1 Ministry of Agriculture and Food Industry of the Republic of Moldova Consolidated Unit for Implementing and Monitoring the Wine Sector Restructuring Program WINE SECTOR RESTRUCTURING PROGRAM “FILIERE DU VIN” FOR PERIOD APRIL 01 – JUNE 30, 2013 Date of submission to EIB: July 2013 “The contents of this publication are the sole responsibility of Consolidated Unit for Implementing and Monitoring the Wine Sector Restructuring Program and can in no way be taken to reflect the views of the European Union.”
Transcript
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Ministry of Agriculture and Food Industry of the Republic of
Moldova
Consolidated Unit for Implementing and Monitoring the Wine Sector Restructuring Program
WINE SECTOR RESTRUCTURING PROGRAM
“FILIERE DU VIN”
FOR PERIOD APRIL 01 – JUNE 30, 2013
Date of submission to EIB: July 2013
“The contents of this publication are the sole responsibility of Consolidated Unit for Implementing and
Monitoring the Wine Sector Restructuring Program and can in no way be taken to reflect the views of
the European Union.”
The information contained herein in this report was sent to the EIB under the responsibility of:
Company Consolidated Unit for Implementing and Monitoring the Wine Sector
Restructuring Program (PIU)
Contact person Iurie BRUMAREL
Title Executive Director of Moldovan Wine Sector Restructuring Program
Address 18, Calea Basarabiei str.,2nd floor, Chisinau, Republic of Moldova, MD-2023
All activities for launching the Leasing instrument were based on the concept that leasing operation
will be done by PIU.
During the 2nd quarter of 2013 PIU continued to develop leasing operation procedures, policies and
regulations and to elaborate supporting documents for the Leasing instrument. In this scope PIU have
done the following activities:
1) With the reference to amendments to PIU Regulation regarding leasing activity, which is aimed
to permit to PIU manage and accomplish financing of potential beneficiaries of the Program,
draft version of PIU Regulation was adjusted, after receipt of comments and suggestions from
National Anti-Corruption Center and the National Commission for Financial Markets;
2) MoAFI submitted the proposed adjusted version of the PIU Regulation together with
arguments on comments and suggestions received from MoF, Ministry of Economy, National
Anti-Corruption Center and the National Commission for Financial Markets presented in "Table
of divergences" to the Ministry of Justice (last institution implied in examination of this
document before its submission to the Government for approval), After examining above-
mentioned document, the Ministry of Justice issued notice on it;
3) Comments and suggestions presented by Anti-Corruption Center in the Expertise Report,
National Commission for Financial Markets and Ministry of Justice were carefully considered
by PIU and MoAFI, those constructive and rational were taking into consideration for
improving the provisions of PIU Regulation, while the importance of the rest of them in the
text where argued and explained by PIU in the "Table of divergences";
Table 8 Information regarding PIU meetings on developing leasing Component
Date Topics of the meeting The result of the meeting
01.04.2013 Recommendations and comments
received from the National Anti-
Corruption Center on proposed
amendments to PIU Regulation
regarding leasing activity
Explanatory notes and arguments on
conclusions of the National Anti-Corruption
Center. Adjustment of "Table of
divergences"
29.04.2013 Conclusions received from the National
Commission for Financial Markets on
proposed amendments to PIU
Regulation regarding leasing activity
Adjustment of the "Table of Divergences"
with PIU/MoAFI view recommendations
submitted by the National Commission for
Financial Markets
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4) PIU finalized to develop the Attachment D to OM - Leasing Operations Procedures, including
a number of Annexes related to this Attachment;
5) Continued to develop Leasing Policy and Client Evaluation Procedures for assessing lessee’s
ability to generate cash flow from business operations to service lease payments, elaborated a
model of a Lessee' s business plan;
6) Continued to elaborate the PIU Risk management policy for leasing, with the purpose of
identifying and evaluating general financial risks and risks related to leasing transactions, the
work which was performed within PIU through organizing a number of meetings, discussions
and debates (see the table below):
Table 9. Information regarding PIU meeting on developing Risk management Policy on Leasing Component
16.05.2013 Legal expertise on proposed
amendments to PIU Regulation
regarding leasing activity received from
the Ministry of Justice
Adjustment "Table of Divergences" with
PIU/MoAFI arguments on objections and
proposals submitted by the Ministry of
Justice
24.05.2013 Final version of the "Table of
divergences" - a document prepared by
MoAFI juridical department on
comments and suggestions presented
by all ministries and institutions
involved
Final version of the "Table of Divergences”
and adjusted version of the PIU Regulation
03.06.2013 Discussion the procedure of submission
to the Government for approval the
proposed amendments to PIU
Regulation and related documents
Submission by MoAFI of the final version of
"Table of Divergences” of to all ministries
and institutions involved in order to invite
them to the public discussion of the
proposed amendments to PIU Regulation
Date Topics of the meeting The result of the meeting
30.04.2013 Credit Risk management on Leasing activities
Draft version of the PIU's Credit Risk management as part of the Risk management policy for leasing activity.
08.05.2013 Procedure on the analysis and monitoring of the Lessee’s business plan
Draft version of the PIU's Credit Risk management as part of the Risk management policy for leasing activity.
C. Promote quality control bodies, education and research
In the reported second quarter, PIU in order to develop this Program Component has undertaken
several actions, as follows:
1) After defining the procedure of own contribution within this component and all the eligible
costs that have been approved by the EIB, all the Education Institutions (Technical University
from Moldova, National College of Viticulture and Winemaking and Scientific-Practical Institute
of Horticulture and Food Technology), have added the sufficient own contribution part.
