Republic of Moldova is taking new steps to stimulating economic activities in manufacturing trough creating additional encouraging opportunities for foreign and local investors. The new Law on Industrial Paarks. The interest for industrial parks, expressed currently by local public authorities and local and foreign entrepreneurs proves the correctness of the chosen approach. The establishment of industrial parks, as well as the support of activities within them are contributing to the business environment improvement, the increase of private sector share and importance in the economy and stimulate domestic and foreign capital investments. Moreover, investments made in industrial parks development generate acquiring of modern and innovative technologies, creation of new job vacancies, acceleration of regional development, etc. It should be mentioned that the new Law on Industrial Parks is based on state support (in person of central and local public authorities) for establishment and operation of parks, thus providing a series of incentives to the Administrator and park's residents. Some of the incentives provided are: free change of land destination; right to privatize the public property land associated with constructions at the land normative price; free transfer of public property assets for the establishment and development of industrial park, and others. I hope that the information provided will contribute to the formation of a new vision on the potential of Moldovan industry development. I am sure that the perspectives and advantages provided by industrial parks will the Moldovan economy. And, at the same time, I commit my personal support to the investment projects carried out within the industrial parks in the Republic of Moldova.
Industrial Parks
New business opportunities
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Edinet Drochia
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Balti
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Falesti
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Straseni
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Hincesti
Chisinau
Cainari
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Cimislia
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Cantemir
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MAIN GRANTED INCENTIVES FOR THE ESTABLISHMENT AND OPERATION OF INDUSTRIAL PARKS
Why Moldova?
ACCESS TO A MARKET OF MORE THAN 800 MILLION PEOPLE
Trade facilitation Membership in World Trade Organization Autonomous Trade Preferences offered by European Union EU 501 mln. CEFTA 31 mln. 17 Free Trade agreements Members of CEFTA (7 countries in SE Europe) Members of CIS (9 countries) + Georgia TOTAL MARKET 808 mln.
(Law on Industrial Parks No. 182 of 15 July 2010 // Monitor Oficial, 155-158/561,3 September 2010)
For the purpose of facilitating the establishment and operation of the industrial park, the state, represented by the local and central public administration authorities, shall grant the following incentives to the holders of industrial park title and its residents: payment exemption so as to compensate the losses incurred due to the exclusion of land from the category of land with agricultural destination*, in compliance with the Law on the normative price and the procedure for sale and purchase of land; free of charge alienation or transfer into commodatum of the administrator-enterprises public property assets for the establishment and development of the industrial park, upon the decision of the owner of such assets, in compliance with the Law on administration and deetatization of public property; the right to privatize the public property land associated with constructions, at the land normative price, set at the moment when such land is transferred into use to the administrator-enterprise or is leased to the residents of the industrial park, only after procuring and/or giving into operation the constructions and the installation with industrial and related destination, in compliance with the Law on the normative price and the procedure for sale and purchase of land. The facilitation shall be granted if investments have been made in constructions and installations envisaged by the project, based on which the resident or the administrator-enterprise was selected, and the value of which is higher than the amount representing 3 normative prices of the land, established at the moment when these are transferred into use to the administrator-enterprise or leased to the residents, and the payment for compensating the losses caused by the exclusion of the land from the category of land with agricultural destination, estimated at the date when the destination of the land was changed, if such has happened; applying by the administrator-enterprise of the diminution coefficient down to 0.3 of the tariff set for the annual lease payment for the public property land in compliance with the Law on the normative prices and the procedure for sale and purchase of land or of the basic tariffs for the annual lease of the public property assets, set by the Law on the State Budget for the respective year; optimization of the state controls over the activity of the industrial park residents by undertaking planned controls according to an annual timeline, approved via the Government Decision or unplanned controls carried out in line with the legislation in force, with the approval of the Ministry of Economy; monitoring investment projects carried out within industrial parks by the Council for promoting investment projects of national importance; allocation, as the case may be, of financial means for establishing technical and production infrastructure.
