Expert-Grup

Contributions to Resolving the Dilemma of Cost-Efficiency and Environmental Responsibility in Road Rehabilitation in the Republic of Moldova

AltelePolitici de creștere economicăFriday, 7 December 20185959 views

Automatically translated summary. The full text is available in Romanian.

This policy brief compares public policy options for securing the mineral resources needed to rehabilitate roads in the Republic of Moldova. It assesses them against efficiency goals, environmental impact and undesirable externalities, and is based on a study produced under a public policy fellowship programme supported by the Soros Foundation Moldova.

Three options are compared: the Subsoil Code No. 3 of 02.02.2009 as it stood until the amendments of 27 July 2018 (option 1), Law No. 194 of 27.07.2018 (option 2) and a set of recommendations for improving the status quo (option 3). Option 1, in place for over nine years, is judged the most undesirable. Option 2 is acceptable but carries risks: inadequate management of fertile soil, the impossibility of assigning the rehabilitation contract to third parties, failure to recultivate land, and irrational exploitation owing to the 5 m depth limit. It also falls short of Draft Law No. 151 of 17.05.2017, withdrawn by the Government in March 2018.

The brief concludes that the delayed implementation of the Code's amendments irreversibly harmed the environment and generated considerable public costs. It also finds that central authorities' inconsistency and superficial approach weaken the state's capacity to deliver policies that meet societal needs in terms of cost, efficiency and environmental protection.