FILIERE-DU-VIN UPGRADING (MOLDOVA)

The project concerns the rehabilitation and upgrading of Moldova's wine sector along the entire supply chain (“filière du vin”) with regard to quality wine production, i.e. wines of “Protected Designation of Origin (P.D.O.)” or “Protected Geographical Indication (P.G.I.)”. Wines in the categories of table wine and below would be specifically excluded, as would any expansion of the growing area.

Wine represents about 30% of Moldova's exports and the sector employs approximately 15% of the economically active population. The sector is therefore of paramount importance both economically and socially. However, the current breakdown of exports by country shows that exports are dominated by Russia (50%), leaving both the sector and the country highly exposed to market and political risks. The proposed operation is intended to: increase revenues without increasing volumes, by developing higher value wines; stabilise the existing industry and put it onto a more financially viable footing; and to diversify client markets, hence reducing the importance of its current main destination market.

The proposed operation is structured to develop existing facilities and resources, to increase wine production quality but not quantity. It specifically will not be used to increase the amount of land under cultivation. It is therefore unlikely that any sub-project will be of such a scale that it would require an EIA if located within an EU member state. However, the handling of environmental issues will be fully reviewed at appraisal.

All procurement will follow the Bank's Procurement Guidelines. Where buildings, plant and equipment are to be acquired by the MoAF, the appropriate procedures for public bodies will need to be followed, including publication in the Official Journal of the EU where specified in the relevant Directive(s).