
Following years of economic decline—and after almost two decades of poor maintenance—the centralized water supply and sanitation systems in Moldova had severely deteriorated. About 10 percent of samples from urban water supplies were contaminated with coliform bacteria. Running water was available for only 16 hours per day in some locations and for as little as 2 hours in others. The cost of operation was high, while collection rates were only 40–60 percent, placing severe pressure on utility finances.

The IDA-financed Pilot Water Supply and Sanitation Project was launched in 2003 to improve the quality, efficiency and sustainability of water supply and sanitation services. Five utilities in five towns were selected to participate. The pilot program had three main objectives: first, to improve the performance and efficiency of water supply and sanitation systems; second, to increase revenue collections; and third, to enhance the capacity of local water and sewerage utilities.

The project provided an important foundation to improve the quality, reliability, efficiency and sustainability of Moldova’s water supply and sanitation services.
Highlights:
- In all five pilot utilities, 100 percent of water samples now test negative for pathogens.
- Round-the-clock access to water service was provided in four cities and 19 hours per day in the city of Stefan Voda, providing 250,000 people with safer water and more reliable sanitation services.
- Energy to supply water was slashed by one-third.
- Water losses were reduced by one-third, and in some systems by one-half.
- The average provision of rehabilitated water and sewerage pipes doubled in length because of additional work by construction teams.
- Utility revenues rose as collections recouped 95 percent of billed amounts on average.

IDA financed the entire US$14 million cost of the Pilot Water Supply and Sanitation Project. IDA also served as a catalyst for donor financing of other high-priority investments. Finally, IDA helped Moldova save on the cost of equipment and installation through adoption of World Bank Group procurement guidelines.

When Moldova’s National Water Supply and Sanitation Project was launched in 2008 to follow up on the success of the pilot project, multiple donors got involved, including the European Investment Bank, the European Bank for Reconstruction and Development and the European Commission.
IDA and its partners are considering the government’s request to finance the master plan for the national rural water supply and sanitation projects.

The National Water Supply and Sanitation Project was launched in 2008 to improve the coverage, quality, efficiency and sustainability of water and sanitation services in seven municipalities: Balti, Cahul, Cauqeni, Floresti, Orhei, Soroca and Ungheni. Reflecting the government’s high priority for improving rural water supply and sanitation, the project is also rehabilitating water supplies in as many as 50 rural communities. This is vital because Moldova’s population is predominantly rural, with shallow community wells that are often contaminated by seepage from nearby septic tanks or from fertilizer nitrates from agricultural fields. In carrying out these activities, the project will work to improve Moldova’s capacity to select, design, and supervise water supply and wastewater investment projects. And it will target increased energy efficiency in urban water and wastewater systems.