Today, the start of the realization of the Cluster Development and Rural Transformation Project (RCTP), implemented by the Government of Montenegro with the International Fund for Agricultural Development (IFAD), was ceremonially marked at the IEC Tehnopolis. Within this project, IFAD has provided four million euros for loans and two million in the form of grants, while the rest will be provided by the Government of Montenegro and local governments in which the project is being implemented – Niksic, Savnik, Zabljak, Mojkovac, Bijelo Polje, Berane and Petnjica.
“Through the realization of this project, we will have 70 kilometers of new rural roads, numerous new water reservoirs, numerous water supply systems, numerous grants to our agricultural producers and small and medium-sized enterprises in this field,” said Deputy Prime Minister and Minister of Agriculture and Rural Development Milutin Simovic.
According to him, the project conditions under which the state is responsible for the development of rural areas are more favorable than ever.
“It is a loan with an interest rate of only 0.69 percent, the return period is 15 years and three years of grace period,” Simovic said.
As he pointed out, the motto of the entire project is communion, and he is convinced that we will very soon witness that the association of the landlords brings numerous benefits in the rural areas.
Director of IFAD for the Middle East, North Africa, Europe and Central Asia, Khalida Bouzard, said that Montenegro had impressively recovered from the crisis that hit the 1990s, but that there remain many challenges in the northern region such as tourism, migration and youth unemployment, as well as higher rates of poverty.
According to her, this project will help small producers in the north of Montenegro to achieve quality and become competitive, both locally and globally.
“The goal is to reach up to 16,100 people through the project, which will have direct benefits, primarily small producers and farmers, and then we are talking about people who hold so called commercial and economically active agribusinesses and help them to grow and develop progressively and reach the desired EU standards”, Buzard said, adding that the establishment of the clusters would ensure the long-term sustainability of the project after its completion.
She recalled that the IFAD was formed in 1978 and had invested 16 billion dollars so far, with their projects having the opportunity to reach 464 million people living in rural areas.
“IFAD deeply believes that agriculture is business. The role of small producers is to produce two thirds of foods worldwide. To succeed, they need support, as well as any other business”, states Buzard.
Niksic Municipality President Veselin Grbovic reminded of the necessity of reconstructing the infrastructure in this city.
“Niksic Municipality and the Ministry of Agriculture and Rural Development invest significant funds in rural infrastructure. However, bearing in mind the indent of our municipality, we need help. It is necessary to ensure that every interested household from the rural area has the conditions to deal with agriculture. That is why it is necessary to provide quality infrastructure, primarily road, as well as proper water supply, “said Grbovic.
After the opening ceremony, Peter Frosley Kristensen, expert consultant for IFAD, presented the activities of this Fund to all the participants, as well as additional details about the RCTP project itself.
The event was concluded with discussion and cocktail, followed by a ceremonial ribbon-cutting by Ms. Buzard and Minister Simovic and the official opening of the future IFAD office in IEC Tehnopolis.
