€60 million financing for modernizing irrigation infrastructure in Moldova

The Republic of Moldova will benefit from €60 million for modernizing irrigation infrastructure and expanding farmers’ access to water for irrigation. The Government has approved today the signing of two agreements with the French Development Agency.

The financial package includes a €45 million loan granted by the French Development Agency, and a €15 million grant provided by the European Union.

The funds will be used to rehabilitate existing irrigation infrastructure, develop small-scale irrigation, and strengthen the capacity of the institutions responsible for managing the sector.

Under the program, the centralized irrigation systems of Criulenii de Sus and Călinești will be rehabilitated. After the completion of the works, around 365 agricultural landowners will have access to water sources for irrigation on an area of more than 3,000 hectares.

The program also provides for the development of small-scale irrigation. For this purpose, water storage reservoirs for irrigation will be built, helping small and medium-sized agricultural producers to capture, store, and use water during periods of low rainfall.

The €15 million grant provided by the European Union will be directed towards the rehabilitation of existing irrigation infrastructure, training and advisory services for irrigation water user associations and farmers, as well as capacity-building activities for the institutions that manage and maintain irrigation systems.

It is estimated that, on the land serviced by the rehabilitated systems, agricultural production could increase by at least 50% compared to the average of the last 10 years. Through these investments, farmers will have better access to water for irrigation, and the agricultural sector will be better prepared for periods of drought and managing water resources.