OREANDA-NEWS. June 21, 2013. As one of donor states, in 2004, Austria put Moldova on the list of priority regions for cooperation.  Since then the Austrian Development Agency has provided Moldova with over EUR 10 million of gratuitous aid under programs backed by Austria.  Head of  Cooperation Office for Technical Cooperation of the Embassy of Austria in Chisinau Mr Gerhard Schaumberger has told InfoMarket about what this money was spent on, what is in store for a partnership between Austria and private business and wether it is possible to respond to poverty in Moldova.

InfoMarket:  Why has Moldova been put on the list of the Austrian Development Cooperation (ADC) priority states? 

Gerhard SCHAUMBERGER:  Moldova and Austria have been successful partners for 12 years.  In 2004, Moldova was reckoned among ADC priority states; in 2005, the Austrian Development Agency opened its office in Chisinau and in March 2013, the Embassy of Austria was opened in the capital of Moldova.  Currently, Moldova is included in the ADC strategy for development of the Danube region and the region of the Black Sea.  And there are several reasons for this. 

First, Moldova closely cooperates  with the EU and has been included in the Eastern Partnership program together with Ukraine, also supported by Austria.  We have already had the successful experience of working in Romania and Croatia, which are now the EU members. 

Second, it is very important for Austria to have good political and economic relations with Moldova.  Whereas in Romania and Ukraine a number of Austrian companies comes to thousands, in Moldova Austrian business is scanty. Up to date, Austrian investment in Moldova has only made about EUR 60 million. By implementing development projects here in Moldova, we build confidence between our countries to promote the strengthening of economic ties.

And, third, Austria and Moldova have something in common: both are landlocked states, both safeguard neutrality and both are located in Central Europe. All this brings our nations closer and makes us better understand each other.
 
InfoMarket:  The key objective of the ADC strategy for Moldova-Austria cooperation 2011-2015 is to reduce poverty. As you see it, what hampers social, economic and political modernization of Moldova?
 
Gerhard SCHAUMBERGER:  To address to poverty investment is required, which would lead to creation of new jobs and would ensure decent wages.  Attracting investment is impossible if a country is unsafe. Safety, in its turn, is impossible without stable banks and reliable and incorruptible justice.  Unfortunately, corruption is still too strong in Moldova and undermines confidence of investors in this country.  One more problem for investors, which hardly bolsters their confidence, is Transdniestria.
 
InfoMarket:  Have you ever faced cases of corruption when implementing projects here in Moldova?
 
Gerhard SCHAUMBERGER:  No, we have faced neither corruption cases nor thefts.  We answer for quality of our projects, thoroughly audit reports of those who directly implement them and make on-the-spot inspections. Certainly, it is impossible to control everything, but we try to be sure that all our funds are used for the purpose intended. 

InfoMarket:  In the period between 2004 and 2012 ADC provided Moldova with the gratuitous aid of EUR 10.6 million.  What areas have been supported and why?

Gerhard SCHAUMBERGER:  In fact, multilateral projects included, the Austrian aid has amounted to EUR 22 million.  The ADC technical cooperation in Moldova is focused on such areas as water supply systems and sewerage (60% of all funds), vocational education (30%); public management, gender equality and environmental protection (10%).  Our priorities fit Moldova’s development strategies and are aimed at directly supporting citizens of Moldova.  We do not seek to implement any abstract projects, but what we really want is to see our work change human lives.  For example, the water supply system development is of extreme importance for Moldova since in many places here quality of potable water lives much to be desired and is dangerous for health of people. 

InfoMarket:  How do you evaluate projects? Do you follow those that have already been completed?

Gerhard SCHAUMBERGER:  The best way to be sure that a project is effective is to plan it well.  The bulk of projects we receive are written well enough, but in some cases it may take about a year to finalize them.  It may even so happen that all attempts to improve the concept of a project end with nothing and we decline it.  Quality is the thing  we insist on first and foremost, and, as a result, we are satisfied with almost all contracts we conclude.

