Contacts In Belgrade: Mirjana Popovic (+381) 11 3023 747, mpopovic@worldbank.org In Washington: Vesna Kostic (+1-202) 473 9277, vkostic@worldbank.org WASHINGTON, June 20, 2007 – The World Bank Board of Executive Directors today approved a EUR12.5 million IBRD loan and US$ 4.5 million GEF grant for the Serbia Transitional Agriculture Reform Project. The project supports Serbia’s National Agriculture Strategy to enhance the competitiveness of the country’s agricultural products in local and international markets. It will also assist the Government with creating a more efficient and transparent rural development grants program and help the country qualify for and use European Union pre–accession funding. The project’s GEF component will support, in particular, biodiversity conservation in the Stara Planina region. Serbia has significant comparative advantages in agriculture, thanks to an abundance of high quality agricultural land, a strategic trading location between Europe and Turkey, and an educated workforce. Primary agricultural production and agro-processing was estimated to be 15 percent of GDP and 20 percent of exports in 2005. However, market forces are applying pressure on the country’s agri-food sector to improve productivity and quality as Serbian farmers and food processors are facing increasing regional and international competition. “The project supports poverty alleviation and development of a more dynamic private sector in Serbia,” said Aleksandar Nacev, head of the World Bank team that supported the design of the project. “It is a key component of a development program for the agriculture sector that includes the ongoing land project, irrigation project, and agriculture pollution reduction project, all of which are designed to promote economically and environmentally sustainable growth in the sector.” In accordance with the Government’s Agricultural Strategy, the project will help increase the competitiveness of the agri-food sector by introducing modern technologies and harmonizing with EU requirements. The project will also support rural poverty alleviation by targeting disadvantaged areas such as south-eastern Serbia, which is the poorest rural area in the country. The GEF grant will focus on preserving biodiversity, and on promoting sustainable use of natural resources and rural tourism in the Stara Planina area. “Biodiversity is important for agriculture and the GEF is working with the Serbian Government to promote the conservation of ecosystems and agro-biodiversity in ecologically sensitive areas. This project will assist with the ecological restoration of biodiversity-rich mountain meadows and other degraded areas, in order to support the long-term goal of preserving the natural and cultural values of the entire Stara Planina mountain ecosystem,” said Monique Barbut, CEO of the Global Environment Facility. The project consists of four components: Component 1 will strengthen the capacity of the Ministry of Agriculture, Forests and Water Management (MAFWM) for administering Rural Development Grant programs. The project will finance technical assistance and supplementary personnel, information technology, and the updating and dissemination of the Rural Development Plan, which is required to access EU IPARD-RD funds. Component 2 will assist with improving agricultural knowledge and skills through improved research. This includes strengthening the Department for Rural Development and Extension Services as well as creating opportunities for other extension service providers, providing mechanisms to enable farmers and producers to participate in the management of extension and applied research programs, and making available financing for research and extension contracts to be implemented by qualified contractors and accredited research institutes and scientists. Component 3 aims at improving and integrating management and sustainable economic development of the Stara Planina Nature Park (SPNP), including capacity building for Srbijasume and local authorities and communities. This project will provide technical assistance and matching grants to help residents of the area develop and expand environmentally friendly economic activities, including rural tourism, sustainable livestock production, and development and marketing of certified “SPNP-branded” products based on the sustainable use of natural resources. Further, a Visitors’ Center and other small-scale infrastructure will be constructed to support eco-tourism within the Nature Park. . Component 4will providesupport to the MAFWM for project management and coordination, including the establishment of a field support in the Stara Planina region. The World Bank today also approved four additional projects for Serbia worth US$171 million. These projects will support thedevelopment of the Bor region, assist with flood protection, improve road condition and safety, and increase energy efficiency in schools and hospitals. More information is available on the World Bank’s Serbia site (see link below). About the GEF The Global Environment Facility (GEF) is a mechanism for providing new and additional grant and concessional funding to meet the agreed incremental costs of measures to achieve agreed global environmental benefits in the four focal areas - Climate change; Biological diversity; International waters; and Ozone layer depletion. GEF also supports the work of the global agreements to combat desertification and eliminate persistent organic pollutants. The World Bank Group is one of GEF’s implementing agencies and supports countries in preparing GEF co-financed projects and supervises their implementation. It plays the primary role in ensuring the development and management of investment projects. The World Bank draws upon its investment experience in eligible countries to promote investment opportunities and to mobilize private sector, bilateral, multilateral, and other government and non-government sector resources that are consistent with GEF objectives and national sustainable development strategies. Since 1991, the World Bank Group has committed $1.52 billion in GEF resources and $2.25 billion in World Bank Group co-financing for GEF projects in 80 countries. In addition to GEF and World Bank resources, it has mobilized additional co-financing of $5.48 billion from other donors. ### For further information on World Bank’s GEF program, visit http://www.worldbank.org/gef For further information on the GEF, visit http://www.thegef.org For further information on World Bank activities in Serbia visit http://www.worldbank.org.yu |
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