Serbia’s agricultural infrastructure, which has suffered extensive damage from floods and droughts in recent years, will become more resilient to climate change thanks to an investment of 15 million euros from the European Bank for Reconstruction and Development (EBRD).
The bank will finance the construction and rehabilitation of primary irrigation infrastructure in Negotin and Svilajnac, and will additionally provide 1.2 million euros in technical assistance grants, including for the development of the country’s first irrigation plan, to be implemented with the assistance of the UN Food and Agriculture (FAO), the EBRD said.
Agriculture and the food industry, with a share of nine percent in GDP and 17 percent in total employment, play a vital role in the Serbian economy. However, the agricultural sector suffers from underinvestment and outdated technology, while water supply systems are often vulnerable to climate change, such as droughts, floods or extreme winters.
The EBRD’s investment will fund the construction of primary irrigation infrastructure, which will enable efficient irrigation technology, including switching to sprinklers and drip irrigation systems, as well as measures to strengthen the resilience of irrigation infrastructure to weather-related disorders.
The investment will contribute to the overall improvement of water efficiency and boost the climate resilience of the agricultural sector.
“This project is important for Serbia not only because it will strengthen the climate resilience of agriculture, but will also provide more economic opportunities for people in less developed regions”, says Zuzana Hargitai, EBRD Regional Director for the Western Balkans. Hundreds of households in the two regions, she adds, will benefit from improved access to irrigation systems, which will help them increase expected returns and their income.
Miljan Zdrale, EBRD Director of Agribusiness for South East Europe, points out that this project is the first investment in public agribusiness infrastructure.
“It is expected that it will contribute to changes in crop patterns, which will enable farmers to switch to high value crops such as fruits and vegetables and increase the overall competitiveness of this vital sector for the Serbian economy”, Zdrale said.
The EBRD supports the development of the private sector and the transition to a green economy, as well as investment in infrastructure to improve connectivity in the Western Balkans region, and has invested more than five billion euros in 250 projects in Serbia, the statement said.
