EBRD considers provision of USD 92 mln for irrigation system reconstruction in southern Ukraine

The European Bank for Reconstruction and Development (EBRD) may support the reconstruction of the main water pumping station of the Nizhne-Dniester irrigation system in Ukraine's Odesa region. The Bank considers the provision of a USD 92 mln credit facility, says the Minister of Agrarian Policy and Food of Ukraine Roman Leshchenko.

As reported by the Odesa Region State Administration, funds allocated by the EBRD will enable the complete reconstruction of the station and expand the irrigated area of the Nizhne-Dniester system from 12 to 40 thou. ha.

The pumping station is designed to supply water for irrigation in an area of 34.4 thou. ha, the water intake comes from the Dniester River in the village of Mayaky of Bilhorod-Dniester district.

"According to experts, the pumping and power equipment has long served its double resource. And in spite of the fact that routine and capital repairs are performed at the pumping station, the malfunctions are permanent: over the past 50 years of its operation, 16 major breakdowns occurred, which resulted in the shutdown of the pumping station for a period from 5 to 32 days," the message reads.

Each year, UAH 400-500 thou. are spent on repairs, which are paid for by agricultural producers who use the water for irrigation.

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The Accounting Chamber of Ukraine estimated irrigation's potential positive impact on the country's GDP at more than 0.2%, or UAH 8.8 bln.

Agrarian Minister Roman Leshchenko stated that more than 60% of cropland in Ukraine is located in an area of risky agriculture.