CONSOLIDATED AGRICULTURAL PROJECTS MANAGEMENT UNIT, FINANCED BY THE WORLD BANK (CAPMU WB)
Rural Investments and Services
Project
Progress Report
as of December 31st, 2006
Developed by CAPMU management
Chiinu January 2007
CONTENTS
OBJECTIVES OF THE PROJECT .......................................................................................................... 3
PROJECT COMPONENTS ..................................................................................................................... 3
PROJECT IMPLEMENTATION PROGRESS AS OF DECEMBER 31TH 2006 ......................................... 4
RURAL FINANCE COMPONENT ....................................................................................................... 4
CREDIT LINE FOR INVESTMENT LOANS AND LEASES....................................................................... 4
STRENGTHNING THE SAVINGS AND CREDIT ASSOCIATIONS INDUSTRY ...................................... 8
SDC SUPPORT TO SCAS.......................................................................................................................... 10
RURAL BUSINESS DEVELOPMENT COMPONENT ....................................................................... 12
PROMOTION CAMPAIN .......................................................................................................................... 13
BUSINESSES CREATION......................................................................................................................... 14
FINANCING OF THE RURAL BUSINESSES ........................................................................................... 16
MANAGEMENT INFORMATION SYSTEM AND M&E.......................................................................... 17
RURAL EXTENSION COMPONENT ................................................................................................ 18
ACSA SERVICE PROVIDER NETWORK ................................................................................................ 18
TRAINING PROGRAM ............................................................................................................................. 19
SERVICES PROVIDED AND BENEFICIARIES....................................................................................... 19
DEVELOPING AND PUBLISHING INFORMATION MATERIALS ........................................................ 20
PROMOTION ACTIVITIES....................................................................................................................... 21
SPECIAL CONTRACTS ............................................................................................................................ 22
MONITORING AND EVALUATION OF SERVICE PROVIDERS............................................................ 22
IMPACT..................................................................................................................................................... 23
AGRICULTURAL MARKETING .............................................................................................................. 25
LAND RE-PARCELING COMPONENT............................................................................................. 28
ANNEXES............................................................................................................................................. 38
2
OBJECTIVES OF THE PROJECT
The Program objective, which remains unchanged, is to provide long-term support to
accelerate agricultural recovery and growth so that Moldova's agricultural and rural sectors can
play their full role in providing the underpinnings for future income growth and poverty reduction.
Under this overarching objective, the project will strive to continue to foster the post-privatization
growth in the agricultural and rural sectors of Moldova by improving access of farmers and rural
entrepreneurs to legal ownership status, know-how, knowledge and financial services, while
building the capacity of the private and public institutions to ensure the sustainability of the
activities. The Phase II will build on success achieved under the Phase I, by: (i) strengthening
and expanding the rural advisory services; (ii) improving business skills of the to-be
entrepreneurs and assisting with the legal registration of the new businesses; (iii) upgrading the
financial sector environment through a range of risk management measures, such as
supervision capacity building, and introduction of new lending instruments such as leasing; (iv)
increase the commercial banking sector outreach into rural areas; and (v) developing a practical
approach to reducing transaction costs in land markets.
PROJECT COMPONENTS
The proposed project has three main components plus support for project management:
(a)
Rural Advisory Services;
(b)
Rural Business Development Services;
(c)
Rural Finance:
Credit Line
Strengthening of SCAs system
(d)
Land re-parceling pilots;
(e)
Project Management.
The first two components provide predominantly technical assistance, while the third component
provides investment support along with the necessary technical assistance to participating
financial institutions, and technical assistance for strengthening SCAs system and their
supervision. The first three components are closely linked, operating basing on synergy
principles, with each dependent on the others for successful outcomes.
3
PROJECT IMPLEMENTATION PROGRESS AS OF DECEMBER
31TH 2006
RURAL FINANCE COMPONENT
CREDIT LINE FOR INVESTMENT LOANS AND LEASES
Credit line Implementation progress. In the first six months of the project implementation a
total of MDL 25.23 million and (US$ 1.941 million equivalent) have been disbursed from the
RISP Credit Line, financing 70 sub-projects. The co-financing of the sub-loans by the PFIs
accounts to MDL 6.1 million (US $ 0.47 million). The average of the interest rate of the sub-
loans is 17.08%, ranging from 15% to 19.0%.
Number of projects. MoldovaAgroindbank (MAIB) has been the most active participating bank,
provided 28 RISP II sub-loans, followed by Fincombank (FCB) with 19 sub-loans disbursed.
Victoriabank (VB) has provided 7 sub-loans and Moldincombank (MICB) 8 sub-loans.
Mobiasbanca has provided 7 sub-loans, Banca Sociala one sub-loan, while Banca de Economii
have not started the lending activities. From the total amount of 70 sub-loans provided, 69 are
provided in Moldovan Lei and only one sub-loan, provided by Mobiasbanca in US Dollars - 64
tho.
The following charts represent the breakdown of the RISP II loans by banks.
Fig 1. Breakdown of RISP II credit recourses
disbursed by banks, MDl millions
Mobiasbanca; 3,81
BS; 0,4
MoldovaAgroindbank; 5,57
Victoriabank; 2,25
Moldindconbank; 3,39
Fincombank; 9,81
1 Exchange rate of MDL to US$ is 13.00.
4
Fig 2. Level of PFIs participation by number of loans
BS; 1
Mobiasbanca; 7
MoldovaAgroindbank; 28
Victoriabank; 7
Moldindconbank; 8
Fincombank; 19
Sub-loan size. As we can see from the above chart, Fincombank has the largest share in the
total amount of loans disbursed, with MDL 9.81 million, equivalent of US $ 0.755 million,
followed by MoldovaAgroindbank, with MDL 5.57 million (US$ 0.428 million). Moldinconbank
has disbursed MDL 3.39 million (US$ 0.261 million) and Mobiasbanca has disbursed MDL 3.81
million including MDL equivalent of 64 tho. of USD (US$ 0.293 million).
The structure of loans disbursed to PFIs by size.
Amount
Value
Nr. of loans
(mil. lei)
< 50,000 lei
2
0,09
50,000 250,000 lei
28
3,79
250,000 500,000 lei
24
9,12
500,000 1,000,000 lei
12
8,07
> 1,000,000 lei
4
4,16
5
Fig 3. The structure of loans by size
0,09 mil lei
4,16 mil. lei
(0,36%)
(16,49%)
3,79 mil. lei
< 50,000 lei
(15,02%)
50,000 250,000 lei
250,000 500,000 lei
8,07mil. lei
9,12 mil. lei
500,000 1,000,000 lei
(31,98)
(36,15%)
> 1,000,000 lei
The average loan size provided by MoldovaAgroindbank is MDL 198,886 (US$ 15,299), which
is the lowest as compared to the average of other participating bank, demonstrating the bank'
efforts in reaching the target project' beneficiaries. Fincombank shows an average of MDL
516,582 (US$ 39,737) of the loan size, Victoriabank an average of MDL 321,143 (US$ 24,703)
of the loan size, Mobiasbanca an average of MDL 545,114 (US$ 41,932) of the loan size,
Moldinconbank are showing MDL 423,625 (US$ 32,586) and for Banca Sociala one loan in the
amount of MDL 400,000 (US$ 30,769) respectively.
Type of activities. 34 of sub loans (44,6% of the total disbursements) finance construction or
reconstruction of a store and procurement of equipment for trading; 6 sub-loans (6,3% of the
total) finance industrial equipment, such as equipment for construction material, wood
processing; 16 sub-loans (23%) finance equipment for agricultural production and processing, 6
sub-loans (10,6%) finance construction or reconstruction in order to provide services such as
recreational, internet, 5 sub-loans (12,8%) finance transport services, etc.
The following chart represents the breakdown of sub-loans disbursed by type of activity.
Fig. 4 Breakdown of sub-loans by tipe of activity, % disbursement
agriculture and
transport; 12,8%
services; 10,6%
food processing ;
23,0%
industrial
equipment; 6,3%
trade; 44,6%
light industry; 0,8%
fishing; 1,9%
6
Maturity of sub-loans. As shown on the chart below (Fig.3) the biggest share of sub-loans
63% are provided for a period of 5 to 7 years. 24% of sub-loans have maturities between 2 and
4 years and 13% of sub-loans have the maturity of 8 to 10 years;
Fig. 5 Breakdown of sub-loans by maturity, % of total number
berween 8-10 years;
berween 2-4 years;
13%
24%
berween 5-7 years;
63%
Regional distribution2. The sub-projects financed cover the whole country, with a relatively
uniform distribution by number of sub-loans financed. The share of the sub-projects financed in
the North is slightly higher - 34% (MDL 7.02 million) in the total. The Central part covers 33% of
the sub-loans (MDL 10.30 million), and 33% of the sub-loans finance the Southern region (MDL
7.91 million) .
Fig.6 Breakdown of sub-loans by region,
MDL million and % of total number
North; 28%
South; 31%
(7,02 mil. lei)
(7,91 mil.lei)
Center; 41%
(10,30 mil.lei)
2 The distribution of rayons by region is as follows: North: Riscani, Rezina, Drochia, Donduseni, Edinet, Soroca,
Glodeni, Telenesti, Briceni, Balti, Singerei, Soldanesti, Floresti; Center: Orhei, Ungheni, Nisporeni, Anenii-Noi,
Dubasari, Criuleni: South: Cahul, Vulcanesti, Taraclia, Comrat, Ceadir-Lunga, Hincesti, Leova, Causeni, Stefan-
Voda, Cantemir, Cimislia
7
Financing of first-time borrowers. One of the project objectives is to increase access to
finance in rural areas, thus it is required that minimum 30% of the Credit Line resources are
provided to the first-time borrowers. So far, 50% of the credit line recourses are provided to first-
time borrowers. This indicator is the highest in the case of MoldovaAgroindbank, 54%, with 15
sub-loans out of 28 financed by the bank and Victoriabank, 57%, with 4 sub-loans out of 7
financed by the bank, followed by Moldinconbank, 50%, with 4 sub-loans out of 8. Fincombank
has as well a good ratio 47% and 9 sub-loans out of 19 and Mobiasbanca 43%, with 3 sub-
loans out of 7.
The other objectives. Another project objective is the creation of the new working places in
the rural area. So, with the project financing contribution for the projects financed until now will
be created about 449 new working places.
It is important to mention the participation of the women in the establishment of the business in
the rural area. So, 37% of the managers of the projects financed are women.
