By the Law of the State Budget for the year 2019 no. 303/2018IP " Moldova Social Investment Fund" (hereinafter - MSIF) obtained financing in the amount of 30 million lei for the renovation of the early education institutions and 5 million lei for building and equipping of bathroom units in schools.
The regulations regarding the organization of the procedure for implementation of renovation/equipping projects of early education institutions and bathroom unitsconstruction/equipping projects in primary, secondary education institutions and lyceums have been approved by the Government Decision no.93/2019.
Lists of institutions potential beneficiaries of investments, selected for projects of renovation and/or equipping of early education institutions and projects of construction/equipping of bathroom units in primary, secondary schools and lyceums were approved by the Government Decision no.94 / 2019.
It should be mentioned that the allocated financial means do not include operating costs related to the implementation of projects.
Due to the respective circumstances and in accordance with point 2 of GD no. 93/2019, MSIF has started the implementation of mentioned Government Decisions and has undertaken the following actions:
- March 2019 - Organization of information sessions for beneficiaries of projects on conditions and mechanism of implementation and financing;
· April - May 2019 - Receipt of Grant Applications submitted by project beneficiaries; Purchase of technical books on construction works (amount paid - 7237.50 MDL);
· May 2019 - Social evaluation of Grant Applications submitted by the Project Beneficiaries;
· June 2019 - Field visits for the purpose of technical evaluation of communities’ needs, based on submitted Grant applications;
· July 2019 - Elaboration of the model form of the Grant Agreement and sending it for approval to the Ministry of Education, Culture and Research.
We should mention that the mayors who were to receive financial support from the sources of the State Budget, in turn, mobilized the community members in the process of assessing the needs, approved the assurance of the allocation of their own contribution in a minimum of 15% of the amount of the financial support and the composition of the Implementing Agencies for monitoring the progress of the implementation of projects through the decisions of the Local Councils.
For its part, MSIF complied with all the procedures and is awaiting the answer regarding the approval of the operational costs and the model form of the Grant Agreement in order to continue the project implementation procedure.
In the current situation, analyzing the possible risks, the MSIF requested the exclusion from the budget of the institution allocated financial means for the following reasons:
- According to the approved Regulations, the purchases of works and services are made by the beneficiaries of investments, in accordance with the provisions of Law no.131 / 215 on public procurement. Given that the Grant Agreements with the beneficiaries are not yet signed and the procedures for the purchase of the works and services have not yet been initiated, we find it impossible to execute and pay all the construction works until December 2019;
· The duration of the implementation of an infrastructure project depends on the term of the completion of the public procurement procedures, as well as on the term of the contract for the execution of the works, which may be influenced by the adverse climatic conditions during the autumn-winter period;
· In accordance with the provisions of the Public Laws and the budgetary-fiscal responsibility 181/2014, at the end of the budgetary year the allocations are closed, the FISM will enter the inability to pay the contracted amounts in the current year, because for 2020 there is no financial coverage planned for the respective activity. budget.
· Another factor that could negatively influence the implementation of projects are local elections of October 2019, which involve the removal of mayors and there is a risk that a good part of the beneficiaries will not be able to sign works and services contracts.
In response to the request of the Social Investment Fund, the Government at the meeting of 01.08.2019 approved the Decision no. 380/2019 ”Regarding the repeal of point 1 subpoint 1) and the annex no.1 to the Government Decision no. 93/2019 and of point 1 subpoint 1) and the annex no.1 to the Government Decision no. 94/2019” (Monitorul Oficial no. 249 of 08.02.2019).
At the same time, we would like to mention that the Regulation with regard to organization of the procedure for the implementation of renovation/construction projects of bathroom units in primary, secondary education institutions and lyceums (subpoint 2) and the annex no. 2 to the Government Decision no. 93/2019) and the List of potential beneficiaries of investments, selected for the projects of renovation/construction of bathroom units in primary, secondary education institutions and lyceums (subpoint 2) and annex no.2 to the Government Decision no. 94/2019) remain in force.
In conclusion, we would like to mention that MSIF does not take decisions regarding the distribution of financial means, it is only in the position of executor of Decisions of the Government of the Republic of Moldova and is not authorized to elaborate, modify or complete the list of beneficiaries, being designated only as the entity responsible for preparation, implementation, for ensuring the visibility and for reporting on projects.
