IFAD project to back Moldovan producers with additional measures of environmental protection

Chisinau, 6 November /MOLDPRES/- New investment programme in Moldova supported by the International Fund for Agricultural Development (IFAD) will be focused on the development of agricultural producers in the context of increased measures for adaptation to climate change and environmental protection. Financing opportunities and prospects for farmers in the country were presented today by Victor Rosca, Director of IFAD Consolidated Program Implementation Unit.

The 7th IFAD Programme (Rural Resilience Project) was signed in spring this year between Moldova, International Fund for Agricultural Development and Fiduciary Fund for  Adaptation for Smallholder Agriculture Programme (ASAP Fund).

The IFAD VII Project has a 6-year implementation period, and will be launched by late 2017. PRR has a total budget of 23.7 million dollars, of which: 18.2 million dollars in long-term credit, 0.5 million dollars is the non-refundable grant financed by IFAD and 5 million dollars is the non-reimbursable grant from the IFAD special fund ASAP. The loan amounting to 18.2 million dollars is to be earmarked to Moldova for a period of 25 years and a grace period of 5 years.

“As a result of the implementation of the project, it is planned to build 24 water supply networks for irrigation for 75 agricultural beneficiaries, with an irrigation potential for an area of 1,400 ha. At the same time, 12 segments of road will be built to facilitate the access of agricultural producers to the production areas, which 50 enterprises and over 1,200 families from 12 villages will benefit from”, Rosca said.

Under the IFAD VII programme, about 420 agricultural producers will benefit from grants for measures to improve resilience to climate change. Over 450 micro entrepreneurs, 150 young entrepreneurs and 20-25 small and medium enterprises will be able to use financial services in the form of loans on preferential terms. “At the same time, the activities set in the project will have a positive impact on the environment, will contribute to diminishing soil erosion and reducing the impact of climate change. In this context, the construction and rehabilitation of rainwater accumulation lakes with an area of over 30 ha will be financed, 200 hectares of forest strips will be planted/rehabilitated, 200 ha of land will be planted with grass etc”, he said.

“The project aims at improving the living standards of the rural people in our country and reducing poverty. IFAD VII will involve local authorities in its activities and provides support measures for women in agriculture. The project will also promote innovation and technology adaptive to climate change, renewable energy equipment etc”, Rosca said.

Since 2000 until now, the government has signed seven financing agreements with IFAD worth 124 million dollars, on the basis of which were implemented programmes on rural financing and development of small enterprises, agricultural revitalization, marketing and agricultural business etc.

(Reporter L. Grubîi, editor L. Alcază)