STRENGTHNING THE SAVINGS AND CREDIT ASSOCIATIONS INDUSTRY
The objective of this sub-component is to improve the legal, regulatory and supervisory
framework of the Savings and Credit Associations (SCA) industry, and provide capacity building
to the related institutions, primary the supervisory authority, to ensure their long-term
sustainability.
During the reporting period, the local consultant continued the work on improving the legal,
regulatory and supervisory framework.
A. The new Law on SCAs
The local consultant continued the work on development of the new Law on SCAs. Opinions on
the draft of the law from interested government authorities, the National Bank, the National
Commission on Securities (the future Non-Bank Financial Institutions (Mega-regulator)), Ministry
of Economy, Ministry of Justice, Licensing Chamber and other stakeholders have been received
and where needed, working meetings were held. At the end of November a final draft of the Law
was presented to the State Supervisory Body (SSB). In December, the SSB sent the draft and
other related documents to the Government for their approval. The local consultant has received
an electronic copy of these documents.
While examining the draft law, the consultant observed some amendments made unilaterally by
the SSB to the presented draft that could, in a way, significantly affect the concept of the Law
and namely:
8
a) definitions like ,,member share", ,,capital", ,,loan" were removed;
b) provisions, by which the supervisory authority (Mega-regulator) can set up requirements
related to the headquarters of an SCA, were removed;
c) provisions, by which the member share can be paid out at members' requests when
withdrawing from an SCA, were removed;
d) some provisions relating to licensing were removed etc.
Due to the fact that the draft law is at the Government and no amendments can be made, all
proposals will be made at the stage of examination of the draft by the Parliament.
B. Regulation on supervision of SCAs
The local consultant has finalized the draft Regulation on supervision of SCAs, taking into
account the draft SCAs law, development trends of the SCAs system, national experience and
practices of financial institutions' supervision, international experience and WOCCU standards.
New definitions were introduced, like ,,exposure", ,,large exposure", ,,total exposure",
,,restructured loan", ,,control" etc. Were developed new provisions limiting the risk exposures (old
loan limits were replaced), by which exposures, like non-guaranteed exposures per member
and per portfolio, large exposures per member and per institutional capital etc. are limited. Also,
there were developed provisions relating to priority of payments, limits on calculation of interest
on delinquent loans, the procedure of restoring of written off loans back to the balance sheet,
requirements for SCAs to reporting on affiliated persons, limits on investments and long term
tangible assets acquired against reimbursing of loans, limits on external financing, reporting and
information disclosure, holding a joint membership etc.
The Regulation will be submitted to all stakeholders for expression of opinions and
improvement. In the same context all established limits will be evaluated, especially those
related to exposures, in order to avoid restrictiveness on one hand and large liberalism on
another hand, so as the established regulations could constitute an equilibrated supervisory
legal system, which would assure prudential development of associations and to reach the main
scope of above-mentioned regulations: protection of member interests through prevention and
control of risks at both the association and the whole system levels.
Evaluation of and discussions on this Regulation will take place in the next months.
9
C. Establishment of the new supervisory authority
The setting up of a new supervisory authority, that was supposed to be part of the Mega-
regulator, is stopped at the moment, waiting first for the Mega-regulator to be established.
Nevertheless, official `no-objection' has been received from the World Bank for the international
consultant that is to be selected for providing technical assistance to the new supervisory body,
including training of staff and assistance in the drafting of all operational and inspection
manuals. As soon as the new supervisory body will be in place, we will proceed to the selection
of the consultant.
SDC SUPPORT TO SCAS
The project "Training for SCAs' involvement in medium and long-term investment lending" was
launched in mid 2005. The project aims at improving the access of the poor rural population to
medium and long-term investment funds and working capital. This target is to be reached mainly
through improvement of the institutional capacity of SCAs, focusing on the improvement of
SCAs' overall financial sustainability and increasing the efficiency of SCA loan portfolios.
Consequently, the project has focused on training of 200 SCAs in four areas: financial analysis
of SCAs, business planning in SCAs, product development and portfolio diversification and
marketing of SCA services.
The project has been conducted by Rural Development Center (RDC) in cooperation with
Bankakademie International (BAI). BAI has during the first year of the project supported RDC in
the development of training materials for the four above mentioned topics. Additionally, BAI has
performed Training of Trainers (ToT) for the local RDC trainers in order to set up a local training
force. The ToT has focused both on methodology in general as well as the specific topics. After
pilot seminars conducted by BAI together with the local RDC trainers, the full roll out of the
training has been done by the local RDC trainers. BAI has thereafter supported the local trainers
through on-site monitoring and coaching during training delivery.
A Training Needs Assessment (TNA) took place in July 2005. During the TNA, the Consultant
visited a number of SCAs and other involved stakeholders to work out a training plan and the
TNA report was handed over to SDC in August 2005. The Consultant developed the training
materials in cooperation with local consultants provided by RDC. In October 2005, the
Consultant met with the local trainers on-site and developed the drafted curricula for each topic.
The training methodology applied in the project is based on best practice adult learning
methodologies.
10
While some of the issues addressed are possible for the SCAs to fully practically apply first after
the introduction of the new SCA law, the main parts of the trainings can be applied directly by
the SCAs. A major focus has been laid on practical application already in the seminar.
A few lessons learned can be pointed out: the project has shown the importance of a local
partner; while the local consultants were crucial for the development of training materials
adjusted to the reality of the SCAs, some of the topics were rather new also to the local
Consultants; while the training has been received with very positive responses, the Consultant
can conclude that more support is needed to achieve the set objectives for SDC's support to the
SCA sector and ensure a practical implementation of the knowledge learned in the seminars. It
is also clear that the trainers would need more support in training methodology, but also partly in
the technical issues of the topic.
Given the lessons learned and the experience from the Consultant in the project, we would
leave the following recommendations to SDC for future support to the SCA sector:
· The project has been successfully implemented. However, the training needs of the
SCAs still remains high.
· It would be important to focus on the strengthening of the strongest SCAs, which will
have good possibilities to grow in the consolidation phase.
· While the development of training materials gains from local expertise, it would be
recommended to start with having the materials developed by the international
consultant and reviewed by local consultants thereafter. Once an advanced local trainer
force is in place, this group of trainers would also be able to develop materials
independently.
· Gender mainstreaming is suggested to be done mainly by using gender sensitive
examples in the training and ensuring equal participation in the training of all
participants.
· It is strongly recommended that similar training projects are continually implemented with
a local partner.
11
RURAL BUSINESS DEVELOPMENT COMPONENT
Rural business development component (RBDC) activities were launched in September. The
four DAs that implemented RISP I: Alliance for Cooperation in Agriculture (ACA), Business
Consulting Center (CCA), Rural Development Center (RDC) and Mobile Expert Group in
Agriculture (MEGA) signed contracts with the Ministry of Agriculture and Food Industry (MAFI).
Their contracts contain detailed terms of reference for activities planned under this component,
including budget and financing offered for the period September 2006 June 30, 2010.
According to the Project Assessment Document, MAFI is responsible for the implementation of
this component while CAPMU is fully responsible for the coordination of the component.
DAs funding for the current phase of RISP will be carried out following the new financing
mechanism, based on results delivered, and is different from the fist phase based on monthly
fixed payments. Thus DAs will be stimulated to a greater extent to establish viable businesses
since a part of their financing is provided for post-creation support.
CAPMU developed a package of forms required by development officers (DOs) in their work,
including updates of forms used during RISP I. At the moment 10 development teams are
involved in the implementation of RBD Component: 3 teams within ACA and MEGA and 2
teams within RDC and CCA respectively. Most DOs have worked under RISP 1.
General information on outcomes of DAs activities for the reporting period is presented in the
table below, while more detailed information is presented in Annexes 1-23.
Table 1 General Information
Indicator
Value
Development Agencies
4
Mobile teams
10
Number of villages where promotion took place
73
Number of participants to promotional meetings
1550
Number of project participation applications
139
Service provision contracts, active
84
Number of business plans developed
74
Businesses starting implementation of investment plan
31
from them:
Agricultural
(20%) 6
Non-agricultural
(80%) 25
Businesses in progress
53
Businesses registered with the support of DAs
9
Loan applications submitted
68
Loans disbursed for rural businesses
38
Loans approved, but not disbursed
3
Loan applications processed by PFIs
24
Number of businesses benefiting from post-creation support
11
New jobs
202
12
PROMOTION CAMPAIN
By December 31, 2006, promotion activities were organized in 73 villages and attended by 1550
people. (Chart 1)
CCA organized most promotions in 29 villages and with 539 participants. Most promotions were
carried out in partnership with local public authorities, ACSA national extension network
consultants and savings and credit associations. These promotions introduce the goal and
objectives of the project, conditions of participation, DAs' role in creating and supporting new
businesses, funding opportunities of investment projects, etc. All promotion meetings are
accompanied by distribution of information materials, including RISP II leaflets containing
general information on the project, the list of DAs and their contact information, the list of project
participating financial institutions (PFIs).
Chart 1. Number of promotion activities
The promotion activities have concentrated mostly in October, starting slightly to decrease in the
following months, due to the flow of applications fro DAs support from the potential
beneficiaries, as a result o the promotion campaign started in October.
On 10th of October CAPMU organized a meeting of DAs with participating banks. DAs and
banks exchanged views and recommendations on successful project implementation. 6 out of 7
banks came to this meeting, except Banca Sociala. The topics brought to discussion by DAs
included the need to fully inform regional bank branches workers on RISP credit terms and
willingness to work with potential RISP beneficiaries. CCA mentioned that under RISP I regional
branches of some banks were reluctant to work with potential RISP beneficiaries. To this end,
CCA suggested organizing a meeting with representatives of bank regional branches. In turn,
banks expressed their opinions on matters that would facilitate project implementation: financing
a share of at least 10% of working capital as part of a RISP credit, the maximum ceiling for a
RISP credit should be over 100,000 USD considering the demand on the market
13
(MoldInconBank). CAPMU informed the World Bank mission visiting Moldova between October
16 and 27, 2006 on the above proposals.
