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Republic of Moldova

Post Disaster Needs Assessment

Floods 2010

A report prepared by the Government of the Republic of Moldova with Supportfrom The European Union, the United Nations, and the World Bank

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ForewordFORTHCOMING

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AcknowledgementsFORTHCOMING

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Table of ContentsForeword

Acknowledgments

Table of ContentsList of Tables

List of Figures

Acronyms and Abbreviations

Executive Summary

Section I. The Disaster

1.1 The 2010 Flood1.2 The Immediate Response1.3 Request for Assistance and International Response1.4 Social and Economic Background of the Affected Areas

Section II. Estimate of Damage, Losses, Needs and Human Development Impact

2.1 Methodology2.2. Summary of Damage, Losses, and Needs2.3 Sector Impacts: Infrastructure Sectors2.4 Sector Impacts: Productive Sectors2.5 Sector Impacts: Social Sectors2.6 Cross-cutting Issues

Section III. Economic and Social Impact

3.1 Macroeconomic Impact3.2 Impact on Livelihoods and Incomes

Section IV. Recovery and Reconstruction Requirements

4.1 Recovery and Reconstruction Framework

4.2 Recovery and Reconstruction Program4.3 The Way ForwardSection V. Reducing Risks

5.1 Situation during the Disaster5.2 Institutional Framework for Disaster Risk Management5.3 Needs for Disaster Risk Management

Annexes

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List of TablesFORTHCOMING

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List of FiguresFORTHCOMING

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List of AbbreviationsFORTHCOMING

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Executive Summary

A. The Disaster

A breach of a dam on the night of 5-6 July 2010 caused extensive flooding into the Prut

river valley forcing the evacuation of more than 2,300 people and damaging over 1,110

homes. In the second half of June 2010, heavy rainfall in northern Moldova, as well as in theCarpathian Mountains (in Romania and Ukraine) where the Prut and Nistru rivers have theirsources, resulted in peak flood levels for the Prut river, putting extreme water pressure on thedam (which was poorly maintained) that protects Moldovan valley downstream.

The damaged dam near the Prut River in the northern part of the flooded area (near

Nemteni) is now under water, and also located in an area of difficult access, within the

flooded area. Any necessary structural engineering to repair and seal the dams water leakage,has been very slow to date, since the access road is still being built. Another protective dam islocated close to the border crossing between Romania and the Republic of Moldova (Leuseni-Albita Bridge). The dam at the southern edge has an accumulation canal to control high floodwaters from the nearby Prut River. On July 15, this dam had to be artificially breached to allow adischarge of water from the inundation zone, back into the Prut River. The situation is serioussince the northern dam has not been repaired and the Prut River is leaking water into theinundation zone. The southern side of the Prut River is allowing flood water out.

The overall situation has improved very slowly, because the outflow is too limited (some 75m3/s). According to the water national authority (Apele Moldovei), increased water levels were

observed also in the Nistru River, leading to dam fortification in Stefan-Voda and Anenii Noi.Downstream in the southern region of the flooded zone, preliminary assessments of the safety ofthe dams have been donebetween Leova and the discharge point of the Prut river into theDanubethe situation was assessed as not critical. However, on July 19-20, an additional 70houses and 2,500 hectares of agricultural land in Stoianovca and Ghioltosu (Cantemir District)were at risk to be flooded, after a new dam broke and started to leak near the village of Goteti.

A Special Committee to deal with the emergency situation, chaired by the Minister of State,Victor Bodiu, was established. In order to more effectively coordinate the response, theCommittee was based in the flooded areas, weeks after the floods started. In the aftermath of thefloods, the Government staged a commendable relief effort, involving about 2,500 staff from theMinistry of Interior, Civil Protection and Emergency Situation Service, civilians, volunteers,National Army, the Border Guards Service, local Public Administration, as well as foreignexperts.

According to the first report of the Commission for mitigating the consequences of the floods, asof July 20, the total damage and losses is: 4100 hectares of crops; 9 hectares of orchids; 4108hectares of pasture; 85 communities from 16 districts were flooded; approximate 3,000 peoplewere evacuated, with about 850 houses flooded and an additional 900 at risk of being flooded; 17

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bridges, 200 wells, 182 km of roads, 7 dams, educational and administrative buildings, alldestroyed.

The Government of Moldova, requested development partners to undertake a Post-DisasterNeeds Assessment (PDNA) jointly with the Government. In response, development partners

organized a team of local and international experts to initiate the PDNA process for the floodedareas.

B. Economic and Social Impacts

The floods caused damages and losses, equivalent to about 0.15 percent of GDP. The floodsaffected primarily rural and agricultural regions of the country, that account approximately 0.15percent of GDP. The structure of damage among sectors of economic activity in the affectedareas is also of special relevance since the infrastructure sustained 67 percent and the productivesectors sustained 26 percent the total damages. The structure of losses is also concentratedheavily in the infrastructure (70 percent) and productive (24 percent) sectors. Apart from the

typical effects concentrated on infrastructure, the productive sector has also been seriously hit.While damages and losses in the social and cross-cutting sectors are not large in financial termsthe human dimension of this disaster remains as vital as is seen in the case of other naturaldisasters. This means lost incomes for the affected population, together with property, makes thepopulation especially vulnerable and in need.

Estimates show that the value of destruction of assets (damage) is 231.96 million MDL, and thatthe reduction in flows of the economy (losses), arising from the flooding, amounts to a further595.86 million MDL1.

When breaking down the effects of the floods by individual sectors of economic activity, the

damages are concentrated heavily in sectors such as housing (84.0 million, or 36 percent of thetotal), transport (61.8 million, or 27 percent), and agriculture (56.13 million, or 24 percent).

Damage, Losses, and Needs Assessment

This Post-Disaster Needs Assessment analysis covers damages, losses, and economic and

social impacts. Damage (direct impact) refers to the impact on assets, stock (including finalgoods, raw materials), and property.Losses (indirect impact) refer to flows that will be affected,such as production declines, reduced incomes, and increased expenditures, over a time perioduntil the economy and assets are recovered. Economic and social impacts includemacroeconomic impacts, poverty impacts, employment and livelihoods impacts, and socialimpacts.

The PDNA estimated that damage and losses from the floods amount to a total of 827.81

MDL (US$64.57 million) (Table 1). While the damage to assets occurred at the time of thefloods, the associated changes in economic flows will last beyond the present calendar year. In

16 A uniform exchange rate of 12.82 Moldovan Lei per US Dollar has been used throughout the assessment, as theaverage rate of exchange for 2010 until August 10, 2010.

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some sectors and cases, the effects may be felt in 2011 depending on the speed and efficiency ofthe post-disaster recovery and reconstruction activities.

Table 1: Summary of Disaster Effects and Needs by Sector (in MDL million)(in millions of Lei)

Sector/Sub-Sector Damage Losses Total

Short-term

Needs

Medium-

term

Needs Total

Infrastructure

Embankments/Flood Control 0.04 - 0.04 12.49 157.90 170.38

Energy 6.56 6.56 6.56 6.56

Housing 84.00 304.60 388.60 219.00 156.50 375.50

Roads 25.65 87.91 113.56 18.22 10.22 28.44

Railways 36.15 9.90 46.05 - 35.91 35.91

Water and Sanitation 2.00 16.70 18.70 6.74 12.00 18.74

Productive

Agriculture 56.13 139.67 195.80 58.50 87.10 145.60

Livelihoods 3.10 4.05 7.15 8.93 16.50 25.43Social

Education - 18.94 18.94 26.32 12.60 38.92

Health 0.95 2.86 3.82 21.98 8.66 30.64

Social Protection - - - 11.31 2.67 13.98

Cross-cutting

Environment 17.37 11.22 28.59 0.20 15.49 15.69

Disaster Risk Management - - - 3.38 52.48 55.87

TOTAL (in MDL) 231.96 595.86 827.81 393.62 568.03 961.65

TOTAL (in USD) 18.09 46.48 64.57 30.70 44.31 75.01

Note: Currency conversion rate: MDL 12.82 =USD 1 (average for 2010)

The assessment of damage and losses provides a basis for determining recovery and

reconstruction needs. The assessment of damage provides a basis for estimating reconstructionrequirements, while the estimation of losses provides an indication of the recovery needs toaddress the reduction or decline in economic activity and in personal and household income. Thetwo estimates are then combined to establish overall needs to achieve full recovery of economicactivities at the macroeconomic level and at the individual or household level.

