Promoting Clean Urban Public Transportation and Green Investment in Moldova

7. Policy and regulatory framework for the transport sector

Abstract

This chapter briefly discusses the main regulatory, institutional and organisational framework dealing with or having an impact on urban public transport in Moldova (including energy efficiency and air pollution control). All the legislative requirements and set-ups presented here – both technical and administrative – are discussed in the context of the extent to which they can facilitate the creation of demand for green investments in Moldova’s public transport sector.

7.1. Regulatory framework affecting urban transport in Moldova

The general regulatory framework includes various acts that affect public transport, such as the legal relationships between the transport operators and passengers, and between operators and public administration bodies. Besides technical and road safety regulations, it also includes fiscal (such as customs duties for imported vehicles) and social (consumer) and environmental protection (such as emissions or energy efficiency standards).

The analysis of the acts regulating transport services shows that several provisions are insufficiently adapted to current economic realities and only partly harmonised with relevant European Union (EU) directives such as Directive 2014/23/EU on the award of concession contracts (EU, 2014[1]) or Directive 2006/32/EC on energy end-use efficiency and energy services (EU, 2006[2]).

7.1.1. The law on transport

Law No. 1194 of 21 May 1997 on transport sets out the general framework for the operation of all modes of transport in the territory of the Republic of Moldova. According to Art. 15, the country's transport system includes rail, car, air, naval, electric urban transport and pipeline transport. State administration of the transport system is carried out by the Ministry of Economy and Infrastructure (which now incorporates the former Ministry of Transport and Roads Infrastructure), the local public administration authorities and other authorised bodies (Art. 3). Article 4, par. (6) of the law stipulates that interference by local public administration authorities in the economic activity of transport companies, as well as the diversion of their operating personnel to other works, will only be permitted in the cases provided for under legislation. According to Art. 5, par. (2) of the law, the companies that are part of the transport system, irrespective of the type of property and the legal form of organisation, benefit from state protection on equal principles. The transport companies carry out transport and provide other services covered in contracts and orders for the carriage of passengers and goods, based on market economy principles (Art. 7). The law also deals with the liability of transport companies (Art. 10), as well as their obligations to ensure transport safety (Art. 13). Compliance with transport legislation is checked by the respective central and local public authorities within the limits of their competence (Art. 22).

7.1.2. The law on local public administration

Law No. 436 of 28 December 2006 on local public administration establishes and regulates the organisation and functioning of the public administrative authorities in the administrative-territorial units. Thus, according to Art. 14, par. (2), lit. c) and h), the competences of the councils of the first level local public administrative authorities include the “concession of public services of local interest, in accordance with the law” and “organisation of public communal services”.

The competences of the local government executive (mayor, local government of the first level) of relevance to public transport include:

• proposing to the local council the organisational structure and the terms and conditions for the provision of public utility services

• taking measures to ensure the proper functioning of communal services

• approving tariffs/fares for public transport in their jurisdiction

• ensuring the safety of road and pedestrian traffic by organising the circulation of transport; maintaining roads and bridges; and installing road signs within the boundaries of the administered territory

• ensuring the registration and record-keeping of trolleybuses.1

The district councils’ (local public administration, second level) competences include:

• granting concessions for public services of district interest

• organising public services of district and/or regional interest

• approving tariffs for services provided.

7.1.3. The law on public services

Law No. 1402 of 24 October 2002 on Public Services of Communal Households is one of the most important acts affecting public transport, as it establishes a legal framework for the creation and organisation of public utilities in the administrative-territorial units, and for monitoring and controlling their operations, including the public transport service (Art. 3, par. (1), lit. e). The law establishes the principles and conditions for the organisation and operation of public utilities (Art. 3 – Art. 12), as well as the attributions and responsibilities of the central public administration (Art. 13) and local public administrative authorities (Art. 14 – Art. 15).

According to the law, the management of public utilities is organised through direct or delegated management (Art. 17). Direct management implies that local public administrative authorities assume all the tasks and responsibilities related to the organisation, operation, administration and management of public services through specialised departments. Each public utility established and operated under the direct management regime operates under a statute that is prepared and approved by the local public administration (Art. 18). In the case of delegated management, the local public administrative authorities may call upon one or more operators to manage the provision of public utility services (Art. 19) on a contractual basis (Art. 20).

Although the provisions of the law on public services are broadly harmonised with EU legislation, inconsistencies in secondary regulations mean these provisions remain theoretical and difficult to apply in practice.

7.1.4. Regulation of concessions in public services

The legal framework for concessions is provided for under Law No. 534 of 13 July 1995 on Concessions and Governmental Decision No. 1006 of 13 September 2004 on Approval of Regulation of Public Services Concession for Communal Households. While this legal framework allows, solely from a legal perspective, for the use of a concession contract for activities related to local public transport, this does not mean that the concession complies with the minimum requirements defined in EU legislation (Directive 2014/23/EU on the award of concession contracts). These requirements include transparent, non-discriminatory and proportionate selection criteria that allow continuous access by all economic operators to the provision of specific services, such as social services (which, in turn, allows customers to choose between such operators).

