Moldova's regulatory framework for irrigation, drainage infrastructure updated to facilitate investments in agriculture
The draft law establishing favorable conditions for the development and maintenance of irrigation and drainage systems has been adopted in the second and third readings.
The legislative initiative seeks to eliminate legal and administrative impediments affecting the activities of irrigation water users’ associations, as well as to facilitate the implementation of projects for the rehabilitation and modernization of irrigation infrastructure. At the same time, the document aims to encourage the investments needed to improve the efficiency of these systems.
The document provides for the completion of the Law on Irrigation Water Users’ Associations with the concept of a centralized drainage system and updates certain provisions concerning the administration of irrigation infrastructure.
In addition, supplementary agreements to loan-for-use contracts concluded by water users’ associations for a period exceeding three years will have to be registered, within three months, with the territorial subdivisions of the Public Institution “Real Estate Cadastre.”
The document also establishes the procedure for managing irrigation or drainage infrastructure components that can no longer be used. At the same time, irrigation water users’ associations will be exempt from paying tax on immovable property forming part of centralized irrigation or drainage systems managed under loan-for-use agreements, for the period during which these systems are non-operational.
Amendments to the Law on Local Public Administration will create the legal basis for local public authorities to transfer, free of charge, the right to use certain publicly owned land for the construction or rehabilitation of irrigation and drainage infrastructure. The transfer of this land will be possible without organizing a public tender.
According to the author of the legislative initiative, the Agriculture and Food Industry Ministry, the proposed amendments will contribute to the development of more efficient irrigation infrastructure, facilitate investment in agriculture and create better conditions for the sustainable use of water resources in the agricultural sector. The law is to enter into force on the date of its publication in the Official Journal.
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