Talent Retention for Rural Transformation (IFAD VIII)

Talent Retention for Rural Transformation Project (TRTP) is implemented by the Government of the Republic of Moldova through the Consolidated Programs Implementation Unit IFAD, with support of the International Fund for Agricultural Development. Launched in 2021, the project has a six-year implementation period.

The project’s goal is to stimulate large-scale rural economic growth and reduce poverty through complementary investments.

The total cost of the project is EUR 46 million, including EUR 25 million from external sources:
• EUR 19 million from IFAD sources
• EUR 5 million grant provided by the Adaptation Fund
• EUR 2 million contribution from the Government of the Republic of Moldova
• EUR 13.9 million contribution from partner financial institutions
• EUR 2.8 million contribution from beneficiaries, including local public authorities (LPAs)
• EUR 1.5 million contribution from AIPA.

The project’s objective is to enable the rural poor, especially youth, women, and small farmers, to enhance their production capacity, resilience to economic, environmental, and climate risks, and ensure their access to markets.

The Project’s components are:

Component 1: Resilient Economic Transformation

Sub-component 1.1: Climate Resilient Infrastructure (CRI)
(CRI) – This sub-component is designed to support investments in productive rural infrastructure, fostering resilient rural economic transformation by addressing bottlenecks and strengthening small farmers (up to 50 hectares) and rural businesses through the promotion of climate-smart technologies.

Eligible types of infrastructure under this sub-component include supporting investments through:
1. Grants of up to USD 500,000 for financing public infrastructure projects (irrigation infrastructure).
Investments are supported for:
 Small-scale irrigation systems connected to existing Central Irrigation Systems;
 Pumping stations from natural reservoirs (rivers/lakes);
 Construction and rehabilitation of water harvesting ponds.

Why apply to IFAD?
 Own contribution of only 10% of the project cost;
 20% discount through VAT exemption;
 Free technical assistance to group members in the preparation of the application;
 Guidance to beneficiaries throughout the implementation of the project (from application, including equipment procurement procedure up to commissioning).

How to access the grant?
 Call (22) 22 30 75 and let us know you’re interested;
 Our specialists will visit the site for consultation and guidance;
 Partner with 5 registered agricultural producers from your locality.

Learn more details at: shorturl.at/bmv67

2. Grant of up to EUR 225.000 to finance investments in rural road improvement.
Grants are offered for the construction of 3 km of road (white variant), which will ensure access for agricultural producers (Water Users Associations) to farmland and production areas.
Grant beneficiaries can be groups of small farmers (Water Users Associations) who cultivate up to 50 hectares of land, either owned or rented, located near the sector where the infrastructure will be built, in collaboration with Local Public Authorities (LPA).

The grant amount is up to EUR 225,000 for 3 km of road (EUR 75,000 per 1 km). The beneficiaries’ contribution is at least 25% of the total cost of the works, with at least 25% coming from small farmers, while the remaining amount can be covered by the Local Public Authorities’ (LPAs) budget.

For more information, visit the page https://shorturl.at/D9P8Q or call the phone number 022 22 30 75.

Activity 1.1.2 Climate-Adapted Water Management in Agricultural Farms – The Adaptation Fund aims to help small farmers adapt to climate change and ensure food security by encouraging the adoption of climate-smart technologies, including water-saving technologies, and strengthening the capacity of small farmers to implement agricultural practices that are adaptable to climate change.

The investments of the Government of the Republic of Moldova and the Adaptation Fund are supported through:
Grants of up to USD 7,500 for purchasing irrigation equipment.

Farmers are required to contribute at least 30% of the investment project’s value, with part of the invested amount subsidized by AIPA.

Who can benefit from the grants?
Small farmers who cultivate up to 50 hectares of land, registered under any legal form, especially women and youth, who have access to a water source for irrigation.

Eligible expenses include:

• Water pumps
• Water filters
• Drip irrigation tapes
• Micro-sprinklers
• Accessories and equipment related to the irrigation system
• Fertigation equipment

We offer free technical assistance in preparing the funding application. The application submission process has been digitized. On the platform www.aplica.ucipifad.md, funding applications can be completed online, and other required documents can be uploaded.

For more details, visit our website https://shorturl.at/0x1ph or call (22) 21 06 24.

Sub-Component 1.2: Agribusiness Development

Activity 1.2.1 Strengthening Value Chains for Producer Groups – This activity focuses on increasing the agro-processing and agribusiness potential in rural areas, encouraging individual farmers to take collective actions through producer groups, farmer associations, or cooperatives to engage in the processing and transformation of agricultural products.

The Government of the Republic of Moldova, with the support of the International Fund for Agricultural Development, supports investments in the development of producer groups in the regions through financial packages of up to EUR 250,000 for financing equipment for processing units. The beneficiaries of these financial packages can be cooperatives or limited liability companies with at least 5 founders.

