Moldova will receive a €50.1 million ($55 million) loan from the WB for the Agriculture Governance, Growth and Resilience Investment (AGGRI) project.
In particular, this is stipulated in the relevant loan agreement signed by the parties on June 5, the draft ratification of which was approved by the Moldovan parliament on Friday in the first reading. The money for the development of agriculture in our country will be provided by the International Bank for Reconstruction and Development, a member of the World Bank Group. The loan itself will be repaid over 25 years, starting 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 will be 0.25% of the loan amount. The commitment fee will be 0.25% of the balance of the unused loan. According to the agreement, the World Bank will provide Moldova with a loan for AGGRI project implementation, pursuing several economic benefits: improving living conditions in rural areas and increasing incomes of project beneficiaries; creating new jobs by ensuring access to new market opportunities and technological innovations; increasing resilience of agricultural sector to climate change by improving access to centralized irrigation systems, implementing climate-smart farming practices and promoting environmentally sustainable agriculture. Overall, the AGGRI project will support national authorities' efforts to improve living and working conditions in rural areas, strengthen the sustainability of the agricultural sector, and increase farmers' incomes. About $21 million is planned to be provided to stimulate initiatives to promote and develop the livestock industry. Businesses will be encouraged to establish new-style dairy farms, modernize existing farms to increase productivity, improve product quality and reduce environmental impact. The money is also intended to support 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 improve crop yields, another $25 million will be used to restore 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 creation of the Agrarian Advice 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 through 2029. // 07.07.2023 – InfoMarket