2) As a following step, on 3 and 4 April PIU has conducted monitoring visits to all the Educational
Institutions. The scope of visits was to evaluate the actual conditions of the laboratories were
the equipment will be installed; the places and sites were the investment will be made. As a
result the PIU had recommended to the Educational Institutions Representatives to include in
the sub-projects an Commitment to provide satisfactory conditions for the laboratories and
places were the investment will be made. The detailed monitoring visit report can be found in
Annexes nr.7- M&E Educational Institutions visit.
3) At the PIU request, together with Science Department, Training and Rural Extension from
MoAFI, on the 29 of May was held the third-decisional working group consisting of: MoAFI,
Ministry of Education, Academy of Science and related Research Institutions representatives.
During this meeting, the created Working group has evaluated the need of the investments to
be made at educational institutions and approved the sub-projects presented and elaborated
by the Educational Institutions.
In the table below is shown the prospective allocation for above mentioned institutions:
Table 10. Information regarding Education Institutions sub-projects, EUR
04.06.2013 Risk management to the object financed by leasing
Draft version of the PIU's Object finances by leasing Risk management policy.
13.06.2013 The model of a Lessee's business plan
Draft version of the model of a Lessee' s business plan
Education Institutions Total amount of sub-project
Total amount of EIB loan
Value of FB co financing
Tehnical University of Moldova 1,604,280.00 801,077.00 803,203.00
National College of Viticulture and Winemaking Chisinau
1,575,830.00 777,837.00 797,993.00
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4) In this context, PIU has started to prepare all the necessary procedures in order to move
further this component, this included the elaboration of the presentations reports to be sent
to the EIB for approval and procurement plan divided per type of procurement activity and
estimated costs.
5) Additionally, PIU has begun the elaboration of the Attachment F to Operational Manual
regarding the Financing the Education and Research Institutions Component. The objective of
this Component is to raise the capacity and quality and relevance of the training, education,
and research institutions related to viticulture and winemaking sector. This can be achieved by
strengthening the institutional capacity through provision of new and modern lab, vineyard
and micro-winery equipment and creation of all necessary conditions for the adequate
educational and research processes.
D. Program Management Component
On the 25 of April PIU had a meeting with EIB representatives Jaani Pietikainen and Luca PONZELLINI,
Senior Loan Manager.
During the meeting with representatives of the European Investment Bank and PIU were approached
various practical issues related to the effective implementation of the first component “Credit Line”,
next stage of approval Leasing instrument and distribution of the loan to the Educational Institutions
designed for Laboratories, Training and Development of Food Security.
The second part of the meeting was dedicated to the discussions with Minister of Agriculture and
Food Minister Vasile Bumacov and Agriculture Advisor, Waldemar Sochaczewski. The discussion topic
was the development of the agro-food wholesale market, as well as the second phase of technical
assistance for the project.
1. Management Information System elaboration
During the reported period the PIU together with contracted ICT service provider “Noi TI & Service” LLC
continued to develop of the MIS component related to the Credit Line operations and the component
on Monitoring and Evaluation of Final Beneficiaries. The recording and reporting documents used
The Institute of the Viticulture and the Food technology
3,210,891.90 1,574,838.90 1,636,053.00
Total 6,391,001.90 3,153,752.90 3,237,249.00
within both components were developed, tested and adjusted. These components are fully
operational.
2. Monitoring activity
During the reported period of 2013, PIU has continued implementing monitoring activity and has
performed several monitoring visits to the Credit Line Final Beneficiaries and Educational Institutions
as follows:
Table 11 Information regarding monitoring visits during second quarter 2013
Beneficiary Name Monitoring Visit Dates
Tomai Vinex 02-April-13
National College of Viticulture and Winemaking
Chisinau
03-April -13
Tehnical University of Moldova 03-April -13
The Institute of the Viticulture and the Food
technology
04-April -13
Bravo Wine 23-May-13
First Line 07-June-13
Vinaria Zimbreni 07-June-13
Cricova 10-June-13
Fautor 27-June-13
PIU has continued monitoring activity through continuous monitoring and keeping in touch with final
beneficiaries through telephone, emails and visits.
During the second quarter of the 2013, PIU has performed monitoring visits-inspection visit to the
Credit Line potential/beneficiaries. The purpose of the visits performed was to get acquainted with
the actual physical status of the project sites described in the investment project and inspect sites
where procured equipment will be installed. The monitoring visit results for the Tomai Vinex and
Bravo Wine have been described in Procurement activities part and for the concerned Reports for
Tomai Vinex and Bravo Wine please see in Annex nr 5 and 6 M&E visit reports.
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In the period of 3 to 4 April PIU has conducted monitoring visits to all the Educational Institutions. The
scope of visits was to evaluate the actual conditions of the laboratories were the equipment will be
installed; the places and sites were the investment will be made. As a result the PIU had
recommended to the Educational Institutions Representatives to include in the sub-projects an
Commitment to provide satisfactory conditions for the laboratories and places were was requested
the financing from EIB. Additionally in the case of The Institute of the Viticulture and the Food
Technology, as reconstruction is planned from scratch and the project includes complex works, there
is a need in to verify that the project and construction works were set correctly and all the required
works have been included and its costs have been correctly estimated. The detailed monitoring visit
report can be found in Annex nr.7- M&E Educational Institutions visit.