Eligible activities include:
 Processing, sorting, grading, packaging, and labelling of fruits, berries, vegetables, medicinal and aromatic plants, dairy products, honey, and table grapes;
 Production of renewable energy used in post-harvest activities (solar panels, photovoltaic panels, wind installations, equipment for biogas production, heating systems, etc.);
 Harvesting rainwater from roofs (gutters, downspouts, water storage tanks).

Loan portion – 92% of the financial package (max. EUR 230,000);
Grant portion – 8% of the financial package (max. EUR 20,000).

The loans are accessed through partner financial institutions http://www.ucipifad.md/parteneri/

For more information, visit https://shorturl.at/xUzqx
contact us at phone number (22) 21 30 73 or email us at: office@ucipifad.md.

Activity 1.2.2 Strengthening the Technical Capacity of MAIA (Ministry of Agriculture an Food Industry)

Component 2: Entrepreneurial/Business Financing

Sub-component 2.1: Loans with Grant Portions for Youth and Women

The TRTP Project component aimed at supporting youth and women during the startup or business development phase, offers:
 Financing of up to MDL 1 million, with a grant portion of up to MDL 320,000;
 Free consultancy to help turn your idea into reality;
 Support in developing a business plan – the necessary steps for a successful start;
 Assistance in preparing the documentation for accessing financing;
 Mentorship throughout the implementation of the investment project – individual and group sessions, e-mentoring, and training for developing entrepreneurial skills.

The beneficiary’s contribution is at least 10% of the total cost of the investment project. This contribution can be provided either in cash or in the form of tangible assets.

Eligible activities for financing include:
• Production, harvesting, and storage of fruits, vegetables, medicinal and aromatic plants, seeds, seedlings, field crops, and table grapes;
• Vegetable production in greenhouses and/or open fields;
• Animal husbandry, including the purchase of breeding animals, equipment, and machinery;
• Sorting, processing, and packaging of agricultural products;
• Construction of storage facilities and cold storage for agricultural products;
• Agrotourism: purchasing animals, equipment, and machinery for developing a farm within a tourism complex;
• Other activities related to the agricultural sector.

For details, visit the page shorturl.at/ZJrNn or call (022) 21 00 56.

2.1.1 Loans for Micro and Small Enterprises of up to EUR 150,000.

The investments are aimed at modernizing micro and small enterprises in the agricultural sector, through the purchase of equipment for processing, sorting, grading, packaging, or labeling agricultural products.

Financing from the resources of the Government of the Republic of Moldova and IFAD offers several advantages:
• Repayment term of up to 8 years, with a grace period of up to 4 years;
• Minimum own contribution of 25%;
• VAT exemption (0%);
• Interest rate of 7.7%;
• Approval fee capped at 0.5%;
• Can be combined with other grant or subsidy programs.

Additionally, from the total loan amount, EUR 100,000 can be allocated for financing working capital associated with the investment or independent working capital.

Loans can be accessed through partner financial institutions http://www.ucipifad.md/parteneri/

For more details regarding eligibility criteria and application conditions, visit https://shorturl.at/kOEC7 or call (022) 21 00 56.

2.1.2 Loans for microenterprises of up to MDL 1,000,000

How to access:
 Sign a contract with the working capital supplier (it must include the amount and the purchased goods);
 Visit one of the partner banks http://www.ucipifad.md/parteneri/;
 Apply for the loan from IFAD VIII (TRTP) resources;
 Request a VAT exemption letter and present it to the supplier before the tax invoice is issued;
 Apply to AIPA for interest subsidy.

Agricultural producers who access IFAD loans will benefit from:

• 20% savings through VAT exemption
• Preferential interest rate of only 7.7%
• Repayment term of up to 8 years, with a grace period of up to 4 years

For details, visit http://www.ucipifad.md/creditare-achizitii/creditare/micro-antreprenori-ifad-viii/ or request a free consultation at (022) 21 00 56.

Sub-component 2.2. Development of the Rural Financing Sector
• Activity 2.2.1: Strengthening the Savings and Credit Associations Sector
• Activity 2.2.2: Strengthening the Capacities of Savings and Credit Associations
• Activity 2.2.3: Strengthening the Capacity of the National Commission for Financial Market

Activity 2.2.4: Mentorship for Micro and Small Enterprises

Through the IFAD VIII TRTP Project, we offer:
a) Advisory assistance and business plan development
b) Mentorship in agricultural business (Individual 1-to-1 Mentorship, E-mentorship, Group Mentorship)
c) Capacity-building training/workshops
d) Networking and socialization sessions, learning from leading farmers
e) Access to the virtual community of Project beneficiaries
f) The E-Learning Platform of the Agri Business Development Center (a multifunctional online educational center providing users with access to a wide range of resources: courses)

For more details regarding technical assistance, visit http://www.ucipifad.md/asistenta-tehnica/

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