When defining concession (Art. 1), the law includes public services as a possible object of the concession contract. The law and the regulation, however, do not provide for a procedure to ensure equal treatment and non-discrimination of economic operators. Consequently, the contracting authorities lack a framework for ensuring they act in a transparent and proportionate manner.

Compliance with minimum requirements established by EU legislation should be ensured from the very beginning, starting with the definition of concession. EU legislation defines a concession in relation to the risks assumed by the operators. The concession involves transferring risk (demand or supply risk or both) to the concessionaire in operating the works or services. The concession, as it is regulated by the national legal framework, does not reflect any kind of risk.

In terms of transparency, there are also major deficiencies in proportionality and equal treatment principles. The Regulation of Public Services Concession for Communal Households refers to Government Decision No. 102 of 27 February 1996 on Measures for the Enforcement of the Law on Concessions, which was revoked by Government Decision No. 118 of 11 February 2013 on Government Decisions Abrogation. The aforesaid decisions described the procedural stages of the tender, but the regulation still does not comply with EU minimum requirements.

The deficiencies in the entire national legal framework for public concessions are as follows:

• Publicising the tender. The content of the notice is not very clearly defined.

• Selecting candidates. Conditions for participation related to the professional and technical capacity and the financial and economic standing of the candidates are not indicated/specified. This means the contracting authority can include some “artificial” conditions that will restrict participation by possible candidates to the point where there are not enough candidates to ensure genuine competition. Moreover, conditions for excluding candidates, such as fraud, distortion of competition, or non-payment of taxes, are not stipulated.

• Concession award criteria. The law does not impose the adoption of an evaluation method prior to the appraisal process.

• Conflict of interest. There are no provisions related to this topic.

• Framework for value and corresponding duration of the contract. There are no indications of the methods for calculating the estimated value of the concession. This means the duration of the contract is not determined in a consistent manner. Ideally, the maximum duration of the concession should not exceed the time that a concessionaire could reasonably be expected to pay off the investments made in operating the works or services, together with making a return on invested capital, taking into account the investments required to achieve the specific contractual objectives. The actual legal framework establishes a maximum term of 50 years, but there are no specific data on the investment and revenues obtained by the concessionaire.

• Royalty. There is no methodology for determining royalties. While this is not a mandatory inclusion in the Law on Concessions, the Regulation on Concession should define a precise methodology for royalty calculation in order to ensure the sustainability of the systems. The level of the royalty should allow at least for the replacement of outdated infrastructure and the development of facilities. For example, at the end of the operating life of a means of transport, the contracting authority should have enough funds to replace it.

• Asset property regime. The property regime for the concession’s assets is not defined. Ownership of the assets when the concession contract expires or the contract is cancelled is therefore not regulated.

• The right to appeal in court against the terms of reference or the award notice is not stipulated. The right to appeal should be very clearly defined by specifying the terms of appeal, the competence and jurisdiction of the courts and the applicable procedure.

In conclusion, these deficiencies demonstrate that the current legislation does not ensure genuine competition for awarding concession contracts, which also applies to the public transport sector. From a legal perspective, if the legal framework promoted fair competition, the concession system could apply to all activities related to public transport.

7.1.5. The law on local public finance

The provisions of Law No. 397 of 16 October 2003 on Local Public Finance do not raise any major difficulties for the provision of public transport services. The law lays out the structure of the budgets of the administrative-territorial units, as well as how they are prepared, approved and executed. In the context of discussions on the possibility for local authorities to finance projects in local public passenger transport, the need to promote tax incentives for transport operators in order to encourage the development of this type of transport should also be included in the law.

7.1.6. The fiscal code, including excise and duties

Several provisions of the Fiscal Code of the Republic of Moldova No. 1163 of 24 April 1997 affect urban public transport. According to Art. 103 par. (1), p. 18, “value added tax (VAT) does not apply to supply deliveries, performed services by taxable persons, which are the result of their entrepreneurial activity in the Republic of Moldova: services provided by urban transport, as well as services provided by the transport of suburban passengers”.

Excise taxes are regulated by Title IV of the Fiscal Code (Art. 119 – Art. 128). The excise tax rate for means transport is expressly stipulated in Annex 2 to Title IV of the fiscal code. Under this, when importing cars into Moldova, import duties are assessed depending on engine type, capacity and year of manufacture. From 1 January 2017, excise tax or import duty rates have been set in MDL and not in EUR. A vehicle grading system has also been introduced, divided into 7 age categories: 0-2 years, 3-4 years, 5-6 years, 7 years, 8 years, 9 years and 10 years. For hybrid cars, the excise tax or import duty rate has been reduced by 50%. For vehicles with truck status, 20% VAT is applied on import and the excise tax amount is a fixed fee of MDL 222 440 (USD 11 916).