On the 7th of June PIU has performed a monitoring visit to the “First Line". The purpose of the visit
was to verify the procurement of Flexographic machine RELEX GEARLESS C.I. 800/8c and also the
”Firstline” representatives have shown the place where they began to construct storage buildings for
for finished goods (from own resources from future sales). As a result, PIU confirmed that all the
procurements contracts form the EIB sources have been respected. As a future action, PIU will
monitor the own contribution part related to the construction of for storage buildings for finished
goods forecasted to be implemented from future sales. At same time, PIU has performed a Pre-
financing Inspection Visit to “Vinăria Zîmbreni”. FB has requested financing from EIB Credit Line to
procure equipment for grape processing, for wine fermentation and storage, for automated cooling
system and for renovation of processing building. The PIU decided to inspect the FB declared own
contribution for the investment project – processing buildings and technological equipment. PIU
inspected the declared contribution of the Final Beneficiary to the investment project, the premises
where the production buildings will be renovated and collected photo materials on the existing
situation. The detailed monitoring visit reports can be found in Annex nr.8 and 9 - M&E visit reports.
On the 27 of June PIU has undertaken a visit to FB Fautor in order to get acquainted with Sub-project
implementation status - collect pictures from purchased goods, from cellar (which was built from EIB
resources) and from production building (which was renovated from EIB resources) and monitor the
implementation status of procurement contracts while these being implemented by FB. The
procurements are done accordingly to the project. The detailed monitoring visit reports can be found
in Annex nr. 10 - M&E visit report. It was agreed that next PIU visit on monitoring will be when the
implementation status of Sub-project winemaking component will be done, however this is intended
to take place not earlier than august 2013 – when equipment for wine bottling are expected to be
installed.
3. Reporting and Budgeting
During the reported period PIU prepared and submitted the following reports:
1) Financial Reports due to deadlines and formats established by the national legislation to State
Local Authorities (MoF, Fiscal Authority, social insurance authority, etc.);
Table 12. Total Program Management expenditures for I-II quarters 2013, EUR
PIU Management GRM Grant Total
1nd quarter expenditures 68 762,77
- 68 762,77
2nd quarter expenditures 71 039,05 - 71 039,05
Cumulative amount of OPEX as of 30.06.2013
139 801,82 - 139 801,82
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4. Procurement activities
During the 2nd quarter of 2013 the PIU procurement operations were oriented towards the
following main directions:
A) Reviewing procurement documentation of Credit Line Final Beneficiaries, including
- Monitor implementation of procurement contracts by FBs under Credit Line Component.
- Providing support (as requested) to Credit Line Final Beneficiaries in organizing their
procurements according to EIB requirements.
B) Organizing procurements related to PIU; monitor implementation of PIU signed contracts
with suppliers/consultants.
C) Elaborate the Procurement policy and the Procurement Plan for Program Education and
Research Institutions Component.
a) Consultancy and monitoring provided by PIU on procurement aspects to Project Final
Beneficiaries in organizing their procurements under Credit Line Component:*
Date Final Beneficiary
Consultancy/Reviewing undertaken by PIU on procurements organized by FB:
Q2 ↓ 02 April 2013
Tomai Vinex As requested, PIU has received via email from the FB, copies of contracts to be financed from EIB Credit Line. Due to the small contract amounts (up to 100thsnd Euros per contract), all suppliers have been selected by the FB via direct contracting. The FB intends to refurbish existing concrete tanks for wine storage (dress the interior of existing concrete tanks with stainless steel sheets); procure equipment for primary treatment of wine (crushers, grinder pump); equipment for removal of sediments from wine (screw pump with mechanical speed variator); procure machines for working in vines; and procure auxiliary materials necessary for planting 20 ha of vines. The FB intends to procure from EIB loan the following: Refurbishing of existing concrete tanks for wine storage:
1) Contract with Aldea SRL (Moldova) in the amount of 66,300 EUR for procurement of a refrigeration unit for refurbished wine storage tanks and plate filter for filtering the wine.
2) Contract with Bemas-Grup SRL (Romania) in the amount of 74,829 EUR for procurement of materials necessary for capital refurbishment of existing wine storage tanks and procurement
of 3 centrifugal pumps for winemaking.
3) Contract with OSM Engineering SRL (Moldova) in the amount of 44,436 EUR for procurement of wine storage tanks refurbishing services (includes complete renovation of tanks cellar № 5 (refurbishing 18 tanks and related infrastructure with automation process for fermentation processes)
4) Contract with Raccorderie Inox Munaretto SRL (Italy) in the
amount of 74,515.20 EUR, for procurement of other accessories necessary for tanks refurbishment.
Note: The PIU team has performed an inspection visit (on 02/04/2013) within the production premises of Tomai Vinex in order to get acquainted with the reasons why the FB decided to keep the old, concrete tanks and use them as exterior walls while the interior will be dressed with stainless steel sheets. As the director of Tomai Vinex explained (Mr. Sibov) – the main reason to keep the old tanks (18 pcs) is because it is almost impossible to destroy them without using explosives, which is irrelevant because the respective production hall is situated in the middle of the production zone (this same problem with destroying the old concrete tanks was identified in 2012 by PIU during a previous visit at another potential Beneficiary – company Fabso from Sofia village, Hincesti raion). On the other hand, as the FB informed the PIU - the concrete tanks can act as support for the new tanks thus allowing Tomai Vinex to build new tanks using thinner (and thus cheaper) stainless steel sheets. The concrete walls will also act as additional thermal insulation – this contributing to energy efficiency.
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winemaking equipment
1) Contract with Enoveneta Spa (Italy) in the amount of 51,600 EUR, for procurement of equipment for primary treatment of wine (crushers, grinder pump); and equipment for removal of sediments from wine (screw pump with mechanical speed variator).
2) Contract with Crystalman International LLC (China) in the amount of 31,303 Eur for procurement of a kit form for making 1 litre bottle.