Thus, DAs organized a number of meetings with PFIs branches. The purpose of these meetings
was to establish partnerships with IPF under RISP, on one hand, and to increase the number of
potential beneficiaries, on the other hand, with IPFs directing them to DAs if they approach
banking institutions directly in order to request a loan. Here, DAs have a twofold role, (i) to
provide necessary support to those who want to start a business, obtain a credit by developing
business plans and the necessary package of documents, as well as (ii) act as a catalyst in the
relationships between beneficiaries and banking institutions by decreasing the high risk profile
of these businesses perceived by PFIs and excluding asymmetrical information on these
enterprises. Hence, CCA organized meetings with Fincombank (Riscani, Glodeni, Balti),
Mobiasbanca (Ungheni), Victoriabank (Nisporeni), Moldinconbank (Ungheni, Balti) and Moldova
Agroindbank (Nisporeni, Ungheni, Glodeni and Riscani). Banca de Economii and Banca Sociala
were least receptive to CCA proposals in its coverage area.
As a result of meetings of MEGA development officers with PFI credit officers from Moldova
Agroindbank, Moldinconbank, Banca Sociala, Victoriabank, Fincombank etc., banks' top
managers designated people responsible for RISP beneficiaries. Thus, the process of analyzing
the package of documents of credit applications has bean streamlined.
An important source of information on project conditions are RISP I beneficiaries. They can be
considered an example for potential beneficiaries of RISP II. Thus, one third of people who
submitted project participation applications from the coverage area of RDC learned about
opportunities provided by RISP II from RISP I beneficiaries.
BUSINESSES CREATION
31 businesses established with the support of DAs started their operational
activity/implementation of investment plan on December 31, 2006. 29 of them received loans
from PFIs and two started operating only with their own resources. The total business
investments of these 31 businesses amounted to 864 419 $. Thus, the average investment
made by operational businesses on December 31, 2006 is about 28 000 $, which is twice as
much as the average of the loan in RISP 1.
14
Chart 2. Number of businesses started implementing business plan
Out of 31 businesses created, 26 are individual businesses, which represents approximately
83% and only 5 are group businesses. To this end, group businesses were considered
businesses with 3 and more founders.
The legal form of the businesses that commenced implementation of their business plan is
mostly Limited Liability Company (15) or Sole Proprietorship (11), while 3 are peasant farms
and 2 patent holders.
The structure by the type of business, which started their operational activity, is presented in
table 2. The table below shows a big share of businesses being non-agricultural (80%), which
is matching with one of the project trigger to have at least 1/3 of all new businesses created
engaged in off-farm activities.
From the agricultural businesses, those with livestock production have the greatest weight
(16%), and only one business so far is concerning crop production.
Non-agriculture businesses include wood processing companies, those manufacturing food
products, electrical machineries, transport and retail trade.
15
Tab. 2 Structure of RBs by type of activity
Number of businesses which
Type of business
started their operation
No.
%
Agriculture
Crops production
1
3.2
Livestock production
5
16.1
Sub-total Agriculture
6
19.4
Non-agriculture
Manufacture of food products and beverages
5
16.1
Manufacture of wood and wood products
2
16.5
Manufacture of electrical machinery and apparatus
1
3.2
Manufacture of furniture
1
3.2
Retail trade
9
29.0
Sale, maintenance and repair of motor vehicles
1
3.2
Wholesale trade and commission trade
1
3.2
Hotels and restaurants
2
6.5
Land transport
1
3.2
Post and telecommunications
1
3.2
Supporting and auxiliary transport activities
1
3.2
Sub-total non-agriculture
25
80.6
TOTAL
31
100.0
The biggest share is with the businesses from the retail trade (29%) and those manufacturing
wood products (16%), while other represent up to 10% each category.
All 31 businesses created are located in 16 rayons of the country and one in Balti municipality.
The maximum number of businesses is concentrated in UTAG (5 RBs), followed by Cahul (4
RBs) and Taraclia (3 RBs). These three southern rayons are housing almost 40% of the
business created so far.
It is to be mentioned that 11 out of 31 operational businesses have already started generating
revenues. These 31 businesses have created 202 new jobs in rural area, which makes an
average of 7 new jobs per business.
FINANCING OF THE RURAL BUSINESSES
In the first months of the project implementation the DAs have signed 84 Service Agreements
with the beneficiaries. So far 68 credit applications were submitted to Financial Institutions and
38 credits were already disbursed. 34 out of the credits disbursed are provided from the RISP
funds, 4 projects are financed from banks own sources or IFAD.
As was mentioned above, 31 beneficiaries from the total number of contracts have started the
implementation of their Business Plans, elaborated in a joint effort with the DOs. In 2 cases out
16
of 31, the beneficiaries are starting the implementation of their projects from their own sources,
eventually considering accessing a loan at a later stage.
The following table is showing the breakdown of the service agreements by the level of access
to the financial resources:
Service agreements signed
86
Credit applications submitted
68
Loans disbursed
38
RISP loans
34
Loans provided from other sources
4
Credit applications still assessed
24
Credit applications rejected or withdrawn
3
Loans approved, not disbursed
3
BP in the process of elaboration
18
If comparing the efforts of DAs in financial brokerage, we can mention ACA and MEGA with 15
and 14 disbursed credits respectively.
MANAGEMENT INFORMATION SYSTEM AND M&E
The analysis of the progress in the implementation of the RBD Component is managed by
means of the database application. The DAs were provided with the application files from the
beginning of their assignment. The functionality of the database includes data integrity check
and the generation of the progress reports.
On a monthly basis CAPMU is receiving the updated database files from the DAs and the
information regarding the credits disbursed within the Rural Finance Component from the Credit
Line Directorate. The information is crosschecked with the DAs and the CLD.
CAPMU is regularly maintaining and updating the applications, providing a more enhanced
functionality, both for the DAs and the generation of reports (of CAPMU). The elaboration of an
application for the Credit Line Directorate is already started. The application will smooth the
process of transfer of data between CLD and CAPMU. CAPMU has also started the monitoring
of the results of DAs the creation of RBs. This will be done by regularly and randomly
organizing monitoring visits to RBs created with the support of the DAs.
17
RURAL EXTENSION COMPONENT
ACSA SERVICE PROVIDER NETWORK
In January March 2006, ACSA network consisted of 35 service providers. The total
number of ACSA network consultants was 441 people, from whom: 336 local consultants
and 105 regional consultants (70 regional consultants, 5 marketing consultants and 30
consultants in agricultural legislation financed by USAID).
In April-December 2006, ACSA network consisted of 35 service providers and the total
number of consultants was 411 people (336 local consultants and 75 regional consultants
(70 regional consultants, 5 marketing consultants).
Below we analyzed the composition of ACSA consultants by gender and we come to the
conclusion that out of 411 consultants, 301 are men (73,2 %) and 110 are women (26,8
%). Detailed information is presented in Annex 1.
Composition of ACSA consultants by gender, 2006
People 300
257
250
200
150
79
100
50
28
7
16
24
0
Male
Fem
Male
Fem
Male
Fem
Coordinators
Regional consultants and
Local consultants
Marketers
The analysis of the composition of ACSA consultants by age shows that most consultants
are aged between 40-60 years, this age group representing 81%. See Annex 2 for
detailed information.
Structure of ACSA consultants by age, 2006,
6
51-60 years;
41-50 years;
47,4%
33,6%
31-40 years;
Over 61 years;
9,7%
20-30 years;
6,3%
2,9%
18
TRAINING PROGRAM
In 2006, the professional training of all consultants was one of the priorities of the
Executive Directorate of ACSA. During the reporting period, regional and local
consultants were trained on "Contractual relations and ACSA requirements for being
contracted by ACSA 2006", ,,Service Provider Management", ,,Basic Training",
,,Extension Methodologies", ,, Extension Methodologies 2", specialized training in
,,Economic Issues", specialized training on poultry products, specialized training on
accounting with in-depth study of the 1C software, (Refresh Training) for groups of
specialized training on fruit and vegetable growing.
Local and regional consultant participated as trainers at numerous seminars carried
out in the field at the request of beneficiaries, within implementation of special and
additional contracts.
National, regional and local level trainings involving external consultants, local experts,
representatives of local public administration al owed ACSA network consultants to
improve their professional training, to acquire new practical skills of general and
financial management, beneficiary communication skills, planning, preparation and
carrying out various information and consulting activities, reporting and promotion of
extension service.
SERVICES PROVIDED AND BENEFICIARIES
Regional and local consultants provide consultative services according to the minimum package of
services stipulated in the standard contract. Consulting services are designed to meet
agricultural producers' needs basing on issues they inquire or identified by consultants. Detailed
information on the number of services provided by ACSA network and the number of
beneficiaries of consulting services due to conditions occurred in 2006 is presented in Annexes
3 and 4.
During the reporting period, ACSA network consultants provided 172511 consulting
services, from which 2318 seminars, 1310 written consultations, 2343 round tables,
15319 field visits, 15332 meetings and 135889 verbal consultations. One Service
Provider offered on average about 4930 consulting services. During the reporting period,
328119 beneficiaries benefited from consulting services. One Service Provider had on
average 9375 clients who benefited from consulting services during the reporting period.
19
The number of beneficiaries and the amount of services provided differs for different
Service Providers. This depends on the number of consultants in the team, which varies
from 7 people (SPs
Structura serviciilor de consultan oferite de
from Basarabeasca
reeaua ACSA, Ian-Dec 2006
and Dubasari) to 13
people (SPs from
Consultaii verbale
78,8%
Ceadir-Lunga, Anenii
Noi, Stefan Voda), on
their experience and
Consultaii în scris
0,8%
Seminare
level of training.
1,3%
Mese rotunde
Vizite în teren
1,4%
The
structure
of
Discuii
8,9%
8,9%
consulting
services
provided by area (see
figure), similarly to the previous year, technological services are prevailing (59,6%),
followed by agricultural marketing services (17,5%), legal (11,8%) and economic
services (11,0%).
During this period, the structure of services provided by ACSA network was dominated
by verbal consultations with a share of 78,8% (see figure). In most cases, these
consultations are provided individually. Then, follow field visits and discussions with a
share of 8,9% each. Despite the fact that consultation services provided to groups
account for only 21,3% of all services, 62,1% of ACSA clients benefited from this type of
services, and for 37,9% of beneficiaries 79,6% consultations were provided individually
verbally and written. This is a good development since group consultations are less
expensive and their efficiency is higher.
Sructura servici lor de consultan, reeaua ACSA, Ian-
DEVELOPING AND PUBLISHING
Dec 2006
INFORMATION MATERIALS
According to ACSA activity plan
Tehnologice
59,6%
for 2006, 3 guides were
developed and published: "Milk
Production as a Business",
"Increasing Value of Fruit and
Juridice
Marketing
Table
Grapes",
"Vegetable
Economice
11,8%
17,5%
11,0%
Growing as a Business" (revised
and supplemented). Information
materials were published in a total circulation of 6000 copies. Publishing these materials
was financed from the proceeds of the RISP project and ACSA revolving fund.
