The parliamentary committee has examined the performance and shortcomings of the implementation of the „Livada Moldovei”(Orchard of Moldova) Project.

The „Livada Moldovei” project has brought numerous direct benefits to the citizens of the Republic of Moldova by ensuring access to high quality food agricultural products, while certain non-compliances were admitted in the process of organizing and implementing the Project.

The results of the performance audit report on the use of financial resources within the „Livada Moldovei” Project were presented today, July 10, by the Court of Accounts of the Republic of Moldova (CoARM) within the Public Finances Control Committee.

Alexandru Munteanu, member of the CoARM and the audit team reported to the Parliamentary Committee on the results and findings of the audit that formed the basis of the general conclusion, and the recommendations submitted.

The CoARM auditors reported that in 2014, following the conclusion of a financing contract with the European Investment Bank (EIB), the Government of the Republic of Moldova initiated the "Livada Moldovei" Project. This project aimed to consolidate and develop the horticultural value chain in the Republic of Moldova by increasing employment, diversifying production for population consumption, and promoting innovation and research in the horticultural field. The project was officially launched in 2016 and was initially set to be implemented until January 2023 but was later extended by parliamentary decisions until January 2027.

The project was designed as a credit line in which the government contracts state loans from the EIB to re-lend, on favorable terms, to public and private legal entities implementing investment projects in the horticultural sector. Additionally, the government committed to financing the total cost of equipping the "Livada Moldovei" Project Implementation Unit with adequate resources and qualified personnel from the state budget. In this regard, between 2016 and 2023 78.4 million lei were allocated from the state budget to  the Implementation Unit

During the years 2016-2023, 514 investment sub-projects were financed under the Project in total amount of 197.5 million euros, of which the EIB loan amounted to 90.4 million euros, or equivalent to 75,3% of the available balance of EIB loan (120,0 million euro).

In this context, the audit revealed that the full non-value of the available EIB credit was conditioned by certain non-compliant aspects in the process of organizing and carrying out the Project, being admitted deficiencies regarding the legality of the processes and activities carried out, which may affect the achievement of the expected results of the Project and the efficient use of the allocated resources.

The Court of Accounts also established that, in order to maintain the attractiveness of the Project and to further stimulate investment in the horticultural sector, the State contributed indirectly to the Project by another 596.9 million lei, including by granting tax and customs facilities for the import or delivery of goods and services intended for the Project, subsidizing investments made and interest paid according to the concluded credit agreements and, exempting the VAT  for deliveries of goods and services within the Project.

The Court of Accounts has submitted several recommendations to the audited entities, which refer to the adjustment of the regulatory framework related to the activities of the Implementation Unit to the provisions of current legislation, strengthening the processes of monitoring the investment sub-projects and reporting their results, and ensuring accounting records according to the provisions of the regulatory framework in the field.

Natalia Trofim was appointed as Member of the Court of Accounts

The Court of Accounts participated in the training course of the World Bank