A total of 393.62 million lei (US$30.70 million) is required to meet short term recovery

needs (until December 31, 2010), and a total of 568.03 million lei (US$44.31 million) is

required for the medium term (until June 2012) recovery and reconstruction efforts (Table

2). Larger investments, particularly in disaster risk management, may need to be considered inthe longer term. The exact public sector need depends on the choices the government makes onthe specific programs to implement, the timing and pacing of those programs, and theeffectiveness with which these programs are implemented. Financing can come from a variety ofsources, including the national budget, local government budgets, private sector contributions,and grants and concessional loans from development partners.

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The needs for financing may be large, but the cost of doing nothing would be larger. ThePDNA estimates the total cost of recovery and reconstruction at 961.65 million lei (US$75.01million). Given the limited capacity of the flood and disaster management system in Moldova,and the increased frequency and intensity of floods, such costs can be expected to recur morefrequently, unless urgent efforts are made to mitigate the effects of future disasters.

C. Recovery and Reconstruction Strategy

Building back better is necessary, but it is not enough. While Cotul Moriis flooding couldnot have necessarily been prevented given the deterioration of the countrys flood controlsystem, its extensive impact could have been prevented. Preventing such impacts in the futurerequires attention to the governance of Moldovan development in areas like land use planning,housing, water management, environmental protection, and disaster risk mitigation.

In implementing recovery and reconstruction, and looking beyond the recent flooding to

the future,five areas stand out as meriting particular attention:

D. Guiding Principles for Recovery and Reconstruction

A set of guiding principles will govern implementation of the recovery and reconstruction

program. The purposed of these principles is to enhance the effectiveness of recovery andreconstruction efforts, increase transparency and accountability, and ensure that resources aretranslated into results on the ground.

A transparent, accountable, and results-based recovery and reconstruction program

Comprehensive and straightforward systems for monitoring activities, tracking funds, and

evaluating projects and programs will be implemented by all stakeholders (including theprovision of regular and transparent reporting against all funding sources).

Results and progress will be tracked and reported to the public and development partnersthrough regular meetings, the media, and a dedicated recovery and reconstructionwebsite.

All agencies involved in the recovery and reconstruction program will undertakeappropriate audits of their activities and funds.

Independent complaints handling mechanisms should be integrated into major projects to

enable greater accountability.

Community-based, people-centered, and equitable approaches

Community-based, participatory approaches that engage local communities in decision-making, implementation, and monitoring of activities will be adopted to increase thequality and speed of reconstruction, aligning projects with real needs, and lowering therisk of misuse of funds.

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Projects should maximize the use of local initiative, resources, and capacities. Planningand execution will be based on local knowledge, skills, materials, and methods, takinginto account the need for affordable solutions.

Although disasters increase the vulnerability of all, groups who are already disadvantagesmay need special assistance and protection. Particular priority will be given to poor,marginalized female-headed households, children (including orphans), elderly, andpeople with disabilities.

The capacity of local communities will be built at every stage of the recovery andreconstruction effort, with a focus on reducing vulnerability to future disasters.

Reduction of future risks

With floods becoming a regular risk in Moldova, integrated disaster risk managementplans that take into consideration all likely significant hazards are needed to reduce the

impact of future disasters.

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Section I. The DisasterThe 2010 Floods

The Republic of Moldova is prone to different kinds of natural hazards, including drought,floods, severe weather, earthquakes, and landslides. On average, northern Moldova experiencesa drought once every 10 years, central Moldova once every five to six years, and southernMoldova once every three to four years.2 Average annual losses between 1996 and 2004 werearound $19 million per year.3 Abnormally high temperatures and low rainfall over a three-yearperiod resulted in a severe drought in 2007, which crippled Moldovas agricultural sector,resulting in $1.2 billion in losses.4 The effects of poor nutrition were exacerbated by reducedaccess to potable water, particularly in rural areas where 45% of the population relies on wells astheir main source of drinking water. Heavy rains result in frequent floods (an average of 1.2 peryear, 1992-2005), to which 40% of the settled areas in the country are exposed. Floods result inaverage annual damages of around five million dollars.5 In 2008 the country experienced severe

torrential rains, which together with releases from upstream in Ukraine, led to flooding in boththe northern and southern areas of the country. Moldova incurred $120 million in losses fromthis event.6

In the second half of June 2010, heavy rain falls in northern Moldova, as well as the Carpathians(in Romania and Ukraine) where the Prutand Nistru rivers have their sources,resulted in peak flood level of the Prut riverwhich put an extreme water pressure in thedam (which was poorly maintained), protecting the Moldovan valley

downstream. The breach of the dam on thenight of 5-6 July, caused an extensive floodinto the valley forcing the evacuation ofmore than 3,000 persons.

The damaged dam near the Prut River inthe northern part of the flooded area (nearNemteni) is under water, and also located in an area of difficult access, within the flooded area.Any necessary structural engineering to repair and seal the dams water leakage, has been veryslow to date, since the access road is still being built. Another protective dam is located, close tothe border crossing between Romania and the Republic of Moldova (Leuseni-Albita Bridge).

2 Drought has become more frequent and intense during the last two decades, appearing nine times (1990, 1992,1994, 1996, 2000, 2001, 2003, 2007), leading to significant crop losses. In 1990, 1992, 2003, and 2007 drought wasobserved during the entire vegetative season. In the remaining years drought struck during summertime.3 Societatea de Cruce Rosie a Moldovei and Departamentul Situatsii Exceptionale al Respublicii Moldova, 2005,Opredelenie uviazimosti districtsov i naselennykh punktov Respublki Moldova k chrezvychainym situatsiiam

prirodnogo i tekhnogennogo kharaktera .4 National Hydrometeorological Service and Ministry of Agriculture and Food Industry.5 World Bank, 2007,Rural Productivity in Moldova Managing Natural Vulnerability.6 Official estimates.

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The dam at the southern edge has an accumulation canal to control high flood waters fromnearby Prut River. This dam had to be breached artificially to allow a discharge (around July 15)of water from the inundation zone, back into the Prut River. The situation is serious since thenorthern dam has not been repaired and the Prut River is leaking water in the inundation zone.The southern side of the Prut River is allowing flood water out.

The overall situation has improved very slowly, because the outflow is too limited (some 75m3/s). According to the water national authority (Apele Moldovei), increases of the water levelwas observed also in the Nistru River, thus the dams were fortified in Stefan-Voda and AneniiNoi. Downstream in the southern region of the flooded zone, preliminary assessments of thesafety of the dams have been done, between Leova and the discharge point of the river Prut intothe Danube, the situation was assessed as not critical. However, on July 19-20 additional 70houses and 2,500 hectares of agricultural land in Stoianovca and Ghioltosu, (Cantemir District)are at risk to be flooded, after a new dam broke off and start to leak near the village of Goteti.

According to the first report of the recently created Commission for mitigating the consequences

of the floods, as of July 20, the total damage and losses is as follows: 4100 hectares of crops; 9hectares of orchids; 4108 hectares of pasture; 85 communities from 16 districts were flooded;approximate 3,000 people were evacuated, with about 850 houses flooded and an additional 900at risk of being flooded; 17 bridges, 200 wells, 182 km of roads, 7 dams, educational andadministrative buildings, all destroyed.

Immediate Response

National response had to be prompt and the Government took immediate measures to minimizethe consequences of floods from own resources. A Special Committee to deal with theemergency situation, chaired by the Minister of State, Victor Bodiu, was established. In order tomore effectively coordinate the response, the Committee was based in the flooded areas, weeksafter the floods started.

For evacuation of people, prevention and delivery of the urgent assistance, all available forceswere involved - about 2,500 staff from the Ministry of Interior, Civil Protection and EmergencySituation Service, Civilians and Volunteers, National Army, Border Guards Service, local PublicAdministration, as well as foreign experts.

Parallel efforts have been undertaken since day 1 in order to mobilize the maximum resources possible. One of the first actions undertaken by the Government, was an address to theinternational and donor community by Prime Minister Vladimir Filat, in order to securesufficient resources for the immediate response, as well as for the rehabilitation of the floodedareas, and the elimination of flood consequences. A special account was opened for collectingmonetary donations (25 mln MDL/roughy 2 mln USD have been collected so far), privateundertakings have been encouraged.