20
List of information materials published by ACSA in 2006
Number
Nr.
Name of work
Author
of copies
1 Milk Production as a Business
N. Bucataru, D. Holban, S. Cosman
2000
Increasing Value of Fruit and Table
2 Grapes
A. Jamba
2000
Vegetable Growing as a Business"
3 (revised and supplemented)
Edited by P. Patron
2000
TOTAL
6000
The editorial size of information materials published by ACSA in 2006 was 27 printer's
sheets, including 25,5 author's sheets and 1,5 sheets with colored pictures: they
presented species of cows, equipment for animal care, varieties and hybrids of
vegetable crops, greenhouse cultivation technologies, ways to store and increase value
of fruit and table grapes.
PROMOTION ACTIVITIES
During the reporting period, ACSA network carried out the following promotion activities:
At local level ACSA carried out 343 promotion activities, from which: publishing 248
articles, 8 radio features and 38 TV features. SPs (Cantemir, Stefan Voda, Ocnita, Cahul,
Edinet, oldanesti, Causeni, Straseni, Criuleni, Calarasi, Glodeni, Singerei, Cainari,
Hincesti, Drochia, Anenii Noi, Falesti and Nisporeni) developed 9 leaflets, 16 brochures,
information materials and bul etins, posted 12 information boards presenting the services
provided and activities implemented, demonstration sites, beneficiaries, team composition,
etc. At regional level, 12 promotion presentations of information materials published by
ACSA in 2005 and 2006 were conducted.
The structure of activities is dominated by articles in local newspapers - 44 %, features
on National Radio - 23,6 %, development and publishing leaflets, information materials
9,6%. These sources of information dissemination are the most available for local
consultants and requested by rural extension service beneficiaries.
At national level, ACSA organized 220 promotion activities, from which: 46 features on
TV, 133 features on national radio, 36 articles in national newspapers and 5 On-Line
statements.
At the beginning of the year, the new concept for ACSA's web site was finalized and the new
web page was launched in March. The web page: www.acsa.md provides the possibility to learn
about the structure of the rural extension service, the range of consulting services offered,
general and specialized training programs, implementing demonstration activities, promotion
and dissemination of information, publications developed by ACSA, as well as information on
additional projects implemented.
ACSA launched the guide "Rural Tourism as a Business" at the specialized national exhibition
,,Tourism, Leisure, Hotels" in order to promote and disseminate published information materials.
21
This activity aimed at increasing awareness and informing agricultural producers with new
possibilities and prospects of diversification in the area, capitalizing cultural and natural potential
on the territory of locality and develop a pro-active approach to strategic business planning in
the rural area.
During the reporting period, ACSA also participated at the national exhibition ,,Farmer
2006" (October 25-28) and at the partnership exhibition with the Association of Amateur
Gardeners, Fruit Growers, Grape Growers and Florists ,,Demetra" (March 1 4). SPs
Calarasi and Balti participated with information boards at the exhibition "Small Business",
fourth edition. The members of ACSA Executive Directorate participated with papers
and presentations at the international seminar "Marketing Fresh Fruits and Vegetables"
organized by the International Training Center CINADCO - MASAV (Israel, May 07-22,
2006) for CIS countries and the first Moldo-Italian Conference of Logistics (Chisinau,
November 3, 2006).
SPECIAL CONTRACTS
Since financing was significantly delayed in 2006, the Selection Committee together with ACSA
Executive Directorate decided that in the second half of the year only projects that can ensure a
palpable impact in a short period of time will be implemented. Thus, the list initially compiled was
modified to include by July 1 only 35 mini-projects (during previous years their number was 106-
130).
Special service provision contracts were implemented by 27 out of 35 contracted Service
Providers. Most SPs had one contract and several implemented 2-3 contracts.
Out of the total number of contracts expected to be implemented, 22 were in Zootechny (pig,
rabbit breeding, bees), 8 were about growing mushrooms in adjusted conditions, producing fruit
planting material with advanced biological qualities and growing ornamental flowers. And
respectively, there were 3 and 2 contracts for the development of craftsmanship and processing
of agricultural products in rural conditions.
During the reporting period, 326 seminars, field visits and other activities were organized within
those 35 special contracts, which were attended by over 4 thousand agricultural producers,
residents of the ACSA SP service area. About 50 workers of research and agricultural education
institutions, MAFI departments and state inspectorates, international projects and NGOs, ACSA
network consultants specialized in various areas participated as experts in the establishment of
demonstration sites and as trainers.
Some data on the implementation of special contracts in 2006 can be found in Annex 5 and
examined in detail at ACSA headquarters and 35 PS head offices.
MONITORING AND EVALUATION OF SERVICE PROVIDERS
During 2006, ACSA Executive Directorate carried out monitoring and evaluation of 70% of local
consultants and all regional consultants from all 35 Service Providers. The centers that had
22
difficulties in complying with contractual obligations and did not have the capacity to solve some
acute issues were visited several times.
During monitoring visits, it was observed that the offices of most Service Providers are
located in the administrative centers of raion capitals and are accessible to beneficiaries.
Most offices are connected to electricity, phone, fax, e-mail and are equipped with
necessary furniture and computers.
All local and regional centers are ensured with information and training materials published by
ACSA, Ministry of Agriculture and Food Industry, technical assistance projects, commercial
companies etc. These materials are classified by areas, accessible to beneficiaries and are sold to
beneficiaries upon request.
The monitoring team came to the conclusion that most local and regional consultants cooperate
efficiently with SCAs and Development Agencies responsible for implementing the Rural Business
Development Component of the RISP project. The welcomed informational support of the
Veterinary Medicine Department of the Ministry of Agriculture and Food Industry for agricultural
producers on opportunities for prophylaxis and treatment of animal and poultry diseases should be
also mentioned.
The monitoring team formulated a few recommendation and general requirements for ACSA
contractors on ensuring transparency of activity, location of and equipping offices and
documenting implemented activities. These were distributed to all ACSA consultants and
represent the necessary minimum to provide consulting services to beneficiaries.
Minutes, assessment sheets for local, regional centers and Service providers in general, as well
as any other relevant documents might be reviewed in detail at ACSA headquarters.
IMPACT
Consulting and training services provided by ACSA network consultants during the
reporting period were mostly targeted and contributed to solving problems faced by
agricultural producers and other categories of beneficiaries. Advice and
recommendations provided by consultants helped agricultural producers to improve
quantitative and qualitative production indicators, to obtain loans, market their output and
purchase necessary inputs, to initiate and open new businesses both agricultural and
non-agricultural increasing their revenues from economic activities.
IMPACT OF SERVICES PROVIDED
In 2006 ACSA consulting beneficiaries cultivated cereal, technical and fodder crops on a
surface are of 232147,7 ha (including: wheat - 59737,8, barley - 20242,8, corn -
69210,0, soy - 9526,3, peas - 3452,2, sun flower - 52844,8, sugar beet - 8136,8,
23
tobacco - 354,0, alfalfa - 6123,7, rape - 1600,0, beans - 919,4 ha). On a surface area of
2524,8 ha perennial plants were planted, including: apples 490 ha, plums 244,3 ha,
sweet cherries 126 ha, cherries 22,3 ha, nuts 309,7 ha, peaches 208,6 ha, apricots 35,5
ha, vine 982,2 ha). Vegetables were planted on about 9440,1 ha (including: tomatoes
1529,4, peppers 741,3, eggplants 268,9, cabbage 1043,7, cucumbers 342,0, water
melons 1706,7, melons 171,1, zucchinis 197,2, potatoes 2917,5).
Productivity of agricultural crops varied depending on: variety, geographic area,
complying with growing technology and constituted on average for (t/ha): wheat 3,4,
barley 2,6, corn 4,2, soy 1,7, peas 2,5, sun flower 1,8, sugar beet 33,2, tobacco 2,6,
alfalfa 14,5, rape 1,4, beans 1,8.
In the Zootechny sector, 459 family animal farms were opened (including: 38 for cows,
111 for pigs, 81 for sheep, 64 for rabbits, 111 for poultry, 9 for quails and for other
species 54). Average productivity for milking per cow was 2880 liters per annum in the
coverage area of ACSA consultants.
48289,9 t of wheat, 14212,9t of barley, 23600,9 t of corn, 33529,8 t of sun flower seeds,
179849 t of sugar beet roots, 449,0 t tobacco leaves, 1324,7 t of rape seeds, 329,8 t of
beans, 22545,7 t of apples, 5749,2 t of plums, 448,1 t of sweet cherries, 88,8 t of pears,
172,9 t of nuts, 680 t of peaches, 2842 t of cherries, 77,3 t of apricots, and 26952,9 t of
grapes were sold through 445 formal and informal marketing groups established,
Local and regional consultants mediated the purchase of agricultural inputs valued at
250950756 lei. These means were used to purchase 12998,9 t of mineral fertilizers,
713,5 t of phyto-sanitary products, 10485,3 t of seeds, 1791905,0 of grafted vines,
961969 of fruit trees, 97567 of fruit bushed, 2317 of breeding cows, 1392975 of poultry,
14742,1 t of fuels. Tractors, agricultural machinery and irrigation equipment were
purchased for 68998071. 308 tractors, 202 seeders, 199 cultivators, 282 ploughs and 93
irrigation systems were purchased.
With the consulting support of local and regional consultants, 48 professional associations at
local and regional level were established. About 31128 agricultural producers and rural
entrepreneurs benefited from credits, including 30202 beneficiaries took loans valued at
168741716 lei from SCAs, 892 beneficiaries took loans valued at 34125353 lei from
commercial banks, 34 beneficiaries took loans amounting to 3404630 lei from RISP project.
Local and regional consultants also assisted in drawing up 1700 business plans, including
1407 in the agriculture sector and 293 for non-agricultural businesses. In the area covered,
they established 738 agricultural businesses and 172 non-agricultural businesses. As a
result, 3183 new jobs were created.
