Seminar “External Assistance: Utilization and Management of Resources” Viorel GUŢU, Deputy Minister of Agriculture and Food Industry May 2012

Agriculture  Contributes to over 15% to the GDP, including: Agriculture - 11,2 % Industry sector- 3,8 %  Labour force employed in agriculture – 27,4 %;  Agricultural products represent 43% of exported goods;  Agricultural products reached the value of 22 bln MDL in 2011 (in current prices), having an increase of appr.4,6% compared to the previous year.

Strategic priorities of MAFI in  Implementing the food safety reform  Restructuring and modernization of the wine sector  Support to the development of a modern market infrastructure  Implementation of conservative agriculture  Reformation of the meat and dairy products sector  Support to the development of production of renewable energy from agriculture wastes  Reorganization of existing education and research resources  Reorganization of agriculture subventions sector, aimed at the modernization and concentration of production  Implementation of basic information system for the support of food chain functioning  Support to the development of Value-Added Agriculture

External assistance coordination cycle State Chancellery DonorMAFI

Monitoring and coordination of external assistance within MAFI MinisterDeputy ministersDAMEPMAFI SubdivisionsMAFI subordinated institutions

Monitoring and coordination of external assistance jointly with the donor MAFI Council in the field of external assistance Composition: - Minister, coordinator of the Council - Deputy minister, Deputy head - secretary of the Council (repres. of DAMEP) - heads of MAFI subdivisions - representatives of donors and international organizations (WB, EC, IFAD, USAID, FAO, MCA, SIDA, GIZ, UN/UNDP ş.a.) - representatives of civil society.

Implementation of external assistance Project/programme Implementation Unit Other ministries (MF, ME, MEnvironment etc.) MAFI and subordinated institutions DONATORUL

Major donors in agro-industrial sector WORLD BANK EUROPEAN COMMISSION IFAD FAO USAID SIDA MCA BEI GIZ GOVERNMENT OF JAPAN GOVERNMENT OF ROMANIA

Priority areas of external assistance Crediting agricultural producers and rural entrepreneurs in advantageous conditions Facilitating the access of agricultural producers to modern agriculture technique and equipment Offering information and technical support to minor agricultural producers in the process of launching new businesses Training farmers and rural entrepreneurs regarding modern agricultural production techniques Institutional capacity building of the Ministry and subordinated institutions (establishment of the Agency for Payment and Interventions in Agriculture, preparing the documents for the establishment of Food Safety Agency, Wineyards and Wines Office etc.) Equipping and modernization the sanitary- veterinary phytosanitary laboratories Harmonization of national lelgislative and normative acts with the acquis commaunitaire; Ensuring the support in drafting agricultura land rural development policies adapted to the European Union standards, in the context of Republic of Moldova’s European integration aspirations Preparing human resources for the negotiations regarding Association Agreemnt, DCFTA etc. At institutional level At policy level At beneficiaries level

Major projects and programmes I. RURAL INVESTMENTS AND SERVICES PROJECT (RISP – II) Financer: Banca Mondială, SIDA Period: Total budget: 39 mln USD General objective: stimulation of accelerated growth of agricultural sector in the period of post-privatization through improvement of private new farmers’ and rural enterprises access to the legal statute of property, knowledge, experience and financing. Components: I. Rural consultancy services; II. Rural enterprises development; III. Rural financing.

RURAL INVESTMENTS AND SERVICES PROJECT (RISP-II) Agricultural enterprises 49% Mechanized services 3,6% Production and processing of vegetables, fruit, grains 39,6% Cattle breeding 5,9% Non- agricultural enterprises51% Services 21,8% Production 17,8% Trade 11,4% 11

RURAL INVESTMENTS AND SERVICES PROJECT (RISP-II) Agricultural projects Refigerators - 5 projects Packing houses - 1 project Processing lines – 7 projects Bakeries – 6 projects Dryers – 2 projects Water bottling lines– 1 project Orchards planting – 3 projects Vineyards planting– 3 projects Greenhouses – 1 project Zoo-technical farms renovation– 5 projects Breed animals– 1 project Agricultural equipment– 46 projects Dripping irrigation systems– 17 projects Other agricultural activities– 4 projects Investments: MDL – , 9 thousand USD – 3 373, 4 thousand Euro – 308 thousand Beneficiaries’ contribution: , 53 thousand MDL 12

Assistance for non-privileged farmers Project 2KR Financer: Government of Japan Period: Total budget: 22,9 mln USD (9 tranches) General objective: Increase food production in the republic of Moldova by means of reducing harvest losses and increasing the quality of basic soil preparation agricultural equipment units bought within 8 tranches; - Partner Fund 2KR was created (in which the financial resources resulting from equipment purchased within the project capitalization operations are accumulated); - National Centre for Agricultural Training was created.

IFAD Programmes The portfolio of 5 programmes financed by IFAS comprises, starting with 2000, cca 70 mln USD - IFAD I: Rural Financing and Development of Small Enterprises; -IFAD II: Agriculture Revitalization Project; -IFAD III: Rural Enterprises Development Programme; -IFAD IV: Rural Financial Services and Marketing Programme; -IFAD V: Rural Financial Services and Agricultural Business Development Project. General objective of IFAD programmes: reduce rural poverty in Moldova, creating favourable conditions for the poorest members of rural society in order to increase their income by enhanced access to markets and jobs.

IFAD Programmes Activity areas of IFAD Programmes: Sustainable development of value chain; Rendering financial services adapted to the needs of rural entrepreneurs; Offering grants for the development of infrastructure projects designed for economic agents Key results: Over the time, from programmes developed and implemented by IFAD benefited: About 25 % of the total number of small and medium enterprises active in rural areas, out of which: ◦ 80% of beneficiaries constitute Small and medium enterprises, ◦ over 30 % of beneficiaries are lead by women. Almost 50% of Moldovan villages benefited of at least one project financed by IFAD.

IFAD Programmes Mănoileşti village, Ungheni rayon Construction of a water trail with the length of 4,4 km. Year of implementation Cost of works 1,932,620 MDL

Sat. Puhoi raionul Ialoveni AEI “Puhoi” Credit offered for the re- modeling of greenhouses with the area of 1200 m2

European Commission EU Policy Advice Mission for the Republic of Moldova Period: Total budget: cca 3,4 mln EURO General objective: offer support for the democratic reforms and acceleration of economic association and integration between the European Union and Moldova. Support for MAFI: Preparation and launching of negotiations with EU on Deep and Comprehensive Free Trade Area (DCFTA); Implementation of recommendations of EU mission in the sanitary and phyto-sanitary area; MAFI institutional reform, through needs assessment and transposing a European model in its organizational structure Implementation of reform in the food safety area etc.

United Nations Organization for Food and Agriculture (FAO) Ensures technical assistance in order to support the efforts of the Government of RM to increase agricultural productivity and improve living of rural population. Areas supported in the period : - carrying out the first Agricultural census in the RM (with donors’ financial support); - improving the national capacity to generate, analyze and communicate information in the area of food safety in order to facilitate the decision-making process; - capacity consolidation in the area of agricultural bio- technologies and bio-security; - consolidation of phyto-sanitary and agro-chemical services etc.