The Government has started planning for building 700 houses from the flooded areas, the site fora new village in a risk-free area having already been identified, site preparatory works carriedout. In order to ensure the assessment of the losses and to coordinate the mitigations activities, on

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14 July the Government created a special National Commission, chaired by the Prime-Minister.It is composed of most of the Ministers, relevant agencies and representatives of the local andcentral public administration, and will be responsible for: conducting (together with development partners) an assessment of the damages and establish

key measures to mitigate the consequences of the floods (including identification of the

required resources), coordinating the implementation of the mitigation activities and monitoring the use of the

materials and financial resources allocated for this purpose, and ensuring the transparent distribution of the humanitarian assistance and financial donations

for the persons affected by the floods.

On July 21, the Government approved the creation of a commission to design the mechanism forwater fund management and protection against flooding. The commission will be led by Mr.Valeriu Lazar, Deputy-Prime Minister (hereafter referred to as Lazar Commission), and willconduct a feasibility study of the areas under flooding risk from the Prut and Nistru rivers, aswell as near smaller rivers; and will assess the quality of existing dams. As a result of the work

of the commission, an action plan, covering measures for the construction, reconstruction andfortification of the dams, hydro-technical systems, irrigation systems; pumping and waterevacuation systems, will be designed. A national strategy for water fund management andprotection against flooding will be as well initiated. This PDNA could be used as an input forthe work of the Lazar Commission.

Table: Timeline of Immediate Disaster Management EffortsA command center lead by the Government Group, established in first 24 hours; SpecialWorking Group, chaired by Minister of State instituted, and deployed on the ground during thepeak of the disaster (three weeks)725 persons immediately dislocated in the field (Army, Carabinieri, Police)

Around 1300 families evacuated from flooded and risk areas, 1800 rescue / evacuation missionsin first three days (goods and people)Available aid immediately deployed from state resources: food, water, medicines, tents, fuel

Appeal by Prime Minister Vladimir Filat to the international community and developmentpartnersSpecial account opened with the Ministry of Finance for collecting provate donations.

Permanent information of the population (mobile audio devices, billboards, door-to-door)carried outFirst aid from development partners arrives to the field. Coordination assistance assigned withAid Coordination Unit in the State Chancellery. At regional (district) level, assistancedistribution coordinated by District Emergency Situations Committees30 km of new temporary dams built and permanently maintained over 200 households, 2roads, saved from flood

2 bridges reinforced, alternative access roads built to flooded areas

4 mobile emergency posts, 3 permanent posts over 240 people assisted; evacuated peoplevaccinated against A Hepatitis.With common (Government and Development Partners) efforts, immediate needs assessed andensured until September 30).12 road police posts and one reinforced police department in Obileni instituted. 15 collection anddistribution points permanently guardedSite in a risk-free area for building 700 new settlements identified, planning and design workscarried out

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First preparations for the Post-Disaster Needs Assessment exercise

Mixed team of Government, UN, World Bank and European Commission experts start the Post-Disaster Needs Assessment.

Request for Assistance and International Response

The Government issued a request to a number of external partners, asking for support inmitigating the consequences of the floods. In response to this appeal, initial assistance wasprovided by a number of donors. Others are providing in kind assistance i.e. boats, sand bags,boots, pumps needed to remove the water from the flooded buildings as well as related manpower.

Social and Economic Background of the Affected Areas

There are 198,173 inhabitants living the in the communities that constitute the flooded area. Theaffected area is predominantly rural (75%) in nature and around 10% of the population is

estimated to be permanently located out of the area for reasons connected with migration,education, etc.

There are 76,128 families in the affected area, over 70% of which are located rural areas: 3.8%of such families have 3+ children under the age of 18 and there are three times as many ruralfamilies with disabled members than is the case with urban families (MoE, 2008).

The businesses sector, regardless of whether located in the flooded zones or not, is smallcompared to the urban areas. Most such businesses concentrate on processing of agro-products,as well as trade, light industry and services. In 2009 the size of the average micro enterprise inthe affected districts (districts) was 2.8 employees and the average turnover per employee was86,500 lei in micro enterprises. The bulk of the economy in the affected area is agricultural innature; there are 25,545 agricultural producers with less than 10ha of land, the level at which thefarmers are considered to be economically viable. These agricultural producers, effectivelyoperating on a subsistence basis, account for 99% of all farmers in the area affected by the flood.

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Section II. Estimate of Damage, Losses, Needsand Human Development ImpactObjectives

Following the request for assistance from the Government of Moldova, a Post-Disaster NeedsAssessment has been conducted by the Government of Moldova supported by the EuropeanCommission, United Nations and the World Bank, with the support of the Global Facility forDisaster Reduction and Recovery (GFDRR).

The main objectives of the exercise were the following: Determine the socio-economic impact of the disaster including the valuation of damages

and losses and human recovery needs; Identify the damages and losses and their costs on physical structures, disruption of

essential public services and alteration of community processes, in the public and privatesector; Identify recovery and reconstruction needs per sector, including the human recovery

needs and establish the costing of response options in the short and medium term, toinform the development of the recovery framework;

Provide inputs to the Government in designing a Flood and multi Hazard RiskManagement strategy for reduction of present and future flooding and related hazards,including the identification, prioritization and costing of new emerging activitiesassociated with the recovery and reconstruction efforts proposed after the currentdisaster;

Establish a coordinating mechanism among the international technical and financial

partners to enable the Government-led assessment and implementation strategy to beadequately supported, and Build initial capacity of the government and local partners to conduct such assessments in

the futureAdequate attention and specific reference will be made to the needs of women, children, elderly,ethnic minorities, and other vulnerable groups of population.

The scope of the PDNA included areas affected by the July 2010 floods.

Methodology

The present Post Disaster Needs Assessment (PDNA) combines the recognized Damage and

Losses Assessment methodology (DaLA) for the assessment of damages and losses and needswith a UN assessment methodology to capture human development impact and the recoveryneeds. Prior to the assessment, a one day training on the assessment methodology was carried outfor the Government and all the international agencies involved in the PDNA in order to enable amore efficient kick-off of the exercise. The sectors and sub-sectors included in the assessmentare: Infrastructure:

o Flood Control and Dam Management

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o Housing and Land Useo Energyo Transporto Water Supply and Sanitation

Productive:o Agriculture (Crops, Livestock, land)o Livelihoods and Small Trading

Social (services + infrastructure):o Educationo Health and Nutritiono Social Protection

Cross-cuttingo Environmento Disaster Risk Management (discussed separately in Section V)

The 2010 floods caused destruction of physical assets and decline in economic flows inMoldova. Estimates show that the value of destruction of assets (damage) is 231.96 millionMDL, and that the reduction in flows of the economy (losses), arising from the flooding,amounts to a further 595.86 million MDL7.

The structure of damage among sectors of economic activity in the affected areas is also ofspecial relevance since the infrastructures sectors sustained 67 percent and the productive sectorssustained 26 percent of the total damages. The structure of losses is also concentrated heavily inthe infrastructure (70 percent) and productive (24 percent) sectors. While damage and losses inthe social and cross-cutting sectors are not large in financial terms, the human dimension of this

disaster remains as vital as is seen in the case of other natural disasters. This means lost incomesfor the affected population, together with property, makes the population especially vulnerableand in need.

When breaking down the effects of the floods by individual sectors of economic activity, thedamages are concentrated heavily in sectors such as housing (84.0 million, or 36 percent of thetotal), agriculture (56.13 million, or 24 percent) and transport (61.8 million, or 27 percent).

SECTOR IMPACTS

FLOOD CONTROL AND DAM MANAGEMENT

A. Pre-disaster Situation

The country has a flood protection system inherited from Soviet times, most of which under themanagement of the Apele Moldovei a specialized agency within the Ministry ofEnvironment in charge of water resources management. These dams/dykes protect 90 settlements

76 A uniform Exchange rate of 12.82 Moldovan Lei per US Dollar has been used throughout the assessment, as theaverage rate of Exchange for 2010 (until August 10, 2010).

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and approximately 87,000 hectares of agriculture lands, plus forests and pastures. These damsare used for flood control, irrigation, recreation, energy or multipurpose tasks. Therefore, thesocial and economic function of these dams is very important.B. Impact of the flood on the Sector

Extreme rainfall in upstream of the Prut river originated breakups of several embankments in thevillages8 Nemteni, H?nceti, district, Stoianovca, Antonesti, Gotesti in Cantemir district withhigh losses in assets and livelihood. Other dams constitute a major threat as they can break upand flood further. The dyke in Cantemir breached and requires urgent repairs, putting at risk9448 people, 2276 houses, and extensive agriculture fields (22,000 ha). Emergency measures,includes discharging the water from the flooded valleys through artificial breaches of the dykesallowing flood water flow back to the Prut river. Overall, there is critical lack of an effectivemonitoring system with a need to update procedures and provisions of equipment (Annex 2).