ACSA network consultants actively participated in the development of land market and
solving problems related to agricultural legislation. They provided assistance for 7469
purchase and sale transactions with agricultural land with a surface area of 9005,4 ha,
24
1090 acts of donations for a surface area of 1519,9 ha, 2533 heritage acts for a surface
area of 3353,3 ha, 19 mortgage transactions for a surface area of 70,2 and 587
exchange transactions for a surface area of 638,8 ha. Local consultants helped prepare
78311 land lease contracts for a surface area of 110464,7 ha. 1897 agricultural land
consolidation acts were initiated for a surface area of 18930,6 ha. Local consultants
contributed to settling 1897 land disputes for a surface area of 2150,3 ha.
Also during the reporting period, ACSA consultants implemented 122 socio-economic
activities.
IMPACT OF DEMONSTRATION ACTIVITIES
Demonstration activities carried out under special contracts fostered technical innovations
fol owed by productivity increase when caring for animals and had a positive influence on
diversification of activities in the rural area. Demonstration sectors and units served as a
useful and convincing instrument in the process of transferring new knowledge and
advanced experience for agricultural producers, rural entrepreneurs and in general for
rural residents that wanted to improve the economic and social situation in their villages.
In general, it could be mentioned that implementing 35 special contracts resulted in
establishing 11 mini-farms for breeding and reproduction of pigs, 5 mini farms for breeding
rabbits; contributed to technical innovation in 5 bee hives; lead to establishing 5 workshops
for producing wooden, metal items and osier furniture. At the same time, 5 businesses for
production of mushrooms in adapted conditions were established. Moreover, 45 new jobs
were created, 13 marketing groups and 12 territorial and regional fruit nurserists, bee
growers, rabbit breeders associations, etc. Out of the total number of participants to 326
seminars, field visits and other training and information activities, 124 people repeated or
said they would grow again flowers, produce mushrooms, cheese, breed rabbits and
poultry, manufacture craftsmanship articles.
Basing on training and informing beneficiaries of these sites, honey, pork, rabbit meat,
cheese and mushrooms were sold for a total amount of about 480 thousand lei, and 133
sales contracts for the same products valued at over one million lei were concluded.
AGRICULTURAL MARKETING
During the reporting period, these activities were implemented by 5 regional marketing
consultants (RMCs) activating at SPs Causeni, Hincesti, Calarasi, Soldanesti and Edinet.
These activities were financed from RISP project funds.
The goal of agricultural marketing activities developed by ACSA is to provide consulting
services related to promotion and dissemination of specialized information to ACSA
25
consultants and beneficiaries; favorable markets for selling agricultural output;
agricultural output price dynamics and price fluctuations depending on demand and
supply; mediating purchases marketing input and output; quality standard
requirements for agricultural output on domestic market and in neighboring countries
and in the European Community.
During the reporting period, 3136 beneficiaries benefited from marketing consulting
services. In cooperation with regional and local consultants, 10 seminars, 63 round
tables, 184 informal and formal marketing group meetings, 153 field visits were
organized, and at the same time, 1589 verbal consultations and 289 written
consultations were provided. Most group and verbal consultations were conducted to
introduce to beneficiaries quality requirements, how to form homogenous batches of
output and what are the requirements of the market.
For the professional training of RMCs, ACSA agricultural marketing compartment
coordinator and external consultants contracted prepared training materials and organized
2 thematic seminars on "Standardization, national and international STAS requirements
for fruit and table grapes" and Standardization, national and international STAS
requirements for fresh vegetables" carried out on April 19-20 and respectively, September
20-21.
The training materials developed for these seminars, including in electronic format, were
distributed to all 35 ACSA regional centers to be used for focus seminars and specific
agricultural marketing activities in the service area.
During the reporting period, 44 market studies (6 agricultural markets in Republic of
Moldova Chisinau, Causeni, Hincesti, Calarasi, Soldanesti and Edinet) were
conducted. Collected information was disseminated to ACSA consultants and extension
services beneficiaries. It was on wholesale and retail prices and for primary processing
of agricultural output of vegetal and animal origin, fluctuation of sales and purchase
prices, origin of products, supply and demand for products (including surplus/deficit on
the market), and purchase market trends.
RMC service impact on ACSA clientele
Basing on the work conducted:
ü 84 informal agricultural marketing groups were organized (in most cases, seasonal groups
related to joint purchase of inputs and selling agricultural output);
ü Agricultural produce contracts valued at 21 384,5 thousand lei (including in-kind: 3453 tons of
cereals and leguminous; 484 tons of sun flower seeds; 55,7 tons of fodder; 1465 tons of fruit
and berries; 69370 fruit trees; 61 tons of grapes; 1216,5 tons of vegetables and mushroom;
26
2301 animals and 120 thousand poultry; 107,5 tons of beef meat; 92 bee families) were
mediated;
ü Input purchase contracts valued at 11 641 thousand lei (including purchasing 383,5 tons of
mineral fertilizers; 18374 kg of phyto-sanitary products; 353 tons cereal crops seeds,
leguminous, fodder crops, industrial crops, vegetables; fruit and vegetable planting material
valued at 852 thousand lei; breeding animals, bee families, poultry and young poultry valued at
520 thousand lei; 14 tractors, 2 motor-cultivators, 6 seeders, 10 cultivators, 5 ploughs, 6
sprayers; spare parts for agricultural machinery valued at 285 thousand lei; 324 tons of fuel and
lubricants; other input purchases valued at 238 thousand lei) were concluded;
ü At the request of RMCs and consulted beneficiaries 215 electronic information notes on input sale
and supply and agricultural output purchase offers were submitted.
ACSA agricultural marketing compartment organized the update and improvement of
the data base, which includes information on 2400 companies, trade agents, input
suppliers and agricultural producers from Republic of Moldova. Subsequently, the data
base will be transferred into Microsoft Access and will be used for the design of the
specialized web page on Agricultural Market placed on the official web site of ACSA.
This web page will serve as a bridge between agricultural producers and acquisition and
purchasing enterprises, and input suppliers and agricultural producers. Continuous
refining and updating of the functional data base for the whole ACSA network and for
potential visitors wil require additional human, material and financial resources.
27
LAND RE-PARCELING COMPONENT
The concept proposed below complies with FAO recommendations in the area of
implementing land re-parceling pilot projects based on best international practices.
Project Concept
This section describes the methodology proposed for land re-parceling pilots in Moldova based
on voluntary participation. It lists the main principles and practical aspects of the proposed
method through a brief description of organizational elements, techniques, knowledge and final
outcome.
Principles
The methodology of the project is characterized by the following features:
Land re-parceling should be a process that brings improvements to the location, ownership and
use of land which exceed improvements that can be brought by separate individual bilateral
exchanges. Land re-parceling is an organizational input that involves far more transactions that
one individual can conduct.
Land re-parceling pilots target small farmers / peasant farms. This reflects a different priority
approach from other re-parceling activities carried out currently in Moldova, which tend to
embody the initiative and agenda dictated by pig players of the land market, usually buyers. But
this doesn't exclude the possibility to obtain mutual advantages and to include all interested
landowners and parties. The main focus is on the preferences of small landowners. The main
activity consists in studying the preferences of these landowners and identifying the exchanges
that they want and can make.
The main principles of voluntary participation are:
·
Transactions of land exchange within the land re-parceling pilots happen as willing
selling and buying between individual.
·
Owners have the right to enter into such transactions, or not, subject to compliance with
legislation as in any other property transaction.
·
An owner is only committed when signing an agreement specifying the transactions at
the final stage of implementation. Owners are, therefore, not committed at the outset of the
pilots and they are still free to consider other options during the negotiation stage.
28
These principles involve certain simplification advantages. First of all, there are no specific
requirements on the land exchange plan to equal the value of land before and after the
exchange. This kind of requirement is usually formulated to protect the rights of owners that
don't want to sell, if land re-parceling is forced. In practice, however, these requirements
generate costs due to more detailed data needs and more work. The voluntary participation
model, value differences can be covered by making affordable payments agreed by parties.
Moreover, the possibility of net sales facilitates different value exchanges; net enlargement of a
land plot of an owner sometimes implies net sales for other owners. Second, there is no issue of
forcing, and therefore there will be no court actions. The owners that find available options as
non-attractive have the right not to participate.
Still, there could be complaints. Some complaints could refer to technical errors, when an owner
doesn't get the parcel he/she paid for. Some landowners might say that their preferences and
proposals have not been seriously studied; it is possible that some people complain about the
behavior of the design engineer, etc. At the pilot stage, complaints might be reviewed by a
steering committee. In a more advanced framework, the agency responsible for land re-
parceling would be also responsible for handling complaints.
Elements
The operational elements pf the land re-parceling pilots are listed under four chapters:
Organization, techniques, learning needs and outcomes. This section is a summary of these
elements that are to be applied in operation at a more advanced stage of project development.
There is a special term used to describe the negotiation activity and developing a solution for
land re-parceling. This text uses the term "development of land re-parceling design" and the
person responsible for this is called a "design engineer".
Organization
The main issues related to initial organization that have to be settled during the development of
framework for pilots include:
·
Finalizing the agreement on general concept,
·
Identifying main principles,
·
Selecting localities for the pilots,
·
Specifying inputs and incentives and guaranteed financing,
·
Appointing responsible personnel.
29
Several of existing procedures might be applied for operational organization, including obtaining
information on ownership, correcting various registration errors identified in the process, the
procedure of obtaining designs (maps) and the procedure of land transactions.
The new activity is to be implemented by the team responsible for developing land re-parceling
design in the field.
The composition of the local team for land re-parceling design development will include a design
engineer experienced in land registration who will work together with the local cadastre
engineer. Such a combination would bring together local know-how and external and
professional impartiality. During the implementation period, the development team will have to
be supported by a team of international experts.
Techniques
Pilots will have difficulties and explore innovations in several technical aspects. Participating
land owners need to have specific economic incentives. Normally, these are the possibility to
carry out transactions free of charge under the land re-parceling pilots, costs covered by this
project. However, the main incentive for landowners and interested parties to participate in the
project is the benefit expected to occur as a result of land re-parceling process; reduced
distance and reduced costs caused by fragmentation/increased efficiency.
The participatory approach is necessary to develop better methods for using maps and it is
possible that the GIS software based on digital maps and available information registers might
serve as a tool for involving beneficiaries. Presenting the baseline situation and different
proposals for re-parceling is a special technical issue due to extreme fragmentation.
Nevertheless, techniques presenting images of location and possible alternatives in a useful
manner should be developed.
The principle of voluntary participation defines a participation process where the solution occurs
only when the owner signs an agreement to carry out the transaction. This means that the
solution is not known from the very beginning and it is materializing only at advanced stages.
