Business Regulatory, Investment, and Trade Environment Program (BRITE) Fourth Quarterly Report April – June 2013

The program is implemented by Chemonics International Inc. and is funded by the United States Agency for International Development (USAID). The project's main objective is to enhance the regulatory environment, improve trade facilitation, and increase investment in Moldova. In the fourth quarter of 2013, BRITE made significant progress in achieving its objectives. The new government, led by Prime Minister Iurie Leanca, was formed in May 2013, and BRITE is hopeful that the new government will pursue economic reforms more aggressively. The project advanced several of its activities, including the launch of the Online Current Account System, which is expected to be launched in September 2013. BRITE also established a formal relationship with the Ministry of Economy (MOE) and the National Working Group on the Regulation of Entrepreneurial Activity by funding three full-time consultants in the Regulatory Impact Assessment (RIA) Secretariat. The project's activities in the regions included two events to introduce government e-services to businesses. The project's highlights and successes include the conclusion of a formal agreement with all parties to finalize the development and launch of the Online Current Account System. BRITE also completed a package of amendments to simplify the fiscal aspects of liquidation, which were vetted with associations and other partners and will be submitted to the Ministry of Finance (MOF) through the STS for consideration by the government. In addition, the Moldovan Customs Service (MCS) signed official orders to implement several simplification measures recommended by BRITE, including eliminating the transit declaration for exports and allowing traders to use internal customs posts (ICPs) most convenient to them. BRITE also completed a time study of key import/export processes over a one-week period at four separate border crossing points (BCPs). The project also hired three full-time consultants to continue support of the RIA Secretariat after the expiration of World Bank funding. BRITE agreed to support three consultants, while the International Finance Corporation (IFC) will fund the remaining two. The consultants will also provide expert advice to the MOE and BRITE. BRITE also completed a semi-annual survey of 800 businesses, including a special survey of businesses' perceptions of the STS to be shared with STS management. The project also held two regional seminars for the business community in Balti and Cahul to introduce new and pending e-services from e-Gov, the STS, and National Social Insurance House (CNAS)/National Medical Insurance House (CNAM), as well as to introduce the BRITE program and its activities. The project's Component 1: Tax Administration and Trade Facilitation aimed to improve tax administration and reduce the administrative burden of paying taxes while increasing revenue collection. BRITE enhanced human and institutional capacity of the STS by establishing a strong partnership with the new director of the STS, Ion Prisacaru. The project also agreed to field a tax administration expert for a two-week assignment in late July to meet with the STS and other stakeholders to develop a concrete action that supports the director's priorities and is consistent with the five-year STS Development Plan and previous recommendations of USAID programs, the International Monetary Fund (IMF), and others. BRITE also strengthened the consultative process and mechanisms between the STS and the private sector by attending the first meeting of the Conformity Council under the new director in June and agreeing to support it as needed. The new director has also met with business associations and tax professionals to hear their views and concerns. Overall, BRITE made significant progress in the fourth quarter of 2013, advancing several of its activities and achieving notable successes in improving the business environment in Moldova.