On average, the country value of compensations settled for the loss caused by exclusion of lands from the agricultural category is about 72,266.70 EUR/ha. For country regions, the normative price of a land lot is: Municipality of Chisinau 95,121.00 Municipality of Balti 50,887.80 District centers 18,789.30 Communes/villages 17,223.60
EU investments represent
roughly 80% of total cumulative FDI
* **
Businesses operating within the Industrial Parks shall benefit from a num ber of advantages, such as: attractive prices for land lot rental or production halls lease; connection of every parcel to utilities: access to road, water and sewerage, gas, rainwater sewerage, electric power connection, telephone and other communications; maintenance, by means of the administrator-enterprise, of production workshops, roads, common utilities (water, gas, electric power, sewerage lines, etc.); lease of office, public catering space and other service facilities shall be ensured by providers (banks, courier, post, healthcare) and comply with residents requirements; use of consulting services, provided by the industrial park development service, in terms of business planning and development, project development, marketing, personnel recruitment, knowledge management and transfer, audit and accounting.
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The process and procedure of residents and investment projects selection for industrial parks establishment based on public property assets or public-private partnership are described in the Regulation on the procedure of tender for selection of residents and investment projects for industrial parks, approved by the Government Decision.
Chisinau
TRACOM JSC Type of company: State share: Type of company: Joint-stock company 92.23% Production of caterpillar tractors-cultivators with a traction force of 2 tons (currently is not functioning); Production of spare parts for tractors (currently is not functioning); Lease>of warehouse, office space.
TRANSPORT INFRASTRUCTURE Access Roads The area has access to the route Chisinau-Balti through a paved road located at a distance of 3 km, to international highways, thus accessing potential markets in Romania and Ukraine, as well as to international ports such as Giurgiulesti, Ismail and Odessa. Railway transportation is realized through the Chisinau Railway Station. The lot has access to the railway through Visterniceni Station. There is a local railway line with a length of 3.8 km, serving as a connection to the Chisinau Railway Station. The railway section on the territory of the planned industrial park is completely worn out and requires capital repair works.
Railway
UTILITIES Water Supply The water is pumped from the municipal main pipeline with a diameter of 200 mm and a pressure of 3 atm. There are 2 artesian wells in the area with the capacity of up to 25 mVhour and 15 m3/hour, accordingly.The water supply network has a length of 9.5 km. The water supply system is completely worn out and requires capital repair works. The land lot designated for the industrial park establishment has a central distribution point (-6) with a capacity of 50,000 kW.The high voltage distribution line (underground and overhead) and the transformer stations have a radial type structure, which allows residents connection to the electric power network. Overall, there are 8 high voltage distribution centers and 23 transformers. It is realized through the distribution point with a medium pressure of 3 atm. The technical condition of the gas network is satisfactory and does not require any additional investment. Three main urban wastewater pipelines are laid on the lot (rainwater and household water) with a capacity of 900 mVhour, subsequently discharged into the municipal sewerage system.
Estimated value of investments required for the industrial park establishment, thousand EUR
Power supply net work Water/sewerage networks Roads/railway Telecommunications Other investments The production infrastructure of the future residents TOTAL 33.9 299.4 228.5 24.2 175.8 45,390.30 46,152.10
Ministry of Economy of the RM 1 Piata Marii Adunari Nationale, Chisinau, Tel.: (+373 22) 23 77 43; Fax: (+373 22) 25 06 73
Chisinau
TRANSPORT INFRASTRUCTURE Access Roads The Municipality is an important road junction in the north of the republic. The length of public roads in the northern region is 3,382.7 km, including the length of national and local roads with hard surface - 1,060.6 km and 2,199.9 km, accordingly. The length of hard surface public roads of the municipality is 24.1 km. The land lot designated for the industrial park establishment is located at the crossroads of the international road M4 (Floresti-Soroca-Balti) and the circular highway with direct access to the national road Balti-Chisinau and the international road M14 (Balti-Edinet-Cernauti). Moreover, through the circular highway the park gets access to the European route E583 (ViennaUzhgorod-Chisinau-Odessa-Rostov/Don). Balti Municipality is the most important railway junction in the north of the republic. Its the junction point of three railway routes: Balti-Rabnita, Balti-Ungheni and BaltiOcnita.The city has 2 railway stations. The most important is Balti-Slobozia Station, also called the Northern Station. The second is Balti-Otaci Station, also called the Western Station, which is a transit point for international trips arriving from Chisinau. Balti Municipality is the only region with air access through two airports - Balti International Airport (Leadoveni) and Marculesti International Airport. But both airports are used at their minimal capacity, providing cargo flights mostly inside the country and occasionally outside the country. Balti Airport (Leadoveni) is a civil airport, while Marculesti (Floresti) is a mixed (military and civil) airport.
