Phase 1

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Energy Vulnerability Reduction Fund Moldova

Project completed
The program strengthens the financial capacities of the Republic of Moldova to reduce poverty and mitigate energy vulnerability that is caused by high inflation, staggering energy prices and uncertain supply of energy resources. Through compensating energy bills at household level, Switzerland makes a concrete contribution to poverty reduction, which is aligned to its international cooperation priorities and the priorities of the Government of Moldova.

Country/region	Topic	Period	Budget
Moldova	Humanitarian Assistance & DRR Protection, access & security	01.12.2022 - 31.03.2023	CHF 6’000’000

The project in brief

Background	Under the current energy crisis and sharp increase in energy prices as well as an overall inflation of about 35%, around 60% of the Moldovan households risk to fall under the poverty line. To tackle energy vulnerability, an emergent form of poverty, the Government of Moldova and the United Nations Development Programme (UNDP) agreed to collaborate for the development and implementation of a well-targeted mechanism to compensate energy costs based on energy vulnerability levels. As part of the Energy Vulnerability Reduction Fund put in place by the Government of Moldova, the Swiss contribution allows for a partial compensation of the expenses for natural gas and electricity for the highest vulnerability category of households (“very high vulnerability”) during the winter season.
Objectives	Moldovan and refugee households benefit from reduction of poverty and energy vulnerability.
Target groups	Line ministries, in particular the Ministry of Finance, the Ministry of Labour and Social Protection and the Ministry of Infrastructure and Regional Development, are the direct beneficiaries of the project, as they will benefit from strengthened capacities to deliver public services. 100’000 households from the “very high vulnerability” category, based on the Energy Vulnerability Reduction Fund dataset, are the final beneficiaries. Such households will receive a partial compensation of their energy bills for the winter months.
Medium-term outcomes	Outcome 1: Moldovan and refugee households have access to improved social protection assistance through targeted winterization support. Outcome 2: National authorities have strengthened capacities to address energy poverty and improve energy efficiency through a tested national mechanism.
Results	Expected results: Output 1.1. Vulnerable Moldovan and refugee families have access to compensation of energy bills based on their vulnerability category (categories: very high vulnerability) Output 1.2. Energy service providers (private sector) collaborate with the GoM and UNDP on guaranteeing timely compensation for beneficiaries Output 2.1. The EVRF team at the MLSP is fully functional and capacitated to implement and improve EVRF Output 2.2 Improved targeting and criteria of vulnerability categories based on improved needs analysis, energy consumption, and profiles of beneficiaries
Directorate/federal office responsible	SDC
Project partners	Contract partner United Nations Organization (UNO) United Nations Development Programme
Coordination with other projects and actors	Ministry of Labour and Social Protection, Ministry of Finance and Ministry of Infrastructure and Regional Development as well as various development partners and donors, which are supporting the efforts of the Government to support energy vulnerable households in Moldova.
Budget	Current phase Swiss budget CHF 6’000’000 Swiss disbursement to date CHF 6’000’000 Budget inclusive project partner CHF 24’180’000 Total project since first phase Budget inclusive project partner CHF 6’000’000
Project phases	Phase 1 01.12.2022 - 31.03.2023 (Completed)

Further technical details

Sector according to the OECD Developement Assistance Commitiee categorisation	EMERGENCY RESPONSE
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation	Material relief assistance and services
Cross-cutting topics	Crisis prevention The project also supports partner organisation improvements
Aid Type	Basketpooled multi-donor fund
Project number	7F07676