Montenegro allowed to use EUR 3.2 million for further investments in agriculture

Podgorica, Montenegro (18 July 2014) -- EU Delegation in Podgorica and the World Bank signed an agreement allowing Montenegro to use EUR 3.2 million for further investments in agriculture in order to make agricultural producers better prepared for the use of the IPARD pre-accession support programme scheduled for early 2016. 

The funds were available to Montenegro through the IPARD programme for 2011 and 2012, and they were lost as there was no progress in establishing the Directorate for Payments in Agriculture. However, the Ministry of Agriculture made significant progress in this area during 2013, which created conditions for the European Commission to allow Montenegro to transfer the total amount of EUR 10 million from the IPA V to IPA I component.

Allocation of the funds to agricultural producers will begin in early fall through the publication of a public call for the allocation of grant support for investments in agricultural holdings amounting to 50%of the investment. Conditions will be more demanding compared to MIDAS projects, but also simpler than those that will exist when applying for the IPARD funds.

Directorate for IPARD Payment of the Ministry of Agriculture and Rural Development, which was responsible for the implementation of the MIDAS public calls for rural development, will be in charge of the implementation of the funds.

Support provided through four MIDAS calls and the fifth one which is in progress has done a lot towards encouraging agricultural producers in Montenegro, especially in terms of their education about applying for EU assistance. The Ministry of Agriculture believes the implementation of the planned future public invitation will contribute to boosting interests of the banking sector to finance investment in the Montenegrin agriculture.