C. Damage and Losses

Biggest damages incurred are in the H?nceti and Cantemir villages. Alltogether around 400m of

dykes have been breached and will have to be repaired; many dams are at risk and will have tobe rehabilitated.

D. Recovery and Reconstruction Needs

Many affected areas remain under water. An early need relates to pumping out water fromflooded irrigation and drainage stations. There is also an urgent need to repair protective dams inHincesti and Cantemir districts. Furthermore, state flood-control dams need to be cleared ofshrubs and trees. Apele Moldovei should also consider developing working drawings for repairof dangerous areas on protective dams. In addition, it is recommended that a technical andeconomic study of the flooded and potentially flooded areas along Nistru and Prut rivers iscarried out, with further actions targeting the vulnerable sites following the thorough

investigation.An important step will be aligning the normative base to the lessons learned from the 2008 and2010 floods. An important area of attention is to carry out an assessment of current policy andlegislation related to water resources management and bring them up to international standards,as well as intensify cooperation with the neighboring countries in this area. Work could also beinitiated to develop an integrated flood management system aligning with the existing onesaccording to Standard Operation Procedures (SOPs) of the European Union Directive2007/60/EC. Finally, the Government could consider setting up a state protective damsmonitoring service in a relevant organization.

Table: Damage, Losses and Needs in Flood Control and Dam Management

Currency

Damage and Losses Needs

Damage Losses Total Short-term Medium-

term

Total

in million MDL 0.04 - 0.04 12.49 157.9 170.38in million USD 0.00 - 0.00 0.97 12.32 13.298 Adapted from World Bank (WB) and Food and Agriculture Organization of the United Nations (FAO)2006). A Hazardous Existence: Managing Natural Livelihood Threats I Rural Moldova. Chisinau, June2006.

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Source: PDNA Estimates

HOUSING AND LAND USE


Lands in the affected areas are classified as agricultural and residential, these areas being highlyvulnerable to natural disasters such as floods, landslides, and earthquakes. In the affectedvillages, housing and land are privately owned. Most housing units were single story, withinexistent water supply and sewerage infrastructure; 5 to 10 households share a common well toaccess water. Electricity networks were available, most roads were not paved.

B. Impact of the Flood

Villages and agricultural lands located in the lower level of the basin alongside the Prut Riverwere affected by the flood, resulting in damage and destruction of agricultural land, housing,infrastructure, household goods, and livestock. Among 11 villages located in the basin, CotulMorii was most severely damaged, and is being relocated.


The impact of flood on housing is reported from Hnceti, Nisporeni, Cantemir, and UngheniDistricts. 1,111 housing units were destroyed, 8 units housings partially damaged. 9 Householdgoods that are moveable were moved from houses as much as possible in the early stage offlooding, although many household goods were still entirely or partially destroyed. 1,241households were evacuated from the affected villages. In addition, 144 households from theunaffected risk areas.


An important issue that must be taken into account is land rights and poor cadastre records.

While 60% of Moldovan territories are officially registered, most of the villages affected by theflood do not have up-to-date cadastral information. This poses serious challenges on recoveryand reconstruction of the housing and land use sector.

The needs in housing and land management sector could be categorized into the following threeareas: (1) provision of adequate temporary shelter; (2) registration of land and real propertyownership so that exposed people can relocate without threats to their land rights and security oftenure; and (3) housing reconstruction. All activities responding to these needs should be led bythe public sector.

Recovery and reconstruction of the housing and land use sector in the affected areas should begoverned by three principles: (1) people-centered approach; (2) timeliness and feasibility; and (3)national ownership.

Table: Damage, Losses and Needs in the Housing and Land Use sector


9 Destroyed refers to houses that have been identified as uninhabitable due to flood damage, including those thatwere washed away. Partially damaged units are those which were partially flooded, but were still inhabitable.However, in some partially damaged houses, the foundations were affected, which caused cracks in the wall andwould ultimately need to be rebuilt.

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Currency Damage Losses Total Short-term Medium-

term

Total

in million MDL 84.00 304.60 388.60 219.00 156.50 375.50in million USD 6.55 23.76 30.31 17.08 12.21 29.29Source: PDNA Estimates

ENERGY

A. Pre-Disaster Situation

The p ower sector in Moldova represents an important strategic infrastructure for the nationaleconomy, being also an important public service with social impact. Electricity is the onlyuniversal utility service in Moldova with 98% of households connected to the power grid. Inaddition to the human development aspect of residential power service, the agricultural sector isan important consumer of electricity in Moldova, and the reliability of service to this sector,which is a major employer in rural locations where most of the nations poor are concentrated, iscrucial for ensuring its position as an engine of growth in Moldova.

The settlements affected by floods are not connected to the gas network, with the exception ofthe village of Nemteni.

B. Impact of the Flood

The floods have affected the worst the electricity consumers in the four flooded villages in H?nceti district, and partially other localities in the districts downstream. This area serviced byFCC Union Fenosa10, which acted promptly to eliminate potential accidents by electrocution,while ensuring in parallel a reliable power supply to consumers in risk-free adjacent areas.

C. Damage and loss assessment

Total damages to electricity equipment were estimated at about MDL 6.6 million. Thisrepresents the amount estimated for investments into restoration of damaged infrastructure, aswell as the construction of a new extension grid to supply power to the new residential siteplanned by the Government to relocate Cotul Morii.

Potential short- and mid-term losses by the company because of lost consumers could beestimated at MDL 540 thousand and MDL 1.62 million respectively, totalling about MDL 2.2million over the next 24 months. Table 4 provides an estimate of potential losses to the companybecause of lost consumers11.No significant losses have been registered in the existing gas distribution network of Nemteni.


The Government announced its readiness for providing basic infrastructure services to the newresidential site for residents relocated from Cotul Morii, including electricity and natural gas.The investments in new electricity infrastructure shall be made by Union Fenosa and will beaccounted as new investments in the future tariff revision by the energy regulator.10 Union Fenosa (www.ufmoldova.com) is the electricity distribution company acting in the Center and South ofMoldova. It serves about 75% of countrys electricity demand.11 Incurring losses could, however, stop as soon as the damaged systems are restored and new residential siteinhabited.

9
http://www.ufmoldova.com/http://www.ufmoldova.com/http://www.ufmoldova.com/


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Regarding gas, however, in addition to building the internal distribution network, there is theneed to build about 36 km of gas transmission pipe with an estimated cost of MDL 16.2 millionto connect the new site and neighbouring affected villages to high pressure gas main.

Table: Damage, Losses and Needs in Energy

Currency Damage and Losses NeedsDamage Losses Total Short-term Medium-

term

Total

in million MDL 6.56 - 6.56 6.56 - 6.56in million USD 0.51 - 0.51 0.51 - 0.51Source: PDNA Estimates

TRANSPORT


Road Transport Sub-Sector. The districts where the road network was affected by the floodsalong the Prut river (H?nceti, Cantemir, Ungheni, Cahul, Soldanesti) are served by a roadnetwork consisting of 1,898.2 km of public roads of which 640.6 km are national roads (allhard-paved) and 1,257.6 are local roads (1,132.8 are hard-paved roads). Road transport is animportant, efficient and relatively secure means of transportation adapted to the internal demandof a small territory and trading with main CIS and neighboring countries. In 2009, road transportaccounted for 82% of total freight transport and 98% of passenger traffic in the country.Moldova has a total of 9 railway connections with neighbouring networks. As of 2009, Moldovahad a total railway line length is 1 157 km. The density of the existing railway is equivalent tothe relevant value for neighbouring countries (Ukraine and Romania). Alghouth declining, railfreight transport still provides an important level of services and is responsible for about 17% ofthe total freight in Moldova.

B. Impact of the Flood on the Sector

While the floods had a severe local impact on a number of communities, especially in H?nce tidistrict where the village of Cotul Morii was totally submerged under water, the affected roads asa share of total road network was not significant. Approximately a total 18 km of village streetswere flooded, about X km of local roads and Y km of national roads remaining under water.

The floods affected two portions of the railroad along the Prut river: the railroad Cahul-Giurgiulesti and 11 km of railroad in the sector Prut-2-Cahul were flooded. The Prut-2-Cahulsector is still under water thereby disrupting normal passenger and freigh traffic.

