The Republic of Moldova and the European Bank for Reconstruction and Development have signed a loan agreement for more than 102.9 million euros to rehabilitate the country’s irrigation systems. The project will be supplemented by a 4.8 million euro grant and a national contribution of seven million euros, according to IPN.
According to an EBRD press release, up to 49.8 million euros of the loan will be allocated to the rehabilitation of the Puhacenii de Sus and Masivul Causeni centralized irrigation systems, located in the Dniester River basin. The work will include the modernization of water collection, pumping, and distribution infrastructure, as the existing systems are outdated, non-functional, or underutilized. An additional amount of up to 53.1 million euros will be allocated to the rehabilitation of priority centralized irrigation systems, which are to be identified by the government.
The Minister of Agriculture and Food Industry, Eugeniu Osmochescu, stated that the Republic of Moldova must develop not only its irrigation and water storage infrastructure but also its water collection capabilities in order to better address hydrological challenges.
The project will also receive a grant of 4.8 million euros from the European Union through the Neighborhood Investment Platform, and the national contribution of up to 7.2 million euros will be provided through the Growth Plan for Moldova.
According to EBRD estimates, the modernization of infrastructure will enable more efficient distribution of water and energy and could help triple annual agricultural production in the rehabilitated areas. The investments also aim to reduce farmers’ vulnerability to the effects of climate change and support more competitive and sustainable agriculture.
The project also aims to strengthen the capacity of the National Land Improvement Agency and to support water user associations and farmers in the management and maintenance of irrigation systems.