Auxiliary materials necessary for planting 20 ha of vines Several contracts were signed for procurement of vine seedlings, wiring, fertilizers, pillars etc. in total amount of ~180,000 Eur. Contracts were signed with Moldovan companies: Vitpom Consult SRL; Spades-Plus SRL; Elvitis-Com SRL; AMPELOS-PLUS SRL, Metalex-Kin SRL; "ÎNTREPRINDEREA PENTRU SILVICULTURĂ COMRAT" ÎS; AMPELOS-PLUS SRL. The procurements were made by FB based on EIB agreed procurement requirements under Credit Line Component and the PIU elaborated Guide on Procurements for Credit Line Component.
23 May,
2013
Bravo Wine
SRL
The FB intends to request and use the EIB loan for building up (from scratch) a wine factory in Stefan-Voda raion, and endow this new factory with new winemaking equipment. As requested, PIU has received from the FB, copies of suppliers’ selection documents for goods/construction services to be financed from EIB Credit Line (received Evaluation Reports and price quotations). Construction of a wine factory:
1) FB has collected price quotations from the following local companies: SRL „Urscons-Prim” - 1 827 883,32 EUR SRL „Darsimid” - 1 916 245,52 EUR SRL „Alimconstruct Grup” - 1 573 974,35 EUR Offer from SRL „Alimconstruct Grup” was disqualified by the FB because of major deviations with reference to the insufficient quantities of construction materials indicated in the price offer (for example 60 tonns of metal and aprox. 30 tonns of concrete less than real necessities) – this leading to the risk of having a non-secure construction. Thus, FB has selected the company SRL „Urscons-Prim”, Moldova. Price quotation is in amount of ~1,827,883.32 EUR (converted from MDL).
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Procurement of winemaking equipment for the new wine factory:
1) FB has collected price quotations from the following companies: SRL Berhord Italy - Moldova 2 432 540 EUR Tecnfood-Group Italy - Moldova 2 0 24 775 EUR Parcitank SA Spain 2 459 876 EUR Fabbri-Inox France - Moldova 1 231 350 EUR No price quotation was disqualified by the FB. Nevertheless, the selected company for contract award was PARCITANK S.A. - 2 459 876 EUR, Spain. FB arguments the selection of the highest price quotation with the following: the emphasis during selection was put exclusively on the quality (both of raw materials used for manufacturing the equipment and quality of the final product – the wine), know how, technological efficiency, small usage costs, equipment use duration, most convenient transportation/delivery/warranty and payment terms.
In conclusion, it is stated that at this stage, the procurements were made by FB based on EIB agreed procurement requirements under Credit Line Component and the PIU elaborated Guide on Procurements for Credit Line Component. The FB undertakes to send to PIU for review copies of contacts to be signed under the 2 selections mentioned above. In addition, in order to get acquainted with the FB own’s contribution (160 ha of young vines), to inspect the place where the future wine factory will be built and endowed out of EIB Credit Line, the PIU team has performed an inspection visit (on 23/05/2013) within the existing young vineyard and future production premises of Bravo Wine SRL in order to get informed/collect info on the proposed investment project. More details on visit findings can be found in Attachment 5.
11 June,
2013
Vinaria
Zimbreni
The FB intends to request and use the EIB loan to procure the following:
1) Equipment for modernizing the grapes processing hall; 2) Equipment for wine fermentation and storage; 3) An automated cooling system
As requested, the FB sent to PIU for review (via e-mail) the following documents with ref. to winemaking equipment supplier selection process: Copies of price quotations received; copy of the quotations evaluation report, signed by FB; copy of the signed contract. The FB intends to procure all of the above mentioned equipment from a single company,
that was selected as follows: Contract for procurement of winemaking equipment. Four price quotations have been received, all from Moldovan companies:
- BERHORD MOLDOVA 1,082,485 Eur - BEMAS MOLDOVA 767,200 Eur - MOLINART MOLDOVA 257,280 Eur - TMINOX MOLDOVA 1,925,860 Eur
FB has selected the price offer from Berhord SRL, Moldova - 1082485
EUR.
Offer from Molinart has been disqualified because the supplier did not
propose full quantities of requested equipment and the proposed tanks
do not correspond to technical specifications. Offer from TMINOX also
has been disqualified because the proposed equipment does not
correspond to technical specifications (in addition the offer does not
include the requested nitrogen generator and the pipes for its
circulation).
In addition, the FB intends to use EIB funds to perform repairing at the
wine storage hall. For this activity (costing ~61,976 Eur) the construction
company is still to be selected.
Though being informed beforehand on procurement requirements
under Filiere du Vin Upgrading Program, the FB, while organizing its
procurement, did not comply with PIU Operation Manual (chapter VI /
para 6.2 / c): “...review the offers received from at least 3 qualified
companies from at least two different countries...”; meaning that the FB
has collected and analysed price quotations from companies/dealers
originating from one country (Moldova).
In conclusion, taking into consideration that the investment activities proposed by FB lead to modernizing the winemaking process – this fully complying to Program objectives, irrespective of the procurement noncompliance described above, PIU qualifies the procurements made by FB as being acceptable.
10 June,
2013
Cricova S.A. As agreed in the PIU eligibility notice on the investment project of Cricova SA, this FB provided for PIU review – documentation on the way the construction services suppliers were selected / copies of respective contracts. PIU has received and reviewed the following:
1) Contract for procurement of Biochemistry hall reconstruction and extension services. Three price quotations have been received: Groven Grup SRL, Moldova – 126,613 Eur;
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Hipercons SRL, Moldova – 137,005 Eur; Speranta Pe-Com SRL, Moldova – 147,287 Eur. FB has selected the smallest price offer from Groven Grup SRL, Moldova - 126,613 Eur and provided for PIU review the copy of signed contract, copies of price quotations and signed minutes of price quotations’ evaluation.
