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EBRD loan to improve fruit and vegetable distribution in Romania
A broader choice of fresher fruit and vegetables will be available to Romanians at more competitive prices as a result of a loan from the European Bank for Reconstruction and Development to establish a wholesale marketing facility in Bucharest. The US$ 25 million loan (ECU 19.23 million equivalent) was signed today in Bucharest by Florin Georgescu, Minister of Finance of Romanian, and Juan Miranda, Director of Agribusiness of the EBRD.
Mr Miranda said: "This project will replace an old centralised and inefficient marketing system with a new operation eventually to be owned and handled by the private sector. The wholesale market will promote business opportunities for private farmers, traders and producers, increase returns to producers, and generate greater competition and lower prices to consumers. This is a major step in the restructuring of the agribusiness sector in Romania."
The loan will finance the construction of the wholesale market in Bucharest and the establishment of eight rural assembly and supply markets located in strategic production points throughout the country. It will also rehabilitate five existing street retail markets in the municipality of Bucharest.
Total project costs are US$ 49.6 million, including the cost of a technical cooperation programme to be financed by the German Government (US$ 3.5 million). The Romanian Government and private parties contribute both equity in kind and cash. The technical cooperation component will assist the implementation of the project providing supervision, training and audits.
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