The procedure and principles for setting, modifying and cancelling local taxes, their maximum rates, the mode of payment, the criteria for granting tax relief, etc., are also determined by Title VII of the fiscal code. Accordingly, Art. 289 par. (2). lit. and Art. 291, lit. (i) provides that the fees for providing passenger transport services on municipal, town and village (communal) routes are to be paid by operators per transport unit, depending on the number of seats. Thus, the maximum tax rate for the provision of passenger services is:

• MDL 500 (USD 27) per month for each car with a capacity of up to 8 seats inclusive

• MDL 1 000 (USD 54) per month for each motor vehicle (minibus) with a capacity of 9 to 16 seats inclusive

• MDL 1 500 (USD 81) per month for each bus with a capacity of 17 to 24 seats inclusive

• MDL 1 700 (USD 92) per month for each bus with a capacity of over 24 seats.

It should be noted that this tax is only paid by private operators and not by municipal transport companies. These municipal exemptions violate competition protection provisions, thus creating a privileged position in relation to other operators in the market.

Title IX of the fiscal code regulates road taxes, including the road tax disc (Art. 335 – Art. 366).

7.1.7. The customs code

The Customs Code of the Republic of Moldova No. 1149 of 20 July 2000 sets out the legal, economic and organisational principles of customs activity. Articles 19 to 27 of the code regulate the general principles of transporting goods and means of transport across customs borders. According to Art. 20, par. (4) of the code, the following are forbidden from being entered and/or placed under customs imports procedure, customs warehousing or customs clearance free zones:

• means of transport with a service life exceeding 10 years classified under heading 8 702 for the transport of more than 20 persons, and under tariff headings 8 704 and 8 705, and their engines and bodies

• vehicles with a service life exceeding 10 years classified under heading 8 703 (except motor vehicles), and their engines and bodies

• motor vehicles with a service life exceeding 7 years designed for carrying a maximum of 20 people classified under tariff heading 8 702, and their engines and bodies

• motorcycles with a service life exceeding 10 years classified under heading 8 711, and their engines.

7.1.8. The civil code

The Civil Code of the Republic of Moldova No. 1107 of 6 June 2002 includes provisions for the establishment, organisation and dissolution of legal persons, as well as regulations related to the entrepreneurial activity of natural persons (transport operators), general provisions in matters of contracts (training, execution and effects of non-execution), calculation of deadlines, tort liability, etc. The Book III, Title III, Chapter XII - "Transport" includes provisions regulating the transport contract in general (Art. 980 – Art. 985), the transport contract for persons (Art. 986 – Art. 992) and the transport of goods (Art. 993 – Art. 1029).

7.1.9. The contravention code

The Contravention Code of the Republic of Moldova No. 218 of 24 October 2008 lists a series of contraventions in the field of public passenger transport. Violations that can be prosecuted include violation of transport sanitary-hygienic and sanitary-anti-epidemic rules (Art. 80 par. (1)), and breach of fire safety rules (Art. 358). Among the contraventions in the field of environmental protection set out in Chapter IX of the code, the following sanctions apply to transport:

• failure to fulfil the registration obligations for operations involving harmful substances and mixtures (Art. 150)

• breach of technical and ecological testing rules (Art. 151)

• commissioning and operating terrestrial vehicles, ships and aircraft that exceed pollutant emissions and noise emission standards (Art. 152 – Art. 153).

Chapter XII “Contraventions against the transport regime” provides sanctions for violating rules for the transport of persons and goods (Art. 197) and travelling without a ticket (Art. 204). Contraventions in road traffic are found in Chapter XIII of the Code (Art. 228 – Art. 245).

7.1.10. Entrepreneurial activity

Law No. 451 of 30 July 2001 on Business Activity Licensing determines the legal, organisational and economic regulatory framework for licensing entrepreneurial activity. The law stipulates the types of activities subject to licensing, including paid transport routes, bus station activity and training staff in road transport (Art. 8, par. (1), points 11, 111 and 321). At the same time, the law establishes the content of the licence (Art. 9), the documents required for obtaining the licence (Art. 10), the licence validity term (Art. 13), the licence-issuing procedure (Art. 11, Art. 14 – Art. 18), the organisations/bodies and control arrangements in the field of licensing (Art. 19), the conditions for suspension (Art. 20) and licence withdrawal (Art. 21). The Public Services Agency is the only licensing authority for passenger-paying road transport and bus station activity.

7.1.11. Consumer protection

Law No. 105 of 13 March 2003 on Consumer Protection establishes general consumer protection requirements, the necessary framework for unlimited access to products and services (including full information of their main features), and the protection and safeguarding of consumers’ legitimate rights and interests in the event of unfair commercial practices and in decisions that interest them as consumers. The law regulates the protection of consumers’ life, health, heredity and security (Chapter II); protection of consumers’ economic interests (Chapter III); the execution of works (Chapter IV); consumer information (Chapter V); and the bodies empowered with consumer protection functions (Chapter VI).

