normative and real pollution factors, see Section 2.3.1.
Source: (DieselNet, 2016[25]), “EU: Heavy-Duty Truck and Bus Engines: Regulatory Framework and Emission Standards”, DieselNet website, www.dieselnet.com/standards/eu/hd.php (last accessed 30 March 2017).
The replacement of outdated buses with modern diesel-powered or natural gas-powered buses – or the expansion of trolleybus networks in place of diesel-powered vehicles – would help significantly to reduce the amount of major air pollutants, such as particulates, NOx and SO2. A clean public transport programme is thus justified from a public health standpoint.
copy the linklink copied!6.4. The energy sector
6.4.1. Energy efficiency and fuel standards
Law No. 461 of 30 July 2001 on the Petroleum Products Market provides for the formation of an organisational, legal and economic framework for ensuring the economic security of the country and regulating the import, transport and marketing of petroleum products on the domestic market as strategic products with a special regime of activity.
Law No. 142 of 2 July 2010 on Energy Efficiency regulates activities meant to reduce the energy intensity of the national economy and the negative impact of the energy sector on the environment. This law creates the necessary legal framework for the implementation of EU Directive 2006/32/EC on energy end-use efficiency and energy services (EU, 2006[26]). The Energy Efficiency Agency, subordinated to the central specialised body in the energy field (i.e. the Ministry of Economy and Infrastructure), has a separate legal entity status and a separate budget (Art. 8, par. (1) of the law).
The Energy Strategy of the Republic of Moldova until 2030 (GoM, 2013[27]), approved by Government Decision No. 102 of 5 February 2013, provides benchmarks for the development of the energy sector in Moldova in order to create the necessary basis for economic growth and social welfare. Through this document, the government presents its vision and identifies the country's strategic opportunities in the rapidly changing energy landscape of the geopolitical space that includes the Central, Eastern and Southern Europe region, Russian Federation and the Caucasus region.
The strategy highlights the country’s priority issues, which call for quick solutions and a reshaping of objectives to achieve an optimal balance between internal resources (both currently used and projected) and the country’s emergency needs, and the Energy Community (see the next section) and national targets, international obligations on treaties, agreements and programmes (including neighbourhood policy) of which the Republic of Moldova is a member. The strategy outlines the general strategic objectives and implementation measures for the period 2013-2030, as well as the specific strategic objectives for the 2013-2020 and 2021-2030 phases.
The National Energy Efficiency Programme 2011-2020 (GoM, 2011[28]), as approved by Government Decision No. 833 of 10 November 2011, sets long-term energy saving targets of up to 20% by 2020. It states that 10% of biofuels are to be produced from renewable sources by 2020, with intermediate targets (by 2015) of:
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6% of ethanol and petrol blends in the volume of petrol sold
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5% of biodiesel blend in the volume of gas oil sold.
According to the Road Transport Code, from 1 January 2020, only buses and coaches complying with at least Euro I norms (Art. 153 par. (9)) will be allowed for road transport.
6.4.2. Electricity network
Moldova’s energy security depends on Russian gas and electricity delivered from Transnistria.60 The limited options for diversifying energy routes and supplies make the country reliant on political stability in Romania and Ukraine. Moldova’s electricity sector is partially unbundled and privatised. Electricity generation is separated from the transmission and distribution system. The electricity distribution system is privatised, while generation and transmission are under state ownership.
A self-sufficient power sector is not an option for a country the size of Moldova. The country’s electricity network is connected to Ukraine only and the countries’ two systems operate in parallel. Both systems were originally designed as an integral part of the Soviet grid in its southern region.61 At the moment, Moldova serves only as an island mode for local supply.62 However, integrating with the regional power market is a policy priority for Moldova. In 2010, Moldova joined the Energy Community – an international organisation that aims to create a pan-European (EU and non-EU countries) energy market – and plans to fully synchronise its network with the European electricity market.63 As a first step, Moldova introduced market principles, especially for the management of its natural gas and electricity sectors, based on the adoption of core EU energy legislation which is part of its acquis communautaire (IRENA, 2019[29]).
Its planned integration into the EU system via Romania and Bulgaria64 will not only help to improve country’s efficiency in the electricity market, but will also secure a more diversified power supply and extend the country’s generation capacity. Connecting to the competitive Romanian market will also help to increase transparency in Moldova’s electricity procurement (currently based on bilateral contracts mainly through intermediaries). Conversely, while continued dependency on Ukraine (and Transnistria) will possibly secure lower electricity prices, this will be at the cost of market dysfunctionalities, vulnerability to supply disruptions and uncertainty for potential (European) investors.
