The relevant Ministry of Agriculture provided relief to farmers who had problems obtaining grants from European funds under the IPARD 2 project through advance payments and payments in stages for the projects they applied for.
This was officially told to the "News" in this government department, which is managed by the minister Vladimir Jokovic.
The IPARD program contains grant money to support the development of agriculture and the Ministry of Agriculture is responsible for its implementation. It must be spent within the stipulated time limits, and if it is not spent, it will be returned to the EU. In the total amount from the IPARD II program, the EU is with 39 million (75 percent), while 12,74 million (25 percent) is from the state budget.
One of the prerequisites for using the money was that the user realizes the investment with his own money in order to realize the right to receive non-refundable support. This created problems, because farmers often did not have money for their investment, and loans from banks were not easily available to them because they did not have adequate means of securing them.
As part of this project, farmers built facilities for housing livestock, machinery, fodder, procured plantings, irrigation systems, specialized vehicles...
Another 14 million available
The money from this project was supposed to be spent by the end of last year, but the EU, as the ministry said, allowed it to be used until the end of this year.
"In order to implement the IPARD program as best as possible, the Ministry of Agriculture has enabled users to make advance and phased payments. Advance payment of up to 50 percent of the contracted support, while for phased payment users can submit requests for partial payments, depending on the investment realization process. Also, an amendment to the Regulation on the implementation of support funds through the IPARD II program is being prepared in the part of enabling users to submit a request for an advance payment for the same project and to submit a request for payment in phases, which has not been the case so far", they explained in this department.
As part of the IPARD II program, 37,26 million euros from the EU support funds are available to Montenegro, and 20,47 million euros have been spent so far, according to the ministry.
"Based on the results achieved so far, the European Commission was understanding and approved the spending of funds from the IPARD II program until the end of this year. In 2024, we need to spend funds in the amount of about 14,29 million. euros", the ministry said, adding that by the end of last year they expected a payment of around 2,5 million euros.
396 projects supported
As part of IPARD 2, 396 projects have been implemented so far, for which 27,29 million were spent, of which 20,47 million came from the EU and 6,82 million from the national budget.
"As part of measure 1, which is intended for primary agricultural producers, 340 projects have been implemented so far, and support in the amount of 13,98 million has been paid, of which 10,48 million is from the EU, and 3,49 million from the national budget. . As part of this measure, users are supported for: construction/reconstruction of facilities for housing livestock, facilities for housing machinery, fodder, warehouses for agricultural products, procurement of machinery, equipment, planting of perennial crops, irrigation systems, anti-hail nets", explained in ministry.
Within the framework of measure 3, which is intended for the processing sector, 56 projects have been implemented so far, and support in the amount of 13,21 million has been paid, of which 9,91 million is from the EU, and 3,30 million from the national budget.
"Under this measure, users are supported for the construction/reconstruction of a processing facility, procurement of equipment for the processing sector, procurement of specialized vehicles," said the department.
They explained that for projects under measure 1 and measure 3 there is a list of acceptable costs within which the user can receive support, if he meets the criteria prescribed by the Public Call.
"Within measure 7, which refers to rural tourism, 24 projects with a total investment value of 3.686.649,93 euros (with VAT), 3.046.818,11 euros (without VAT) were contracted, with a possible support amount of 1.982.952,90 .105.220,02 euros. Three beneficiaries were paid through the possibility of advance payment and the total amount of advance paid is 78.915,01 euros. of which EUR 26.305,01 is from EU funds, and EUR XNUMX from the national budget", the ministry stated.
The transformation of the IRF into a Development Bank will enable attracting more money
The ministry stated that in July of last year, the Government adopted the Information on activities in the direction of the transformation of the Investment and Development Fund (IDF) into the Development Bank of Montenegro.
"Transformation would help Montenegrin municipalities, with an average level of development below the national level, to use grants within nine billion euros, available through the European Economic and Investment Plan for the Western Balkans, as well as other funds available through pre-accession EU support. By using EU funds, the Development Bank is able to better use available EU funds, create various financial instruments such as loans, guarantees, investment in share capital", the ministry stated.
They further explained that for the end recipients - users, financial instruments enable greater satisfaction of needs, especially from the point of view of capital in terms of lower interest rates, longer maturity, reduced need for collateral and the like.
"With greater multiplicative effects on the entire economy and better allocation of development funds," the ministry emphasized.
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