Project title: Investigating the Transparency and Economic Efficiency of Using the Funds of the National Health Insurance Company and the Environmental Funds in Moldova;

Implementation period: October 27, 2010 – July 15, 2011;

Funded by: Soros Foundation – Moldova, Good Governance Program;

Project goal: Analyze the economic efficiency and financial transparency in using public funds of the National Health Insurance Company and of the Environmental Funds with the purpose of objectively informing the public and the policymakers community about the current situation, challenges and opportunities in the analyzed sectors and formulating policy recommendations to improve the managerial performance;

Main activities:

• Designed the work methodology for assessing the funds;
• Analyzed the legislative and regulatory framework regulating the functioning of the audited funds, as well as relevant management decisions;
• Conducted more than 30 interviews with representatives of the audited bodies to assess the management practices according to the good governance standards;
• Conducted 4 field-trips to local environmental funds (Orhei, Ialoveni, Chisinau, and National Environmental Inspection);
• Compiled two Economic Commentaries on management of the audited funds;
• Hosted two workshops with participation of the representatives of the audited bodies on 12 of May and 16 of June 2011;
• Wrote two policy studies on Economic Efficiency and Fiscal Transparency of Using the National Health Insurance Company's Funds and on Environmental Funds in Moldova;
• Presented the project results at two roundtables organized on 19 of July and 20 of July 2011;

Main outputs and outcomes:

• Economic Commentary “Economic implications of an environmental tax”, 4 of April 2011, author Adrian Lupusor;
• Economic Commentary “National Health Insurance Company directly contracting out the rural health centers: implications and optimal forms”, 24 of May 2011, author Evelina Gherghelegiu;
• Policy Study “Investigating the transparency and economic efficiency of using the National Health Insurance Company's Funds”, authors Ana Popa, Alex Oprunenco and Evelina Gherghelegiu;
• Policy Study “Investigating the transparency and economic efficiency of using the Environmental Funds in Moldova”, authors Dumitru Budianschi, Elena Culiuc, Adrian Lupusor;

Project impact:

The project identified many managerial and policy flaws limiting the efficiency and transparency in using the health insurance and environmental funds in Moldova and brought about two sets of very specific policy recommendations addressing the weaknesses identified. The Chairman of the Parliamentary Standing Committee for Economy, Budget and Finance, Mr. Veaceslav Ionita, declared he is going to use the results of the project to initiate a reform of the mandatory health insurance. In case of the environmental funds, the Minister of Environment, Mr. Gheorghe Salaru, decided to start an internal reform and asked the EXPERT-GRUP to support this initiative with policy and management advice.