In 1997, after implementing reforms in the energy sector, Moldenergo – a state monopoly for the production of heat and electricity – broke up into 16 new entities (i.e. eight electricity generation companies, three district heating companies and five electricity distribution companies). This power sector reform was largely prompted by supply shortages and service disruptions. In 2000, three of the five regional electricity distribution networks (REDs Chisinau, Centru and Sud) were sold in an open tender to the Spanish utility and investor company Union Fenosa International. In 2008, the three Moldovan distribution companies merged into RED Union Fenosa, which in 2010 became part of the international group Gas Union Fenosa (UNECE, 2009[30]).65 This company holds around 70% of market shares in Moldova (covering 19 regions, including the capital of Chisinau; (PRNewswire, 2019[31]), while the remaining 30% are held by the state-owned RED enterprises (RED Nord based in Balti and RED Nord-Vest based in Donduseni). The transmission network is operated by one state-owned company, Moldelectrica.66
The National Agency for Energy Regulation of Moldova (Agenţia Naţională pentru Reglementare în Energetică a Republicii Moldova – ANRE)67 still regulates most electricity tariffs for production, transmission and distribution based on generation costs so that the recovery of investment can be guaranteed (cost-recovery tariffs). Electricity prices are adjusted and approved on a yearly basis applying a five-year rate-of-return methodology. On the policy level, the Ministry of Economy and Infrastructure is responsible for energy sector policy making and for leading the sector dialogue.68 The main directions of Moldova’s energy policy are reflected in its Energy Strategy until 2030 (GoM, 2013[27]).
Electricity generation in/for Moldova is mainly fuelled by Russian-supplied natural gas. In 2018, total domestic generation stood at about 882 gigawatt hours (GWh), whereas gross inland (domestic) consumption was 4 852 GWh (Figure 6.17). Since domestic generation capacity only covers 18% of consumption (see below), the shortage is covered by imports (totalling 956 GWh) and other sources (Transnistria, totalling 2 965 GWh).69
Note: MWh: Megawatt hour. Data on districts on the left bank of the Dniester River and the Bender Municipality not included.
Source: National Bureau of Statistics (www.statistica.md).
Moldova’s limited domestic electricity supply comes primarily from two combined heat and power (CHP) plants in Chisinau. These CHP plants are operated by Termoelectrica (with a total capacity of 306 MW) which accounts for 69% of the installed capacity in Moldova on the right bank.70 There are a few other power plants, including CHP-Nord in Balti (24 MW),71 a run-of-river hydropower plant in Costesti (Stanca-Costesti – 16 MW), as well as four additional coal-fired CHP plants built to service four sugar producing enterprises (98 MW).
Due to the de facto separation of the Transnistria Region, Moldova’s most important power plant, Moldavskaya GRES (MGRES),72 is located in Dnestrovsc on the shores of Lake Cuciurgani (Kuchurgan) in Transnistria (bordering Ukraine). MGRES is a gas-fired power plant73 which is operated by a subsidiary of the Russian Public J.S.C. Inter RAO UES. MGRES is not controlled by the Moldovan authorities but its installed capacity (of 2 520 MW) accounts for 84% of the total generation capacities on both banks of the Dniester River. The second (minor) power plant on the left bank is HPP Dubasari (with a capacity of 48 MW) (Zachmann and Oprunenco, 2010[32]).
Due to difficult relations with Transnistria and the deterioration of generating capacities (leading not only to high generation costs but also inflexibility), Moldova imports cheaper electricity from Ukraine (via J.S.C. Energocom) and from Romania (Transelectrica S.A.). The location of the MGRES gives the Transnistrian authorities a competitive advantage resulting from “free” natural gas supplied by Tiraspol-Transgaz. MoldovaGaz – the leading supplier and distributor of natural and petroleum gas in Moldova and Transnistria – operates as a subsidiary of the Russian company Gazprom.
It is interesting to note that Transnistria’s contract is with MoldovaGaz, not with Gazprom. However, for all the years since it was established, Tiraspol-Transgaz (the Transnistrian gas supplier) has failed to pay MoldovaGaz for the gas supplied, which resulted in a huge debt between MoldovaGaz and Gazprom (OECD, 2018[33]). In addition to MoldovaGaz’s debt, Gazprom raised gas prices by 25% in 2019 (Livadari, 2019[34]); (Necsutu, 2019[35]). The sustainability of this non-transparent payment arrangement is also questionable given the decreasing supplies from the Russian Federation to Ukraine.