Railway
Airports
UTILITIES Water Supply The current water supply system of Balti Municipality is consisting of a complex of buildings and networks providing the city with water. The water supply is provided from two sources - the pipeline Soroca-Balti and artesian wells. The connection of Subzone no. 3 of Free Economic Zone Balti, including the industrial park, to the water pipeline can be carried out to the municipal main pipeline (diameter - 160 mm), located along the Aerodromului Str. at a distance of about 200 m. Electric Power Supply Natural Gas Supply A110/10 kV substation with a capacity of 2x10 MW will be built to supply the industrial park with electric power. The point of connection of the lot of Subzone no. 3 of Balti Free Economic Zone, including the industrial park, to the medium pressure gas pipeline (0.155-0.25 MPa,diameter - 426 mm) of the city is located on Aerodromului Str., at a distance of about 200 m from the industrial park. Balti Municipality has a treatment plant for waste and unused industrial water, located at a distance of 750 m from the industrial park. The designed capacity of the wastewater treatment plant is 60,000 m3/24 hours.
Sewerage
Estimated value of investments required for the industrial park establishment, in thousand Euro
Land development Internal infrastructure External infrastructure Buildings: production workshops, administration building etc. (49,000 m2) 528.9 1,791.5 3,055.0 9,187.5 Total capital costs 14,562.9
Balti Free Economic Zone 86 Dovator Str., Balti Tel.: (+373 231) 5 34 54, (+373 231) 5 34 61
Chisinau
RautJSC: Type of company: State share: Type of company: Joint-stock company 77% Manufacture of technical products; Manufacture and sale of consumer goods; Scientific research and experimental works; Trade and mediation activities, including foreign economic relations;
TRANSPORT INFRASTRUCTURE Access Roads The Municipality is an important road junction in the north of the republic. The length of public roads in the northern region is 3,382.7 km, including the length of national and local roads with hard surface - 1,060.6 km and 2,199.9 km, accordingly. By means of the public roads the company gets direct access to the international roads M4 (BaltiFloresti-Soroca), M14 (Balti-Edinet-Cernauti) and the European route E583 (ViennaUzhgorod-Chisinau-Odessa-Rostov/Don).
Railway
Balti Municipality is the most important railway junction in the north of the republic. Its the junction point of three railway routes: Balti-Rabnita, Balti-Ungheni and BaltiOcnita. The city has 2 railway stations. The most important is Balti-Slobozia Station, also called the Northern Station. The second is Balti-Otaci Station, also called the Western Station, which is a transit point for international trips arriving from Chisinau. The Western Station is located very close to downtown. Balti Municipality is the only region with air access through two airports - Balti International Airport (Leadoveni) and Marculesti International Airport. But both airports are used at their minimal capacity, providing cargo flights mostly inside the country and occasionally outside the country. Balti Airport (Leadoveni) is a civil airport, while Marculesti (Floresti) is a mixed (military and civil) airport.
Airports
UTILITIES Water Supply RautJSC is supplied with water through a pipeline with a diameter of 63 mm from Apa-Canal company, and through the companys pumping station from 4 water tanks (1000 m3,2000 m3,2x200 m3).The amount of water supply system wear is 70%. The company is supplied with electricity from four distribution points (-160, 29, -28, -31) with a capacity of 10 kW, which are located on its territory. The distribution points are supplied with power by CET-Nord JSC, Balti Power Station (330/110/35/10 kV) and Pn-2,RED-NordJSC Requires reconstruction. The sewerage system is in a satisfactory condition.
