Improving Domestic Financial Support Mechanisms in Moldova's Water and Sanitation
Sector
The water supply and sanitation (WSS) sector in Moldova is not financially sustainable:
tariffs do not typically cover operational costs and capital investments are heavily
funded by external development partners. This report analyses several options for
streamlining and strengthening domestic financial support mechanisms (DFSMs) in terms
of both supply and demand, discusses different scenarios and recommends a number of
actions to ensure effective DFSM implementation, notably: 1) sufficient investment
for the implementation of targets and obligations set in the national strategies,
the Association Agreement with the EU, as well as Moldova’s international commitments
(water-related Sustainable Development Goals, and the “Water-to-all” commitment);
2) the financial sustainability of operators; and 3) the affordability of WSS services
for end-users, especially low-income segments of the population.