7.1.12. Road safety

Law No. 131 of 7 June 2007 on Road Safety regulates the legal and social relations in the field of road traffic; establishes the rights, obligations, responsibilities of the competent authorities and the participants in this traffic; and determines the principles for organising the activity of staff training units in the field of road transport, as well as the conditions for the admission to traffic of motor vehicles drivers. The provisions of this law deal with road traffic in terms of ensuring its smooth and safe deployment, which implies the protection of the legitimate rights and interests of individuals and legal entities; the defence of their property; the health, bodily integrity and lives of passengers; as well as the protection of the environment (Art. 1 par. (2)). The Law on Road Safety outlines the responsibilities of the competent authorities in the field of road traffic (Chapter II), including the competence of the Ministry of Economy and Infrastructure (Art. 8). The law also regulates the process of organising the initial training, re-qualification and periodic training of drivers (Art. 18 – Art. 31), as well as the process of admission to road traffic and erasure from the state transport register (Art. 37 – Art. 55). Approval and certification of motor vehicles is provided for under Art. 39.

7.1.13. The law on competition

Law No. 183 of 11 July 2012 on Competition establishes the legal framework for the protection of competition, including the prevention and countering of anti-competitive practices and unfair competition, and market concentration. It also establishes the legal framework for the Competition Council's activity and competences, and responsibility to take measures in the event of a violation of the Competition Law.

7.1.14. Insurance laws

Law No. 407 of 21 December 2006 on Insurance regulates the organisation and functioning of insurers, reinsurers and insurance and/or reinsurance intermediaries, as well as the supervision of their activity. According to Art. 5, par. (4), lit. a) of the law, the approval and the establishment of insured risks, the assessment of damages, the establishment and payment of indemnities and insurance indemnities shall be made under the law in the case of compulsory insurance, or on the basis of the insurance conditions and the insurance contract, in case of voluntary insurance.

Law No. 414 of 22 December 2006 on Mandatory Insurance of Civil Liability for Damage Caused by Motor Vehicles regulates the legal relations between insurers, insured persons and third parties deriving from the compulsory third party liability motor insurance contract, as well as the method for realising this type of insurance.

7.1.15. Road traffic and the road transport code

Government Decision No. 357 of 13 May 2009 on Approval of the Road Traffic Regulation establishes traffic rules, the interaction of public transport means with other road users; the technical conditions to be met for a vehicle to be permitted to circulate; as well as the responsibilities related to the safety of all parties involved in traffic. All of these ensure the smooth running of traffic.

Government Decision No. 415 of 8 April 2003 on Approval of the Regulation on the Technical Supervision by Road Police includes provisions for regulating and ensuring the effectiveness of technical surveillance, establishes the obligations of all road police subdivisions responsible for technical surveillance, as well as the modalities for its accomplishment in order to ensure road safety. The regulation also rules on the exercise of control over vehicle conformity with standards for ensuring road safety, including the conditions under which motor vehicles can be re-used.

The special regulatory framework includes acts that directly regulate road transport activity, including public passenger transport. A first group of acts to be analysed is represented by the Road Transport Code of the Republic of Moldova No. 150 of 17 July 2014 and the secondary regulations edited in its application, namely:

• Government Decision No. 257 of 28 April 2017 on Approval of the Regulation of Issuance and Use of Road Transport Authorisations

• Government Decision No. 437 of 12 April 2016 on Approval of Regulation of Issuance, Replacement, Changing and Renewing Tachograph Cards, Downloading and Storing Tachograph Data and Tachograph Cards

• Order of the Ministry of Transport and Roads Infrastructure No. 9 of 10 February 2015 on Elaboration of Continuous Training Programmes

• Order of the Ministry of Transport and Roads Infrastructure No. 43 of 20 February 2012 on Provisional Instruction on Issuance and Use of Books of Journey (Interbus)

• Government Decision No. 539 of 23 April 2008 on the Creation of the National Agency of Road Transport

• Government Decision No. 1167 of 29 October 2007 on Approval of the Methodology of Calculation of Tariffs in Transportation Services in Public Passenger (Passengers) and Baggage Road Transport

• Government Decision No. 854 of 28 July 2006 on Regulation of Passenger and Baggage Road Transport

• Regulation of the Ministry of Transport and Communications No. 9/12 of 9 December 1999 on Bus Station (Auto Station)

• Regulation of the Ministry of Transport and Communications No. 9/12 of 9 December 1999 on Regulation of Traffic Safety of Businesses, Institutions and Organisations which Perform Passenger and Freight Transport

• Government Decision No. 1047 of 8 November 1999 on Reorganisation of the Automated Information System ‘AutoTEST’ in the State Transport Registry and Introduction of Vehicles and Trailers Testing.