6.4.3. Diversifying energy sources
Clearly, diversifying its energy supply is a priority for the Government of Moldova.74 A new gas power plant would only slightly contribute to achieving this goal, given the dependence on gas supplied by the Russian Federation. As a member of the Energy Community, Moldova needs to meet obligations under Directive 2009/28/EC on promoting the use of energy from renewable sources (EU, 2009[36]). This established a mandatory target of producing 20% of energy from renewable sources by 2020. This target has been incorporated into national legislative documents – such as the National Energy Efficiency Programme 2011-2020 (GoM, 2011[28]), the Energy Strategy to 2030 (GoM, 2013[27]) and the Renewable Energy Law from 2007 (No. 160 of 12 July).
This 20% target seems difficult to achieve, even if renewables were to include sources other than wind and solar (e.g. biomass). Currently Moldova’s renewable energy production capacity is rather limited, i.e. up to 21 GW for wind and 4.5 GW for solar photovoltaic (PV). These together constitute about 3% of total domestic energy production. To support the production of renewable energy, in 2013, the Moldovan government introduced a green (feed-in) tariff. Although Moldova recently announced the development of 168 MW of renewable generation capacity (mainly wind and solar PV), this is still more of a vision rather than a realistic development plan and cannot be seen as a major generation source for the near future (IRENA, 2019[29]).
copy the linklink copied!6.5. Conclusions for the CPT Programme
Since 1991, Moldova has adopted a significant number of national legislative acts and made international commitments with regard to environmental protection, GHG reduction, energy efficiency and air quality improvement and also, lately, green economy transformation.
Still, Moldova needs to make several legislative and policy improvements, in particular passing more stringent emissions and fuel standards – i.e. moving away from GOST standards to EU standards – and ensuring their enforcement. Real-time information about air pollution should also be provided in order to raise awareness of the problem of air pollution from road transport in the cities.
The analysis in this chapter provides a sound justification for the CPT Programme – both in terms of improving the quality of public transport, as well as quality of life, health and the environment.
With road transport contributing the bulk of air pollution (up to 96%) in Moldova, the replacement of the worn-out public vehicle fleet with modern CNG, LPG or diesel Euro V/VI buses would help reduce ambient air pollution – especially particulate matter (PM), NOx and SO2 – and bring GHG emissions in line with the country’s emission-reduction objectives.
However, improved energy intensity of vehicles (megajoule/passenger-km or megajoule/tonne-km) and carbon intenstity of fuels (CO2e/megajoule) cannot stand alone. In addition to investments to replace vehicle fleets, reducing pollution from urban public transport will require a combination of measures:
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avoiding or reducing the need for travel (either through better urban planning or changing personal behaviour)
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shifting travel from private cars to non-motorised modes (walking, cycling) or public transport
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improving existing forms of transport through technical improvements (especially in energy intensity of vehicles and carbon intensity of fuels and energy carriers).
The combination of mass public transport with non-motorised modes of transport offers the greatest mitigation potential. The first step in this direction would be to increase the capacity and number of public transport vehicles (bus and trolleybuses). The diversification of the fleet structure, increasing energy efficiency and a modal shift from car to public transport would also improve resiliency against future energy price rises (diesel, gas, electricity). Regulations on the operation of ageing vehicles, sufficient maintenance, and technical inspection of vehicles are necessary prerequisites.
However, there also needs to be an increased demand for these services, as the economic and environmental viability of public transport will only be achieved through increased demand. Improving the quality of the public transport to meet passenger expectations, including redesigning the urban transport network, would make it more attractive. It would also help to reduce the social costs of transport – such as time lost due to congestion, air pollution, accidents etc. – which can generally account for several percent of GDP (though this has not been assessed in Moldova).
Developing countries have greater opportunities to shape urban infrastructure and transport systems than OECD countries where transport systems are largely locked-in.
References
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[27] GoM (2013), Energy Strategy of the Republic of Moldova until 2030, Government of Moldova, Chisinau, http://www.serviciilocale.md/public/files/Energy_Strategy_2030_Final.pdf.
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[28] GoM (2011), National Energy Efficiency Programme 2011-2020 (in Romanian), Government of Moldova, Chisinau, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=340940.
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[4] IOM (2017), Extended Migration Profile of the Republic of Moldova 2009-2014, International Organization for Migration, Mission to Moldova, Chisinau, https://publications.iom.int/system/files/pdf/emp_moldova_2009_2014.pdf.
[15] IPCC (2006), 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2: Energy, Chapter 3: Mobile Combustion, Intergovernmental Panel on Climate Change, Mexico City, http://www.ipcc-nggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_3_Ch3_Mobile_Combustion.pdf.
