EBRD loan for irrigation infrastructure in northern Serbia

N1

The European Bank for Reconstruction and Development (EBRD) said on Friday that is supporting Serbia’s efforts to upgrade its agricultural industry and make it more climate resilient with a €15 million EBRD loan to finance irrigation infrastructure in Vojvodina.

“The loan is intended to finance the introduction of efficient irrigation near the Borkovac and Pavlovac reservoirs in Fruska Gora, as well as fresh water supply from the Sava River. The new infrastructure will enable top-up irrigation during the peak dry season and provide sufficient water for around 3,500 hectares of land in the Ruma and Sremska Mitrovica municipalities, which is mostly covered by orchards and vineyards,” a press release said.

This is the second loan the EBRD is extending to the country for upgrades to its agricultural infrastructure, following a €15 million loan in 2019 for the construction of irrigation services in Svilajnac and Negotin, scheduled for implementation in 2022.

As part of the project, the EBRD will help the Serbian Ministry of Agriculture, Forestry and Water Management to develop a new training programme on efficient irrigation technology for local farmers, also targeting women, with a view to increasing their employment potential and creating new job opportunities for them.

The investment includes the drafting of the first irrigation strategy in Serbia. “The national strategy, developed for a ten-year period, will be complemented by a five-year action plan and priority irrigation investments for the period until 2030. The assignment is implemented jointly with the Food and Agriculture Organisation of the United Nations (FAO). Formal approval of the Irrigation Strategy and the Action Plan is expected by mid-2022.

Accounting for 9 per cent of the country’s gross domestic product and 17 per cent of employment, the agricultural and food-processing industry plays a vital role in the Serbian economy but the sector suffers from underinvestment and outdated technology with water supply systems often vulnerable to the impacts of climate change, such as drought, flooding or exceptionally harsh winters.