EBRD and EU finance rehabilitation of Moldova’s key irrigation systems under the Growth Plan
• €102.9 million EBRD loan together with €4.8 million EU grant and Moldova’s contribution of €7.2 million will restore reliable irrigation and strengthen climate resilience.
• EBRD lends €102.9 million to the Government of Moldova to rehabilitate key irrigation infrastructure.
• This investment, comprising a grant from the European Union and Government’s contribution, will restore reliable irrigation across almost 7,000 hectares of arable land.
• Modern irrigation strengthens climate resilience, expected to save 13 million cubic metres of water a year.
The European Bank for Reconstruction and Development (EBRD) is lending €102.9 million to the Government of Moldova to finance the rehabilitation and modernisation of priority centralised irrigation systems. The Bank’s investment will help restore reliable irrigation services, improve agricultural water security and help build a more resilient and competitive agricultural sector in Moldova.
Up to €49.8 million of the EBRD’s loan will finance the rehabilitation of the Puhacenii de Sus and Masivul Causenicentralised irrigation systems in the Nistru River basinthrough procurement and installation of modern water-intake, pumping and distribution infrastructure. This will restorereliable irrigation services to approximately 6,900 hectares of agricultural land where existing irrigation infrastructure is obsolete, non-functional or underutilised.
This project is also financed through an investment grant of €4.8 million from the European Union Neighbourhood Investment Platform and a national contribution of €7.2 million under the EU Growth Plan for Moldova.
The remaining loan amount of up to €53.1 million willfinance the rehabilitation of additional priority centralised irrigation systems, to be identified by the Government of Moldova.
Together, these investments will help modernise Moldova’s irrigation infrastructure, reduce farmers’ exposure to climate-related production shocks and support a gradual transition towards more reliable, sustainable and higher-value agricultural production.
Modernised systems, such as pressurised pipe networks, appropriately sized pumping equipment, variable-speed drives and automated controls are expected to lead to more energy efficient water distribution, saving around 13 million cubic metres of water, while supporting a threefold an increase in annual agricultural output in the rehabilitated areas.
The investment also aims to strengthen the capacity of Moldova’s National Agency for Land Improvement as the project implementation unit, water users’ associations and farmers to manage and maintain the systems sustainably. Technical assistance will support asset management, financial planning, service-fee setting and digital reporting, as well as measures to increase the participation of women and young farmers in irrigation governance and training.
The EBRD is Moldova’s biggest institutional investor. Since the start of Russia’s full-scale invasion of neighbouring Ukraine, the Bank has provided €1.7 billion to Moldova to help mitigate the economic consequences of the war on the country’s economy.
Overall, the Bank has invested more than €3.1 billion across 201 projects in the country.
About the EU Growth Plan
The Growth Plan for the Republic of Moldova worth €1.9 billion is the largest EU financial support package since Moldova’s independence. It will boost Moldova’s economy, bring the country closer to EU membership by accelerating reforms, enhancing access to the European Union’s single market and provide significant financial assistance through a dedicated Reform and Growth Facility for Moldova for the period 2025-2027. The Growth Plan mobilises investments for jobs and growth and, most importantly, transforms the lives of Moldovan citizens.
Contact details:
EU Delegation to the Republic of Moldova, email:delegation-moldova-press@eeas.europa.eu