[14] IPCC (1996), Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 3: The Reference Manual, Intergovernmental Panel on Climate Change, Mexico City, http://www.ipcc-nggip.iges.or.jp/public/gl/invs6.html.
[29] IRENA (2019), Renewables Readiness Assessment: Republic of Moldova, International Renewable Energy Agency, Abu Dhabi, http://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Feb/IRENA_RRA_Moldova_2019_EN.pdf.
[23] Lim et al. (2012), “A comparative risk assessment of burden of disease and injury attributable to 67 risk factors and risk factor clusters in 21 regions, 1990-2010: a systematic analysis for the Global Burden of Disease Study 2010”, The Lancet, Vol. 380/9859, pp. 2224-2260, https://doi.org/10.1016/S0140-6736(12)61766-8.
[34] Livadari, A. (2019), “Gazprom has increased gas prices for Moldova” Moldova.org portal, 15 March, http://www.moldova.org/en/gazprom-increased-gas-prices-moldova (accessed on 24 June 2019).
[8] NBM (2016), “NBM has blocked a group of shareholders of BC “Moldova-Agroindbank” S.A. and has withdrawn the confirmation of two administrators of BC “Moldindconbank” S.A.” 2 March, National Bank of Moldova, Chisinau, http://www.bnm.md/en/content/nbm-has-blocked-group-shareholders-bc-moldova-agroindbank-sa-and-has-withdrawn-confirmation (accessed on 30 August 2019).
[6] NBS (2018), Statistical Yearbook of the Republic of Moldova, National Bureau of Statistics of Moldova, Chisinau, http://statistica.gov.md/public/files/publicatii_electronice/Anuar_Statistic/2018/Anuar_statistic_2018.pdf.
[35] Necsutu, M. (2019), “Moldovans Face Bigger Gas Bills After Gazprom Hikes Price”, Balkan Insight, 18 March, https://balkaninsight.com/2019/03/18/moldovans-face-bigger-gas-bills-after-gazprom-hikes-price (accessed on 24 June 2019).
[3] Nexus (2013), Household Survey: Country Migration Profile, International Agency for Source Country Information and CIVIS Centre, NEXUS Moldova, https://brd.gov.md/sites/default/files/document/attachments/08_nexus_moldova_country_migration_profile_key_findings_2013_eng.pdf.
[33] OECD (2018), Inventory of Energy Subsidies in the EU’s Eastern Partnership Countries, OECD Publishing, Paris, https://doi.org/10.1787/9789264284319-en.
[22] Pope, C. et al. (1995), “Particulate air pollution as a predictor of mortality in a prospective study of U.S. adults”, American Journal of Respiratory Critical Care Medicine, Vol. 151, pp. 669-674, http://www.atsjournals.org/doi/abs/10.1164/ajrccm/151.3_Pt_1.669?url_ver=Z39.88-2003&rfr_id=ori:rid:crossref.org&rfr_dat=cr_pub%3dpubmed.
[31] PRNewswire (2019), “Duet Private Equity, through one of its investment SPVs acquires 100% of the leading energy utilities company in Moldova, Red Unión Fenosa S.A. and Gas Natural Fenosa Furnizare Energie S.R.L. (“GNF Moldova”) in a EUR 141 MM transaction” 15 April 2019, https://www.finanznachrichten.de/nachrichten-2019-04/46467993-duet-private-equity-through-one-of-its-investment-spvs-acquires-100-of-the-leading-energy-utilities-company-in-moldova-red-union-fenosa-s-a-and-ga-008.htm (accessed on 24 June 2019).
[5] Sims, R. and R. Schaeffer (2014), “Transport“ In: IPCC, 2014:”, Climate Change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Edenhofer, O. et al. (eds)], Cambridge and New York,, pp. 599-670, http://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_chapter8.pdf.
[39] Tanas, A. (2017), “Moldova says ready to start recovering stolen billion” Reuters, 13 April, http://www.reuters.com/article/moldova-banking/moldova-says-ready-to-start-recovering-stolen-billion-idUSL8N1HL3U1 (accessed on 24 June 2019).
[30] UNECE (2009), Republic of Moldova (Energy Profile), United Nations Economic Commission for Europe / Climate Change Office under the Ministry of Environment of Moldova, Chisinau, http://energyeficiency.clima.md/public/files/EnergyProfileMoldova.pdf.
[40] Whewell, T. (2015), “The great Moldovan bank robbery”, BBC News, 18 June, http://www.bbc.com/news/magazine-33166383 (accessed on 24 June 2019).
