COMPACT project

The Compact is a 2010-2015 grant assistance program implemented by the Millennium Challenge Account Moldova (MCA Moldova). The public entity MCA Moldova was established by the Government of Moldova to ensure the efficient implementation of the Compact Agreement signed between the Republic of Moldova and the U.S. Government, acting through the Millennium Challenge Corporation (MCC), on January 24, 2010.

The USD 262 million Compact invested in the transition to high value agriculture and road infrastructure in Moldova with the ultimate goal of poverty reduction through economic growth. The Compact objective was to help increase people’s incomes by increasing agricultural production and facilitating the access to markets and services.

The Compact had two distinct projects:

Road Rehabilitation Project (RRP), which rehabilitated roads in the North-East of the country;  

Transition to High Value Agriculture Project (THVA), which encouraged the transition to high value agriculture by reconstructing irrigation schemes, reforming the irrigation sector, facilitating the access to finance in agriculture and growing high value sales.

To achieve its objectives, the THVA project was structured into four major activities:

  • Rehabilitation of Central Irrigation Systems
  • Irrigation Sector Reform
  • Access to Agricultural Finance
  • Growing High Value Sales

 

The THVA Project activities targeted the communities located near two big rivers – Prut to the West and Nistru to the East, and also the regions, which have access to irrigation water and grow high value agricultural products.

According to the estimates of the Millennium Challenge Corporation, the THVA project, including its Credit Facility, will benefit in the following years 29 000 households, farms and farm owners, employees of farming businesses which operate in the areas of the rehabilitated irrigation systems, producers who grow or intend to grow high value products and/or businesses that are or are going to be part of the high value agriculture value chain.

The Compact Moldova projects rehabilitated a 96 km road segment, which is now used by more than 300 thousand people, and 10 systems, which irrigate more than 13 500 ha of farmland across the country.

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