Stagnant Gagauzia fund leaves rural grants stalled

Gagauzia’s grant co-financing fund remains stagnant despite rising funding requests from local town halls, threatening to block development projects across the southern autonomous region, warned local deputy Alexandr Tarnavschi.

The annual allocation of 20–25 million MDL (approx. €1.0–1.3 million) is no longer sufficient to meet growing demand from local administrations, Tarnavschi noted on Radio Moldova Comrat. He pointed out that this mechanism has not been increased for several years, leaving the fund drained by mid-year or early autumn.

Multiplied returns lost to regional shortfall

The scheme, launched in 2017, covers the mandatory co-financing share required by international donors, typically set around 20%.

“If we invest 20 million MDL from Gagauzia’s budget, we attract 100 million MDL (€5.1 million) from donor funds,” said Tarnavschi. “Yet these resources are insufficient and run out by mid-year.”

The shortfall already hits basic infrastructure in rural communities. In the village of Cișmichioi, local authorities secured a grant to build indoor sanitary facilities at the local Children’s Creative Centre, requiring a co-financing contribution of 42,000 MDL (approx. €2,150). With no money in the local or regional coffers, villagers had to collect the sum privately.

“When we submitted the application, the mayor told us plainly not to count on village funds because there was simply no money,” said Dmitri Ianul, head of the Cișmichioi Village Council.

Risk of discouraging small municipalities

Ianul warned that the absence of institutional co-financing risks deterring rural mayors from applying for external funding in the future.

“Many other town halls facing this issue will ask whether it is worth designing a project, only to run into a wall of cash shortages and end up begging residents or businesses for aid,” Ianul explained. “Consequently, fewer initiatives will emerge to attract vital investment.”

Tarnavschi argued that expanding the fund should be a regional priority, criticising how the executive branch in Comrat currently manages public spending. Gagauzia’s capital investment budget for 2025 stands at only 25 million MDL (approx. €1.28 million), a sum that covers just two to three large projects.

“Public funds are being directed toward the wrong priorities,” said Tarnavschi. “Instead of increasing a fund that multiplies every leu spent into three or four for schools, kindergartens, and hospitals, we face a deficit.”

Serghei Bolgar, the interim head of the General Directorate of Construction and Infrastructure within Gagauzia's Executive Committee, did not respond to requests for comment from Radio Moldova Comrat.

Translation by Iurie Tataru

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