[24] WHO (2013), Health Effects of Particulate Matter Policy Implications for Countries in Eastern Europe, Caucasus and Central Asia, World Health Organization, Regional Office for Europe, Copenhagen, http://www.Euro.who.int/__data/assets/pdf_file/0006/189051/Health-effects-of-particulate-matter-final-Eng.pdf.
[21] WHO (2009), Republic of Moldova, Country Profile of Environmental Burden of Disease, World Health Organization, Geneva, http://www.who.int/quantifying_ehimpacts/national/countryprofile/republicofmoldova.pdf?ua=1.
[37] World Bank (2016), Moldova Poverty Assessment 2016, Poverty Reduction and Shared Prosperity in Moldova: Progress and Prospects, World Bank Group, Report No. 105722-MD, http://documents.worldbank.org/curated/en/168451467995808859/pdf/105722-WP-P151472-PUBLIC-Moldova-Poverty-Assessment-2016.pdf.
[12] Wrobel, A. (2019), “Restoring trust in Moldova’s banking sector” Emerging Europe, 14 February, London, https://emerging-europe.com/interviews/restoring-trust-in-moldovas-banking-sector (accessed on 24 June 2019).
[32] Zachmann, G. and A. Oprunenco (2010), Electricity Sector in Moldova: Evaluation of strategic options, German Economic Team in Moldova, Berlin/Chisinau, http://www.get-moldau.de/download/policypapers/2010/GET%20Moldova_PP%2001%202010_en.pdf.
Laws and regulations
(Listed by most recent date of adoption – all are in Romanian/Russian)
1. Law No. 156 of 26 July 2018 on Approval of the Convention on Environmental Impact Assessment in a Transboundary Context, Official Monitor No. 336-346 of 7 September 2018, Art. 561, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=376979.
2. Court of Auditors Decision No. 65 of 30 November 2017 on Environmental Audit Report on Air Quality in the Republic of Moldova, Official Monitor No. 18-26 from 19 January 2018, Art. 4, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=373833.
3. Law No. 232 of 3 October 2016 on Bank Recovery and Resolution Law, Official Monitor No. 343-346 of 4 October 2016, Art. 707, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=366942.
4. Law No. 86 of 29 May 2014 on Environmental Impact Assessment, Official Monitor No. 174-177 of 4 July 2014, Art. 393, http://lex.justice.md/md/353608.
5. Government Decision No. 827 of 28 October 2013 on Approval of the Transport and Logistics Strategy 2013-2022, Official Monitor No. 243-247 from 1 November 013, Art. 933, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=350111.
6. Government Decision No. 102 of 5 February 2013 on Energy Strategy of the Republic of Moldova until 2030, Official Monitor No. 27-30 from 8 February 2013, Art. 146, http://lex.justice.md/md/346670.
7. Government Decision No. 833 of 10 November 2011 on Approval of the National Energy Efficiency Programme 2011-2020, Official Monitor No. 197-202 from 18 November 2011, Art. 914, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=340940.
8. Law No. 142 of 2 July 2010 on Energy Efficiency, Official Monitor No. 155-158 from 3 September 2010, Art. 545, http://lex.justice.md/md/335818.
9. Government Decision No. 847 of 18 December 2009 on the Approval of Regulation on Organisation and Operation of the Ministry of Environment, Official Monitor No. 189-190 of 22 December 2009, Art. 925, http://lex.justice.md/md/333161.
10. Government Decision No. 357 of 13 May 2009 on Approval of the Road Traffic Regulation, Official Monitor No. 92-93 from 15 May 2009, Art. 409, http://lex.justice.md/md/331491.
11. Government Decision No. 85 of 1 February 2008 on Approval of the National Transport Strategy 2008-2017, Official Monitor No. 30-31 from 12 February 2008, Art. 159, http://lex.justice.md/viewdoc.php?action=view&view=doc&id=350173&lang=1.
12. Law No. 160 of 12 July 2007 on Renewable Energy, Official Monitor No. 127-130 of 12 August 2007, Art. 550, http://lex.justice.md/md/324901.
13. Law No. 438 of 28 December 2006 on Regional Development in the Republic of Moldova, Official Monitor No. 21-24 of 16 February 2007, Art. 68, http://lex.justice.md/index.php?action=view&view=doc&id=320885.
14. Law No. 764 of 27 December 2001 on the Administrative-Territorial Organisation of the Republic of Moldova, Official Monitor No. 16 of 29 January 2002, Art. 53, http://lex.justice.md/md/312874.
