The World Bank’s Board of Executive Directors today approved US$27.2 million in financing to the Republic of Moldova for the Climate Adaptation Project, according to a press release by the World Bank Office in Chisinau.    

The money will be used to protect farms, forests and pastures from climate change in specific zones, and strengthen national disaster management systems. A World Bank study of the economics of climate change in Moldova found that the biggest challenges and investment opportunities are in agriculture.

The Project will support the Moldovan Government Action Plan for the Implementation of the Climate Change Adaptation Strategy to 2020.

 “Frequent natural hazards, similar to the one that occurred on 21 April, and their substantial impact on Moldova’s economy and people call for a commitment to enhance the country’s climate adaptation capacity”, said Alex Kremer, World Bank Country Manager for Moldova. He added that “the country’s size and demographic peculiarities make climate adaptation and disaster risk management indispensable items of Moldova’s sustainable development agenda.”

Since Moldova joined the World Bank Group in 1992, over US$ 1 billion has been allocated to approximately 60 projects in the country. Currently, the World Bank portfolio includes 8 active projects with a total commitment of US$ 333.3 million. Areas of support include regulatory reform and business development, education, social assistance, energy, healthcare, agriculture, local roads, environment, and more.

The International Finance Corporation’s committed portfolio in Moldova is US$ 53.8 million (US$ 50.9 million outstanding). Its committed portfolio consists of 95 percent loans and 5 percent equity. The Multilateral Investment Guarantee Agency has provided guarantees totaling US$ 95 million. Both institutions are members of the World Bank Group.