C. Damage and Loss Assessment

It was not possible to properly ascertain thephysical damage caused to the roads by thefloods as most of them were still underwater. Based on certain assumptions, thetotal damages to the road network areestimated at MDL 23,451,365.

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Losses are associated with higher vehicle operating costs and longer travel times as a result ofworsened conditions or longer detours that drivers have to take. The calculation of losses for thelocal roads is essentially impossible to make at the moment due to lack of traffic data, showingno figures in the respective line. Based on the assumption that it would take about 12 months torestore the R34 section to its pre-flood condition, the losses incurred made of higher vehicle

operating cost plus time costs were estimated at MDL 87,910,735.Railways Sub-Sector. The damage estimate was provided by the state-owned Moldovan RailwayCompany, assuming a need for capital repair of the flooded sections plus the replacement of thetelecommunications equipment that was submerged under water. The total is MDL 36,148,677.The losses incurred by the railway were estimated as forgone revenue due disruption of normaltraffic. The total amount of losses to the railway sector assuming that it will take 12 months to restore thenormal traffic is estimated at MDL 9,904,012.


Roads. In terms of short-term response, the Government reacted fast by creating an alternativegraded bypass route that goes in parallel to the R34 road. This road would need to be upgraded toallow the resumption of normal traffic which is currently diverted to the national R56 and M3roads. This would both reduce the indirect costs and prevent the damage caused R56 and M3roads which have an inferior design to the R34 road.

Given the proposed relocation of all Cotul Morii inhabitants and some of the inhabitants fromSarateni and Nemteni villages, an 8 km access road to the new village site is a short-term priorityneed. Making village streets passable to basic community infrastructure, such as schools andhealth posts is the last short-term need. The total short-term needs are estimated at MDL18,219,276. In the medium-term, 1.5 km of the access road to Sarateni will require rehabilitationwithin the next 12 months. Given the large accumulation of water on the R34 road, its slowdeparture and the coming cold season, it is expected that its reconstruction to pre-disaster levelwill also take up to 12 months. The medium-term needs are estimated at MDL 10,216,592.

Railways. The Government has already restored the damage to the Cahul-Giurgiulesti section. Itis expected that the restoration of the Prut-to-Cahul section to the pre-flood level will take up to12 months. Once the water goes off the railway section, it is important to make a more accurateassessment of the rehabilitation needs.

Table: Damage, Losses and Needs in Transport

Currency



term

Total


WATER SUPPLY AND SANITATION


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Water Supply and Sanitation. Moldovas water resources imply that the country is water-stressed. The Nistru river accounts for 84% of all water withdrawn, followed by the Prut river,and by ground water supplies. The Nistru and Prut are classified as moderately contaminated,water quality deteriorating downstream. Groundwater quality is uneven with a preoccupyingbuildup of nitrates, ammonia, fluorides, and iron in some areas. The quality and reliability of

Moldovas water supply and wastewater services are generally deficient, biggest problem beingin the rural areas.

Solid Waste Management

Solid waste management in Moldova is a public utility decentralized to local public authorities.Overall monitoring and sector policies fall under the Ministry of Environment. Ruralcommunities in Moldova have no organized solid waste collection and disposal. Household solidwaste in most rural areas is transported by households themselves and damped in a purposelydesignated barren land field outside village boundaries, with no further processing. Thisrepresents a serious environmental problem.

B. Impact of the flood on the Sector

Damage and losses in the water supply and sanitation sector can be considered as relativelysmall, considering pre-disaster poorly developed infrastructure for water supply and sanitation inthe flooded area. Biggest damage was done to shallow waters, artesian wells also suffered. Asmall number of piped systems have been affected.As there is no organized system for collection and disposal of households solid waste in ruralareas, the potential losses on solid waste are reduced to cleaning up and removal of accumulatedsolid waste by local authorities and private households.


About 500 out of approximately 3500 shallow wells and springs and 13 out of 120 artesian wellsin about 17 villages have been reported completely flooded and/or affected due to contaminationby infiltration of flooded waters. Most affected the district of Hincesti with 214 wells flooded.In the affected areas, flooding waters washed up solid waste, which contributed to additionalpollution of flooded areas.

E. Recovery and Reconstruction Needs

Water and sanitation infrastructure is obsolete and/or poorly developed throughout the country,especially in the rural areas, including in the localities affected by floods. Therefore it isrecommended that the recovery and reconstruction strategy focuses on small scale projects athousehold and community level, such as upgrading and improving existing sanitation facilitiesand protecting existing water sources, including reducing the risk of groundwater contaminationby household sanitation and domestic livestock infiltrations. These could be done with reduced

costs and using local labor.The government adopted a decision to relocate Cotul Morii to a new site by building about 700new houses and providing public utilities infrastructure too, including water and sanitation. Thegovernment should consider including too the already existing neighboring dwellings (Leuoaia)in the proposed infrastructure development project.While planning and deciding on new / extending water and sanitation infrastructure, one shouldconsider operational and maintenance costs too, as well as the organizational set up of consumersof water supply and sanitation services.

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Table: Damage, Losses and Needs in the Water and Sanitation sector

Currency


Damage Losses Total Short-

term

Medium-

term

Total


AGRICULTURE (Crops, Livestock, Irrigation/Drainage and Land)

A. Pre-Disaster SituationThe agricultural sector, including crops, livestock, forestry and fisheries, contributes to about10% of the GDP and remains the most important source of livelihoods in rural areas.Agricultural production and processing generate about 40% of export revenues, and employmore than 33% of the economically active population. The main agricultural export products are

wine, fruits, vegetables and industrial crops.Add 2-3 sentences on pre-disaster situation in the affected areas. Before disaster those regionsgot a lot of rain above annual average by June 2010, which did not allow the soil to absorb themoisture that quick as if it would be dry.


Heavy rains in Ukraine, Romania and Northern Moldova during the second and third weeks ofJuly caused significant floods along the Prut and Nistru (Dniester) rivers. Dilapidatedembankments, drainage and irrigation systems as well as poorly managed water systems wereingredients of a potent recipe for disaster, which left many communities vulnerable. The floodshave affected nearly 8,000 people in mainly 11 districts. Other districts have also been affected

but to a lesser extent.C. Damage and Loss Estimates

An estimated 6,144 ha of prime agricultural land has been affected, out of which 4,432 ha arecompletely submerged. Current indications are that the submerged areas may not be ready forcultivation over at least two additional cropping seasons (2011-12). H?nceti and Cantemirdistricts are the worst affected accounting for most of the submerged areas. A total of 12drainage and irrigation schemes in 4 districts have been damaged. Total damages and losses inthe agricultural sector have been estimated at about 195.8 million MDL.

In addition to the floods, which have affected a limited number of districts, hails and heavy rainsin late spring and early summer have also caused significant damages to crops. Governmentestimates indicate that more than 30% of crops may have been lost due to hail and heavy rains inthe country. The great majority of lost crops are high-value crops such as vegetables, vineyardsand orchards, which are likely to have significant repercussions for food and livelihood securityin the country. Unfortunately, the mission did not have sufficient time to conduct a national levelcrop assessment.


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The recovery strategy takes into account the short- and medium-term needs of the affectedpopulation and their host families. The needs are also based on the Governments existing andmedium-term plans, programs and strategy for the agricultural sector.

The proposed activities in the agricultural sector envisage reducing the likelihoods of extreme

measures by the households and the need for protracted relief operations, while building futureresilience and improving food and livelihoods security among the target communities. Whereasproposals and activities are presented separately, almost all are inter-related. An integrated crop-livestock system has already taken shape for a number of years and irrigation and drainage isnecessary to produce high-value crops and reduce the risk of crop losses to drought and highwater tables. The seemingly disjointed proposals may be considered as components of arehabilitation program.

It is important to note that the brief concepts presented below require further feasibility studies,which was not allowed for within the scope of the PDNA mission. The overall objectives of the proposed interventions are: (i) meet the immediate needs of the flood affected farming

households and their hosts with a view to reduce the likelihood of extreme measures byhouseholds and the need for a protracted relief operation; (ii) improve livelihood and foodsecurity of the affected population.