Estimated value of investments required for the industrial park establishment, in thousand Euro
Basic investment (production workshops, administrative building, warehouses, etc.) Secondary and service facilities Civil engineering and external networks (water, sewerage, heat, gas) Land development and green spaces Existing equipment dismantle Other expenses Administration maintenance (technical supervision) Design and exploratory works, copyright control Reserve of funds for contingencies, 2% Payments to the Construction Normative Base (BNC) Value Added Tax (VAT), 20% 18,053.9 275.9 273.6 1,006.0 273.4 329.4 202.1 360.9 415.5 102.7 4,258.7 TOTAL 25,552.4
Chisinau
Cainari
TRANSPORT INFRASTRUCTURE Access Roads The road network of Cainari consists of the national paved road R-32 Puhoi-CainariSalcuta. The distance between Cainari and Chisinau is 55 km. This road ensures a stable connection with the following localities: Causeni, Cimislia, Bender, Palanca, Saiti. There is an access way from the main road to the park area through the town. Thus, it is planned to build a new bypass road with two lanes and a total length of 2,580 meters. Railway Direct access to the railway, consisting of 7 lines. The railway allows transportation of goods to Chisinau, Bender, Cimislia and Giurgiulesti Port.
UTILITIES Water Supply Adjustment and connection works will be required (the construction of 300 m ofwater pipeline is required). The Water Supply Station has a capacity of 2000 mVhour, therefore its capacity should be strengthened in the near future. The industrial park can be supplied with electric power from the high voltage lines with a capacity of 100kV, 35kV and 10kV, located at a distance of 300 meters. The industrial park can be supplied with natural gas from the gas pipeline with a diameter of 80-100 mm, located at a distance of 500 meters. The land lot designated for industrial park establishment is provided with a sewerage system, but adjustment and modernization works will be required, i.e. the construction of 500 m of sewerage, as regards the connection to the wastewater treatment plant in both directions. Wastewater treatment plant: The town has a WWTP with a treatment capacity of 400 mVhour. Estimated value of investments required for the industrial park establishment, in thousand Euro
Design and construction of the electric power supply line Design and construction of the sewerage system, including the pumping station Design and construction of the water supply system Design and construction of the bypass road Design and construction of the gas-service pipe Contingencies, 5% Buildings (production workshops, warehouses, etc.) TOTAL 31.0 95.0 20.0 950.0 32.0 55.0 48,000.0 49,183.0
Chisinau
TRANSPORT INFRASTRUCTURE Access Roads Railway Road accessibility is provided by means of the international road M-14 (Cernauti-Chisinau-Odessa) and the European road E583 (Mogilev-Podolsk-Drochia-Ungheni). Access to the railway network is provided by means of Bratuseni railway station located at a distance of about 7 km from the industrial park.
UTILITIES Water Supply The town water pipeline is laid along the road M14at a distance of about 115 meters from the industrial park. Thus, it is required the construction of a pipeline to connect the local water network to the industrial park lot. The pipeline diameter is 110 mm. The town water pipeline has sufficient capacity to supply with water the companies to be located in the industrial park. Electric Power Supply The 10 kV power transmission line, to which the industrial park can be connected, are installed next to the industrial park land lot, along the road M14. The electricity supplier is RED Nord-VestJSC .
The medium pressure gas pipeline is laid along the road M14, at a distance of 115 meters from the industrial park, and has sufficient capacity to meet its needs. The pipeline diameter is 90 mm. The town has a centralized sewerage system, to which the industrial park sewerage system can be connected by constructing a sewage pumping station in the southwest area of the park, located at the lowest level (at a height of 201 m). The sewage pumping station will provide wastewater pumping with a flow of 100 m3/hour, with a lifting capacity of up to 27 m. The sewage pumping station will be connected to the town sewerage system through a sewage pipeline with a diameter of 250 mm and a length of 850 m.
