The Agricultural Revitalization Project (IFAD II)

IFAD II. The Agricultural Revitalization Project, as second IFAD-funded project in Moldova , has been launched in January 2006 and is expected to be finalized in March 2013. For project implementation activities envisaged under the project there have been allocated cca. USD 15 mln. At the same time, at project launching there have been established the Revolving Credit Fund, proceeds of which are being used for further continuous on-lending of eligible activities.

Project scope is to contribute to rural poverty alleviation through agricultural revitalization by creating new jobs and generating incomes for the rural population.

The main Project Components are as follows:

Participatory Community Development, with two sub-components:

Community Mobilisation and Empowerment
Technical Support and Training

Institutional Capacity Building;
Community Economic Investment.

The Project is national in scope and is being implemented throughout the rural areas of the Republic of Moldova under the Government’s control, including the Autonomous Territorial Unit of Gagauzia, except for Chisinau and Balti cities.

The Project is based on participatory approach and is focused on those villages/communicates where a few economic entities intend to develop in the same locality agricultural business activities.

Potential Project Beneficiaries

Rural-based agricultural enterprises of any legal status totally private, complying with the following eligibility criteria:

Are being registered in conformity with the legislation of the Republic of Moldova in force, totally private, without any state and/or foreign share capital;
Keep accounting evidence, prepare and submit on timely basis standard financial reports;
Meet criteria of the normative acts and standards regarding environment protection and principles of environment impact evaluation;
Shall participate in the project submitted for financing with own contribution in form of cash or assets with at least 20% of the total investment cost;
Shall operate within the given community that submitted its application for the participation in the Project to the CPIU-IFAD and the business activity to be financed has been included in the Village Development Plan (developed by the Project).

Eligibility criteria:

Operates under the jurisdiction of the village that submitted its application to the CPIU-IFAD to participate under the Project and its business activity to be financed has been included into the Village Development Plan (elaborated by the Project);
Potential Project beneficiaries – shall be at least 2 economic entities from the given community.

The minimum cumulative amount to finance business activities from the given community – shall be at least USD 50 thsnd, but shall not exceed USD 200 thsnd).

Eligible activities for financing :

Plantation of perennial plantation (vineyards and orchards);
production, processing, packing of agri-products;
collection /cold storage of agri-products (cold storage facilities);
Production of seeds and seedlings, production of early vegetables in greeneries;
Procurement of agricultural machinery / irrigation systems;
Livestock and poultry production;
Other types of agricultural activities.

Priority for financing shall be given to those business activities creating new jobs and generating incomes for rural population.

Non-eligible activities

Refinancing of the existing debts;
Payment of duties and taxes;
Acquisition or lease of land;
Construction of living houses;
Pest procurement;
Production of strong beverages;
Sales of consumer’s goods and strong beverages.