Table: Damage, Losses and Needs in Agriculture

Currency



term

Total


LIVELIHOODS AND SMALL TRADING

A. Pre-Disaster SituationIn order to have a clear picture on the livelihoods sector, all the settlements have been accountedfor, without taking into account the degree to which these were affected. There are 198,173inhabitants living the in the communities that constitute the affected area (Ministry of Economy -MoE, 2008). The area is predominantly rural in nature (75%) and around 10% of the populationis estimated to be permanently located out of the area for reasons connected with migration,studies, etc.The businesses sector, regardless of whether located in the flooded zones or not, is smallcompared to the urban areas. Most such businesses concentrate on processing of agro-products,

as well as trade, light industry and services. At the national level, the poverty levels in rural areasincreased during 2009.This, combined with the loss of agricultural income, implies a significant decrease in incomes inthe affected communities.


The vast majority of the economy is rural and therefore agricultural in nature. This sectionexamines the impact of the flood on the non-farm economic activities. From this perspective, the

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damages and losses are fairly mild, having affected only 4 shops and 2 industrial units.Furthermore, damage has occurred to some of the community infrastructure: 2 cultural centres, 1library and 1 church were affected. It should be noted that kindergartens, schools and healthclinics are discussed and assessed elsewhere in this report. All the damage and losses occurred inCotul Morii village, except for a mill in Sarateni, a construction business in Gotesti village and

one culture centre in Obileni village.C. Damages and Losses

The total damage to the sector is estimated at 3102000 Lei whilst the estimated loss is 4051200Lei. Therefore, compared with sectors such as housing and agriculture, the non-agricultural(small trading) sector has experienced relatively modest damages and losses. This reflects thevery high concentration of activities in the rural sector and the subsistence nature of theeconomy. The latter implies that, in addition to replacing the lost business activity, it is necessaryto give significant policy attention to the need to raise both agricultural and non- agriculturalincomes so as to sustain rural livelihoods. At the same time, it is necessary to diversify the localeconomy.


This section presents a brief analysis of the situation in the affected areas from a broadlivelihoods and non-agricultural perspective. The issues raised below probably only represent asubset of the problems being experienced in the flooded affected area, based on a livelihoodsperspective.

Impact on basic needs and services: emergency food provision; state financial support; relocationof villages together with information on relocation; compensation for housing, lost crops,livestock are fields where the Government has started the process. Improvement in coordination

and information is, however, highly recommended.Post-disaster Livelihoods: the issue of assistance with reconstruction of the future new homes bythe flood victims on a cash for work / public works basis is critical. Equally important, is thenecessity for due consideration and planning for post-disaster livelihoods. There is a need toassist the districts and communities to plan and implement a post-disaster livelihoods strategyfocusing on re-establishing the lost non-agricultural economic activities, diversification of thelocal economy and generating sustainable livelihoods, especially in the most severely affectedareas.

The strategy for recovery and reconstruction relies on the application of principles such asawareness raising, regular and proactive information provision, consultation and empowermentof the local communities affected by the flood. This in turn necessitates effective coordination between the Government, the districts and the communities/mayoralties at the lowergeographical scale. In addition, a number of elements will be required in order to reduce thevulnerability of the livelihoods, as well as ensure the reduction of disaster risk.

Table: Damage, Losses and Needs in the Livelihoods and Small Trading sector

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Currency



term

Total


EDUCATION


In 2009/2010 school year there were 419 educational institutions in Cantemir, Hincesti,Nisporeni, Stefan Voda and Ungheni districts, including 201 pre-school institutions and 218schools, gymnasiums and lyceums. Total number of enrolled children was 71,999, including16,257 children in pre-school institutions and 55,742 students in schools. In the pre-floods periodthere were 17 schools and 16 pre-school educational institutions in the mostly flood-affectedvillages of the above mentioned districts.

B. Impact of the flood

The July 2010 floods affected 1,663 children of 0-18 years old in Cantemir (279), Hincesti(1077), Nisporeni (27), Stefan Voda (62) and Ungheni(218), including 455 children of pre-school age. One third of the total number of children are directly affected and have beendisplaced, the rest are indirectly affected as their families have lost agricultural land/plots, cropsand other property.

The localised geographical parameters and the quantitative characteristics of the flood-incurreddamages and losses in the education sector made no significant impact on the national educationsystem as a whole. However, it deteriorated the situation for the sector in Hincesti, the mostly

affected district, where several educational institutions have been affected directly and indirectlymainly in Cotul Morii, Sarateni, Obileni and Nemeni.

Directly affected by flood: one kindergarten and one school in Cotul Morii village (H?ncetidistrict) were completely destroyed by the flooded waters, as the whole village. The personnelof Cotul Morii school and kindergarten could lose their jobs in the education sector as the villageand educational institutions no longer exist. No other public educational establishments(buildings or assests) in the flooded districts had any direct impact of the natural disaster, though being used as a temporary shelter (Obileni and Nemeni Gymnaziums; students hostel ofHnceti College) for the evacuees, rescuers, army, resettled population, the school premises aredisarranged and need to be renovated and put in order before the new school year starts on 1

September.

C. Damages and Losses

Cotul Morii Gymnazium and kindergarten: The buildings and all assets have been damaged andlost. Sarateni Gymnazium is affected indirectly as 50 from 70 school children are from thefamilies whose houses were flooded and they will be resettled to the other places. Twentyschool-age children will remain in the village and there will be a need to arrange transportationto a new destination school in a nearby village.

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Teachers and other personnel employed in the educational sector in Cotul Morii (36) andSarateni (14) are at risk of losing their job because of the flood impact, and there is a need toconsider their redeployment to other educational institutions as well as their resettlement optionsto the villages where additional classes are planned to be opened. There is nocertainty about the

employment of all the affected teachers, kindergarteners, educational institution employees: asa result of the floods, they may fall into unemployed category, and the unemployment benefitswill be paid.


The main set of response measures in regard to the impact of floods on the education sector isfocusing on meeting the childs right for education and development and providing the flood-stricken children with the access to other educational institutions preventing the separation of thefamilies.

For Building Back Better the national and local authorities are using the opportunity torenovate and modernise the rundown educational facilities and improve the facilities andconditions for students, teachers and pre-school children to meet a criteria of child-friendly andhazard-resistant standards for reconstruction of schools and also the addressing childrenslearning/teaching needs as the majority of buildings have long lasting problems with sanitation ,running water supply, heating, sport and play grounds, furniture, educational equipment, andcatering facilities. A safe and secure learning environment that promotes the protection andwell-being of students is to be ensured for all girls and boys .

Life skills education/activities and life saving information, with a focus on disaster riskreduction, should be age-targeted and included into both formal and non-formal education. Safe

school construction assessments are to be initiated by the educational authorities. All educationalestablishments for children regularly undergo assessments on risk resilience.

Girls and boys, including preschool-age children, children with special needs, have access toquality education opportunities and appropriate life-saving skills programmes and informationabout the emergency. Safe and secure learning and recreation environment that promotes theprotection and well-being of children is ensured for all.

Table: Damage, Losses and Needs in Education

Currency



term

Total

in million MDL - 18.94 18.94 26.32 12.60 38.92in million USD - 1.48 1.48 2.05 0.98 3.04Source: PDNA Estimates

HEALTH AND NUTRITION


Prior to the flood, the health care in the affected districts of Cantemir, H?nce ti, Nisporeni,Ungheni, Cahul and Briceni was provided by public medical-sanitary institutions and individual

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outpatient settings. The human resources constitute 864 doctors and 2,790 nurses. The total population served in all the 6 districts was 570,500 people, including 31,816 under-5-agechildren. Currently the nutritional policies implemented in Moldova focus on promotion of breastfeeding, reduction of micronutrients deficiencies, and increasing access for pregnantwomen and under-5-age children to micronutrients by providing them with free iron and folic

acid . The nutritional status of children is monitored by the primary health care workers inaccordance with the Ministry of Health standards.

B. The Impact of the Flood on the Sector

In affected areas the number and type of medical institutions has not changed, continuing towork under a normal regime, except in Hincesti where prior to the flood there were 4 primaryhealthcare institutions serving over 6,000 people. As a result of the disaster the activity of 3rural healthcare institutions was stopped, reducing the districts access to health care servicescaused by damages to the physical infrastructure. During the flood, the health care in H?ncetidistrict was organized and provided by opening 3 additional health care units at the HealthCentre and the gymnasium in Nemteni, and at the gymnasium in Obileni at in i . Four teams of

doctors and nurses, who were providing healthcare 24/7, were working in the medical units, twoadditional health care units at the Construction College and Polyvalent School in Hincesti, whereover 250 affected people were relocated.

