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The Administrative Board of the Energy Efficiency Fund (EEF, the Fund) decided on measures to remedy the situation regarding execution of the Grant agreements and implementation of the investment projects, financed by the Fund
Published Date: 12.06.2017   

June 9, 2017, Chisinau At the meeting on 09.06.2017, following the updates on the current situation regarding the activities related to the Calls for Project Proposals (CPPs) launched so far by the Fund, the Administrative Board has decided on measures to remedy the situation regarding the execution of signed Grant agreements.

In this context, the new management of the Fund focused on the dimension of identifying and proposing solutions to remedy the deviations identified in the investment project implementation process.

Thus, the decision-making process focused on several stages of investment project management and solutions to settle major deviations and exclude them in the future.

The Fund’s representatives informed the members of the Administrative Board about on-site visits between May 22nd and June 6th 2017 to 9 project objectives under CPP no. 1, for which deviations in quality of energy efficiency measures implementation were identified, in a proportion of 60-85% compared to the allowed limit of it. The amount of the caused damage is estimated to approximately MDL 5.5 million of MDL 12.5 million disbursements made by the Fund.

Furthermore, similar situation and eventual findings were brought to the attention to the Administrative Board, following the case study provided by the accredited consultants, according to which, the on-site visits to 10 project objectives under CPP no. 3, between May 24th and June 6th, identified quality deviations of energy efficiency measures in proportion of 60-85%, compared to the allowed limit. The amount of the estimated caused damage represents about MDL 1.8 million lei out of MDL 5.8 million disbursements made by the Fund.

"In this context, it is imperative to continue verifications, in terms of quality of the executed works, to cover all investment projects, in order to identify the essential deviations from the contractual provisions", stated Octavian Calmîc, Chairman of the Administrative Board.

In the beginning of the meeting, Administrative Board, by its majority adopted a decision to close CPPs no.3 and no.5 for applicants at preliminary evaluation and approval stage, due to utilization of the budget funds allocated for each CPP.

“The decision on creation of a "waiting list" for some of the projects within the CPP no. 3 and no. 5 was motivated by the impossibility of the Beneficiaries to provide own contribution and as a consequence the lack of progress in implementation of Grant agreements signed with the Fund” stated Mr. Sergiu Corin, acting Executive director of the Fund.

According to Deputy Prime Minister Octavian Calmîc, Chairman of the Administrative Board, the decision on creation of "blacklists" of energy auditors, construction estimators, project (technical design) verifiers and quantity surveyors comes as a result of the analysis of the drawbacks identified in the process of evaluation of the services provided by the respective specialists, within the Fund’s projects evaluation and implementation process. In this context, the EEF will notify the national entities, responsible for certifying of specialists of the respective categories and the competent authorities in order to sanction them for providing the non-qualitative technical assistance to the project beneficiaries.

Additionally, the members of the Administrative Board decided to set the obligation to elaborate and submit to the EEF the technical design for the projects whose beneficiaries signed the Grant agreement but have not started the works yet or are at the incipient phase of execution. This measure is needed, in order to eliminate further requests from the project beneficiaries to modify the bill of quantities on which basis the project financing was approved.

It is important to note that the expenditures for elaboration of the technical design will be part of the project beneficiary’s own contribution. The mentioned changes were made at different stages of project implementation and involve inclusion of additional works or inclusion/exclusion of works necessary to secure the EE measures that were not foreseen at evaluation stage. This leads, in most cases, to modifying of the total cost of the Grant agreement and, at the same time, to increase of own contribution to some project beneficiaries, which due to the lack of financial resources they cannot assure. Therefore, the duration of project implementation is extended, leading to noncompliance to implementation stages envisaged in Grant agreement, concluded Sergiu Corin.

In order to streamline and promote transparency of the project implementation process, the EEF Administrative Board decided to internationalize it through active involvement of development partners in evaluation and implementation of the projects. In this respect, the presence of EU Delegation in Moldova representative, Mr. Alexandre Darras, as observer at the meeting, was important and welcome.

At the end of the meeting, Mihail Stratan, representative of the Moldovan Energy Consumers Association, resigned from the Administrative Board of the Fund.

Regarding security issues, the Fund emphasizes importance of creation of the anti-fraud compartment on the official web site of the Fund www.fee.md, with purpose of receiving signals and investigate acts of fraud, corruption and other illegal activities in the process of the project implementation, as well as to tackle the inappropriate conduct of the Fund's employees and/or persons contracted by the Fund.

Please note, if you have information suggesting fraud, corruption and other illegal activities in the project implementation process, as well as unlawful conduct of the Fund's employees and/or persons contracted by the Fund, submit them by e-mail to antifrauda@fee.md or contact us on telephone no. +373 60 511 611.



Published Date: 19.12.2017   
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