Second Institutional development and agriculture strengthening project (MIDAS2)
Project targeting the improvement of the competitiveness of agriculture and fisheries in Montenegro
Description
The Second Institutional development and agriculture strengthening project (MIDAS2) is funded by the World Bank, and is designed to increase the competitiveness of Montenegro's agricultural enterprises and fisheries in line with the EU pre-accession requirements, including its electronic information systems. Component 1 of the project involves the provision of grants with the aim of diversifying income opportunities and enabling the adoption of modern, energy-efficient technologies within the agricultural and fisheries sectors. Furthermore, to support Montenegro in its implementation of the Common Agricultural Policy (CAP), the project will fund rural development measures, including agro-environment initiatives, in alignment with EU management and control systems, and the gradual development and introduction of the Integrated Administration and Control System (IACS). Component 2 focuses on strengthening food safety, veterinary and phytosanitary services, making a crucial contribution to the quality and safety of agricultural products, both for domestic consumption and for the export markets. Finally, Component 3 supports the development of essential infrastructures and capacity building in the fisheries sector, ensuring that fishermen have access to safe, sanitary landing facilities and ports equipped with the necessary auxiliary services. Among the innovative elements are the introduction of a grant programme that follows a “learning by doing” approach, allowing beneficiaries to pre-finance investments and receive reimbursements only after the successful completion of the project. The project encourages the utilization of funding and resources from private companies. By attracting private sector investments, the project aims to amplify the overall impact of the funds, encouraging private stakeholders to implement agro-environmental measures to mitigate greenhouse gas emissions. The project also incorporates a well-organized and regulated framework for the handling, processing and disposal of animal waste, significantly reducing the emissions associated with livestock disposal.
Technology
The grant programme is expected to address most of the constraints faced by Montenegro’s agriculture sector, by: (i) facilitating access to financing, allowing beneficiaries to adopt modern and energy efficient technologies; (ii) encouraging the development of aggregators to improve the collection, storage, packaging and marketing of produce; and (iii) encouraging the implementation of agro-environmental measures, including those that will help mitigate the GHG emissions associated with current agricultural practices. The programme aims to support the Ministry of Agriculture and Rural Development (MARD) in fulfilling its EU pre-accession requirements, including, for instance, the adoption of electronic information systems. This subcomponent will provide investments to strengthen the management capacity of the DfP (Future Paying Agency) through the development of the Integrated Administration and Control System (IACS) components required for the management and control of payments to productive units. IACS is a digital system that encompasses various digital components and tools, and has been designed to support the efficient management and control of agricultural payments. Some elements of the IACS have already been established under the MIDAS Project (i.e. Farm Registry, upgrading of animal registry) and with EU support (Land Parcel Information System), while others will be developed under the proposed project.
Target
The direct beneficiaries of the project are the individual agricultural producers, agricultural holdings/enterprises and fishermen that can benefit from the grant programme and capacity building provided under the project. The planned capacity building activities would also help farmers prepare for Montenegro’s future participation in the common EU market, and improve their ability to benefit from the CAP. For the private sector, the grant programme is expected to leverage investments and the contributions of the beneficiaries, as well complementary public sector investments, for the modernization of the fisheries sector.
Impact
The project aims to stimulate economic opportunities of Montenegrin producers to access new markets and generate more jobs in rural areas through the grant program that will support farmers and agriculture holdings engaged in farm diversification and on-farm processing. The improved quality of life in rural areas is expected to contribute to reduced rural to urban migration. Up to 2023, under the indicator to improve competitiveness of agriculture and fisheries in Montenegro, the number of supported farmers reached by the grant programme providing them with agricultural assets or services were 3598.
Partners
Montenegro Ministry of Agriculture and Rural Development (MARD)
Four Betters
Better production
Better environment
