Investigation of Transparency and Economic Efficiency of Using the Road Fund of the Republic of Moldova

Project title: Investigation of Transparency and Economic Efficiency of Using the Road Fund of the Republic of Moldova;

Implementation period: August 28, 2009  – February 26, 2010;

Funded by: Soros Foundation-Moldova, Good Governance Project;

Project goal: Assess the fiscal transparency and economic efficiency of using the Road Fund of the Republic of Moldova and formulate policy recommendations to improve the performance in roads financing;

Main activities:

• Analyzed legislative and normative environment regulating the formation and use of Roads Fund and identified key gaps and constraints;
• Conducted institutional analysis to understand how different political and bureaucracy stakeholders influence the Roads Fund;
• Analyzed sources of formation of the Roads Fund with the purpose of understanding the fiscal equity implications;
• Surveyed state-owned enterprises specialized in roads rehabilitation and maintenance;
• Analyzed existing reports of the Court of Accounts on use of Roads Fund and on use of public funds in related institutions (such as Ministry of Transport);
• Analyzed regularity of the public tenders organized for roads works;
• Prepared a study summarizing key analytical findings;
• Promoted the study results in the media and in the policy discussions with policy-makers;

Main outputs and outcomes:

• Policy Study “Investigating transparency and economic efficiency in using the Roads Fund in Republic of Moldova”;
• Presentations given at the roundtable organized on 25 of March 2010;
• Presentations of the key study results for the Prime-Minister economic and infrastructure councilors;

Project impact:

This project has set the stage for an on-going policy debate about how the Roads Fund has to be organized and managed. The project revealed the bureaucratic resistance and vested interests opposing the reform of the Roads Fund management. At the same time, the project opened up the rigid institutional framework set in place during the recent decade. A Consultative Council of the Roads Fund was created including presently members of the civil society, carriers, and representatives of the sectors ministries.