Agriculture Minister announces $150mln project with World Bank to enhance sector

Georgian Agriculture Minister Otar Shamugia on Tuesday announced the launch of a $150 million project jointly financed by the Government of Georgia and the World Bank and aimed to benefit farmers and enterprises by enhancing irrigation services, land management and agricultural support. 

Specifically, the Georgia Resilient Agriculture, Irrigation, and Land Project is designed to help irrigation services and the irrigated agricultural sector adapt to drought, warming temperatures and the anticipated long-term reduction in precipitation. 

Shamugia said the project would make an “important” contribution to the development of irrigation and land management systems in Georgia. 

The project also includes implementation of climate-smart agricultural practices, saving water and soil resources. All this together will bring significant results”, he said.

Speaking at the presentation of the project, Shamugia highlighted the Government’s efforts in supporting agriculture over the past 10 years and added 10 projects were currently underway.  

We help farmers and entrepreneurs both in terms of primary production, processing and tapping into new markets. Next year, for the purpose of integration of our farmers and entrepreneurs in various markets and promotion of Georgian products, approximately ₾20 million ($7.42mln) will be spent”, he said.

Shamugia mentioned increased production and export figures, saying last year Georgian authorities had recorded “record-high” indicators of export of agricultural produce. 

This year, according to the data of nine months, we had about 17-18 percent growth year-on-year. I think this data reflects well the results of the joint work of the state, private and civil sectors and the programmes that we have been implementing for years”, the official said.

Photo: Ministry of Agriculture

Rolande Pryce, the World Bank Regional Director for the South Caucasus, said joint and coordinated work was important to improve the agricultural sector.

We expect that an integrated approach to agriculture, irrigation and land management will bring significant economic growth to Georgia, reduce poverty, and create additional jobs”, she said.

Georgian Finance Minister Lasha Khutsishvili said the World Bank was an important development partner for Georgia with “timely and efficient” delivery of assistance in line with the country’s development priorities. 

The GRAIL Project is another illustration of our significant and successful partnership. I am deeply convinced that this project will make substantial contributions in strengthening the agriculture sector of Georgia”, he said.

Photo: Ministry of Agriculture

The Georgian Government is also implementing an Irrigation and Land Market Development Project with the World Bank, with the initiative in its final phase, the Ministry said. The project helps farmers in Georgia improve irrigation systems and water supply on about 17,500 hectares of land.