The project is the second Phase of a two-phase Rural Investment and Services Program (1st phase 2002-2006). The project strives to continue to foster the post-privatization growth in the agricultural and rural sectors of Moldova by improving access of farmers and rural entrepreneurs to legal ownership status, know-how, knowledge and financial services, while building the capacity of the private and public institutions to ensure the sustainability of the activities.

The Phase II builds on success achieved under the Phase I, by: (i) strengthening and expanding the rural advisory services; (ii) improving business skills of the to-be entrepreneurs and assisting with the legal registration of the new businesses; (iii) upgrading the financial sector environment through a range of risk management measures, such as supervision capacity building, and introduction of new lending instruments such as leasing; (iv) increase the commercial banking sector outreach into rural areas; and (v) developing a practical approach to reducing transaction costs in land markets. It also builds the capacity of the government to manage the specific activities of the project which should be taken over by the Government by project’s end and will gradually transfer responsibilities.