2) Contract for procurement of Sparkling wine main production hall reconstruction services (floors and sewerage sistem). Four price quotations have been received: Groven Grup SRL, Moldova – 201,300 Eur; Consocivil fil. 13, Moldova – 228,983 Eur; Construct resurs SRL, Moldova – 213,700 Eur; Promstroi Grup SA, Moldova – 151,070 Eur. FB has selected the highest price offer from Consocivil fil. 13, Moldova - 228,983 Eur and provided for PIU review the copy of signed contract, copies of price quotations and signed minutes of price quotations’ evaluation. In its Evaluation Report, the FB motivated the selection of the highest price quotation with the fact that Consocivil fil. 13 from technical point of view its quotation corresponds best to the technical requirements set forth in the FB’s reconstruction project design.
3) Contract for procurement of an Elevated runway (for technical
and technological networks) construction services. Two price quotations have been received: Consocivil fil. 13, Moldova – 14,801 Eur; SA Terra Lig, Moldova – 17,399 Eur. FB has selected the smallest price offer from Consocivil fil. 13, Moldova – 14,801 Eur and provided for PIU review copies of price quotations and signed minutes of price quotations’ evaluation.
In addition, at the end of June, PIU representatives have performed a monitoring visit at Cricova’s premises to get acquainted with investment project implementation status and agree on aspects related with filming a short video documentary/success story on Filiere du Vin Program. During the visit were inspected construction sites that are being financed from EIB Credit Line. Cricova informed PIU that construction works are estimated to end mid-August. Beginning with July month Cricova is expecting a team of 15-20 engineers from Italy (representatives of company Innoteca) to come and prepare the engineering networks necessary to install the hybrid
bottling line. Component parts of this bottling line will begin to be shipped to Cricova in July, August and September months. The line is expected to be assembled by October month and its testing will continue till mid-January 2014. The PIU team also inspected the following:
- the yeasts preparation hall – this was fully repaired, equipped and functional;
- the energy block – this was completely constructed and needs to be equipped.
- the hall where the Hybrid bottling line will be installed – at the
moment this hall is being renovated (only the frame of existing building is maintained, all the rest being under capital renovations – roof, floors, engineering networks, walls and insulation etc.)
In conclusion, it is stated that procurements were made by FB based on EIB agreed procurement requirements under Credit Line Component and the PIU elaborated Guide on Procurements for Credit Line Component.
*Final Beneficiaries were receiving continuous support/communication with PIU on procurement issues by means of e-mail/phone/meetings.
B) Procurements organized by PIU; monitoring implementation of signed contracts with
suppliers/consultants.
1.) During the reported period PIU had several staff hiring activities:
- In line with expanding necessities for field monitoring visits under Credit Line Component and
the emerging Research and Education Institutions Component, an additional Project Driver was
contracted by PIU on 20/05/2013 (Mr. Gheras Constantin ).
- In order to have expertise and advice (necessary to Project Executive Director (PED), PIU staff
members, Final Beneficiaries and other relevant stakeholders) on all aspects that involve
investments to be made in construction / reconstruction of facilities related to wine sector,
under Credit Line Component, an Construction Specialist was competitively selected by PIU.
Contract was signed with Mrs. Irăna Ermacova-Cercel on May 01, 2013.
2.) During Q2, 2013, the PIU has organized a series of procurements/tenders and signed the
following contracts/amendments to existing contracts*:
Activity
start date
Procurement method & subject
of the contract
Contracted company Contract
implementation
Contract
value (~
31
status converted in
Euro)
10 April
2013
Direct contracting for
participation services at the
exhibition Wine Vernisaj – from
April 16, 2013 (Contract no.
#2013 31C6A from April 10, 2013)
Association of
Producers and
Exporters of wine
Will be
implemented by
30 April, 2013
600 Euro
10 April,
2013
Direct Contracting for the
following services: car washing,
office cleaning, seminars catering
services, heating/electricity and
AC maintenance, minor repairing
- all for PIU rented offices
(Contract no. 2013 31C6B from
April 10, 2013)
SRL ”Agrofermotech” Will be
implemented by
31 January,
2013
4550 Euro
12 June,
2013
Direct contracting of video spot
creation services – filming of a
video spot on Program success
stories – to attract more potential
beneficiaries (Contract no. #2013
31C6D from June 12, 2013)
Private entrepreneur
– Mr. Iurie Virlan
Will be
implemented by
31 January,
2013
2330 Euro
* Very small procurements (up to 600 Euro) that did not require any contract signature were not reflected in this report.
In total, during the reported period (Q2: April 01 – July 01, 2013) the PIU spent 71 039 EUR for goods,
services, and consulting services (including salaries of PIU staff). This amount came as contribution of
RM Government.
5. Program PR actions
In the second quarter of 2013, Program information was disseminated through different
channels: radio publicity, seminars, exhibitions, forums, articles in magazines and internet portals.
During the second quarter, due to Russian diversity from Moldova, it was decided to air the Russian
version of the radio spot in the UTA Gagauzia region due to a big number of wine and grape producers
in the region. PIU has started the airing of the Program Russian radio spot at the radio chain “Albena”
in biggest towns from the region: Comrat and Taraclia for a period of 3 months starting with 20 of
May 2013 in order to continue targeting the small and medium wine sector beneficiaries.
In the same period, PIU has contracted a professional company in order to elaborate the Program
video spot. The video concept will be based on success stories and interviews with Final Beneficiaries.
The spot is indented to be ready starting with mid of August.
PIU started collaboration with several Firms providing Consultancy in Agriculture, such as” ACSA
and “Success Consulting”. These consultancy firms organize seminars, trainings; provide assistance
and consultancy in agricultural and rural zones. PIU has made several presentations regarding the
Program’s activity and has distributed informative leaflets in wine related regions.
