IFAD will provide Moldova with 20.7 million euros for the implementation of the project "Capacity Building for Rural Transformation" (IFAD VIII).
This was reported by the Ministry of Agriculture, Regional Development and Environment of Moldova, noting that representatives of the parties involved in the project, during an online meeting, discussed the launching of the project and outlined its main goals. The head of the sectoral department, Ion Perju, expressed gratitude to the International Fund for Agricultural Development (IFAD) for providing financial assistance to Moldova for a new project in the agri-food sector, noting that IFAD is one of the country's most valuable partners in the development of the agri-food sector. He stressed that over 20 years of IFAD's investment in our country, 8 financial agreements were signed with this fund, and about $ 100 million of IFAD investments were spent from the portfolio of $ 137 million approved by them for Moldova. Among the most important results, the head of the Ministry of Agriculture noted the issuance of more than 5,000 loans, including 900 - to young entrepreneurs; creation of more than 20 thousand jobs; development of more than 100 projects of economic infrastructure in rural areas; the creation of 11 field schools for teaching in the field of conservative agriculture; awarding more than 200 grants to combat climate change; training of more than 3 thousand agricultural producers - in the segment of conservative tillage technologies. Ion Perju noted that through new IFAD projects, the government intends to develop the agri-food sector against the background of its vulnerability to a number of problems: climate change, economic fluctuations, mass migration of the population from rural areas, low incomes, and a shortage of labor. “With the support of partner states and the openness of the international donor community, the government seeks to increase the immunity of the agri-food sector and improve the standard of living in rural areas: to strengthen agri-food policies by approving strategic documents to optimize the development of the industry; seeks to develop water supply networks for irrigation and to help manufacturers acquire and operate irrigation equipment; for the restoration and expansion of forest belts, the fight against illegal deforestation, etc. ", - said the head of the Ministry of Agriculture. According to him, increased emphasis will be placed on the consolidation of the regulatory framework for the implementation of the Law on Livestock in the new edition, which will create preconditions for improving regulation of the livestock sector. Earlier it was reported that the financial agreement between Moldova and the International Fund for Agricultural Development for the implementation of the project “Increasing the potential for rural transformation” (IFAD VIII) was signed for 6 years - until 2026. According to the document, Moldova will receive a loan of 18.939 million euros and a grant in $ 5.53 million. The IFAD VIII project includes two main components: ensuring sustainable economic transformation (strengthening resilience to climate change and developing agribusiness); financing of entrepreneurship (provision of affordable loans to young entrepreneurs and women entrepreneurs, development of the financial sector in rural areas). The IFAD loan will be provided to Moldova for 25 years at 1.25% per annum, including a 5-year grace period and a commission of 0.75%. Within the framework of the document, Moldova undertook to pay $ 3.8 million to cover taxes applied when purchasing goods and services under the project, including through the provision of exemptions and tax benefits. // 23.03.2021 — InfoMarket.
