Call for Project Proposals: Support the Recruitment and Attraction of New Private Entities in Moldova

The general objective of the five-year Program is to strengthen economic, territorial and social cohesion in the Republic of Moldova by facilitating smart, green, inclusive, sustainable and integrated socio-economic local development and improving the living standards of citizens in the key regions: Cahul and Ungheni. In order to achieve this objective, the Program will address the urban-rural gap in key regions and regional disparities, stimulate economic growth and job creation, improve citizens’ access to public services and quality utilities, taking into account climate change, the recession economic impact caused by the pandemic and natural risk factors and the gender perspective in the activities of the Program.

Under this Call for Projects, the Program will support project proposals that contribute to attracting new foreign firms to local economies, by creating/modernizing “investment infrastructure” that will create an enabling environment, such as:

• Modernization of public infrastructure (access of economic agents to water supply systems, sewage, electricity, natural gas, road network, etc.)
• Land grant schemes (for example, in the context of the operation of Industrial Parks and Free Economic Zones).

Funding Information

• The total budget of the Call for Proposals is EUR 1,500,000.
• Within this Call for projects, at least 2 (two) project proposals will be selected for co-financing. The financial support requested by the Program should be between 200,000 and 750,000 euros.

Main Directions of Interventions

• Investment infrastructure development projects will focus on the following main directions:
  • Economic Development: Infrastructure initiative that aims to promote economic growth in Key Regions by attracting investment coupled with the transfer of know-how, technologies and skills, to facilitate the movement of goods, services and people, increasing sales and trade.
  • Private Sector Development: Infrastructure projects aimed at attracting private investment and stimulating the development of the private sector, including their production capacities, labor productivity, compliance with standards, norms and competitiveness in general. They may also involve public-private partnerships (PPPs) or other mechanisms to encourage private sector participation in infrastructure provision.
  • Job Creation and Skills Development: Infrastructure projects have the potential to create employment opportunities, during construction, but especially during the operational phases. They can contribute to skills development and capacity building, focusing on, but not limited to, the construction and engineering sectors.

Eligibility Criteria

• The proposal is submitted for financing one of the following partnerships:
  • APL level 1 and/or APL level 2 from Cahul and Ungheni districts, in collaboration with private entities;
  • consortia between private sector entities and local, regional or national public institutions;
  • consortium between private sector entities
  • The project proposal aims to attract new private entities to the local economies of the key regions of Cahul and Ungheni (bounded by the administrative borders of the two districts).
• The project proposal corresponds to at least one of the funding categories listed:
  • Industrial Parks/Economic Zones: Investments in the creation of industrial parks or economic zones to attract new businesses by providing ready-to-use land or buildings, with infrastructure such as roads, utilities (e.g. water and sewerage, electricity, gas etc.) and telecommunications. These zones should be designed to accommodate specific industries and provide attractive incentives for businesses.
  • Technology and innovation hubs: Investing in technology and innovation hubs to create an ecosystem that encourages entrepreneurship, research and development, and collaboration between businesses, start-ups and academic institutions. These centers will provide the necessary infrastructure, including co-working spaces, incubators, accelerators and access to advanced technology and research facilities.
  • Business Incubators and Accelerators: Funding for business incubators and accelerators to support early stage start-ups by providing infrastructure, mentoring, networking opportunities and access to finance. These facilities should provide shared office space, equipment and specialized resources tailored to the needs of the new firms.
  • Research and Development Facilities: Creating or upgrading research and development (R&D) facilities to attract firms that rely on innovation and technology-based activities. Investments in research and development infrastructure, laboratories and specialized equipment to encourage firms to set up research centers and collaborate with local educational institutions and research organisations.
  • Infrastructure for specialized industries: Tailored infrastructure investment to target specific industries that are capable of attracting new firms to the area. For example, building dedicated facilities such as technology parks, agricultural clusters, logistics centers or production areas to meet the needs of specific sectors and attract relevant businesses.
  • Transport and logistics infrastructure: Improving transport and logistics infrastructure such as ports, airports, roads and rail networks to enhance connectivity and facilitate the movement of goods and services. This infrastructure is particularly attractive for companies involved in import/export, production and distribution.
• The proposed projects ensure a mandatory financial contribution of at least 10% of the total project budget.
• At least 90% of the budget of the project proposal is for the implementation of the construction work/modernization/purchase of equipment.
• At most 10% of the budget of the project proposal is for other expenses related to the implementation of the project (technical documents, expenses for the implementation of the project, etc.)
• The project implementation period must not exceed 12 months from the date of signing the financing contract (no later than October 2024).
• The proposed interventions will take place only in the Cheie Cahul and Ungheni regions (the administrative territory of the Cahul and Ungheni districts).
  • A strong focus on development priorities will be maintained  – support will exclusively target the “gap needs” of key economic sectors in local economies.

For more information, visit UNDP.