Investment in irrigation sector to be expanded in Moldova

Chisinau, 20 August /MOLDPRES/ - Prime Minister Valeriu Strelet today chaired the meeting of the Supervisory Board of the Millennium Challenge Account Moldova (MCA Moldova). The sides decided to continue investments in the irrigation infrastructure reform in Moldova, from the funds available after 1 September, when the US government’s Compact Programme will end its activity, the government’s communication and media relations department has reported.

To this end, the Supervisory Board members proposed the reorganisation of the MCA Moldova institution which will ensure sustainability of the investments made within the Compact programme in the past five years. The new structure will support the activity of irrigation water users associations, expand irrigated areas, promote models of rehabilitation of water supply systems and identify necessary investments to further renovate the irrigation infrastructure. The resources needed to continue the reform in the irrigation sector will be used from the refinancing fund, created as a result of repayment of Compact loans contracted by agricultural producers from the funds of the Millennium Challenge Corporation. The activities will be conducted in the period 2016-2017.

Prime Minister Valeriu Strelet praised the achievements of the Compact 1 Programme and thanked the US government for its contribution to economic growth and poverty reduction in Moldova. "We express gratitude for all the works carried out with your support. The results are visible, and the citizens feel the changes that have occurred in recent years. We expect to continue a good cooperation relation with the US government", Valeriu Strelet said.

At the same time, the prime minister asked the new structure to also participate in drafting a possible new Compact programme on excluding energy constraints.

Millennium Challenge Corporation Resident Country Director Leslie McCuaig said the US government perceived the Compact programme as an investment in Moldova’s future. "The partnership between the Millennium Challenge Corporation and the Moldovan government did not end with the Compact 1 Programme. The partnership will continue to ensure the sustainability of investments in road infrastructure and the agricultural sector", Leslie McCuaig said.

The Supervisory Board members heard the report on the results achieved within the Compact Programme and the activities to be carried out after 1 September. Thus, 96 kilometres of highway and about 20 kilometres of local roads were repaired, about 22 kilometres of sidewalks and two new bridges were built, and another 13 were rebuilt during the implementation of the 2010-2015 Compact Programme.

Reconstruction works of 10 irrigation systems that will enable the irrigation of about 12,000 hectares of farmland started in the same period. Assistance was offered to create 11 irrigation water users associations which brought together about 6,000 farmers. Moreover, support amounting to 14 million dollars to access finance for investment in post-harvest infrastructure and agricultural equipment was offered to farmers.

The Compact Programme was the largest assistance programme Moldova ever benefited from, offered to contribute to economic growth and poverty reduction through the rehabilitation of road infrastructure and support the transition to high value agriculture. The programme amounted to 262 million dollars offered by the US government through the Millennium Challenge Corporation.

(Editor A. Raileanu)