In May, in “Punkt” a well-known magazine, PIU has placed an interview with Mr. Bumacov Vasile, the
Ministry of the Agriculture and Food Industry regarding the Program’s activity development and
current situation of the wine sector in Moldova. In addition, in “Logos Press” newspaper N 23(999)
from the 21 of June, 2013 appeared an article dedicated to the Filliere du Vin Credits, mentioning all
the Final Beneficiaries that have received EIB financing so far and credits conditions and interests
rates.
PIU team has participated to wine related exhibition in Moldova, at “Vernisajul Vinului”-Spring Edition
2013 held on 16 of April, event which is gathering wine producers, wine professionals and wine lovers.
PIU has been present with Program’s informative Banners, distributed promotion leaflets and
materials and has discussed with the traditional wine industry representatives, in order to inform
Potential Beneficiaries with the scope, objectives and financial instruments of the Program, with
eligible and ineligible activities/beneficiaries of the Program.
PIU has also updated the design and the text from the informative leaflets and all the promotion
materials. Additionally, PIU has placed Promotional Stands at Ministry of Agriculture and Food
Industry office, located at the 7th Floor along with wine producer’s stands. During the mentioned
period PIU has placed information about the program on several websites with tangency to the small
and micro-enterprises, such as: vinmoldova.md, odimm.md and continued to constantly update and
improve the website content with events and news in order to maintain transparency and a good
visibility of Program’s activity.
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Annex 1. Total Project Costs for the Project - Cumulative Data (in EUR)
Project component/Activity
Current quarter Cumulative to date from the beginning of 2013
Annex 4 . Planned activities for the III quarter 2013
No Activities III quarter
July
Au
gust
Sep
tem
be
r
I CREDIT LINE
1 To organize informative meetings with potential beneficiaries through: regional agricultural divisions, professional associations from the sector, NAF Agroinform, ACSA and other relevant institutions
2 To identify potential beneficiaries of the Program and inform them about the way to access EIB funds,
terms and conditions for on-lending, procurement rules
3 To consult potential beneficiaries in filling in the “Questionnaire of the Program applicant” and Business
plan elaboration.
4 To consult potential beneficiaries on eligibility issues of the investment projects
5 Continuous review of Procurement documentation of the Final Beneficiaries. Continuous consulting of
potential beneficiaries on procurement rules/practices to be followed
6 To finance sub-projects through participating commercial banks based on request of payment from CLD
7 To analyse and review Business Plans of potential beneficiaries
9 To submit to the MoF the disbursement request from EIB loan.
10 To consolidate statistic and financial data on final beneficiaries.
II LEASING
1 To continue monitoring of updates in the Moldovan regulations on leasing activities, legal and fiscal aspects of the finance leasing
2 To finalize design of Attachment D to Program Operations Manual regarding the Leasing instrument
3 To develop Leasing Policy and Client Evaluation Procedures
4 To complete design of the Beneficiary Leasing Guide and Business Plan.
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5 To elaborate the Accounting Policy and Financial Reporting procedures on Leasing operations in
accordance with NAS and IFRS principles and rules
6 To elaborate the Risk Management Manual
7 To elaborate the Management Information System (MIS) for leasing activities
8 To elaborate the Internal Audit and Monitoring Policy for leasing activities
9 To elaborate the Internal Security Policy
10 To organize several informative meetings with potential beneficiaries in order to inform on lease terms and
conditions, provide consultancy to potential beneficiaries and support them to fill in the leasing documents
11 To identify local insurance companies in order to establish partnership contacts
12 To organize abroad study visit to a leasing company specialized in finance leasing of wine equipment,
machinery and viticulture vehicles
13 To attend relevant training courses such as:
a) Client's Business and Lease application Analysis. Credit scoring of lessee;
b) Business planning and financial modeling for leasing activities. Financial Analysis of leasing activity;
c) Delinquency management. Analysis of reimbursement risk. Nonperforming lease financing recovery.
d) Risk management of Leasing transactions
14 To translate part of Operations Manual and other relevant documents on leasing instrument
III Capital Investments & Loan guarantees
To collaborate with external consultancy offered within Study on the framework for the development of the “Filière
du Vin” Upgrading and other consultancy offered by EIB on development of these financial instruments
IV Promote quality control bodies, education and research
1 To finalize and send to EIB for approval the draft of Operational Manual for Project Component Attachment F
“FINANCING OF EDUCATION AND RESEARCH INSTITUTIONS”
2 Present the OM on component F to Program’s Council of Observers for approval
3 Begin implementing the component F: “FINANCING OF EDUCATION AND RESEARCH INSTITUTIONS
COMPONENT” (starting with first procurements). V Procurement and operational activities
1 Continuously monitor implementation of goods/consulting contracts. Sign/extend new contracts for supply
of goods and services (including individual consulting services)
2 To execute monthly payments of PIU staff and individually contracted consultants salaries, payments being
made on the date of calculation and payment, not later than the last day of the current month.
VI PR activities
1 To maintain and update the website’s content
2 To promote the Program through Radio Channels, diffusing a Russian version in UTA Gagauzia region
3 To develop Program’s video spot and contract the broadcasting company
4 To participate at wine/agricultural TV shows (TV show Bastina, of the Moldova1 channel, wine related
programs)
5 To write, edit and place several articles in national newspapers and magazines targeting the agriculture and wine
industry (Agricultura Moldovei, Curierul Agricol, Viticultura şi Vinificaţia, Business Class, Punkt, etc.)
