The WB will provide Moldova with a 50.1 million euro ($55 million) loan for the Agricultural Governance, Growth and Resilience Investment (AGGRI) project.
The corresponding loan agreement was ratified by the Moldovan Parliament. The document itself was signed by the parties on June 5, 2023. The money will be allocated by the International Bank for Reconstruction and Development, a member of the World Bank Group. The loan will be repaid in 25 years, starting from September 15, 2028. The interest rate will be the base rate plus a variable margin or rate that can be applied to the loan. The one-time fee is 0.25% of the loan amount. The commitment fee will be 0.25% of the balance of the unutilized loan. According to the agreement, the World Bank will provide a loan to Moldova to implement the AGGRI project, pursuing a number of economic benefits: improving rural livelihoods and increasing the incomes of project beneficiaries; creating new jobs by providing access to new market opportunities and technological innovations; strengthening the resilience of the agricultural sector to climate change by improving access to centralized irrigation systems, implementing climate-smart agricultural practices, and promoting environmental sustainability. The AGGRI project is to be implemented by September 2029. Overall, the AGGRI project will support the efforts of national authorities to improve living and working conditions in rural areas, strengthen the resilience of the agricultural sector, and increase farmers' incomes. It is planned that about $21 million will be provided to stimulate initiatives to promote and develop the livestock industry. The business environment will be stimulated to create new-style dairy farms, modernize existing agri-farms to increase productivity, improve product quality and reduce the negative impact on the environment. The money is also intended to support the quality assurance of products in accordance with EU requirements, certification of meat and dairy products and promotion of their export to the European market. In order to increase crop yields, another $25 million will be allocated for the rehabilitation of primary and secondary irrigation infrastructure. About $6.5 million will be allocated to strengthen the institutional capacity of AIPA and ANSA, as well as to support the establishment of the 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 Moldova's agricultural sector. //21.07.2023 - InfoMarket.
