Seminar “External Assistance : Utiliza tion and Management of Resources ”

1. Seminar “External Assistance: Utilization and Management of Resources” Viorel GUŢU, Deputy Minister of Agriculture and Food Industry 25-26 May 2012

2. 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.

3. Strategic priorities of MAFI in 2012-2015 • 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

4. External assistance coordination cycle

5. Monitoring and coordination of external assistance within MAFI

6. Monitoring and coordination of external assistance jointly with the donor MAFI Council in the field of external assistance Composition: - Minister, coordinatorof the Council - Deputy minister, Deputy head - secretaryof 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.

7. Implementation of external assistance Donatorul

8. Major donors in agro-industrial sector 2010-2012 WORLD BANK EUROPEAN COMMISSION IFAD FAO USAID SIDA MCA BEI GIZ GOVERNMENT OF JAPAN GOVERNMENT OF ROMANIA

9. Priority areasof external assistance 2010-2012 At beneficiaries level At institutional level At policy level • Creditingagriculturalproducersand rural entrepreneurs in advantageousconditions • Facilitatingtheaccess of agriculturalproducersto modern agriculturetechniqueandequipment • Offeringinformationandtechnicalsupportto minor agriculturalproducers in theprocess of launchingnewbusinesses • Training farmersand rural entrepreneursregarding modern agriculturalproductiontechniques • Institutionalcapacity building of theMinistryandsubordinatedinstitutions (establishment of the Agency for PaymentandInterventions in Agriculture, preparingthedocuments for the establishment of FoodSafety Agency, WineyardsandWines Office etc.) • Equippingandmodernizationthesanitary-veterinaryphytosanitarylaboratories • Harmonization of nationallelgislativeand normative actswiththe acquis commaunitaire; • Ensuringthesupport in drafting agricultura land rural developmentpoliciesadaptedtothe European Union standards, in the context of Republic of Moldova’s European integrationaspirations • Preparinghumanresources for thenegotiationsregarding Association Agreemnt, DCFTA etc.

10. Major projects and programmes2010-2012 I. RURAL INVESTMENTS AND SERVICES PROJECT (RISP – II) Financer: Banca Mondială, SIDA Period: 2006-2012 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.

11. RURAL INVESTMENTS AND SERVICES PROJECT(RISP-II)

12. 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 – 47 651, 9 thousand • USD – 3 373, 4 thousand • Euro – 308 thousand Beneficiaries’ contribution: • 119 862, 53 thousand MDL

13. Assistance for non-privileged farmers Project 2KR Financer: Government of Japan Period: 2000-2012 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. • 586 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.

14. IFADProgrammes 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.

15. IFADProgrammes Activity areas of IFADProgrammes: • 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: • About25 % 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.

16. IFADProgrammes Mănoileşti village, Ungheni rayon Construction of a water trail with the length of 4,4 km. Year of implementation- 2011. Cost of works 1,932,620 MDL

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

18. European Commission EU Policy Advice Mission for the Republic of Moldova Period: 2010-2012 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.

19. 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 201-2012: - 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.