by ACI Partners

Publications17 November 20170 comments

Top 10 Questions on Industrial Parks in Moldova

Industrial parks are one of the most effective factors supporting positive economy development all over the world. For the Republic of Moldova, however, the concept of industrial park is a relatively new one. It has been legally regulated since 2007 and the first industrial park appeared in 2010. An upward dynamic is noted over the last few years due to the promotion of this phenomenon by the Government of the Republic of Moldova. According to the Ministry of Economy and Infrastructure of the Republic of Moldova, on the date of 31st of July 2017, 60 industrial companies operate in 10 industrial parks in the country, employing 2714 persons.

1. What is an industrial park in the Republic of Moldova?

An Industrial Park represents a delimited territory which disposes of a technical and production infrastructure administered by a managing company, and where the resident companies carry out economic activity, under a facilitated regime provided by the state.

2. What are the requirements for the infrastructure of an industrial park?

Technical and production infrastructure includes buildings and installations, electricity power supply system, telecommunication networks, gas and water supply networks, sewage networks, including pluvial, transport routes, public lightening etc.

3. What are the requirements for the land of the industrial parks?

The land for an industrial park, along with the buildings and the facilities located on it, must cumulatively fulfill the following conditions:

• be free of any encumbrances
• be free of any disputes
• have access to the transport routes
• be able to connect to the technical and production infrastructure of the park to the public utilities
• have an area of at least 5 hectares
• be in the usage of the applicant for a term of at least 30 years or in its ownership

4. Who can initiate creation of an industrial park?

The industrial parks can be created at the initiative of any company or state/municipal enterprise, registered in the Republic of Moldova. The central competent bodies of the public central administration and local public administration authorities also can initiate creation of an industrial park, either by establishing a company, or by transferring of the public property goods, for the creation of an industrial park to a selected company based on a contest. This company will obtain the title of an industrial park.

5. Who may be the owner of the industrial park title?

The title of industrial park can be owned only by a company with public, public-private or private capital, or by a state/municipal enterprise, registered in the Republic of Moldova, which undertakes the obligation to administer the industrial park and render services to the residents of the industrial park.

The title of industrial park is granted by Government Decision for a period of 30 years.

The entity that has obtained the title of industrial park is named a managing company.

6. What is the procedure of creation of an industrial park?

The applicant submits to the Ministry of Economy and Infrastructure the request for obtaining the title of industrial park, along with the set of documents among which are feasibility study, approval of the Local Council in which jurisdiction the land for the industrial park is located, approvals of the owners of the public utilities networks holders, and copies of the documents that confirm the ownership right over the land.

The Ministry of Economy and Infrastructure examines the application and the attached set of documents within 30 days from their submission. In case the Ministry of Economy and Infrastructure passes a preliminary decision of granting the title of industrial park, it submits the decision to the Government for approval.

7. Who can be a resident of an industrial park?

Resident of an industrial park may be any economic agent registered in the Republic of Moldova, which carries economic activity based on the contract with the managing company.
Residents for the industrial park created based on a private property goods are selected based on the rules established by the managing company.
Selection of the residents of the industrial park created on the public property goods or on public-private partnership principles is performed on a contest basis. The contest is organized by a commission formed by the representatives of the managing company, of the Ministry of Economy and Infrastructure and other central public authorities or local public authorities, as the case may be.
The selected economic agent concludes with the managing company an agreement on activity in the industrial park, obtaining the title of the resident of the park.

8. What activities may be carried in the industrial parks?

The residents of the park may carry out any kind of activity not prohibited by law. Although the law requires that these activities are predominantly industrial production activities, however, allowed activities include also such activities as service rendering, performing scientific research and/or technological development, etc.

9. What are the facilities granted to the managing company and to the residents of an industrial park?

The state provides to the holder of title of industrial park and to the residents the following facilities:

• exemptions related to exclusion of land from the agricultural land category
• free or gratuitous transfer of the public property goods
• right of privatization of the public land property associated to the buildings at a privileged price
• tax incentives
• application of a preferential rate of the lease on the land or public property goods
• optimization of the state controls
• allocation of the financial means for the creation of infrastructure

10. What are the grounds of termination of the activity of an industrial park resident?

The resident of the industrial park cannot carry out activity within the industrial park if the title of industrial park resident has been withdrawn. The industrial park title is withdrawn by the termination of the contract concluded with the managing company. The initiative of the contract termination may be both of the resident, as well as of the managing company.

Withdrawal of the industrial park title entails deprivation of the right to benefit from the facilities granted to the residents of the park.

Withdrawal of the industrial park resident title does not serve as a ground for the termination of the lease contract on the public property lands concluded with the residents of the industrial park.