ȘTEFAN VODĂ City from the Republic of Moldova, marked by economic and cultural development

Ştefan Vodă City is located in the southeastern part of the Republic of Moldova, 105 km away from Chișinău.

The city is led by Mayor Vladislav Cociu, who has provided us with a comprehensive perspective on the development marked by completed projects and the challenges of the current context. Under his administration, Ștefan-Vodă City has undergone several visible transformations, focusing on infrastructure development, attracting investments, and strengthening cultural relations with Romania. The city has witnessed the completion of significant infrastructure projects, such as road rehabilitation and the modernization of the House of Culture.

In addition to infrastructure projects, strategic measures have been taken to stimulate the local economy by creating a sub-zone within the Free Economic Zone, equipped with all necessary facilities to attract investors.

Mr. Mayor, how would you characterize the economic situation of Ștefan-Vodă City in this context of instability?

Despite the international instability, Ștefan-Vodă City enjoys stable socio-economic development. Over the past two years, a factory for processing agricultural products has been built and inaugurated in the city. Work has begun on a HUB in the Free Economic Zone, a residential complex and housing block have also been constructed. The city hosts a workshop for men’s trousers production called “Stîș & Style,” two small family workshops, a factory for prefabricated houses production called “Uniqa Wall Systems and Constructions,” a section for the production of plastic doors and windows, as well as two mini furniture assembly workshops. Additionally, several commercial objectives have been opened, and in the summer of 2022, Ștefan-Vodă hosted the International Economic Forum “Technological Bessarabian HUB.”

In the context of international instability, Ștefan-Vodă is a European city with stable socio-economic development. Over the past two years, a factory for processing agricultural products has been built and put into operation; construction has begun on a HUB in the Free Economic Zone; a complex and a residential block have already been built; there is a workshop for men’s trousers production called “Stîș & Style”; 2 small family workshops; a factory for prefabricated houses production called “Uniqa Wall Systems and Constructions”; a section for the production of plastic doors and windows; 2 mini furniture assembly workshops. Moreover, several commercial objectives have been opened, and in the summer of 2022, Ștefan-Vodă hosted the International Economic Forum “Technological Bessarabian HUB.”

What are the three most important projects completed in recent years?

The most important projects completed in recent years in our city are:

• Rehabilitation of road infrastructure, aimed at improving traffic conditions and accessibility in the city.
• Modernization of the House of Culture (Multifunctional Cultural Center), which included the construction of a pitched roof, thermal insulation, and general modernization, transforming the building into a modern cultural center.
• Rehabilitation of the central park “Mihai Eminescu,” aimed at revitalizing the central green space.
• Rehabilitation of the Urban Revitalization Zone improved the urban appearance.

What are the strengths of Ștefan-Vodă City?

One of the strengths of Ștefan-Vodă City is the creation, in 2018, of a sub-zone of the Free Economic Zone. By 2021, it was fully equipped with all necessary technical and engineering networks (water, sewage, gas, electricity) and has all the necessary urban planning documentation.

Additionally, our city has great potential in terms of the labor market. At the beginning of 2021, according to modest estimates, at least 11.5 thousand employable people, not engaged in formal economic activities, were available for employment. Thus, approximately 7.5 thousand of them, aged between 17 and 45, can be relatively easily trained in various specialized fields.

Another advantage is that our city has a technical vocational school, which trains specialists in various professions, such as chefs, waiters, tractor drivers, machine operators, plasterers, tailor-cutters and sewers, electricians, auto electricians, auto mechanics, and electro-welders.

What facilities does the local administration offer to investors interested in your city?

The facilities that the local administration can off er to investors interested in Ștefan-Vodă City include various measures and programs aimed at stimulating investments and the economic development of the locality.

• Urban planning documentation: There is a Zonal Urban Plan that regulates the use of this land for industrial purposes.
• Tax and economic incentives:
• Total exemption for a period of 3 years from the payment of income tax derived from the export of goods or services produced in the free economic zone outside the territory of the Republic of Moldova, conditioned by an investment of at least 1 million USD.
• Total exemption for 5 years from the payment of income tax for exports of goods or services produced in the free economic zone, conditioned by an investment of at least 5 million USD.
• 50% exemption from the income tax rate for income derived from the export of goods or services produced in the Free Economic Zone.
• 25% exemption from the tax rate established in the Republic of Moldova for income derived from activities other than export.
• VAT does not apply to goods or services delivered within the free zones.
• Zero VAT rate for goods or services delivered in the free zone outside the Republic of Moldova.
• Guaranteeing legislative provisions for the next 10 years from registration as a Resident of the Free Economic Zone.
• Exemption from excise duties for goods introduced into the free zone outside the Republic of Moldova, from other free zones, or from the rest of the territory of the Republic of Moldova, as well as for goods exported from this zone.
• Deliveries of goods made within the free zone or between free zones are not subject to excise duties.
• Streamlining of controls by state institutions.
• Preferential issuance of residence and work permits for foreign employees.

Please tell us a few words about the cultural cooperation with Romania. If you can provide us with some examples.

Cultural cooperation with Romania is extremely valuable and diverse, playing an important role for our city. Through cultural exchanges, joint artistic projects, and the promotion of cultural heritage, cultural relations between our city and Romania contribute to strengthening ties between communities and promoting intercultural dialogue.

Concrete examples of this cooperation are the Twinning Agreements of our city with several cities in Romania, of which we are very proud, including those with the municipalities of Iași, Roman, Focșani, and the cities of Copșa Mică and Rupea. We are honored by these partnerships and aim to expand the Agreements, with the next Twinning Agreement planned with Bistrița Năsăud County.

Additionally, artistic groups from Ștefan-Vodă participate annually in events organized in the
twinned cities, such as the Fortress Days in Rupea town, Brașov County. In return, during the city day and other national holidays, we have the pleasure of inviting Romanian artists.

Currently, a delegation from Ștefan-Vodă, composed of educators, educators, and culture specialists, coordinated by the priest from the Church “Ștefan cel Mare,” is participating in a cultural exchange in Copșa Mică. This exchange is facilitated through the Department for Relations with the Republic of Moldova (DRRM), actively involving us in two major cultural collaboration projects. These initiatives not only strengthen existing ties but also open new horizons for strengthening intercultural relations between the two countries.