Estimated value of investments required for the industrial park establishment, in thousand EUR
Infrastructure and common utilities outside the industrial park Infrastructure and common utilities inside the industrial park Administrative building, equipment and furniture Production workshops of business incubators Internal organization of the industrial park Production workshops built by residents Production workshops of the managing company 71.1 1,473.7 288.8 2,372.7 185.4 2,961.0 14,361.7 TOTAL 21,714.4
EDINET TOWN HALL 30 O. Cerempei Str., Edinet, Edinet District Tel./fax: (+373 246) 2 29 30, (+373 246) 2 28 30
Chisinau Hincesti
TRANSPORT INFRASTRUCTURE Access Roads With the construction of the access road (615 m) from the south-east side of the park lot to the municipal road, the industrial park will get access to the national roads R34 and R3. At the same time, by means of these ways will get access to the international routes E 581 (Marasesti-Tecuci-Albita-Leuseni-Chisinau-Odessa) and E 577 (PoltavaKirovograd-Chisinau-Giurgiulesti-Galati). The access to the railway network is provided by means of the Chisinau railway station, situated at a distance of about 35 km from the industrial park lot.
The water pipeline of Hancesti town is located near the paved municipal road (connecting national roads R3 and R34) at a distance of 472 m from the south side of the industrial park lot, to which the park could be connected. The pipeline diameter is 110 mm. The town water pipeline has sufficient capacity to supply with water the companies to be located in the industrial park.
The 6 kV electric power transmission line is installed along the west side of the park lot, at a distance of 90 meters, and is located on the right bank of Cogalnic River. In order to ensure parks supply with electric power it will require the construction of a 6 kV electric power transmission line with a length of 100 meters. The electric power supplier is RED Union FenosaJSC. The town medium pressure gas pipeline is laid near the municipal road at a distance of 405 meters from the south side of the industrial park lot, and has sufficient capacity to meet the industrial parks needs. The gas pipeline diameter is 75 mm. The place has a sewerage system, to which the industrial park sewerage system can be connected by building a wastewater pumping station in the extreme south point of the industrial park lot, straight to the internal public access road. The wastewater pumping station will be connected to the sewerage system of Hancesti town by means of a sewerage pipeline with a diameter of 200 mm and a length of 472 m.
Estimated value of investments required for the industrial park establishment, in thousand EUR
Infrastructure and common utilities outside the industrial park Infrastructure and common utilities inside the industrial park Public utilities inside the industrial park Internal organization of the industrial park Administrative building, equipment and furniture Production workshops of business incubators Production workshops built by residents Total capital costs 992.0 413.4 729.7 283.6 795.9 686.3 5,686.6 8,387.5
HINCESTI TOWN HALL 132 Mihalcea Hancu Str., Hancesti, Hancesti District Tel./fax: (+373 269) 2 32 86, (+373 269) 2 34 93
CAANJSC: Type of company: Private capital: Types of activity: Joint-stock company 100% Manufacture of technical products; Manufacture and sale of consumer goods; Construction and management of cold stores and separators for vegetables and fruits sorting and packing; Trade and mediation activities, including foreign economic relations; Storage services.
TRANSPORT INFRASTRUCTURE Access Roads The Straseni Town is an important road junction in the center of the republic. It has direct access to the national and international roads, including Chisinau-Ungheni-Sculeni-border with Romania, the highway M14 (Brest Briceni-Chisinau), the international road Chisinau-Leuseni.
Railway
CAAN JSC is located very close to the railway Chisinau-Ungheni; it has a railway track connected to the railway route Chisinau-Ungheni (0.672 km long) and to the internal siding within the storage space.
UTILITIES Water Supply Electric Power Supply Natural Gas Supply Sewerage Communication Networks Services provided by the managin company The water supply system requires reconstruction. Functional autonomous electric power supply system with voltage exceeding 10,000 kV. Gas heating system. The sewerage system requires reconstruction. Modern communications and telecommunications networks. Providing industrial space for production, storage and administration; Providing utilities and communications infrastructure; Preparing production space as per residents preference; Power supply; Heating; Water supply; Ensuring safety and security systems; Legal, financial and technical consulting; Transportation services; Terminal services; Brokerage services; Hotel services.