This is the main difference between the development of the re-parceling design and the
conventional task of registering land, which typically begins basing on regulations which require
compliance by landowners and approval by experts.
An additional consequence is that the notion "approving a plan" is not applicable. There are only
individual transactions, the difference being that they are designed to take place simultaneously.
Learning Needs
30
The basic qualification of field workers, land re-parceling development design team and main
interested parties is the ability to examine landowners and interested parties preferences, to
assimilate a large amount of information and finally, to combine individual preferences into
transactions agreed by landowners and be able to carry them out.
It is possible that the most important issue for an expert is to understand the extent to which
landowner options generated by voluntary participation involves uncertainty for an expert, for
example, when a landowner changes his/her decision to participate or comes with a proposal
different from the initial one at an advanced stage of the process. These things lead to a re-
development of the land re-parceling design.
The re-parceling engineer/ team is responsible for appropriate consulting and decision making.
Basic qualifications include ability to work with people, both as a group and individually, to strike
a balance between flexibility and impartiality, and most of all to ensure confidentiality. The
critical indicator is the satisfaction of landowners and other stakeholders. The training
methodology is based on close supervision by a specialist/engineer experienced in land re-
parceling.
The obvious candidates for the position of re-parceling engineers are people who participated in
land privatization and registration processes. They are knowledgeable of the basic concepts
and procedures of land administration. They also know the techniques for developing designs
(maps) and how to manage data and documents. The development of land re-parceling designs
will extend their professional and inter-disciplinary knowledge. The main input of the pilots is the
well structured training adjusted to specific needs of people involved and close monitoring.
After the completion of the privatization and primary registration of ownership, there is the
overall issue of transferring experts to other activities and thus to preserve their knowledge.
Land re-parceling could be a way to preserve and consolidate professional experience in land
administration and management.
Expected Outputs
The overall objective of the pilots is to test the demand for voluntary re-parceling of land
focusing on small farmers / private peasant farms, but open to all landowners and interested
people.
As mentioned above, pilots will provide a lot of information, will accumulate experience and
possibly will identify more issues pertaining to the following aspects:
·
Improving local agricultural structures through re-parceling.
·
Specific preferences of landowners.
31
·
Owner participation in the process of developing designs.
·
The need for consultations on issues related to ownership.
·
Managing a situation at the scale of a village as a replication process.
·
Assessment techniques.
·
Map development techniques.
·
Cost levels.
·
Potential to improve the basis for lending through re-parceling.
·
Training needs and supervision experience.
·
Future professional training needs indicators.
Implementing Pilots
Basing on the proposed concept for the re-parceling pilots the following scheme (figure 1)
shows the process and major stages of the pilot.
The first activity is the selection of the best possible location for the pilot. After the selection of
the pilot location, the re-parceling design development team will be selected and trained.
Figure 1. The process of land re-parceling pilot projects
Selecting locality for the pilot
Public sessions, information and
awareness campaign
Preliminary research, preparing the
location design (design 1), individual
interviews with landowners
Pilot activities are suspended. A
Negotiation stage
new site should be selected
Assessment (if appropriate)
Preparing the location design (design 2)
Signing contracts
The final re-parceling design (design 2)
Registering contracts, marking and measuring
new boundaries following common procedures for
transactions with agricultural land
32
Landowners and other stakeholders will first learn about the pilots at a community meeting
where the goal, process and outputs of the pilots will be discussed. A brief information material
will be prepared and distributed.
At the stage of preliminary research, a map of land plots (design 1) will be prepared by the re-
parceling design development team, and the individual interests and wishes of landowners and
other stakeholders will be discussed at distinct meetings / individual interviews. Basing on these
interviews the team will prepare an assessment of options of land re-parceling. This would be
one of the reference points that would allow the steering committee to let the design
development team to proceed to the next stage of negotiations. If interest for the project is
weaker that expected, the activities of the project might be suspended and a new pilot site will
be selected for the project.
During the negotiation stage, the re-parceling design development team prepares a draft re-
parceling design (draft design 2), signs re-parceling agreements and prepares the final re-
parceling design (design 2). The agreements voluntarily signed by landowners in compliance
with current Moldovan legislation serve as grounds for design 2. That is why, in principle, the
plan doesn't require subsequent approval. However, it is recommended that the local primaria
and raion administration "approve" the proposed output of the project.
In principle, registering and implementing re-parceling agreements will ba carried out under the
simplified procedure developed under the re-parceling project of LPSP and the projects
implemented by the Planning Institute for Land Management. In general, transactions will be
free of charge for participating landowners and need to be financed out of the proceeds of the
pilots.
Site Selection for Pilot Projects
Basing on the proposed concept, the first activity is selecting the best locality for the pilot. It is
usually possible to complete this type of selection in 1-2 months.
Selection Criteria
It is relevant to take a wide number of aspects into consideration before selecting one or more
sites for the pilot re-parceling activities. The criteria important for selecting sites are as follows
(not necessarily in order of importance):
33
·
Existence of family farms with potential for comercial farming and desire to enlarge
their farms
·
Fragmentation of parcels.
·
An existing land market (presence of both potential sellers and buyers).
·
Public land is available (through sales and exchange) to be included in the project.
·
A relatively small number of absentee owners.
·
A high level of completion of land reform/privatization and registration of land
ownership.
·
A high level of satisfaction among local landowners and parties interested in the
outcome of the privatization process.
·
Few land disputes and no problematic ones.
·
Soil with good potential for agricultural production.
·
Location within an economic growth area of the country (land re-parceling can be
linked to other development activities).
·
Existence of (digital) cadastral maps/plans and other thematic maps.
·
Plans / measures for sustainable local rural development, infrastructure improvement,
and environment protection.
·
Initiative and commitment from local government.
·
Local expertise in land re-parceling design and land use planning.
·
Proximity to the capital or other representative office of the agency responsible for re-
parceling activities.
The difficulty however doesn't lie in assessing the potential of pilot sites basing on each of these
criteria, but rather in comparing assessments made for various candidate localities. From the
point of view of objective assessment of all existing criteria there often is no perfect site. It is
recommended to implement pilot re-parceling activities in 6 villages from different agro-climatic
zones at the same time. This would minimize the risk of failure and would generate more
representative experience.
The Selection Process
The process of selecting pilot sites is as important as the final output. Usually central
administration doesn't have all the necessary information to locate and assess potential
localities. Local administration will have to take care of this part of the selection process.
Local administration from different raions should seek potential localities from their region based
on the above-mentioned criteria and to propose these candidates until a certain date. If a lot of
potential localities are proposed, a short list using a simple SWOT analysis will be prepared. If
even then there are more localities then necessary, discussions should be held with the
respective villages. The final decision will be made by the project steering committee. Finally,
34
the selection of project sites cannot be based on quantitative methods, but rather will be based
on the "gut feeling" of those making the decision. Moreover, it would be good to ensure that
selected sites are diverse (for example, various geographic areas, different agricultural
structure, different types of agriculture) for the simultaneous implementation of pilot activities in
several localities.
Assessment
The assessment of the land on project sites is a critical issue for the implementation of land re-
parceling projects. The overall goal of the assessment is to determine the market price of each
land parcel in the project aria. If we look at different approaches to assessment of land re-
parceling /consolidation projects from Western Europe, it is natural to discover two main
assessment methodologies: the first one bases the value on the market price and the other on
the relative value. The issue of adequate assessment methodology is especially critical for the
first pilot activities.
A premise for applying all assessment methods is the existence of a land market in the area of
the project, which means that there are various potential buyers (at least, more than one) for
each parcel offered for sale. If it is not the case, the selected site will not be suitable for pilot
activities and another site should be chosen. It is often the case that at the beginning of pilot
land re-parceling activities the land market is still weak. This situation makes it difficult to apply
the traditional parcel assessment methodologies - both market price and relative value. For
these methods to be used it is necessary for landowners involved to accept at least to a certain
extent, the fact that their parcels have the same objective value (same soil quality, size, shape,
leakage conditions and location) and might be sold and bought for the same price per hectare. If
the actual prices for comparable parcels from the area around the project site considerably vary
in the past one two years, it might be necessary not to apply systemic assessment. The same
thing is true of the situation when landowners (both sel ers and potential buyers) have
expectations that greatly differ from prices offered. In these cases, the issues of
assessment/prices should be settled through direct negotiation of the price between the
potential buyer and the seller.
Assessment methods, market price and relative value, are similar in their practical application
and might be successfully combined. Landowners from the pilot site usually have a different
motivation for participating in the project such as (a) decrease fragmentation, (b) extend the
farm, (c) sell the parcel.
The market value and price should be determined for all landowners that increase or decrease
the total value of their own land through the project. The landowners that preserve the value of
their own land, but reduce the number of parcels only need relative values. Any assessment
35
method applied should take into consideration these differences. A way to solve this problem is
to use relative values from 100 downward with intervals of 5. The best parcel in the village will
have the relative value of 100, the second place parcel - a value of 95, etc. After completing this
exercise, the assessment team consisting of the re-parceling engineer, representatives of land
owners and assessment specialists will agree on the market price of the parcel valued at 100
points. Then, if necessary, the market value of all parcels with relative value could be calculated
by simple multiplication.
In Moldova, existing designs (maps) of land produced during Soviet times (and for the rest of
USSR) may serve as a good indicator of the relative value of land parcels based on soil quality.
However, since this value also depends on other factors than soil quality (access to roads, size,
shape of parcel, destination of allowed use and location inside or outside the area of interest of
the investor/developing farm), existing soil maps cannot be used as the single method.
The market price is closely connected to potential use of the parcel. Land use maps, soil maps
and assessment maps (for fiscal purposes), if there are any, may offer support to assessment,
but these maps can never replace the separate assessment of land parcels, when the
assessment team visits the parcels and discusses the value of each parcel as compared to the
other parcels. This is a repetitive process, which requires "coming back" and changing the
relative value of some parcels as the assessment progresses. Then, the assessment is a guide
for the re-parceling engineer and the representatives of land owners in negotiating with
individual owners.
Estimating Potential Risks in the Implementation of the Project
A pilot land re-parceling project based on the concept described above will offer valuable field
experience as part of this process. A range of potential barriers to pilot project implementation based
on the aforementioned concept could be identified. Potential barriers could be inherent and external
to the concept of the project.
