World Bank Board of Directors approves 15-million-dollar RISP II for Moldova

The World Bank Board of Directors has approved a 15-million-dollar Second Rural Investment and Services Project (RISP II) for Moldova. The approved amount includes a 7.5 million dollar credit under IDA terms and a 7.5 million dollar grant. According to the press service of the World Bank Office in Moldova, this project is the second phase of a 2-phase World Bank Adaptable Program Credit. The implementation of the first phase, RISP I, which registered very successful results, will be completed in August 2006. The second phase of this project is in line with the country's Economic Growth and Poverty Reduction Strategy and Moldova Village Program. RISP II will continue to foster post-privatization growth in the agricultural and rural sectors by improving the access of farmers and rural businesses to the knowledge, know-how and finance that they need to succeed, while building the capacity of private and public institutions to ensure the sustainability of the activities. “RISP II will continue to battle poverty and generate growth in rural areas by building on this success, continuing to provide advisory services to farmers, helping create micro-enterprises and providing financing through commercial banks and/or leasing companies,” said Pierre-Olivier Colleye, World Bank team leader for the project, adding that the project will assist the government in improving the legal, regulatory and supervisory framework of the Savings and Credit Associations Industry and will help the Government conduct a pilot program on land re-parceling.” RISP II has four components: Rural Advisory Services, Rural Business Development Services, Rural Finance, Land Re-Parceling Pilots and Project Management. The project implementation period is four years, from June 2006until June 2010. Since Moldova joined the World Bank in 1992, Bank commitments to the country total approximately US$633 million for 28 operations.