The Road Transport Code is the main legislative act that establishes the legal framework for organising and carrying out safe and high-quality transport of goods and people by road; as well as road transport activities on the territory of the Republic of Moldova, respecting the principles of free competition and measures for protecting the environment; the legitimate rights and interests of natural and legal persons benefiting from such services; and the rights, obligations and responsibilities of public bodies organising road transport, including natural and legal persons.

Article 6, par. (3) of the code provides that public administration in the field of road transport is exercised by the central public administrative authorities, the local public administrative authorities and other authorities authorised by law within the limits of their competencies.

7.2. Institutional framework

The National Agency of Road Transport (Agenția Națională Transport Auto – ANTA) ensures the implementation of public policy and national development strategies in the field of road transport. It controls and supervises compliance with national and international legislation by road transport operators and companies performing activities related to road transport (pursuant to Art. 8 par. (1) and Art. 147). The functions and rights of the agency are regulated by Art. 9 and Art. 10 of the Road Transport Code (see Section 7.1.15).

In order to carry out their functions under the Road Transport Code, local, municipal and district councils can set up commissions for organising road passenger transport by regular services and can approve their operating regulations. The local public administrative authorities develop and approve, after co-ordinating with the central specialised body, medium and long-term strategies for developing and modernising road transport, taking into account urban and spatial plans, local economic and social development programmes and the transport needs of the population.

Rayon councils (district councils) co-operate with local and municipal councils in order to ensure and develop fee-based road transport for regular passenger services in the rayon, as well as to co-ordinate payments for passenger transport by regular services in local/municipal traffic. Local, municipal and rayon councils must ensure equal and non-discriminatory treatment, in a competitive and transparent environment, for all road transport operators (Art. 12).

At the same time, the rayon councils (Art. 13):

• approve and update the rayonal road transport programmes after obtaining the approval of the central specialised body in accordance with the transport needs of the population

• have the right to provide transport facilities at a discounted rate for certain categories of people within the respective territorial-administrative unit, while ensuring sources of compensation for the lost revenue to the service provider

• authorise routes for fee-based passenger transport by regular services in the rayon, and monitor its use.

In turn, local and municipal councils, in the context of the need to organise local routes for fee-based passenger services, may (Art. 14):

• establish subsidies from the local and/or municipal budget, as appropriate, to cover the difference between the costs incurred by the road transport operator for the provision of regular road transport services in local traffic and the amounts actually received as a result of the transport

• provide, within the respective territorial-administrative unit, transport facilities for certain categories of people

• develop, approve and update, according to their competence, local road transport programmes to meet the transport needs of the population

• authorise routes for fee-based passenger transport through regular services in local and municipal traffic, and monitor its deployment, where appropriate

• organise electric transport services

• develop and approve urban mobility plans

• approve the charges for regular road passenger transport services in municipal and/or local traffic.

Other important competences of the local public administrative authorities related to road transport operators include the right to (Art. 15):

• regularly monitor the provision of passenger transport services in local, municipal and district traffic, by jurisdiction

• notify the National Agency of Road Transport (ANTA) of the need to withdraw authorisations in case of violations

• request the competent bodies to cancel a licence.

7.3. Organisational framework

The provision of a route for fee-based transport services is subject to licensing (Art. 22). Title III/Chapter 2 of the Road Transport Code regulates access to the provision of transport services, and contains special provisions for the licensing (authorisation) regime. These state that registered enterprises in the Republic of Moldova intending to provide transport services must fulfil conditions on technical and material assets, reputation, financial capacity and professional competence. The road transport licence is valid for eight years (Art. 28 par. (2)).

Chapter 3 of the code sets out the authorisation regime for regular passenger transport services. Authorisation for road passenger transport on regular services is a nominative act of the road transport operator, is not transferable and has an eight-year validity period. During the validity period, a route may be modified by up to 30% of its initial length (Art. 37, par. (3)). Authorisation road passenger transport on regular services can be given upon request without conducting a competition procedure if the road transport operator, during the period of validity of the authorisation, has not had its road transport licence suspended (Art. 40). Art. 38, par. (21) of the code expressly provides for situations in which the agency may withdraw the authorisation for road passenger transport on regular services in local, municipal, district and inter-district traffic.

The authorisation for passenger transportation by regular services in local, municipal, district (rayon), inter-district and international transport is issued by the ANTA for the routes included in the local, municipal, district, inter-district and international road transport programmes, together with the service schedule for the road haulage operator (Art. 32, par. (1)). Regular road passenger transport services in local and municipal traffic can be managed through direct management, delegated management or mixed management.

