Romania borrows €60 million to reduce pollution in rural areas

Alina Oprea
The Minister of Finance, Adrian Câciu, signed on Thursday, April 6, 2023, a loan agreement of €60 million with the World Bank, for the financing of the project to prevent and reduce pollution in rural areas in Romania. The new project aims to strengthen Romania's capacity to monitor pollution from the agricultural sector, increase awareness of the impact on the environment, and the adoption by Romanian farmers of sustainable agricultural practices to reduce and prevent pollution. The project will be implemented by the Ministry of Environment, Water and Forests and will run for a period of five years.

The project is a 5-year funding program that aims to prevent and reduce rural pollution, especially with nitrates, ammonia, pesticides, and antibiotics, through 2 components: one institutional and one dedicated to farmers. The objective of the project is to strengthen the institutional capacity of the selected public entities in order to monitor agricultural pollution and disseminate knowledge regarding the reduction of agricultural pollution to the participating farmers. Thus, work will be done to strengthen the institutional capacity and to modernize agriculture, in partnership with the beneficiaries, states the Ministry of the Environment.

The "Prevention and Reduction of Pollution in rural areas" project was requested by the Ministry of Environment through the Ministry of Finance, with the aim of preventing and reducing pollution in rural areas. The components and sub-components of the project were defined by a management and implementation team within MMAP for institutional and farmers' needs together with representatives of the World Bank.

"It is a pleasure for me to be able to initiate such financing with Minister Barna Tánczos, both of whom are well acquainted with the rural field and the need for such projects in agriculture. The transition to a green economy is made in all related fields and subfields, and the monitoring function, as the Environment will have here, is particularly important", said Adrian Câciu, Minister of Finance.

The project will be implemented by the Ministry of the Environment, Water, and Forests (MMAP), over a period of 5 years, the deadline for drawing the loan is June 30, 2028. The total cost of the project will be €60 million and will be financed in proportion to 100% of the loan.

"Agriculture remains a main source of environmental pollution in rural areas in Romania, affecting the quality of soil, water, and air and, ultimately, the health of citizens and the environment. The agricultural sector is also the second largest source of greenhouse gas emissions in the country, hindering Romania's efforts to successfully meet its climate change mitigation goals," said Anna Akhalkatsi, Country Manager of the World Bank in Romania.

- The first component refers to the modernization of public institutions responsible for pollution monitoring and control, especially through investments in digitization and monitoring equipment and laboratories. These are investments both for the "Romanian Waters" National Administration (ANAR), as well as for the National Phytosanitary Authority and the Land Improvements and Land Fund Directorate, within the Ministry of Agriculture and Rural Development (MADR). It is also considered to support the implementation of the components of the National Recovery and Resilience Plan (PNRR) managed by MMAP. The value of this component is around €34.7 million.

"The prevention and reduction of water and soil pollution are particularly important for health and have a major impact on the socio-economic conditions of the population. We do not focus on restrictions, but on encouraging good practices that benefit farmers and the environment through the efficient use of agricultural inputs and modern animal husbandry technologies. Along with the "Integrated Control of Nutrient Pollution" project, which ensures the implementation of the Nitrates Directive, which aims to reduce nutrient pollution from agricultural sources, the Ministry of the Environment, Water and Forests supports any initiative that contributes to reducing pollution and protecting the environment. stressed Barna Tánczos.

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