Ana Groza
Investors support the country’s European course, but transparency and predictability of the decision-making process are necessary for real integration. Sharing Moldova’s strategic choice and emphasizing support for harmonization of acquis communautaire, they note that in practice the pace of borrowing European norms is often excessively accelerated. At the same time, the deadlines given to the business community to analyze projects and form positions on them are short.
Ana Groza, executive director of the Foreign Investors Association (FIA), said: “This makes it very difficult for us to make a meaningful and responsible contribution to the dialog process. It is fundamentally important for the business community that the authorities strictly adhere to the principles of transparency and consultation in the decision-making process. Consultations cannot be formal or imitative, but must be carried out at an early stage, on the basis of complete packages of documents, within a reasonable timeframe for providing feedback and with clear consideration of the comments received from us. Otherwise, accelerated decision-making with significant economic impact undermines predictability and trust, increasing investment risks and compliance costs for companies.”
FIA members outlined their message back in the last edition of the white paper. They proposed to legislate a permanent mechanism for consultation with the business community before approving innovations related to economic activity. And also to introduce a moratorium on regulatory changes without prior consultation with business representatives (at least 30 days). And to ensure predictability for businesses, a calendar of economic reforms and changes should be published annually.
Investors’ statements were reiterated last week during the working meeting “Dialogues on Infrastructure”, organized by the Ministry of Infrastructure and Regional Development with the participation of entrepreneurs and representatives of specialized associations to exchange ideas on infrastructure projects, challenges and solutions.
“Infrastructure is not built on statements, but on the right solutions, working procedures and real partnerships,” emphasized Vladimir Bolya, Deputy Prime Minister, Minister of Infrastructure and Regional Development. – That is why this dialog is not an image one, but a working one. We invited entrepreneurs to tell us directly what works, where there are blockages, and what needs to be changed. Because only together we can speed up the projects on which the economic growth in Moldova depends”.
Investors noted: despite the fact that the Town Planning and Construction Code has been in force for 11 months, companies implementing large-scale renewable energy projects face difficulties in developing and coordinating detailed town-planning plans, which are mandatory for approval before the start of design.
In this regard, Ion Borsch, representative of Sedera Plus, a company implementing several large projects in this field, called for a detailed study of the difficulties encountered in order to amend the current legislation in the field of town planning and spatial planning. This would simplify procedures and also support the timely implementation of large infrastructure projects.
The participants of the meeting also discussed the issues of public procurement, clarity of rules and terms of their implementation, institutional cooperation and functional mechanisms of partnership between the state and the private sector, including in the context of harmonization with EU standards.
During the presentation, State Secretary Mircea Pasqualuta outlined the context in which Moldova is entering an accelerated phase of investments in infrastructure, against the background of the European integration process. At the same time, he pointed out the barriers affecting the implementation of the projects, emphasizing the key role of the private sector in accelerating them through technical expertise, efficiency, innovation and a more balanced distribution of risks.
As noted in this context by representatives of the investor community, the accelerated harmonization of domestic legislation with EU rules is accompanied by the need for deeper adaptation and further strengthening of institutional mechanisms for their effective implementation.
When the transposition of EU legislation is not fully aligned with market realities and requires additional institutional support for effective implementation, there is a risk that reforms may lead to additional burdens instead of the expected progress.
At the same time, there is an increasing impact of challenges that accelerate the loss of competitiveness of enterprises, they emphasize. The country’s investment prospects for the coming years are directly affected by rising utility costs and operational pressures. Energy, logistics and labor costs in Moldova are already higher than in neighboring markets. This negatively affects its price competitiveness and export potential.
At the same time, labor shortages and rising labor costs are accompanied by continued migration, and the lack of a strong and coherent national strategy to retain and attract qualified personnel exacerbates the shortage of workers and increases employers’ costs.
Another challenge is the underdeveloped transportation, logistics and laboratory infrastructure, which remains a constraint on investment, supply chains and regional development.
“Taken together, these factors raise investors’ concerns and define their expectations for the coming period,” summarizes Ana Groza. – If Moldova fails to restore competitiveness, retain and attract talent, and implement the reforms agreed with the EU in a predictable and realistic format for the market, the business model will become unviable for many investors. And this will happen not because of a lack of commitment to European integration, but because the economic fundamentals will no longer ‘fit’ and will lose their practical relevance”.
