The European Investment Bank (EIB) has approved Slovakia a loan of EUR 120 million to finance projects contributing to afforestation, improved forest protection and management and the upgrading of agricultural infrastructure in rural areas, the bank announced Monday. Source: RTT News
The EIB funds will be used to finance forestry projects for the first time in Slovakia, a country where forests, which cover 40% of the land, have an important function, the bank indicated.
The project will have considerable environmental benefits in terms of improved forest ecosystem health and increased greenhouse gas sequestration and renewable energy production.
It is also expected to generate new employment throughout Slovakia. According to EIB, the loan will contribute to the implementation of Slovakia’s first comprehensive Rural Development Program.
It will support the rehabilitation and improved management and protection of more than 50,000 hectares of forest damaged by storms, pest outbreaks and fires, including the repair and construction of 280 km of forest access roads to facilitate forest conservation and management operations.
The project will also improve the environmental performance of at least 2000 farms by reducing surface and groundwater pollution from animal farming and boost the production of renewable energy, mostly from biogas and biomass.
In particular, better nutrient management will reduce water pollution from livestock farming activities and improve the management of water resources.
The bank said the project contributes specifically to the EU’s growth and jobs strategy by creating new jobs during implementation and thus supporting growth and employment in rural communities throughout Slovakia and also by fostering the development of agro-tourism.
The Slovak Ministry of Agriculture and Rural Development will promote the project with final beneficiaries that include public and private entities receiving support from the Rural Development Program, including SMEs.
The EIB is owned by the 28 EU member countries and it borrows money on the capital markets and lends it at a low interest rate to projects that improve infrastructure, energy supply or environmental standards both inside and outside the EU.
