EBRD finances rehabilitation of Moldova’s key irrigation systems

• EBRD lends €102.9 million to Moldova to rehabilitate key irrigation infrastructure
• Investment, together with EU grant and national contribution under EU Growth Plan for Moldova, will restore reliable irrigation across almost 7,000 hectares of arable land
• Modern irrigation strengthens climate resilience and is 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 build a more resilient and competitive agricultural sector in Moldova.

Up to €49.8 million of the EBRD loan will finance the rehabilitation of the Puhacenii de Sus and Masivul Causeni centralised irrigation systems in the Nistru River basin, through the procurement and installation of modern water-intake, pumping and distribution infrastructure. This will restore reliable irrigation services to approximately 6,900 hectares of agricultural land where existing irrigation infrastructure is obsolete, non-functional or underutilised.

This will also be complemented by an investment grant of €4.8 million from the European Union (EU) Neighbourhood Investment Platform and a national contribution of up to €7.2 million under the EU Growth Plan for Moldova.

The remaining loan amount of up to €53.1 million will finance the rehabilitation of additional priority centralised irrigation systems, to be identified by the government.
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 a year, while supporting a threefold 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, and to enable 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 for 2025-27, is the largest EU financial support package provided to Moldova since the country’s independence. It will boost Moldova’s economy, bring the country closer to EU membership by accelerating reforms, enhance access to the EU’s single market and provide significant financial assistance through a dedicated Reform and Growth Facility for Moldova. The Growth Plan will mobilise investments for jobs and growth and, most importantly, transform the lives of Moldovan citizens.