Inherent Risks
There could be several potential internal risks such as lack of interest among land owners and
stakeholders from the pilot locality, extremely varied expectations of potential buyers and sellers as to
the price, lack of negotiation and mediation skills of the local re-parceling development team
members. However, a thorough preparation of the project will be the way to overcome potential
inherent risks. Careful selection of pilot project sites (basing on listed criteria) and comprehensive
training of the re-parceling design development team and the members of local and raion
administration and cadastre will mitigate risks of failure.
External Risks
36
So far, there was no land-re-parceling activity coordination in Moldova and there was no formal
exchange of experience between various stakeholders. Also during the project launch mission it
seemed that there were different opinions of different stakeholders about the concept of "land re-
parceling" and possibly they have different expectations from the pilot projects and the future re-
parceling work in Moldova. These differences of understanding may surface during the
implementation of the pilot projects and may become potential obstacles for a successful
implementation. The establishment of a project steering committee representing all stakeholders, as
it was recommended, will be the tool helping to overcome previous understanding disagreements
basing on common project experience. The structure proposed for the project based on experience
accumulated in the country till this moment would be the best guarantee for bridging previous
misunderstandings related to land re-parceling.
37
ANNEXES
38
Annex 1
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Cumulative figures of RISP as for 31/12/06
Number of RBs and individuals having started to implement
31
business/action/investment plan
Number of RBs generating revenue
11
Number of RBs registered as legal entities with DA support
9
Number of applicants with final business plan
74
Number of credit applications submitted
68
Total number of credit disbursed
38
Number of created working places (at startup)
202
39
Annex 2
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Cumulative figures as for 31/12/06
(exchange rate for report (1 USD) is 12.9 MDL)
Nr
Indicator
Total to
Total to
Variation
30/09/06
31/12/06
30/09/06 - 31/12/06
1. Number of villages where information campaign was held
0
73
73
2. Number of people attending the public meetings
0
1550
1550
3. Number of applications for DA support
0
139
139
4. Less those rejected by DA and client
0
39
39
5. Sub-total (3-4)
0
100
100
6. of which applications in progress (5-7)
0
14
14
7. Service agreements signed
0
86
86
8. Agreements terminated by DA/client
0
2
2
9. remaining Service Agreements active (7-8)
0
84
84
Of the active Service agreements (in 9 above):
10. RBs started implementing their business/investment plans
0
31
31
11. In-progress (9-10)
0
53
53
Of those started implementing their business plans (in 10 above):
12. New businesses
0 (
%)
20 ( 64.51 %)
20
13. Individual owned businesses
0 (
%)
26 ( 83.87 %)
26
14. Group owned businesses
0 (
%)
5 ( 16.12 %)
5
15. RBs involved in DA' post creation support (in 10 above)
0
11
11
16. RBs generating revenue (of those in 10 above)
0
11
11
17. RBs with final business plans with DA assistance
0
74
74
18. RBs registered as legal entity with DA assistance
0
9
9
19. Credit applications to Financial Institutions (FIs)
0
68
68
20. less those rejected or withdrawn
0
3
3
21. Remaining credit applications active (19-20)
0
65
65
Of the active credit applications:
22. Loans disbursed to RBs
0
38
38
23. Loans disbursed to operational RBs
0
29
29
24. Loans approved but not disbursed
0
3
3
25. Loan applications still being assessed by FIs (21-22-24)
0
24
24
Of the loans provided (in 22 above):
26. Loans provided from RISP funds
0
34
34
27. Loans provided from other sources
0
4
4
28. RBs without credit (of those in 10 above)
0
2
2
Of those started to implement their business plan (in 10 above) the activities are:
29. Agricultural
0 (
%)
6 ( 19.35 %)
6
30. Non-agricultural
0 (
%)
25 ( 80.64 %)
25
31. Jobs created (at start-up)
0
202
202
32. Average jobs created per RB (at start-up)
7
33. Total RBs costs of all RB (in 10 above)
$0
$864 419
$864 419
34. Average RB cost (in 10 above)
$27 884
35. Total RBs costs (of those RBs receiving credit)
$0
$1 561 528
$1 561 528
36. of which: - credits
$0
$759 730
$759 730
37. - contribution of beneficiaries
$0
$801 799
$801 799
38. average loan per RB (in 22 above)
$19 993
15 ianuarie 2007
Page 1 of 1
40
Annex 3
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Cumulative figures as for 31/12/06
(exchange rate for report (1 USD) is 12.9 MDL)
Nr
Indicator
Total to
Total to
Variation
30/11/06
31/12/06
30/11/06 - 31/12/06
1. Number of villages where information campaign was held
55
73
18
2. Number of people attending the public meetings
1152
1550
398
3. Number of applications for DA support
112
139
27
4. Less those rejected by DA and client
28
39
11
5. Sub-total (3-4)
84
100
16
6. of which applications in progress (5-7)
17
14
7. Service agreements signed
67
86
19
8. Agreements terminated by DA/client
2
2
9. remaining Service Agreements active (7-8)
65
84
19
Of the active Service agreements (in 9 above):
10. RBs started implementing their business/investment plans
18
31
13
11. In-progress (9-10)
47
53
6
Of those started implementing their business plans (in 10 above):
12. New businesses
12 ( 66.66 %)
20 ( 64.51 %)
8
13. Individual owned businesses
14 ( 77.77 %)
26 ( 83.87 %)
12
14. Group owned businesses
4 ( 22.22 %)
5 ( 16.12 %)
1
15. RBs involved in DA' post creation support (in 10 above)
6
11
5
16. RBs generating revenue (of those in 10 above)
4
11
7
17. RBs with final business plans with DA assistance
56
74
18
18. RBs registered as legal entity with DA assistance
7
9
2
19. Credit applications to Financial Institutions (FIs)
48
68
20
20. less those rejected or withdrawn
1
3
2
21. Remaining credit applications active (19-20)
47
65
18
Of the active credit applications:
22. Loans disbursed to RBs
24
38
14
23. Loans disbursed to operational RBs
16
29
13
24. Loans approved but not disbursed
3
3
25. Loan applications still being assessed by FIs (21-22-24)
20
24
4
Of the loans provided (in 22 above):
26. Loans provided from RISP funds
20
34
14
27. Loans provided from other sources
4
4
28. RBs without credit (of those in 10 above)
2
2
Of those started to implement their business plan (in 10 above) the activities are:
29. Agricultural
3 ( 16.66 %)
6 ( 19.35 %)
3
30. Non-agricultural
15 ( 83.33 %)
25 ( 80.64 %)
10
31. Jobs created (at start-up)
170
202
32
32. Average jobs created per RB (at start-up)
9
7
33. Total RBs costs of all RB (in 10 above)
$591 568
$864 419
$272 851
34. Average RB cost (in 10 above)
$32 865
$27 884
35. Total RBs costs (of those RBs receiving credit)
$1 161 902
$1 561 528
$399 626
36. of which: - credits
$453 551
$759 730
$306 178
37. - contribution of beneficiaries
$708 351
$801 799
$93 448
38. average loan per RB (in 22 above)
$18 898
$19 993
$1 095
15 ianuarie 2007
Page 1 of 1
41
Annex 4
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Cumulative figures as for 31/12/06
(exchange rate for report (1 USD) is 12.9 MDL)
Nr
Indicator
Total to
Total to
31/12/06
30/09/06
ACA
CCA
CDR
MEGA
Total
1. Number of villages where information campaign was held
0
12
29
12
20
73
2. Number of people attending the public meetings
0
256
539
379
376
1550
3. Number of applications for DA support
0
31
42
20
46
139
4. Less those rejected by DA and client
0
3
27
1
8
39
5. Sub-total (3-4)
0
28
15
19
38
100
6. of which applications in progress (5-7)
0
4
1
4
5
14
7. Service agreements signed
0
24
14
15
33
86
8. Agreements terminated by DA/client
0
1
1
0
0
2
9. remaining Service Agreements active (7-8)
0
23
13
15
33
84
Of the active Service agreements (in 9 above):
10. RBs started implementing their business/investment plans 0
10
6
2
13
31
11. In-progress (9-10)
0
13
7
13
20
53
Of those started implementing their business plans (in 10
above):
12. New businesses
0 (
%)
7
4
1
8
20
13. Individual owned businesses
0 (
%)
7
6
2
11
26
14. Group owned businesses
0 (
%)
3
0
0
2
5
15. RBs involved in DA' post creation support (in 10 above)
0
0
0
0
11
11
16. RBs generating revenue (of those in 10 above)
0
6
2
0
3
11
17. RBs with final business plans with DA assistance
0
23
14
11
26
74
18. RBs registered as legal entity with DA assistance
0
1
1
2
5
9
19. Credit applications to Financial Institutions (FIs)
0
21
11
10
26
68
20. less those rejected or withdrawn
0
0
1
2
0
3
21. Remaining credit applications active (19-20)
0
21
10
8
26
65
Of the active credit applications:
22. Loans disbursed to RBs
0
15
6
3
14
38
23. Loans disbursed to operational RBs
0
10
4
2
13
29
24. Loans approved but not disbursed
0
1
1
0
1
3
25. Loan applications still being assessed by FIs (21-
0
5
3
5
11
24
22-24)
Of the loans provided (in 22 above):
26. Loans provided from RISP funds
0
13
5
3
13
34
27. Loans provided from other sources
0
2
1
0
1
4
28. RBs without credit (of those in 10 above)
0
0
2
0
0
2
Of those started to implement their business plan (in 10 above) the activities
are:
29. Agricultural
0 ( %)
0
0
1
5
6 ( 19. %)
4
30. Non-agricultural
0 ( %)
10
6
1
8
25 ( 80. %)
6
31. Jobs created (at start-up)
0
140
13
10
39
202
32. Average jobs created per RB (at start-up)
14
2
5
3
7