The code also provides for road transport programmes at the local, municipal, district (rayon), inter-district and international (Art. 33) levels. For each route, road haulage programmes establish bus and public stations used for departures, transit stops and arrivals. The location of public passenger stops and stations is determined by local public administrations with the advice of the specialised services of the Ministry of Internal Affairs and the administrator of the respective road. The placement,of road signage and maintenance of public passenger stops are provided by the local public administrative authorities or the road manager, as the case may be. Passenger embarkation/disembarkation is allowed at all public stops directly on the route, even if they are not shown on the traffic charts. Access to public stops by transport operators that have assigned routes is free and non-discriminatory, according to the traffic schedules (Art. 34).

The procedure for defining, approving and modifying road transport programmes is stipulated in Art. 35 – Art. 37 of the Road Transport Code. Thus, the modification of international road transport programmes can only be carried out between 1 January and 15 February; while the dates for local, municipal and district (rayon) programmes are between 1 March and 1 May, and 1 September and 1 November. All road transport operators providing services on the concerned route must be informed of the modification within 30 calendar days. When modifying a road transport programme, passenger flow analysis and the impact of the proposed changes on the existing routes are taken into consideration (Art. 37, par. (7) – par. (9)).

Regular road transport services on the routes included in the local, municipal, district and inter-district road transport programmes are awarded by competition commissions as part of public tenders. This includes the:

• introduction of new routes

• withdrawal or expiration of the authorisation for transport of passengers on regular service routes

• lack of certified copies of the licence road transport required for the route (Art. 38, par. (1)).

The competent authorities (central specialised body, local, municipal and/or rayon councils) may assign an entire route, group of routes, or group of lines along the same route. Routes and lines can be grouped if an economically unattractive route is deemed necessary to meet the transport needs of the population.

In the case of operation of several bus stations in the locality, the central specialised body, depending on the territorial location of the bus stations and the travel directions of the routes that start from these bus stations or transit them, can determine the priority directions for servicing the routes for the respective bus stations. The establishment of priority directions does not limit the right of road transport operators to choose their own bus stations on the respective route (Art. 86, par. (8)).

When providing passenger services on domestic public transport over a distance of less than 50 km, passengers can be transported according to the vehicle’s capacity provided by the manufacturer. In international traffic, however, all passengers must be seated. For passenger transport, the use of re-equipped vehicles (converted from light-duty trucks2) is prohibited (Art. 63).

Tariffs can be freely determined on the basis of demand and supply for road passenger transport on regular and occasional services, as well as for the provision of related services (except for the activity of buses and periodical technical inspection). Tariffs for road transport services by regular services in district and inter-district traffic, bus services and technical inspection stations are established by the central specialised body (ANTA). In local or municipal traffic tariffs are determined by the local or municipal councils, as the case may be, according to the methodology approved by the government (Art. 145). In practice, however, municipal councils have tended to provide financial support to public transport operators, in particular in order to keep bus fares low. This has had a detrimental impact on those that do not receive subsidies from the municipal budget. This, in turn, has substantially affected the competitive balance, ultimately leading to a significant deterioration in the quality of transport services as insufficient funds are available to renew vehicles and transport infrastructure.

An important impediment to the application of the provisions of the Road Transport Code is the lack of framework rules, which should have been developed by the central public authorities. These would allow local public administrative authorities to develop and approve the local norms for regulating public passenger transport activity.

Government Decision No. 854 of 28 July 2006 on Regulation of Passenger and Baggage Road Transport rules on the categories and types of passenger transport defines the basic notions; establishes the rights, obligations and responsibilities of the parties – passengers, crew, transport operator, regular and irregular transport organisation, for own use, in taxi arrangements, the organisation of the transport and storage of baggage and hand luggage; the control of road passenger activity and the arrangements for solving disputes in this area. However, the Regulation of Passenger and Baggage Road Transport has not been brought into line with the provisions of the Road Transport Code.

The regular routes are organised following an analysis of the economic and social links between localities, taking into account the frequency of population movements, correlation with other modes of transport and passenger transport routes in service (point 17).

The organisation of new regular urban routes, and modification or closure of existing ones is carried out by the local public administrative authorities – municipalities (city halls). The local public administrative authorities draw up, in accordance with the legislation in force, rules for the carriage of passengers and luggage on their territory (be electric, car and taxi) and submit them to the specialised body of the central public administration for coordination (point 29). The priority right to serve regular urban routes is granted to hauliers registered in the municipality (town hall) which have more than one transport unit (point 30).

The Regulation of the Ministry of Transport and Communications No. 9/12 of 9 December 1999 on Regulation of Traffic Safety of Businesses, Institutions and Organisations which Perform Passenger and Freight Transport determines the tasks and the main requirements regarding the activity of the operators of passenger and goods transportation to ensure road traffic. Pursuant to Point 1.4 of the regulation, the responsibility for organising work to ensure the safety of road traffic on behalf of enterprises falls to the manager of the company or a responsible appointed person (specialist). Their basic tasks include: 1) ensuring the professional efficiency of drivers; 2) ensuring the technical state of operation of vehicles; 3) ensuring the security of passenger and goods traffic (Point 2.1). For each of these tasks the regulation lays down a series of concrete measures to be implemented and respected by transport operators.

