Establishment of the Project Implementation Unit 2KR

The Project Implementation Unit (PIU) of the Increase of Food Production Project 2KR has been established on February 2, 2001 on the basis of the Grant extended by the Government of Japan for the purpose of increase of food production in the Republic of Moldova. Project goal is to contribute to the increase of food production (cereal production) in the country by using modern agricultural machinery, lowering the production costs and improving growing technologies.

The Project Implementation Unit 2KR is a separate, noncommercial and non-profit organization, having its separate accounts and management, which ensures the maximum output of the project. Major benefits gained from this are the following:

  • There is one certain body responsible for efficient implementation of the Project during its whole duration and it is not influenced by the changes of the Governments.
  • The PIU has its separate accounts and is not influenced by the other state bodies.
  • PIU is a non-political organization and is not influenced by political forces.
  • PIU is accountable to different state bodies (Ministry of Agriculture, Ministry of Finance, Ministry of Economy, and Parliament) and will ensure a transparent process of implementation.

The Project is accounted to the Project Steering Committee (PSC). The Project Steering Committee is comprised of the following representatives:

  1. First Deputy Minister of Agriculture – chairman
  2. Chief of the General Department for Projects and Agro-services, MOFA
  3. Chief of General Department for Restructuring, Agrarian Policy and Rural Development, MOFA
  4. Chief of General Department for Mechanization and Agro-services, MOFA
  5. Director of Research Institute in the field of Mechanization “Mecagro”
  6. Dean of Mechanization Faculty, Agrarian University
  7. Director of the State Machinery Testing Station

2KR Implementation Scheme

The Grant for the 2KR project was given by the Japanese Government, who signed the Grant Agreement through the Exchange of Notes. Along with this agreement, the Ministry of Agriculture and Food Industry of the Republic of Moldova has taken the responsibility for theProject Implementation Unit of the Increase of Food Production Project 2KR (PIU 2KR); and has been monitored by the Japanese Embassy in Moldova, JICA and the Moldovan-Japanese Advisory Committee. PIU 2KR has offered technology and equipment’s’ installment sale-purchase contracts to the beneficiaries. With the agreement from the Japanese Government, the money collected from the first year of operation has been used for additional equipment procurement. Thus, PIU has procured, on a tender basis, 150 units of 80 HP agricultural tractors, which have been sold to private farmers on the basis of Hire-Purchase agreements for the period of 4 years.

Project Benefits

  • The technology and equipment is paid in installments over two or three years;
  • Minimum documents are required;
  • The price of agricultural technology and equipment does not have any commercial additions;
  • It offers the possibility of purchasing technology and farm equipment without guarantee and without collateral, the access to finance being thus simplified;
  • It provides the opportunity to obtain technical and equipment on request;
  • It provides services of repair, technical maintenance and agricultural equipment;
  • It provides the opportunity for training specialists employed in agriculture.

Grants extended under 2KR Program and equipment procured

The project started after the required procedures were completed and the first Grant Agreement was signed through the exchange of notes between the Government of Republic of Moldova and the Government of Japan. In the subsequent years of the project, nine grant tranches were given by the Government of Japan:

Japanese Government tranches

Date

JPY

USD/100 JPY

USD

MDL/100 JPY

MDL

Type

Quantity

total

total

total

GRANT 2000

30 aug 00

380 000 000

12,3846

3 516 239

11,4598

43 547 219

Sampo Combine

21

PS Combine

21

MF Tractor

42

PS Tractor

42

MF Plow

42

PS Plows

42

GRANT 2001

10 dec 01

300 000 000

13,0950

2 355 528

10,2819

30 845 634

Sampo Combine

23

PS combine

23

Legend Tractor

21

PS tractor

21

EVQ Plow

21

PS Plows

21

GRANT 2002

5 sept 02

300 000 000

13,5825

2 492 315

11,2840

33 851 873

Sampo Combine

32

PS combine

32

GRANT 2003

11 mar 03

260 000 000

12,6326

2 393 666

11,6301

30 238 225

Kubota Tractor

82

PS tractor

82

Kubota Tractor

81

PS tractor

82

GRANT 2005

3 mar 06

220 000 000

12,9962

1 875 373

11,0785

24 372 722

Belarus 82.1 Tractor

100

GRANT 2006

11 jan 07

230 000 000

12,9863

1 907 447

10,7699

24 770 683

Belarus 82.1 Tractor

51

Ceutz-Fahr Combine

7

GRANT 2007

5 mar 08

200 000 000

10,8246

1 984 324

10,7398

21 479 512

Belarus 82.1 Tractor

71

GRANT 2009

7 oct 09

160 000 000

11,1949

1 772 087

12,3990

19 838 341

Belarus 82.1 Tractor

73

GRANT 2011

17 apr 12

130 000 000

11,8060

1 595 288

14,4877

18 833 967

Belarus 82.1 Tractor

58

TOTAL

x

2 180 000 000

 

19 892 268

 

247 778 178

x

644

Table: Japanese grant tranches as result of the Exchange Notes between the Governments of Japan and Moldova

The first Grant has been extended with the Exchange of Notes between the two Governments on August 30, 2000. The amount of the grant extended was 380 million Japanese Yen, which is equivalent to approximately USD 3.3 million. From this amount a number of 21 combine harvesters and 42 tractors equipped with plows have been procured and imported to the Republic of Moldova in 2001. The second Grant has been extended with the Exchange of Notes between the two Governments on December 10, 2001. The amount of the grant extended was 300 million Japanese Yen, which is equivalent to approximately USD 2, 3 million. From this amount a number of 23 combine harvesters and 21 tractors equipped with plows have been procured and imported to the Republic of Moldova in 2002. Due to the very good results obtained by the project during two years of implementation, the government of Japan decided to extend the third Grant. The third Grant was comprised of the same number as the previous one – 2, 3 million UDS. From this amount, a number of 23 combine harvesters have been procured and will be imported to the Republic of Moldova in 2003. The Grant equipment is procured at the tender organized in Tokyo by Japanese Government (Japanese International Cooperation Agency (JICA)). The last tranche was given on April 17, 2012 - the ninth tranche being signed in the amount of 130 million yen for the expansion project.

Projects initiated by the PIU 2KR:

  • The Project for Professional Development of Agriculture Mechanization
  • The Project for Effective Use of Biomass Fuel
  • The PNUD Energy and Biomass Project
  • The Project on Development of Small-Scale Irrigation Systems
  • The Project of "SAMPO ROSENLEW" Combine Assembling in Moldova