Investment grants will be eligible for investment in the high-performing technologies that can enhance competitiveness of the agricultural value chains and that can also bring significant environmental benefits. The grants will reward preferably innovation, but equally business expansion, job creation, quality improvement and environmental friendliness. A Sub-borrower is entitled to receive payment of an Investment Incentive on successful completion and verification of a Sub-project, provided that the Sub-borrower fulfils the eligibility criteria (For details, see terms and conditions or refer to GEFF team).
There are 2 levels of grant support, as shown below:
1. Investments into the technologies meeting the eligibility criteria are entitled to receive an investment incentive of 20%.
2. A higher level of investment incentive of 30% is foreseen for the following investments:
(i) Sub-projects that improve sustainable land management through investments in materials, equipment, appliances, technologies and/or services that enable reduction in soil erosion
(ii) Drip irrigation system
(iii) Solar water pumping
(iv) Cold storage
(v) Heat pump or heat recovery system
(vi) Agricultural vehicles, including tractors and combine harvesters.
Please note the following guidelines:
For both grant support levels, the grant amount is always calculated based on the lower of (1) the disbursed amount of the Sub-loan or the purchase price of the Leased Equipment, and (2) the Investment Cost of the Sub-project, net of VAT or other Taxes;
Only Investment Costs in capital expenditure used to purchase, install and commission machinery, tools, and equipment, and associated auxiliary costs will be eligible for Investment Incentives;
The determination of the amount of grant payable to the Sub-borrower will be conducted by the Facility Consultant, and presented in the Verification Report;
Verification and eligibility for grants is determined by an independent party on behalf of the EBRD;