The note reviews the impact of theMoldova Social Investment Fund (MSIF), aimed at buildinglocal capacity, and improving services, though also looks atthe implementation problems connected with communityparticipation. To address these issues the MSIF managementdelegated responsibilities to implementing agencies, whilealso improved technical assistance. The development ofpartnerships achieved greater impact, which led toperformance contracts, as tools to promote thesustainability of investments. Lessons reinforce the needfor community ownership, and, suggest wider communityconsultation to identify, and solve technical issues. Theneed to maintain links with communities after subprojectimplementation is emphasized, to ensure long-term sustainability.