15. Law No. 461 of 30 July 2001 on Petroleum Products Market, Official Monitor No. 40-49 from 10 February 2017, Art. 82, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=368808.
16. Law No. 1422 of 17 December 1997 on Atmospheric Air Protection, Official Monitor No. 44-46 from 21 May 1998, Art. 312, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=312772.
17. Law No. 550 of 21 July 1995 on Financial Institutions, Official Monitor No. 78-81 of 13 May 2011 Art. 199, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=338489.
18. Law No. 1515 of 16 June 1993 on Environmental Protection, Parliamentary Monitor No. 10 of 1 October 1993, Art. 283, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=311604.
Notes
← 1. See geographical description on the official website of the Republic of Moldova: http://moldova.md/en/content/geography.
← 2. Excluding the eastern districts and the city of Bender, which have a population of about 505 000.
← 3. According to the provisions of Law No. 764 of 27 December 2001 on the Administrative-Territorial Organisation of the Republic of Moldova.
← 4. Pursuant to Law No. 438 of 28 December 2006 on Regional Development in the Republic of Moldova. The development regions are: North, Centre, South, Chisinau, ATU Gagauzia, and Transnistria. Regional Development Agencies, subordinate to the Ministry of Agriculture, Regional Development and Environment have been established in all but the Chisinau and Transnistria regions.
← 5. Note there is a discrepancy between the latest NBS (2018) and the last census (2014) data – which are also made available on the NBS website – possibly because the former might take into account citizens of Moldova living/working abroad.
← 6. Figures as of 1 January 2018. See NBS on resident population by age group, years, area and sex at at: http://statbank.statistica.md/pxweb/pxweb/en/20%20Populatia%20si%20procesele%20demografice/20%20Populatia%20si%20procesele%20demografice__POP010/POP010100.px/table/tableViewLayout1/?rxid=b2ff27d7-0b96-43c9-934b-42e1a2a9a774.
← 7. Ibid.
← 8. Since 1998, figures do not include data on districts from the left bank of the river Nistru and municipality Bender (449 800 inhabitants in 1997). See ibid. and resident population by cities 1980-2018 at: http://statbank.statistica.md/pxweb/pxweb/en/20%20Populatia%20si%20procesele%20demografice/20%20Populatia%20si%20procesele%20demografice__POP010/POP010500reg.px/?rxid=b2ff27d7-0b96-43c9-934b-42e1a2a9a774.
← 9. Household Budget Surveys (HBSs) were conducted by the National Bureau of Statistics (NBS) in 2007-2014. See also (World Bank, 2016[37]).
← 10. National Bureau of Statistics (www.statistica.md).
← 11. Ibid.
← 12. See WB data on GDP per capita, PPP (current international USD), for Moldova at: https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?locations=MD.
← 13. Calculated using WB population data, available at: https://data.worldbank.org/indicator/SP.POP.TOTL?view=chart; and WB total GHG emissions (kt of CO2 equivalent) data available at: https://data.worldbank.org/indicator/EN.ATM.GHGT.KT.CE.
← 14. See OECD/IEA statistics on energy use (kg of oil equivalent) per USD 1 000 GDP (constant 2011 PPP) from 2014 at: https://data.worldbank.org/indicator/EG.USE.COMM.GD.PP.KD?locations=MD-OE-EU-1W&view=chart.
← 15. See the World Bank database on CO2 emissions (kg per PPP USD of GDP) at: https://data.worldbank.org/indicator/EN.ATM.CO2E.PP.GD?end=2014&locations=MD-OE-EU&start=1990&view=chart.
← 16. Figure from March 2019. For BNM’s information on financial and economic activities of banks, see: www.bnm.md/bdi/pages/reports/drsb/DRSB1.xhtml?id=0&lang=en.
← 17. Then the country’s largest bank.
← 18. In 2010-14, an amount equivalent to one-eighth of the country’s GDP was laundered – mainly through Latvia’s financial system – to overseas (UK- and Hong-Kong-based firms) through a series of transactions that made no sound economic rationale (dodgy loans, asset swaps and shareholder deals). See (Whewell, 2015[40]) and (Tanas, 2017[39]).
← 19. For Moldova’s GDP growth from World Bank national accounts data, see: https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=MD.
← 20. See BNM’s official exchange rates at: www.bnm.md/en/content/official-exchange-rates.
← 21. Between the first half of 2015 and the first half of 2016. See: www.statistica.md/public/files/serii_de_timp/resurse_energetice/infraanuale/Energy_prices_HH_eng.xls.
