A new project financed by the International Fund for Agricultural Development (IFAD) was launched in Moldova. In a news conference, Victor Rosca, director of the IFAD Consolidated Programs Implementation Unit in Moldova, said the Fund will offer Moldova US$ 23.7 million in financing for implementing the Rural Resilience Project IFAD VII, IPN reports.
Of the US$ 23.7 million, US$ 5.5 million is a grant. The loan of over US$ 18 million is repayable in 25 years, at an interest rate of 1.25%. “The goal of the project is to offer accessible and long-term sources of finance for developing agricultural producers’ capacities to adjust the production systems to climate change in agriculture,” stated Victor Rosca. The project has two big components: development of agricultural companies’ capacities and measures to adapt to climate change and support for the development of the agricultural business.
“Financing will be provided to groups of agricultural producers, not necessarily formalized ones, which work on the same territory, for common infrastructure projects, such as common water supply networks for irrigation, segments of access roads to production and goods storage areas. Assistance will be provided to rehabilitate reservoirs. The water will be collected and used in the planting and harvesting season,” said the director of the IFAD Consolidated Programs Implementation Unit.
Within the project, there will be built 24 irrigation water supply systems and repaired 12 road segments to facilitate the farmers’ access to production areas. Four-five water reservoirs will be built as pilot-projects for other projects. “The producers will get a grant of at most US$200,000 for a project. By seven-eight investment projects to implement measures to increase resilience to climate change will be financed annually. The grants will be provided by contest. The beneficiaries’ contribution is of 15%. Half of this can be offered by the local public authorities,” stated Victor Rosca.
Assistance will be provided to over 450 micro-enterprises, 150 young entrepreneurs and at least 20 small and medium-sized enterprises. The project will be implemented until 2022 under the management of the IFAD Consolidated Programs Implementation Unit in Moldova. Since 2000, IFAD has offered US$ 124 million in assistance to Moldovan agricultural producers.