7.4. Conclusions for the CPT Programme

This regulatory review has demonstrated that there is a legislative and policy framework in place for replacing outdated public transport fleets. Depending on the number of buses on a given route, a replacement schedule is provided in the standard contract for provision of public transport services.

Existing laws and regulations also provide for the introduction of more efficient models for buses, as well as more efficient and cleaner fuels.

Moldova’s multi-level institutional and organisational framework for the transport sector is functional, but public authorities should adopt a unified approach in order to tackle the air pollution issue (also from road transport) and better co-ordinate the (priority) actions, both horizontally and vertically.

References

[1] EU (2014), “Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts”, Official Journal of the European Union, Vol. L 94/1 of 28 March 2014, pp. 1-64, https://eur-lex.europa.eu/eli/dir/2014/23/oj.

[2] EU (2006), “Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006 on energy end-use efficiency and energy services and repealing Council Directive 93/76/EEC”, Official Journal of the European Union, Vol. L 114/64 of 27 April 2006, pp. 64-85, https://eur-lex.europa.eu/eli/dir/2006/32/oj.

Laws and regulations

(Listed by most recent date of adoption – all are in Romanian/Russian)

1. Government Decision No. 257 of 28 April 2017 on Approval of the Regulation of Issuance and Use of Road Transport Authorisations, Official Monitor No. 149-154 from 12 May 2017, Art. 363, http://lex.justice.md/md/370144.

2. Government Decision No. 437 of 12 April 2016 on Approval of Regulation of Issuance, Replacement, Changing and Renewing Tachograph Cards, Downloading and Storing Tachograph Data and Tachograph Cards, Official Monitor No. 106-113 from 22 April 2016, Art. 504, http://lex.justice.md/md/364382.

3. Order of the Ministry of Transport and Roads Infrastructure No. 9 of 10 February 2015 on Elaboration of Continuous Training Programmes, Official Monitor No. 52-57 from 6 March 2015, Art. 417, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=357199.

4. Education Code of the Republic of Moldova No. 152 of 17 July 2014, Official Monitor No. 319-324 from 24 October 2014, Art. 634, http://lex.justice.md/md/355156.

5. Road Transport Code of the Republic of Moldova No. 150 of 17 July 2014, Official Monitor No. 247-248 from 15 August 2014, Art. 568, http://lex.justice.md/md/354404.

6. Government Decision No. 88 of 6 February 2014 on Implementation of Number Plates Registration for Public Passenger Transport Vehicles, Official Monitor No. 35-41 from 14 February 2014, Art. 105, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=351548.

7. Government Decision No. 118 of 11 February 2013 on Government Decisions Abrogation, Official Monitor No. 31-35 from 15 February 2013, Art. 163, http://lex.justice.md/md/346729.

8. Law No. 183 of 11 July 2012 on Competition, Official Monitor No. 193-197 from 14 September 2012, Art. 667, http://lex.justice.md/md/344792.

9. Order of the Ministry of Transport and Roads Infrastructure No. 43 of 20 February 2012 on Provisional Instruction on Issuance and Use of Books of Journey (Interbus), Official Monitor No. 46-47 from 7 March 2012, Art. 274, http://lex.justice.md/md/342434.

10. Government Decision No. 1214 of 27 December 2010 on Approval of National Strategy for Road Safety, Official Monitor No. 43-45 from 25 March 2011, Art. 186, http://lex.justice.md/viewdoc.php?action=view&view=doc&id=337883&lang=1.

11. Government Decision No. 357 of 13 May 2009 on Approval of the Road Traffic Regulation, Official Monitor No. 92-93 from 15 May 2009, Art. 409, http://lex.justice.md/md/331491.

12. Contravention Code of the Republic of Moldova No. 218 of 24 October 2008, Official Monitor No. 3-6 from 16 January 2009, Art. 15, http://lex.justice.md/md/330333.

13. Government Decision No. 539 of 23 April 2008 on Creation of the National Agency of Road Transport, Official Monitor No. 82 from 29 April 2008, Art. 521, http://lex.justice.md/md/327760.

14. Government Decision No. 1167 of 29 October 2007 on Approval of the Methodology of Calculation of Tariffs in Transportation Services in Public Passenger (Passengers) and Baggage Road Transport, Official Monitor No. 171-174 from 2 November 2007, Art. 1208, http://lex.justice.md/md/325638.

15. Law No. 131 of 7 June 2007 on Road Safety, Official Monitor No. 103-106 from 20 July 2007, Art. 443, http://lex.justice.md/md/324528.

16. Law No. 436 of 28 December 2006 on Local Public Administration, Official Monitor No. 32-35 from 9 March 2007, Art. 116, http://lex.justice.md/document_rom.php?id=C8E304A4:037190E8.