← 22. The shares had first been blocked in December 2015 and the shareholders were requested to resell them within a period of 90 days. Since this did not happen, the shares were cancelled in March-June 2016 and new shares of a similar amount were to be issued by Agroindbank on the Moldova Stock Exchange in September 2016 (IMF, 2016[7]).
← 23. In October 2016, the Moldindconbank was put under temporary special administration by the BNM based on an on-site inspection launched in June 2016, which covered the three largest banks (i.e. together with Agroindbank and Victoriabank).
← 24. Banca Transilvania became the third EU banking group with operations in Moldova. In 2005, Erste Group acquired a branch in Chisinau through its purchase of the Romanian market leader BCR and in 2007, Société Générale bought Mobiasbanca.
← 25. For information on the acquisition and future plans, see for instance: www.ebrd.com/news/2018/ebrd-welcomes-banca-transilvanias-acquisition-of-victoriabank-stake.html.
← 26. Data as of March 2019. Before the impact of the banking crisis began to be felt, the ratio was as high as 86% (September 2015), and then declined deeply to 59% (August 2015), reflecting the removal of “inflated” assets of the three banks (which became insolvent in the course of 2015). See BNM’s information on financial and economic activities of banks in Moldova at: www.bnm.md/bdi/pages/reports/drsb/DRSB1.xhtml?id=0&lang=en.
← 27. See World Bank and OECD national accounts data at: https://data.worldbank.org/indicator/NY.GDS.TOTL.ZS?locations=MD.
← 28. See BNM’s information on financial and economic activities of banks in Moldova at: www.bnm.md/bdi/pages/reports/drsb/DRSB1.xhtml?id=0&lang=en.
← 29. Partly due to banks’ sale of collateral, and collaboration with real estate in finding buyers for it. See BNM’s statement on the financial situation of the banking sector at: www.bnm.md/en/content/financial-situation-banking-sector-2018.
← 30. Inflation has remained within a stable range since May 2016, not surpassing 8.0% on a monthly basis. See BNM for current annual inflation data at: www.bnm.md/en/content/inflation.
← 31. See www.bnm.md/en/content/nbm-interest-rates.
← 32. See BNM’s weighted average interest rates on new loans and deposits attracted and associated volumes at: www.bnm.md/bdi/pages/reports/dpmc/DPMC4.xhtml.
← 33. Currency risk (or a foreign exchange risk) is the potential risk of loss from fluctuating foreign exchange rates.
← 34. See BNM’s monetary policy decision of 4 September 2018 at: https://www.bnm.md/en/content/monetary-policy-decision-4-september-2018. For BNM’s required reserves, see: www.bnm.md/en/content/required-reserves.
← 35. And in part reflecting under-execution of capital expenditure.
← 36. See Moody’s rating action from November 2018 at: www.moodys.com/research/Moodys-affirms-Moldovas-B3-rating-outlook-stable--PR_390985.
← 37. Georgia and Turkmenistan – as they are not members of the Commonwealth of Independent States (CIS) – are not included in the statistics of the Interstate Statistical Committee of the CIS (www.cisstat.com).
← 38. Including the left bank of the Dniester River.
← 39. Ministry of Economy and Infrastructure (https://mei.gov.md).
← 40. Tourism Agency of the Republic of Moldova (www.turism.gov.md).
← 41. Public Services Agency (www.asp.gov.md/en/date-statistice).
← 42. National Agency of Road Transport (http://anta.gov.md).
← 43. Railway and Bus Stations Enterprise (https://autogara.md).
← 44. National Bureau of Statistics (www.statistica.md).
← 45. Urban Bus Park (www.autourban.md).
← 46. National Bureau of Statistics (www.statistica.md).
← 47. For current global warming potential assessments, see IPCC AR5 reports at: www.ipcc.ch/assessment-report/ar5.
← 48. See “NS-284 – Use of energy willow for heat generation in the Republic of Moldova” at: http://www4.unfccc.int/sites/nama/_layouts/un/fccc/nama/NamaSeekingSupportForImplementation.aspx?ID=195&viewOnly=1.
← 49. See “NS-283 – Afforestation of degraded land, riverside areas and protection belts in the Republic of Moldova” at: http://www4.unfccc.int/sites/nama/_layouts/un/fccc/nama/NamaSeekingSupportForImplementation.aspx?ID=194&viewOnly=1.
← 50. See “NS-282 – Implementation of soil conservation tillage system in the Republic of Moldova” at: http://www4.unfccc.int/sites/nama/_layouts/un/fccc/nama/NamaSeekingSupportForImplementation.aspx?ID=193&viewOnly=1.