The provision of an appropriate response by the Ministry of Health and local publicadministration authorities has contributed to diminishing the damages on health and food safetyfor the affected people.

C. Damage and LossesDamages and losses of physical infrastructure and medical equipment/furniture have beenregistered only in H?nceti district: 3 medical institutions were affected by the flood, in Cotul

Morii, Obileni, Sarateni being flooded to different extent. As a result of intensive use in theresponse to floods, the medical equipment of bacteriological laboratory of Public Health CentreH?nceti is out of order and an ambulance car was completely damaged.


To avoid short-term negative impact on the population's access to quality health care servicesand the smooth functioning of the medical institutions, financial sources should be identified tocover the expenditures incurred for medical specialist, secondary technical staff, construction ofnew medical institutions and provision of medical equipment, and modern means ofcommunication and transport. In the medium- and long-term, the flood may have a negativeimpact on the nutritional status of population, especially of young children, due to the loss ofagricultural products and livestock by households.

The strategy for health sector recovery and reconstruction in the affected areas is to restore andmodernize the physical infrastructure of the medical institutions, provide for human resourcesand transport, ensure the economic and physical accessibility of drugs, food safety and nutrition,in particular for young children.

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Short-term needs of the health sector include the construction of a primary health care institutionfor displaced communities, Cotul Morii and Sarateni villages in Hincesti district, and its provision with equipment; the provision of disinfectants and consumables to ensure theprotection of public health and removal of flood consequences; covering the unplanned extraexpenditures of the medical institutions incurred as a result of flood consequences removal;

procurement of food for young children; carrying out a public information campaign on thenegative impact of flood consequences on health (informing about the harm of mold, moisture inthe room, the consumption of foodstuff products from flooded territories, the use of water fordrinking and cooking, and measures of protection against contagious diseases).

Table: Damage, Losses and Needs in Health and Nutrition

Currency



term

Total


SOCIAL PROTECTION


The July 2010 floods along the river Prut resulted in evacuation of 3,114 persons (1,293families), including 614 children, from 1,084 flooded houses and adjacent area. . This increasedthe number of vulnerable individuals and families and placed immediate requirements forresettlement , food, water, sanitary and non-food supplies, compensations, psycho-socialsupport . The flood-stricken population is rural and relied predominantly upon revenues fromthe agricultural produce they grew on their land; almost all of it was lost in the flooding.


Keeping with the Ministry of Labour, Social Protection and Familys strategy, the systems at thedistrict level are ready to implement the most urgently-needed actions , including the provisionof food and non-food aid to flood-stricken population, registration of all beneficiaries fordifferent short-term emergency and recovery assistance. Persons who have been receiving AjutorSocial and nominative categorical compensations before the flooding have continued to receive itafterwards. It is expected, however, due to loss of main sustenance (agricultural land) and loss ofproperty that many additional persons and households will apply and qualify for targetedsocial assistance (Ajutor Social).

At the initial stage of the disaster, the social protection sections and districts administrationsdistributed over 322.13 tons of emergency aid (i.e., foodstuff, personal use items, hygienicproducts and essential goods) to the affected and displaced population. Shortly after the disaster,as one-time measure, the Government announced that every affected person is entitled to one-time cash compensations of 500MDL.


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Physical damage to a building that housed a social protection unit occurred in Cotul Morii; the 2staff were temporarily relocated to the offices in Obileni village.

D. Recovery and Reconstruction

Field observations, meetings and discussions with the affected people, social sector authorities

and social assistance providers informed priority areas for mitigating the negative flood impactson the most vulnerable groups and the recovery of poor rural communities: housing, socialassistance, employment scheme, psychosocial support to the flood-affected and displacedpopulation.

People who were receiving nominative social assistance or Ajutor Social (targeted socialassistance) before the floods had continued receiving it after the floods. The recipients oftargeted social assistance, however, will significantly increase in the next couple of months, dueto extensive loss of increased vulnerability and poverty (i.e. loss of personal land, livestock andproperty)

Employment programmes, like active inclusion in public works on reconstruction, coulddecrease the need for additional benefits, while the well promoted Ajutor Social programme l re-directs the cash benefits flows towards the most vulnerable groups.

Table: Damage, Losses and Needs in Social Protection

Currency



term

Total

in million MDL - - - 11.31 2.6 13.98in million USD - - - 0.88 0.21 1.09Source: PDNA Estimates

ENVIRONMENT


Climatic and soil conditions allow the Prut River floodplain to have a diversity of forest andwetland ecosystems. There are 8,072 ha of forests and about 14,000 ha of natural lakes andwetlands located here, including two internationally important nature reserves: "Prut de Jos";and Padurea Domneasea. Prutul de Jos reserve has a total area of 1,691 ha and jointly withneighbouring natural Lake Manta represents a unique ecosystem, considered as the last naturalwetland floodplain in the lower Danube region. The Padurea Domneasea forest nature reservewith an area of 6,500ha is located in the mid Prut River Valley and represents a uniqueecosystem composed of meadow oak forests and wetlands. Both nature reserves support globally

vulnerable and endangered of fish, birds, and the mammals species and are important for waterwolf birds being located within one of the major international migratory corridors. The Prut rivervalleyand especially its flood zonewere not subject to significant human impact. Most ofthe natural habitats, including its forests, were kept intact. Furthermore, with only fewexceptions, there were no potential sources of pollution (e.g., warehouses of agrichemicals,gasoline stations and/or any industrial enterprises). Part of the floodplain in the mid and lowerpart of the river was drained and brought into agricultural production.

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The environmental impacts of May-July 2010 floods are low to moderate and largely related tothe following: (a) the dispersion of household wastes into the Prut river; (b) inundation andcontamination of community water wells, including deep water wells; (c) destruction of fishspawning grounds, breeding and feeding areas; and, (d) impacts on solid wastes land fields. The

damage to natural ecosystems and important habitats (forests and wetlands) was not significant.The long term impacts during recovery and reconstruction time will be mostly dealing with: (i)solid waste and debris management; (ii) sourcing of construction materials; (iii) recovery andimproving of forest ecosystems as well as reproduction of fish resources; (iv) needs forstrengthening of environmental impact assessments (EIAs) and environmental managementcapacities of district environmental authorities and of local councils.

Based on analytical data it is possible to conclude that no serious contamination resulted fromthe flooding. At the same time, the flooding caused serious impacts on Prut river fish resources.Most of the fish spawning grounds, breeding and feeding areas were destroyed. Valuable fishspecies migrated to the meadows of the river and, after the waters recede, will remain in separate

ponds and lakes. Once the level of water in these temporary water reservoirs recedes, in theconditions of high temperatures the fish will die causing considerable losses to river ecosystem.The flooding also caused serious impacts and damage to forest resources, especially to newlyplanted areas.

C. Damage and losses

The attached table provides an estimate of damageand losses. Direct damage to fish resources andforests resources is expected. Potentialenvironmental lossesmight include the following:(a). Management of debris and wastes

duringrecovery and reconstruction stages which mightrequire additional resources and cause newenvironmental impacts; (b) Impact of sourcingreconstruction building materials.Rebuilding andrepair of houses, roads, bridges, etc, will requireimportant supplies of natural resources, e.g.stones, clay soil, and sand. If managed poorly,

accelerated extraction of these resources to meet increased demand could result in negativeenvironmental impacts; (c). Forest recovery and reconstruction costs. Taking into account thelong flooding causes damage to the status of forests, for improving their status it would benecessary additional sanitary cuttings, replanting, cleaning-up and maintenance activities; (d) Recovery measures for fish resources. The creation of a special reproduction Center forimproving reproduction of the fish resources is proposed and (e) Additional costs for conductingenvironmental assessment for the reconstruction programs and projects and for strengthening

environmental institutions.Reconstruction requires increased demand for the district authoritiesand local councils environmental assessment and management.


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The volume of the debris to be collected and construction wastes to be removed, the extent towhat the fish and forest resources have been damaged, and the quantity of agricultural andhousehold pollutants entering into Prut river are the main environmental problems related to thecurrent flooding. These findings and proposed measures to address them should be incorporatedinto long-term restoration and reconstruction programs to eliminate unacceptable environmental

impacts from subsequent flooding. Specifically, recurring losses and negative intrusions intoenvironmental systems could be avoided, or at least minimized, by identifying, measuring, andinterpreting the magnitude and significance of environmental impacts associated with flooding.The immediate recovery measures are related to conducting clean up, maintenance and sanitarycuttings and replanting activities in the forest sector as well as measures for increasingreproduction of fish resources.

