DINKIC: Emirates to give EUR 22 million for irrigation project in Macva

Mladjan Dinkic (Photo: Mc.rs)

Mladjan Dinkic, deputy head of the Committee for Cooperation between Serbia and the United Arab Emirates (UAE), said Thursday that first grants from that country's loan fund for irrigation investment would be directed to the Macva Region.

- A fourth of the first tranche of the UAE loan, which is about EUR 22 million, would be directed to the Macva Region to enable the irrigation of 8,000 hectares of land. The credit for this goes to the local self-governments of Sabac and Bogatic that were the first to prepare project feasibility studies - Dinkic said during his visit to Sabac.

He announced that a loan agreement with the UAE would be signed by end-October.

Dinkic noted that the UAE was going to grant a loan with an annual interest rate of 2.5 percent, repayment term of 20 years, and a five-year grace period.

As he explained, the aim of the irrigation project is to make it possible for farmers to boost their yields without "the help of God."

According to Dinkic, Serbia exports three times fewer agricultural products per hectare of arable land than Croatia and 30 times fewer than the Netherlands.

The total amount of the first tranche of the Abu Dhabi Development Fund's loan for irrigation projects in Serbia is EUR 100 million. This money is intended for the procurement of irrigation equipment for 25,000 hectares of land.