Estimated value of investments required for the industrial park establishment, in thousand EUR
Basic investment (production workshops, administrative building, warehouses, refrigerator and packing facility, etc.) Civil engineering and external networks (road, water, sewerage, heat, gas) 26,483.029 1,7 7 7.247 TOTAL 27,594.276
CAAN JSC 1 V. Crasescu Str., Straseni, Straseni District Tel.: (+373 237) 2 23 19
Chisinau
UMS Falesti JSC: Type of company: State share: Types of activity: Joint-stock company 94.12% Manufacture of metal finished products Manufacture of machinery and equipment
TRANSPORT INFRASTRUCTURE Access Roads Access Roads Falesti District is crossed by national (R57 and R16) and local (R17) roads, such as the national road R17 or the regional roads R57, R16. The national road R16 and the regional road R17 are crossing Falesti town, thus providing special advantages with regard to the regional development. Falesti District has railway infrastructure. There are 5 railway stations on its territory,one of which inside Falesti town.
Railway
UTILITIES Water Supply The water supply of Falesti town is carried out by means of 77 wells with a volume of 1,630 mVhour.The area is, also, provided with a pipeline. UMS Falesti JSC lacks water supply infrastructure, which will determine the need for its construction. Electric Power Supply The region is supplied with electric power through the distribution networks of the state enterprise RED Nordand the electric power distribution company RED NordVest JSC. There is a 110 kV power supply station close to the factory area. Natural Gas Supply Sewerage About 40% of the apartments and 27% of the houses of Falesti are connected to natural gas networks. UMS Falesti JSC is not connected to the gas pipeline. Falesti town has a WWTP and a sewerage system. However, UMS Falesti JSC has no sewerage system, which determines the need for its construction.
Estimated value of investments required for the industrial park establishment, in thousand Euro
Capital repair of working space Capital repair of non-working space New facilities - offices with conference hall and dining room New facilities - boiler room, storage and production space Construction of external water supply, sewerage, gas, electric power lines in the main connection points Roads and parking Other expenses, according to the estimation 3,337.4 6,958.2 797.0 6,500.8 112.2 515.6 1,858.5 TOTAL 20,079.7
Chisinau
TRANSPORT INFRASTRUCTURE Access Roads Railway UTILITIES Water Supply The water pipeline of the Cania commune is parallel to the road R37 and is located 70 meters north from the longest side of the land lot. The pipeline has a small capacity and can provide about 4 cubic meters of water per hour. Therefore, a new water pipeline shall be built (3,000 m), linking the internal utility lines of the park with the public water supply network of Cantemir. The 10 kV power transmission line is installed along the eastern side of the land, at 2 meters distance, and is located on the right bank of the Tigheci River. No additional construction is required to provide access of the park to electric power. The electricity supplier is RED Union FenosaJSC. The access road, which is 800 m long and parallel to the industrial park land lot ensures access to the national road R37 Hincesti-Leova-Cantemir. The national road R37 is located at a distance of 60 meters from Prut railway station of Cania.
The medium pressure gas pipeline to Cantemir is laid along the national road R37, at a distance of 90 meters north from the longest side of the land lot. The access gas pipeline with a length of 90 m will be laid from the land lot side, under the access road, and under the national road R37 to the main gas pipeline of the town. The pipe diameter is 90 mm. A wastewater treatment plant and sewerage system shall be built.
Sewerage
Estimated value of investments required for the industrial park establishment, in thousand Euro
Infrastructure and common utilities outside the industrial park Infrastructure and common utilities inside the industrial park Public utilities inside the industrial park Internal development of the industrial park Administrative building, equipment and furniture Production workshops of business incubators Workshops of the managing company Production workshops built by residents Total capital costs 855.0 254.2 121.5 132.7 795.9 1,176.5 1,411.9 7,510.3 11,658.0
CANTEMIR TOWN HALL 2 Trandafirilor Str., Cantemir, Cantemir District Tel./fax: (+373 273) 2 23 50, (+373 273) 2 26 39