17. Law No. 414 of 22 December 2006 on Mandatory Insurance of Civil Liability for Damage Caused by Motor Vehicles, Official Monitor No. 32-35 from 9 March 2007, Art. 112, http://lex.justice.md/document_rom.php?id=7C0C69B3:5BBF1D14.

18. Law No. 407 of 21 December 2006 on Insurance, Official Monitor No. 47-49 from 6 April 2007, Art. 213 http://lex.justice.md/document_rom.php?id=8A72DED2:D810E610.

19. Government Decision No. 854 of 28 July 2006 on Regulation of Passenger and Baggage Road Transport, Official Monitor No. 124-125 from 8 August 2006, Art. 910, http://lex.justice.md/md/316972.

20. Government Decision No. 1006 of 13 September 2004 on Approval of Regulation of Public Services Concession for Communal Household, Official Monitor No. 171 from 17 September 2004, Art. 1183, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=297065.

21. Law No. 397 of 16 October 2003 on Local Public Finance, Official Monitor No. 248-253 from 19 December 2003, Art. 996, http://lex.justice.md/index.php?action=view&view=doc&id=312821.

22. Government Decision No. 415 of 8 April 2003 on Approval of the Regulation on the Technical Supervision, Official Monitor No. 70-72, from 15 April 2003, Art. 442, http://lex.justice.md/index.php?action=view&view=doc&id=301816.

23. Labour Code of the Republic of Moldova No. 154 of 28 March 2003, Official Monitor No. 159-162 from 29 July 2003, Art. 648, http://lex.justice.md/md/326757.

24. Law No. 105 of 13 March 2003 on Consumer Protection, Official Monitor No. 176-181 from 21 October 2011, Art. 513, http://lex.justice.md/md/340558.

25. Law No. 1402 of 24 October 2002 on Public Services of Communal Household, Official Monitor No. 14-17 from 7 February 2003, Art. 49, http://lex.justice.md/index.php?action=view&view=doc&id=312769.

26. Civil Code of the Republic of Moldova No. 1107 of 6 June 2002, Official Monitor No. 82-86 from 22 June 2002, Art. 661, http://lex.justice.md/md/325085.

27. Criminal Code of the Republic of Moldova No. 985 of 18 April 2002, Official Monitor No. 72-74 from 14 April 2009, Art. 195, http://lex.justice.md/md/331268.

28. Law No. 451 of 30 July 2001 on Business Activity Licensing, Official Monitor No. 26-28 from 18 February 2005, Art. 95, http://lex.justice.md/md/313293.

29. Customs Code of the Republic of Moldova No. 1149 of 20 July 2000, Official Monitor No. 160 from 23 December 2000, Art. 1201, http://lex.justice.md/document_rom.php?id=585B6E01:8B1557DE.

30. Regulation of the Ministry of Transport and Communications No. 9/12 of 9 December 1999 on Bus Station (Auto Station), Official Monitor No. 46 from 27 April 2000, Art. 46, http://lex.justice.md/viewdoc.php?action=view&view=doc&id=313582&lang=1.

31. Regulation of the Ministry of Transport and Communications No. 9/12 of 9 December 1999 on Regulation of Traffic Safety of Businesses, Institutions and Organisations which Perform Passenger and Freight Transport, Official Monitor No. 46 from 27 April 2000, http://lex.justice.md/md/314239.

32. Government Decision No. 1047 of 8 November 1999 on Reorganization of the Automated Information System ‘AutoTEST’ in the State Transport Registry and Introduction of Vehicles and Trailers Testing, Official Monitor No. 126-127 from 12 November 1999, Art. 1113, http://lex.justice.md/md/326068.

33. Law  No. 1194 of 21 May 1997 on Transport, Official Monitor No. 67-68 from 16 October 1997, Art. 553, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=311553.

34. Fiscal Code of the Republic of Moldova No. 1163 of 24 April 1997, Official Monitor from 25 March 2005 (special edition), http://lex.justice.md/md/326971.

35. Government Decision No. 102 of 27 February 1996 on Measures for the Enforcement of the Law on Concessions, Official Monitor No. 32-33 from 30 May 1996, Art. 221, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=295610.

36. Law No. 534 of 13 July 1995 on Concessions, Official Monitor No. 67 from 30 November 1995, Art. 752, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=311682.

37. Law No. 509 of 22 June 1995 on Roads, Official Monitor No. 280 from 31 December 2012, Art. 878, http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=346197.

38. Constitution of the Republic of Moldova of 29 July 1994, Official Monitor No. 78 from 29 March 2016, Art. 140, http://lex.justice.md/md/363979

Notes

← 1. As a rule, trolleybuses do not have registration plates; instead the Chisinau Electric Transport Company (RTEC) assigns a registration number to each transport unit. Other entities, such as the National Agency of Road Transport (ANTA), register buses.

← 2. Permitted technical modifications of vehicles are further specified by Government Decision No. 415 of 8 April 2003 (such as changing the seating plan, side of the steering wheel, etc.).