6 Organize meetings in territories together with Agricultural Consultants “Agroinform”, “ACSA” and “National
Federation of Farmers” and Success Consulting
7 Distribute new informative leaflets in program participating banks, especially in representative’s outside
Chisinau
V MIS elaboration and implementation
1 To organize meetings between PIU and Noi TI & Service in order to achieve the MIS development plan
2 To develop system for recording and reporting the credit application and documents within Credit Line
3 To test and adjust documents and reports developed for Credit Line instrument
4 To develop database of the clients which will benefit from financing through Leasing instrument
5 To elaborate the form of request for payment, for finance contract, payment schedule for leasing, minutes
– decisions of financing committee, etc.
6 To develop database of suppliers of equipment and machinery, which will be procured for leasing
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operations, and to develop reporting system per suppliers
7 To develop reporting system for Leasing instrument
8 To test and adjust documents and reports developed for Leasing instrument
9 To develop reporting system on performance indicators (second level indicators)
VI Budgeting and Reporting
1 To prepare all quarterly reports for 2013 and annual reports for 2013 for relevant institutions (MoF, Fiscal
Authority, social insurance authority, etc.)
2 To elaborate Program Progress report for the IV quarter of 2013
3 To develop and submit to MoAFI for approval and MoF for coordination annual financial plans and detailed
Program budget for 2013 per components, according to MoF requirements
4 To develop detailed quarterly plan of activities for PIU for 2013
5 To elaborate and submit quarterly progress reports as required by Finance Contract signed with EIB
VII Monitoring and Evaluation
1 To continue performing regular monitoring visits and collect information regarding BF Sub-projects
implementation
2 To prepare Monitoring Visit reports for sub-projects implemented by FB
Annex 5. M&E Monitoring visit “Tomai Vinex”
Pre-financing Inspection Visit Report at FB site
Project Component: Filiere du Vin, Credit Line Component
Final Beneficiary Name (FB):
Tomai Vinex
Date of Visit:
02/April/2013
Monitoring Place Visit:
Tomai village, Comrat raion.
Monitoring Visit Participants:
Oleg LIPCEAN – PIU Procurement Officer
Ecaterina Caplevatchi – PIU Lease Specialist
Radu COJOCARU – PIU Driver/Courier
Purpose of Visit:
FB has requested financing from EIB Credit Line to refurbish
existing soviet-time-old concrete tanks for wine storage
(dress the interior of existing 18 concrete tanks with stainless
steel sheets); and procure equipment/infrastructure in the
respective hall. The PIU decided to inspect the existing tanks,
discuss with the FB the reasons for using the old tanks.
Partners, Beneficiaries and
other stakeholders met:
Mr. Sibov – Director of Tomai Vinex.
Report prepared by: Oleg LIPCEAN
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Part 1. Visit details /outcome
The PIU team has performed an inspection visit (on 02/04/2013) within the production premises of Tomai Vinex in order to get acquainted with the reasons why the FB decided to keep the old, concrete tanks and use them as exterior walls while the interior will be dressed with stainless steel sheets. As the director of Tomai Vinex explained (Mr. Sibov) – the main reason to keep the old tanks (18 pcs) is because it is almost impossible to destroy them without using explosives, which is irrelevant because the respective production hall is situated in the middle of the production zone (this same problem with destroying the old concrete tanks was identified in 2012 by PIU during a previous visit at another potential Beneficiary – company Fabso from Sofia village, Hincesti raion). On the other hand, as the FB informed the PIU - the concrete tanks can act as support for the new tanks thus allowing Tomai Vinex to build new tanks using thinner (and thus cheaper) stainless steel sheets. The concrete walls will also act as additional thermal insulation – this contributing to energy efficiency.
Part 2. Conclusion
Based on the information provided by the FB, the PIU found the proposed technological scheme/FB’ arguments
to maintain the old tanks - as acceptable to be financed from EIB Credit Line. Future monitoring will be required
to inspect the way the tanks are refurbished.
Annex 6. M&E Monitoring visit “ Bravo Wine”
Pre-financing Inspection Visit Report at FB site
Project Component: Filiere du Vin, Credit Line Component
Final Beneficiary Name (FB):
Bravo Wine LLC
Date of Visit:
23/May/2013
Monitoring Place Visit:
Stefan Voda raion, nearby Purcari village.
Monitoring Visit
Participants:
Oleg LIPCEAN – PIU Procurement Officer
Natalia Agapii – PIU Finance Specialist
Purpose of Visit:
FB has requested financing from EIB Credit Line to build from scratch
and fully equip a wine making factory, procure additional vineyard
maintenance equipment. The PIU decided to inspect the FB declared
own contribution for the investment project (160 ha of young vines),
inspect the place where the future wine factory is planned to be built.
The PIU team has performed an inspection visit (on 23/05/2013) within the existing young vineyard and future production premises of Bravo Wine SRL in order to get informed/collect info on the following:
1) Inspect the declared contribution of the Final Beneficiary to the investment project 2) Inspect the premises where the future winery production buildings will be constructed and
equipped out of the EIB Loan proceeds. 3) Collect photo materials on the existing situation – to be used further as success story material
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The PIU representatives met with Bravo Wine director – Mr. Eugeniu Pislaru, who showed the vineyard, the place where the winery is planned to be built, the place where future “wine” hotel is planned to be built etc. Being asked by PIU on the estimated date to begin the construction of the winery, Mr. Pislaru has explained that he is still in the process of finalizing the procurements/tenders for construction services, procurement of winemaking equipment and vineyard equipment. No concrete date was provided to PIU with reference to submitting to PIU copies of contracts, copies of price quotations received with Evaluation reports. Mr. Pislaru was repeatedly informed by PIU that in order to be able to issue a PIU acceptance letter on the investment project, PIU needs these procurement documents. The following was inspected by PIU:
FB own contribution – 160ha of young vineyard:
Annex 7. M&E Educational Institutions visits
Visit Meeting Notes
Project Component: Filiere du Vin, Credit Line Component
Final Beneficiary Name (FB):
Tehnical University of Moldova
National College of Viticulture and Winemaking Chisinau
The Institute of the Viticulture and the Food technology
Date of Visit: 03.04.2013
04.03.2013
Monitoring Visit Participants:
Oleg Lipcean, Procurement Manager
Diana Prisacaru, Administrative Manager
Purpose of Visit:
The scope of visits was to evaluate the actual conditions of the laboratories were the equipment will be installed; the places and sites were the investment will be made.
