OREANDA-NEWS. May 13, 2013. This was discussed at a working meeting of Acting Premier of Moldova Iurie Leanca with Acting Minister of Agriculture and Food Industry of Moldova Vasile Bumacov.

The Agriculture Minister gave a brief assessment to the situation in the agricultural and foods sector, pointed out pressing problems and concentrated on facets of international collaboration in the sector. Participants of the meeting discussed moves to be taken to sign the agreement with the World Bank on the financial support of USD10 million and to have the grant of about USD 14 million, provided by the government of Japan to equip kindergartens and schools in 26 places of population with biomass heating systems.

As it was said earlier, the World Bank Board of Executive Directors approved a USD 18 million credit for the urgent aid to agriculture of Moldova, suffered from the severe drought in the summer of 2012. However, due to its dismissal, the government was not eligible to sign whatever documents of international importance.

The parliament of Moldova broadened the powers of the acting ministers and if the relevant amendments are promulgated by the President, the acting government will be mandated to sign international agreements.

The credit of USD 10 million will be allotted to Moldova by the International Development Association, a member of WB, for 25 years with 5-year -long grace period at an interest rate of 1.25% a year and a fee of 0.75% p.a. for service. The project is to be completed on April, 30, 2014. Its main goal is to reduce aftershocks of the drought of 2012 through giving support to farmers in maize and wheat sowing as well as to avert livestock reduction in regions suffered from the drought.

In particular, USD 9 million are planned to be transferred to farmers to partially compensate their losses, encourage the sowing of winter wheat and maize in 2013 and prevent the livestock reduction. Japan is expected to grant Moldova close to USD 14 million for a biomass project. In the framework of the project biomass- heated boilers will be set in schools and kindergartens in 26 specially selected towns and villages of Moldova. The feasibility study was carried out by the Japan International Cooperation Agency, which is going to provide Moldova with funds to implement the project.

The project is aimed at reducing energy costs, adopting sustainable heating systems and improving living standards in rural areas of Moldova through construction of a plant producing bio briquettes and boilers generating heat from agricultural waste. The project will be implemented by the management of the 2KR program under the responsibility of the Agriculture Ministry of RM. Moldova’s contribution in the project is to amount to MDL 17.5 million.