Chisinau, 28 July /MOLDPRES/ - Prime Minister Vlad Filat and British Ambassador to Moldova Keith Shannon today signed a memorandum of understanding in the regional development field, the government's communications and press relations department has said.

Under the memorandum of understanding between the United Kingdoms' Department for International Development (DFID) and Moldova's government on Budgetary Support for Regional Development, the British government will give Moldova up to 1.5 million pounds (about 1.75 million euros), due to be directed to the Regional Development National Fund to back projects of the first round of selecting proposals on projects, initiated by the three new regional development agencies in May 2010.

The selected projects will cover fields of major importance for the development of poor communities, such as the restoration of the physical infrastructure, support of the private business' development and economic sector, as well as increase of the tourism potential and the one regarding the environmental protection.

In a declaration given after the signing ceremony, Ambassador Keith Shannon said that the direct support for the budget supplements a DFID's technical cooperation programme in the regional development area, implemented in concert with the Swedish International Development and Cooperation Agency (SIDA). The programme, worth 2.9 million pounds in all (about 3.4 million euros), was launched in May 2008 to provide assistance to Moldova's government to create an institutional framework in the regional development field similar to the one from more EU states.

"The assistance given by the Department for International Development in the regional development field in Moldova is meant to assist the Moldovan government to elaborate and implement innovative policies in the regional development area, and is aimed at promoting the economic growth and reducing poverty and inequality in Moldova, in line with the best European practices," the prime minister said. He emphasized the importance to back the regional development, while taking into account that Moldova is a country where 70 per cent of the poor residents live in rural regions.

Prime Minister Vlad Filat thanked the UK's government, personally the British Ambassador to Moldova, as well as the development partners for the given support. He gave assurances that the Moldovan government will continue fulfilling the commitments assumed in the context of the understandings on regional development.

Among the main achievements in this field, the prime minister mentioned the creation of the Regional Development Councils and Agencies in three priority regions (North-Balti, Centre-Ialoveni and South-Cimislia), approval of a National Strategy of Regional Development in March 2010 and strategies of regional development for each region: North, Centre and South.

The prime minister reiterated that the government, in partnership with the local authorities, civil society and private sector identified the priorities of regional development in each region, among which there is the restoration of the physical infrastructure, development of the private sector and labour force market, environmental protection and tourism attractiveness.

"The Regional Development National Fund was set up to this end, as an efficient mechanism to finance the regional development both from our own resources, as well as from the assistance provided by the development partners," the prime minister said. He specified that the government earmarked from the 2010 state budget an equivalent of 135 million lei for the Regional Development Fund.

"In May 2010, the government launched, through the Regional Development Agencies, a contest to select priority projects which are to be financed from the Regional Development Fund. Eighty nine projects were submitted to the National Council of Coordinating the Regional Development for approval, out of those 135 projects that were sent. Thus, out of the 89 projects which are to be financed from the regional development national fund: 45 ones are meant for restoring the infrastructure, 13 are focused on the support of the private sector and 31 ones - to improve the environmental factors and tourism attractiveness, the prime minister said.

Vlad Filat thanked both the UK's government for the assistance given in the process of regional development, and the development partners for the provided support. In particular, he mentioned the Swedish International Development and Cooperation Agency, European Commission, the German government's Agency for International Development, the regional development departments of the Estonian and Polish governments.