As for sustainability, we are not able to trace the destiny of all our projects.  But, for example, in 2012, we visited Cantemir, where in 2006-2010 the project on the local water supply rehabilitation was implemented ADC contributed in EUR 1.14 million.  We are pleased with what we have seen: the system works perfectly. 

InfoMarket:  What of your current projects do you consider the most successful?

Gerhard SCHAUMBERGER:   It is quite difficult to single out few projects of 24 current ones.  To my mind, we can call our pilot project successful under which training courses for plumbers and electricians have been organized at two vocational schools on a base of a specially developed curriculum.  Thanks to the project, about 70% of  plumbers and 60% of electricians managed to find jobs during four months after their training course was over.  Today we go on working on this project at other vocational schools.

Besides, a project for training wine-growers in Nisporeni and Leova has proved to be of success. It was launched by Kulturkontakt Austria 9 years ago and ADC has invested over EUR 1 million in it.  Under this project our students have a lot of practice in addition to theoretical knowledge because they cooperate with adjoining farms and agricultural companies.  Students of the vocational school there make and bottle wine at the school’s own winery under the Crescendo brand.   Of course, a volume of the output is rather modest, nevertheless, increasing it is not our goal.  What is more important is that the schools have extra funds for self-financing thanks to the sales incomes.   By the way, this wine was presented at an exhibition in Vienna last autumn. 

InfoMarket:  But what about failures?

Gerhard SCHAUMBERGER:  Not everything is running smoothly, but there have been no complete failures.   We could say that less successful projects are, as a rule, those regional.  I mean, they have been developed for several countries at once and that is why are difficult to be adjusted to specific characteristics of this or that country. 

InfoMarket:  Since 2005 you have launched a program for reintegration of Moldovan migrants that are coming back to Moldova or seeking for asylum in Austria.  Are there so many Moldovan migrants and asylum seekers in Austria? 

Gerhard SCHAUMBERGER:  This kind of programs is available for several countries, not only for Moldova.  This is not to say that there are a lot of migrants from Moldova in Austria.  Up to date, about 800 citizens of Moldova has been registered in the social welfare system of Austria, that is, the 800 people are officially employed.  However, a real number of the migrants is bigger because, surely, many of them have come to Austria with their families. 

InfoMarket:  What has changed in the cooperation of Austria with Moldova since its establishment?
 
Gerhard SCHAUMBERGER:  Started as humanitarian aid, our cooperation, in most cases, has turned into technical assistance.   The most important is that we are developing such a facility as the business partnership beteen Moldovan companies and Austrian businesses.  We would like to attract Austrian investors here in Moldova and are ready to cover up to 50%, but no more than EUR 200 thousand, of their investments made in this country if they create added value. 

So far, the only project has been implemented in Moldova with help of this facility, namely Moldovan farmers have been supplied with iMetos weather stations.  Weather stations are high-precision devices which measure precipitation, soil moisture, atmospheric pressure, humidity, temperature, etc, and capable of providing farmers with information necessary for pest and plant diseases control.   The project was launched in April, 2013 and is implemented with support of other partners, such as USAID, UNPD and others.  The weather stations are supplied by PesslInstruments, the Austrian company, which has a subsidiary in Moldova.  The project lasts three years and investment of PesslInstruments makes EUR 400 thousand, 50% of which are covered by ADC.  

Besides, we are negotiating the opening of the Academy of Construction in Moldova in 2014 with Strabag, Austria.  The Academy is expected to be based on a system similar to what is called the dual education.  Bearing in mind large scale of the scheduled road rehabilitation works, the area of construction seems to be very promising in Moldova.  
 
Unfortunately, funds of this business-partnership facility are not used in full.  It is not easy to persuade Austrian investors to come to Moldova.  But we invite Moldova’s economic entities to look for partners in Austria and be sure to turn to us for support.  

Note: Preliminary information about conditions for taking part in the business-partnership program is available on web page of ADA
http://www.entwicklung.at/funding/business_partnerships/entering_guide/en/