33. Total RBs costs of all RB (in 10 above)
$0
$343 628
$143 102
$145 520
$232 169
$864 419
34. Average RB cost (in 10 above)
$34 363
$23 850
$72 760
$17 859
$27 884
35. Total RBs costs (of those RBs receiving credit)
$0
$902 667
$215 437
$206 334
$237 091
$1 561 528
36. of which: - credits
$0
$369 877
$140 589
$94 488
$154 775
$759 730
37. - contribution of beneficiaries
$0
$532 790
$74 848
$111 845
$82 316
$801 799
38. average loan per RB (in 22 above)
$24 658
$23 432
$31 496
$11 055
$19 993
15 ianuarie 2007
Page 1 of 1
42
Annex 5
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Cumulative figures as for 31/12/06
(exchange rate for report (1 USD) is 12.9 MDL)
Nr
Indicator
Total to
Total to
31/12/06
30/11/06
ACA
CCA
CDR
MEGA
Total
1. Number of villages where information campaign was held
55
12
29
12
20
73
2. Number of people attending the public meetings
1152
256
539
379
376
1550
3. Number of applications for DA support
112
31
42
20
46
139
4. Less those rejected by DA and client
28
3
27
1
8
39
5. Sub-total (3-4)
84
28
15
19
38
100
6. of which applications in progress (5-7)
17
4
1
4
5
14
7. Service agreements signed
67
24
14
15
33
86
8. Agreements terminated by DA/client
2
1
1
0
0
2
9. remaining Service Agreements active (7-8)
65
23
13
15
33
84
Of the active Service agreements (in 9 above):
10. RBs started implementing their business/investment plans 18
10
6
2
13
31
11. In-progress (9-10)
47
13
7
13
20
53
Of those started implementing their business plans (in 10
above):
12. New businesses
12 (
66.7 %)
7
4
1
8
20
13. Individual owned businesses
14 (
77.8 %)
7
6
2
11
26
14. Group owned businesses
4 (
22.2 %)
3
0
0
2
5
15. RBs involved in DA' post creation support (in 10 above)
6
0
0
0
11
11
16. RBs generating revenue (of those in 10 above)
4
6
2
0
3
11
17. RBs with final business plans with DA assistance
56
23
14
11
26
74
18. RBs registered as legal entity with DA assistance
7
1
1
2
5
9
19. Credit applications to Financial Institutions (FIs)
48
21
11
10
26
68
20. less those rejected or withdrawn
1
0
1
2
0
3
21. Remaining credit applications active (19-20)
47
21
10
8
26
65
Of the active credit applications:
22. Loans disbursed to RBs
24
15
6
3
14
38
23. Loans disbursed to operational RBs
16
10
4
2
13
29
24. Loans approved but not disbursed
3
1
1
0
1
3
25. Loan applications still being assessed by FIs (21-
20
5
3
5
11
24
22-24)
Of the loans provided (in 22 above):
26. Loans provided from RISP funds
20
13
5
3
13
34
27. Loans provided from other sources
4
2
1
0
1
4
28. RBs without credit (of those in 10 above)
2
0
2
0
0
2
Of those started to implement their business plan (in 10 above) the activities
are:
29. Agricultural
3 (
17
0 %)
0
1
5
6 ( 19. %)
4
30. Non-agricultural
15 (
83 %)
10
6
1
8
25 ( 80. %)
6
31. Jobs created (at start-up)
170
140
13
10
39
202
32. Average jobs created per RB (at start-up)
9
14
2
5
3
7
33. Total RBs costs of all RB (in 10 above)
$591 568
$343 628
$143 102
$145 520
$232 169
$864 419
34. Average RB cost (in 10 above)
$32 865
$34 363
$23 850
$72 760
$17 859
$27 884
35. Total RBs costs (of those RBs receiving credit)
$1 161 902
$902 667
$215 437
$206 334
$237 091
$1 561 528
36. of which: - credits
$453 551
$369 877
$140 589
$94 488
$154 775
$759 730
37. - contribution of beneficiaries
$708 351
$532 790
$74 848
$111 845
$82 316
$801 799
38. average loan per RB (in 22 above)
$18 898
$24 658
$23 432
$31 496
$11 055
$19 993
16 ianuarie 2007
Page 1 of 1
43
Annex 6
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Analysis of the quantitative progress of the RBDC
I. RBDC Achievements according to the global target
Total target of RBDC
600 RBs
Total amount of months
46
Number of months till
30/06/10
42
Target at
31/12/06
56 RBs
II. RBDC Achievements acording to DAs targets
Target at
31/12/06
14 RBs/DA (according to the agreements signed between MAFI and DA)
RISP at
Target at Level of
Project
Targets
31/12/06
31/12/06
global
fulfilment
target
RBs started to implement business plans
31
56
55.36%
600
individuals
26
group
5
new businesses
20
300 ( at least)
extensions
11
agricultural
6
non-agricultural
25
200 ( at least)
Other indicators
Promotion activities
73
160
45.63%
900
Business plans
74
72
102.16%
833
Credit disbursed
38
72
52.46%
833
Post creation support
11
56
19.64%
600
III. RBDC Achievements according to DAs targets per agency
Comparing with target at
31/12/06
Target per
Targets
ACA
CCA
CDR
MEGA
Agency at
31/12/06
RBs started to implement business plans
10
6
2
13
14
individuals
7
6
2
11
group
3
0
0
2
new businesses
7
4
1
8
extensions
3
2
1
5
agricultural
0
0
1
5
non-agricultural
10
6
1
8
Other indicators
Promotion activities
12
29
12
20
40
Business plans
23
14
11
26
18
Credit disbursed
15
6
3
14
18
Post creation support
0
0
0
11
14
15 ianuarie 2007
Page 1 of 1
44
Annex 7
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Cumulative figures of RISP as for 31/12/06
Loans disbursed by Regions and Sources of Funding
Nr
Raion
RISP
Other
Total
Sources
1 Anenii Noi
1
1
2 Balti
1
1
3 Cahul
3
1
4
4 Causeni
1
1
5 Chisinau
1
1
6 Donduseni
1
1
7 Drochia
1
1
8 Dubasari
1
1
9 Edinet
1
1
10 Falesti
1
1
11 Hincesti
1
1
12 Ialoveni
2
2
13 Nisporeni
1
1
14 Orhei
2
2
4
15 Rezina
1
1
16 Riscani
1
1
17 Soldanesti
2
2
18 Straseni
3
3
19 Taraclia
3
3
20 Ungheni
2
2
21 UTAG
5
5
Grand Total
34
4
38
15 ianuarie 2007
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45
Annex 8
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Cumulative figures of RISP as for 31/12/06
Amount of Loans disbursed by Regions and Sources of Funding, MDL
RISP
Other
Total
Sources
1 Anenii Noi
400 000
400 000
2 Balti
463 386
463 386
3 Cahul
231 595
30 000
261 595
4 Causeni
50 000
50 000
5 Chisinau
642 015
642 015
6 Donduseni
654 500
654 500
7 Drochia
433 600
433 600
8 Dubasari
40 000
40 000
9 Edinet
130 800
130 800
10 Falesti
405 216
405 216
11 Hincesti
200 000
200 000
12 Ialoveni
785 000
785 000
13 Nisporeni
340 000
340 000
14 Orhei
1 000 000
450 000
1 450 000
15 Rezina
300 000
300 000
16 Riscani
100 000
100 000
17 Soldanesti
280 000
280 000
18 Straseni
874 400
874 400
19 Taraclia
830 000
830 000
20 Ungheni
505 000
505 000
21 UTAG
655 000
655 000
Grand Total
8 857 126
943 386
9 800 512
46
Annex 9
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Cumulative figures of RISP as for 31/12/06
Rural Businesses Started Activity by Regions and Sources of Funding
RISP
Other
Without
Total
Sources
Credits
1 Anenii Noi
1
1
2 Balti
1
1
3 Cahul
3
1
4
4 Drochia
1
1
5 Dubasari
1
1
6 Edinet
1
1
7 Glodeni
1
1
8 Hincesti
1
1
9 Nisporeni
1
1
10 Orhei
1
1
2
11 Rezina
1
1
12 Riscani
1
1
13 Soldanesti
2
2
14 Straseni
3
3
15 Taraclia
3
3
16 Ungheni
2
2
17 UTAG
5
5
Grand Total
26
3
2
31
15 ianuarie 2007
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47
Annex 10
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Cumulative figures of RISP as for 31/12/06
Rural Businesses Started Activity by Types of Activity and Sources of Funding
RISP
Other
Withou Total
Weight
Source
t
Agriculture
1 Crops production
1
1
3.2%
2 Livestock production
5
5
16.1%
Total
Agriculture
6
0
0 6
19.4%
non-Agriculture
3 Manufacture of food products and beverages
3
1
1 5
16.1%
4 Manufacture of wood and wood products
2
2
6.5%
5 Manufacture of electrical machinery and
1
1
3.2%
apparatus n.e.c.
6 Manufacture of furniture; manufacturing n.e.c.
1
1
3.2%
7 Retail trade
8
1
9
29.0%
8 Sale, maintenance and repair of motor vehicles
1 1
3.2%
and motorcycles; retail sale of automotive fuel
9 Wholesale trade and commission trade, except of 1
1
3.2%
motor vehicles and motorcycles
10 Hotels and restaurants
1
1
2
6.5%
11 Land transport
1
1
3.2%
12 Post and telecommunications
1
1
3.2%
13 Supporting and auxiliary transport activities;
1
1
3.2%
activities of travel agencies
Total
non-Agriculture
20
3
2 25
80.6%
Grand Total
26
3
2 31
100.0%
Note: This classification is accomplished according to CAEM Clasification (Classification of Activities of the Moldovan Economy) elaborated
by the Statistical Department
15 ianuarie 2007
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48
Annex 11
RURAL INVESTMENT AND SERVICES PROJECT
Rural Business Development Component
Cumulative figures of RISP as for 31/12/06
Amount of credits Disbursed for Rural Businesses Started Activity by
Types of Activity and Sources of Funding
RISP
Other
Total
Sources
Agriculture
1 Crops production
130 800
130 800
2 Livestock production
595 000
595 000
Total
Agriculture
725 800
non-Agriculture
3 Manufacture of food products and
846 595
463 386
1 309 981
4 Manufacture of wood and wood products
280 000
280 000
5 Manufacture of electrical machinery and
275 000
275 000
apparatus n.e.c.
6 Manufacture of furniture; manufacturing
100 000
100 000
7 Retail trade
1 469 400
300 000
1 769 400
8 Sale, maintenance and repair of motor
0
vehicles and motorcycles; retail sale of
9 Wholesale trade and commission trade,
300 000
300 000
except of motor vehicles and motorcycles
10 Hotels and restaurants
433 600
30 000
463 600
11 Land transport
550 000
550 000
12 Post and telecommunications
170 000
170 000
13 Supporting and auxiliary transport activities;
230 000
230 000
activities of travel agencies
Total
non-Agriculture
4 654 595
793 386
5 447 981
Grand Total
5 380 395
793 386
6 173 781
Note: This classification is accomplished according to CAEM Clasification (Classification of Activities of the Moldovan Economy) elaborated
by the Statistical Department
16 ianuarie 2007
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49