The Parliament adopted in the second reading the Law on intercommunity development associations 17/02.02.2023. This new form of CSOs will become operational once the law enters into force in June 2023.
What is an Intercommunity Development Association (IDA)?
An IDA is defined as non-profit, non-political association, with the status of a legal entity established by two or more local public administrative-territorial units. The IDAs are established to implement development projects of local or regional interest, or provide public services.
The law regulates the establishment, activity, operation, reorganisation and liquidation of IDAs. It also provides the mechanisms and tools through which IDAs can cooperate and provide quality services to communities.
Administrative-territorial units of any level can be founders and/or members of the IDA. The decision regarding participation in the establishment of the association or joining it is adopted by the local council of the respective administrative-territorial unit.
The governing bodies of an IDA are the general assembly, the association council, the censors committee and the director.
Funding sources of the IDAs include membership fees, donations and/or grants, interest on financial means deposited in bank accounts, funds obtained from the provision of services. IDAs can also benefit from the percentage designation mechanism. Although the opportunity to register as an IDA could potentially create more competition for the sources from the percentage designation, the pool of potential donors is highly unused, so it is not expected to pose a problem for CSOs.
What gaps will the IDAs fill?
Local public administration authorities currently have reduced capacities to attract financial means or to meet the eligibility criteria of some projects. Through this new form of association, public administrations will be able to ensure a higher quality standard for the services they provide to local communities.
Bill was adopted quickly
The draft law was developed with the support of the Congress of Local Authorities from Moldova and was initiated in September 2022. It was passed in a relatively short period of time (in first reading on December 15, 2022 and in second reading on February 2, 2023) compared to the Law on non-commercial organisations adopted in 2020. For the latter, there was more than two years between the first and second reading and an even longer period of prior elaboration of the draft with the participation of the Government.
Within 3 months from the date of entry into force of this law, the Government will bring its normative acts in line with it.