Partners, Beneficiaries and
other stakeholders met:
Mr. Balanuta, Project Coordinator UTM
Proffesors, CNVVC
Emil Rusu, Project Coordinator ISPHTA
Report prepared by: Diana Prisacaru
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Part 1. Beneficiary Presentation
Beneficiary: Technical University of Moldova
Project Amount,
including :
Total Amount: 1.604.280 EUR
EIB Fund: 801.077 EUR
Own Contribution: 803.203 EUR
Meeting notes All the laboratories require renovation and modernization as they are equipped with
old furniture, windows need to be replaced, electricity to be changed, the walls must
be rebuilt.
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The University Dean has promised to assure with satisfactory conditions and repair the
laboratories in the case when the project will be approved by the working group under
MoAFI and EIB.
Same agreement they had with a Edelweiss Foundation that has equipped the Food
Industry Laboratory and the University has executed all the needed repairing.
One of the degustation laboratory in which will be installed EIB financed equipment.
The lab has been entirely renovated, windows has been changed (UTM has own
window line production).
Microvinification section has been renovated.
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Recomandations: To include in the Investment Sub-project, a commitment in which the University agrees
to renovate the laboratories, places, sections equipped by the EIB funds.
As own contribution permits, to include new furniture expenditures.
Beneficiary: National College of Viticulture and Winemaking Chisinau
Project Amount,
including :
Total Amount: 1,575,830EUR
EIB Fund: 777,837 EUR
Own Contribution: 797,993 EUR
Meeting notes
The College did not have any renovation activities for many years; therefore there is a
need of capital investments to be made.
If other universities have had access to some investments, in the case of College, all
laboratories requires repairs, the class rooms are equipped with old furniture,
windows need to be replaced, electricity system to be changed, the walls must be
rebuild.
Main Laboratory (202 ) in which the equipment will be installed.
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Recommendations: To include commitment to assure good conditions for the
laboratories and to add new furniture in the sub-project.
Beneficiary: The Institute of the Viticulture and the Food technology
Project Amount,
including :
Total Amount: 2 907 931,5 EUR
EIB Fund: 1 271 878,5 EUR
Own Contribution: 1 636 053,0EUR
Meeting notes
Laboratories are in very good condition, renovations has been made in almost all the
rooms
Recommendations: to add furniture and working tools.
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Second part of the Sub-project: Renovation of the Microvinification section.
Currently the section is completely destroyed and requires complex renovations,
starting with roof changing, the change of electricity, water systems, walls renovation.
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One of the important sections of the sub-project: Revitalization of the Green house.
Curent green house :
The place intended for the second green house revitalization.
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Recommendation:
As Reconstruction is planned from scratch and the project includes complex works,
there is a need in to verify that the project and construction works were set correctly
and all the required works have been included and its costs have been correctly
estimated. The current status at the moment is disastrous, there is mold, water
flowing everywhere, roof falls and an old electricity system.
Annex 8. M&E Monitoring visit “First Line"
Procurement Monitoring Report on:
Sub-project pre-implementation and current implementation status
Date of visit: June 07, 2013
Project Component: Filiere du Vin Credit Line Component
Final Beneficiary (FB) name: “First Line" SRL
Monitoring visit place: Republica Moldova, mun. Chișinău şos.Munceşti,801
FB has requested financing from EIB Credit Line to procure equipment for
grape processing, for wine fermentation and storage, for automated
cooling system and for renovation of processing building. The PIU decided
to inspect the FB declared own contribution for the investment project –
processing buildings and technological equipment.
Partners, Beneficiaries and
other stakeholders met:
Mr. Octavian Țurcanu – Director of ”Vinăria Zîmbreni” SRL.
Report prepared by: Valeriu Moraru
Part 1. Visit details /outcome
The PIU team has performed an inspection visit (on 07/06/2013) within the existing processing buildings of ”Vinăria Zîmbreni” SRL in order to get informed/collect info on the following:
4) Inspect the declared contribution of the Final Beneficiary to the investment project. 5) Inspect the premises where the production buildings will be renovated. 6) Collect photo materials on the existing situation – to be used further as success story material
The PIU representatives met with ”Vinăria Zîmbreni”SRL director – Mr. Octavian Țurcanu, who showed all the factory and the production buildings which will be renovated, etc. The following was inspected by PIU:
FB own contribution – construction buildings:
FB own contribution – construction buildings which will be renovated from future sales:
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FB own contribution – wine making equipment:
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Part 2. Conclusion
As a result of the monitoring visit, PIU will request from the potential FB the contract of purchase of the production
buildings.
Annex 10. M&E Monitoring visit "Fautor "LLC
Procurement Monitoring Report on:
Sub-project current implementation status
Date of visit: June 27, 2013
Project Component: Filiere du Vin Credit Line Component
Final Beneficiary (FB) name: "Fautor"LLC
Monitoring visit place: v. Tigheci, district Leova, Moldova