← 51. For GOST 17.2.2. 03-87, see: http://docs.cntd.ru/document/1200005818 (Russian version). For GOST 21393-75, see: http://stroysvoimirukami.ru/gost-21393-75 (Russian version).
← 52. State Ecological Inspectorate (http://ies.gov.md).
← 53. State Hydrometeorological Service (www.meteo.md/index.php).
← 54. See SHS’ Background Ambient Air Pollution Forecasting Division (BAAPFD): www.meteo.md/index.php/en/about-us/enviroment-quality-monitoring/mbient-air-quality-monitoring-and-radioactive-background-level-center/background-ambient-air-pollution-forecasting-division.
← 55. For daily maps of atmospheric air pollution in Chisinau and Balti, see: http://www.meteo.md/index.php/calitatea-mediului/hri-zilnice-privind-poluarea-aerului-atmosferic
← 56. Ecological Movement of Moldova (http://mem.md).
← 57. In 2018, the GIZ drafted the Strategy for the Implementation of EU Compliant Ambient Air Quality Monitoring and Management in the Republic of Moldova as part of the project “Developing capacities for alignment with the EU climate targets in the Eastern Partnership countries”. This strategy foresees creating at least 18 fixed and 1 mobile monitoring station (depending on finances) and will replace technology from the 1970s (which measures only the amount, but not sources, of air pollution). See also Section 1.1 of this report.
← 58. Data for July 2018. See WHO Global Health Observatory data repository: http://apps.who.int/gho/data/node.main.BODAMBIENTAIRDTHS?lang=en.
← 59. The Group 1 category is used when there is sufficient evidence of carcinogenicity in humans.
← 60. Although Transnistria declared independence in 1990, the UN considers the region to be part of Moldova (its sovereignty is recognised only by three UN non-member states).
← 61. This means it was overdesigned for Moldova’s consumption needs. Nowadays, it still operates synchronously with the Integrated Power System/United Power System (IPS/UPS) (which includes Moldova and Ukraine). See also World Bank’s “Moldova Competitive Power Market Project (P160829)” information document at: http://documents.worldbank.org/curated/en/470181541064261708/pdf/Concept-Project-Information-Document-Integrated-Safeguards-Data-Sheet-Moldova-Competitive-Power-Market-Project-P160829.pdf.
← 62. In other words, part of the country is not synchronised with one system (i.e. UPS/IPS) but synchronised with the other (i.e. ENTSO-E). This allows at least for an indirect trade between the two systems.
← 63. This also applies to environmental issues; for instance, Moldova needed to comply (by the end of 2017) with Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (EU, 2010[38]).
← 64. The former Eastern bloc countries in the region – Romania, Bulgaria and Hungary – have redesigned their electricity systems in the past three decades and are now connected to the Western system (formerly Union for the Co-ordination of Transmission of Electricity, now European Network of Transmission System Operators of Electricity ENTSO-E).
← 65. See Gas Natural Fenosa in Moldova at: www.gasnaturalfenosa.md/page/despre-noi.
← 66. Moldelectrica I.S. (http://moldelectrica.md).
← 67. ANRE is an independent public administration authority established in 1998. It is responsible for regulating and supervising electricity, gas, petroleum and (partly) district heating sub-sectors. ANRE is not subordinated directly to any central public authority but has reported to parliament since the regulatory reform of 2010. Despite its de jure independence, the government can assert its influence over the regulator through annual budget approval and appointment/dismissal of ANRE’s directors.
← 68. See energy area of MoEI at: https://mei.gov.md/en/content/energy.
← 69. Excluding data on districts on the left bank of the Dniester River and municipality Bender. See http://statbank.statistica.md/pxweb/pxweb/en/40%20Statistica%20economica/40%20Statistica%20economica__15%20ENE/ENE010100.px/table/tableViewLayout1/?rxid=5360837a-13b5-4912-a2e0-12892e96d2ab.
← 70. Termoelectrica Moldova S.A. (www.termoelectrica.md).
← 71. CET-Nord S.A. (http://cet-nord.md).
← 72. ZAO Moldavskaya GRES (http://moldgres.com). Moldovan authorities, for instance, do not recognise the privatisation of MGRES, however, they issue certificates allowing electricity exports from Transnistria to the Balkans.
← 73. Previously also burning coal and fuel oil.
← 74. See, for instance, the EBRD power interconnection project between Moldova and Romania: www.ebrd.com/work-with-us/projects/psd/moldova-romania-power-interconnection-phase-i.html.
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