USAID to allocate up to 270 mln hryvni for grain storage program in Ukraine
MOSCOW. Jan 9 (Interfax) - The USAID AGRO program has announced the launch of a grant program to provide up to 270 million hryvni in co-financing for the development of grain processing, drying and storage facilities in Ukraine, Ukrainian media outlets said, citing a statement circulated by the donor organization's press service on social media.
"Due to complicated export processes, micro, small and medium agricultural producers in Ukraine are in need of additional elevator capacity to dry and store grain. [...] The projects will increase the volume and time for storing grain and technical crops, thus contributing to business sustainability and helping boost Ukraine's food security," the press service said.
The program envisages financial support for 10-15 co-financing projects, with a budget of 18 million hryvni to 36 million hryvni each.
Hopefully, the program will enable 70 micro, small and medium enterprises to gain access to grain processing, drying and/or storage services, USAID said. Storage capacities will be increased by at least 20,000 tonnes of grain a year and/or grain drying capacities will be enhanced by at least 50,000 tonnes a year. At least 50% of all grain processing, drying and/or storage services will be provided to micro, small and medium enterprises that cultivate (lease) land plots smaller than 500 hectares.
Ukrainian enterprises that specialize in processing, drying and storing Ukrainian farmers' grain and technical crops will be able to take part in a grant competition.
The USAID AGRO program encourages bids from Ukrainian companies and enterprises that specialize in processing and storing agricultural produce, have elevator capacities and have already drawn up or have started to draw up project documents, it said.
The co-financing initiative will prioritize processing enterprises that are ready to enlarge their elevator capacities, as well as applicants that will focus on introducing energy-efficient technologies.