- Implementation Support Agency (ISA): World Bank
- Total project financing: $159.24 million
- Funding from GCFF: $9.24 million
- GCFF Financing Approval Date: 05/09/2022
- Project Closing Date: 08/10/2022
- % Disbursed: 100%
- Status: Under implementation
About the project
Supplemental DPO is aligned with the priorities of the upcoming FY23–FY27 Country Partnership Framework (CPF), as part of the WBG’s broader effort to support the authorities in their response to the immediate impact of the combined energy and refugee crises, and efforts to build resilience against future shocks. The financing from this supplemental DPO operation and the program it supports is aligned with the WBG’s Global Crisis Response Framework, in particular its pillar 2 on Protecting People and Preserving Jobs, pillar 3 on Strengthening resilience and pillar 4 on Strengthening policies, institutions, and investments for rebuilding better.
Project Development Objective (PDO)
To (i) mitigate the impact of the war in Ukraine on refugees and households; and (ii) build resilience and enhance competitiveness to reduce vulnerabilities to future shocks.
Project Implementation Status
(As of December 31, 2022)
As of January 2023, 102,000 refugees from Ukraine remained in Moldova. About 40 percent of these refugees are mothers reported to be traveling with children, who represent about 50 percent of total refugees, while the remaining 10 percent are mostly elderly people or those with disabilities. About 65 percent of refugees are women or girls under 18. The influx of refugees is overwhelming for such a small country as Moldova: those refugees who have decided to remain represent about 4 percent of the total population; the adults represent 6 percent of the active labor force; and school-age refugees represent about 9 percent of the pupils that regularly attend pre-kindergarten to secondary schools.
- To facilitate their integration into Moldovan society and increase their self-reliance, thereby reducing the pressure on public finances, the GoM has temporarily granted Ukrainian refugees the right to work in Moldova without the need to go through the usual procedures for foreigners seeking employment in Moldova. Facilitating integration is particularly important for women, who face multiple challenges. Moreover, the GoM has temporarily provided access to schooling, which has helped provide a sense of normality to children in a period of upheaval and chaos, and to support their psychological wellbeing and learning, which is, in turn, important for their future productivity and earnings. These measures were supported by the first operation of this DPO series.
- The Program supported by the first DPO is being successfully implemented. The authorities continued to implement reforms despite a more challenging operating environment. Due to the spillovers from the war in Ukraine, Moldova is facing unprecedented challenges, which are straining its households, economy, and public finances, despite the government’s strong efforts. Energy prices have reached levels that are placing a severe strain on households and threatening social cohesion. The increased fiscal pressure from the energy shock is accompanied by still large spending related to the massive influx of refugees from Ukraine who have decided to remain in Moldova.