The Ministry of Agriculture of Moldova held the last discussions with the WB to sign an agreement on a loan for the AGGRI project in the amount of $55 million.
In particular, it's about a loan that the World Bank will provide to Moldova for the implementation of the project "Investments in the management, development and improvement of the sustainability of the agricultural sector" (AGGRI). According to the Ministry of Agriculture, the project will support the efforts of the national authorities to improve living and working conditions in rural areas, strengthen the sustainability of the agricultural sector, and increase farmers' incomes. In particular, $21 million will be provided to stimulate initiatives to promote and develop the livestock industry. The business environment will be stimulated to create new dairy farms, upgrade existing farms to increase productivity, improve product quality and reduce environmental impact. The money is also intended to bring it into line with the requirements of the European market and increase the access of Moldovan products to the EU shelves. In order to increase crop yields and protect farmland from flooding, another $25 million will be directed to restore primary and secondary irrigation infrastructure. Approximately $6.5 million is planned to be allocated to strengthen the capacity of AIPA and the National Agency for Food Safety, as well as to help establish an Agricultural Advisory Center and Veterinary Centers of Excellence. About $2.5 million will be used to manage the project, which is a financing program for the agricultural sector of Moldova until 2029. As InfoMarket agency reported earlier, on April 26, the Moldovan government approved the start of negotiations with the International Bank for Reconstruction and Development (part of the World Bank Group) on the signing of an appropriate loan agreement in the amount of $55 million for the implementation of the Investment in Governance, Development and Improvement of the Agricultural Sector Resilience (AGGRI) project. The project is aimed at strengthening the institutional capacity of state institutions involved in the provision of services in the agrarian sector and ensuring the quality and safety of food products (Ministry of Agriculture, AIPA, the National Agency for Food Safety, Agricultural Consulting Center, etc.); for the rehabilitation of centralized irrigation systems and the restoration of the livestock sector (creation of new dairy farms and modernization of existing ones, support in ensuring product quality in accordance with EU requirements, certification of meat and dairy products and promotion in the European market). It is expected that the implementation of this project will improve the quality of life in rural areas, stimulate the growth of incomes of beneficiaries, ensure the modernization of agricultural enterprises, create new jobs, increase tax deductions to the state budget, and create conditions for attracting new investments in agriculture and related industries. // 04.05.2023 — InfoMarket