Table: Damage, Losses and Needs in Environment

Currency



term

Total

in million MDL 17.37 11.22 28.59 0.20 15.49 15.69in million USD 1.35 0.88 2.23 0.02 1.21 1.22Source: PDNA Estimate

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Section III. Economic and Social Impact3.1 Macroeconomic Impact

According to preliminary PDNA analysis of damage and losses, July floods caused by heavyrains in some parts of Romania, Moldova and Ukraine had only small impact on the GDP ofMoldova for 2010 estimated at 0.15 percent of GDPas directly affected regions were mostlymaking part of agricultural production accounting for about only 8-9 per cent of the MoldovaGDP. However, once projected public and private recovery and reconstruction spending areincluded, 2011-2012 GDP will be affected positively thanks to the recovery and reconstructionactivity expected to take place those years (real GDP growth increasing by about 0.1-0.3percentage points of GDP in 2011-2012). Based on sector information about losses, two mostaffected GDP sectors are agriculture and transport (about 60 per cent and 38 per cent of GDPlosses respectively.)

Given that total surface of agricultural land suffered due to floods does not exceed 0.4 percent oftotal agricultural land in Moldova, the impact of this natural disaster on agricultural exports willbe negligible. No other exports are reported to be affected. The floods have directly affectedmore than 3 thousand people. Some of their relatives working abroad will most likely respond byhigher remittances to affected communities. It is difficult to estimate exactly by how much theirremittances will increase the overall level of remittances in the country. However even takinginto account relatively conservative number of more than three hundred thousand Moldovansworking abroad, the increase in total number of remittances produced by members of affectedfamilies will most likely hardly be noticed. At the same time short and medium term recoveryneeds will definitely generate an additional inflow of imports of different kinds. Based on the

summary table of damages, losses and needs additional imports may constitute up to 30 millionUSD in 2010 and 40 million USD in 2011. (0.8 percent and 0.9 percent of merchandise importsrespectively) Therefore, the total negative impact of July floods on the Current Account Deficitof the Balance of Payments is estimated not to exceed 0.4-0.6 percent of GDP in 2010-2011.This amount will be lower if donors come up with additional money in the form of officialtransfers to compensate the damage and losses.

Assuming most of the recovery needs will be covered by the budget, its expenditures shouldincrease respectively by up to 380 million MDL in 2010 and up to 514 million MDL in 2011.Thus, the deficit of the general government budget may increase by about 0.5 per cent in 2010and 0.6 percent in 2011. At the same time it should be mentioned that the state budget of 2010 aswell as 2011 do not have the sources to cover these costs. Therefore it is expected that theseexpenditures will be covered from the resources accumulated on the special accountaccumulating financial assistance aimed to remove the consequences of natural calamities (therewere 26.4 million MDL accumulated on this account as of August 11, 2010 with 1.3 millionMDL being already distributed) as well as from additional external non-reimbursable financialassistance.

Impact on Livelihoods and Incomes

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There are 198,173 inhabitants living the in the communities that constitute the flooded area. Theaffected area is predominantly rural (75%) in nature and around 10% of the population isestimated to be permanently located out of the area for reasons connected with migration,studies, etc. Table 1 sets out the nature of the population structure in the flooded area.

Table 1: General Population Characteristics of the Flooded Communities (2008)

Affected area Population Men Women Present % Present

Urban areas (small towns) 49289 23069 26020 44420 90.1Rural areas 148884 73608 75476 136100 91.4Total 198173 96677 101496 180520 91.1Source: Ministry of Economy (MoE)

There are 76,128 families in the affected area, over 70% of which are located rural areas: 3.8%of such families have 3+ children under the age of 18 and there are three times as many ruralfamilies with disabled members than is the case with urban families (MoE, 2008).

The businesses sector, regardless of whether located in the flooded zones or not, is smallcompared to the urban areas. Most such businesses concentrate on processing of agro-products,as well as trade, light industry and services. In 2009 the size of the average micro enterprise inthe affected districts was 2.8 employees and the average turnover per employee was 86,500 lei inmicro enterprises. The bulk of the economy in the affected area is agricultural in nature; there are25,545 agricultural producers with less than 10ha of land, the level at which the farmers areconsidered to be economically viable. These agricultural producers, effectively operating on asubsistence basis, account for 99% of all farmers in the area affected by the flood.

Modovas official national unemployment rate in 2009 was relatively modest (6.4%) bycomparison with neighbouring countries, although this is known to be an underestimate, partlybecause of the degree of migration. The official national male unemployment rate 7.8% is

significant higher than that of females (4.9%); and the youth unemployment rate stands at 15.4%(15-24 years). However, the data from the flooded communities show that the unemploymentrate stands at 5.8% in urban areas but is more than double in rural areas (12.7%); these figuresare indicative only but illustrate the degree of the problem.

Poverty and Deprivation

At the national level, the poverty levels in rural areas increased during 2009: the absolute povertyrate reached 36.3% (+1.7% compared with 2008) for rural areas compared to 12.6% (-3.6%) inurban areas, including small towns (MoE, 2008). Out of the total number of flooded villages, 6communities are part of the category of the most deprived communities at the national level, out

of which 3 are from the Hincesti district (Cotul Morii, Obileni, Nemeni); the other three arefrom the districts of Ungheni (Medeleni), Nisporeni (Brboieni) and Briceni (Lopatnic).

Employment

Because the affected area is predominantly agricultural in nature, the employment impact of theflood has been relatively modest. The affected non-agricultural sector (comprising shops, millsand construction units) employed 11 people, none of whom is working any longer. The ownersof the respective businesses anticipate re-starting their activities by the beginning of 2011,

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assuming they receive some financial support for example in the form of interest free loans. Inthe context of the cultural facilities (cultural centres, library ad church), 9 public officials wereaffected.

Income

National data show that income from wages is the most important source of family revenues,though this is more important in urban than rural areas (wages contribute 58.1% Vs 30.6% of theoverall family income). The second most important source of income, in both urban and ruralareas, is social contributions (14.8% Vs 20.6%) such as pensions and child benefits. A keysource of income in rural areas is remittances from family and friends working abroad thoughthis is particularly important in rural areas (12.6% Vs 20%). Since most rural activities inMoldova are subsistence in nature, income from agricultural activity remains relatively importantin rural areas (18%); unsurprisingly, it is negligible in urban areas (0.9%).

Table 2: National Urban and Rural Incomes Data (2009)

Urban Rural Urban % Rural %

Disposable income 1477.1 939.2 100.0 100.0Income from wages 858.5 287.8 58.1 30.6Income from agricultural activity 12.9 169.1 0.9 18.0Income from non-agricultural activity 107.0 53.1 7.2 5.7Income obtained from property 3.8 0.4 0.3 0.0Social payments 218.6 193.1 14.8 20.6

Pensions 183.6 165.2 12.4 17.6child benefits 8.6 5.4 0.6 0.6Compensations 7.8 8.8 0.5 0.9

social aid 0.3 1.3 0.0 0.1Other incomes 276.4 235.7 18.7 25.1Remittances 185.5 207.0 12.6 22.0

Data source: National Bureau of Statistics

Remittances represent an important source of income to overcome poverty in the country itreduced by 11% the risk of the population falling below the poverty line (Poverty and PolicyImpact report, MoET, 2008). However, other sources of income data indicate that the level ofremittances is being severely impacted by the economic crisis. Remittance levels in rural areasdecreased significantly (17%) in early 2009 according to a joint UN/World Bank assessment(Impact of the Economic Crisis on Poverty and Social Exclusion in the Republic of Moldova,

2009). Furthermore, between Q4 2008 and Q1 2009, income from self-employment inagriculture experienced a 25% contraction.

The steep decline in remittances, combined with the loss of agricultural and livestock income,implies a significant decrease in incomes in the affected communities. It is possible that theamount of remittances received by the families affected by the flood might increase to cover thelosses of household. However, this cannot be taken for granted (informal discussions with flood

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victims suggest that there has not been an increase in remittance flows) due to the globaleconomic crisis. It should be noted that remittances make-up a larger part of revenues in betteroff households than in the poorer ones in Moldova, nevertheless, there is likely to be a negativeimpact which will affect the most vulnerable households disproportionately.

The loss of income from salaries and wages will almost certainly mean that the poverty levels inthe affected areas are very likely to increase dramatically over the next 24 months i

raport final_moldova pdna distribution

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