Storage of poultry manure in the Leningrad region. NEFCO is currently exploring ways to incinerate the manure in order to generate electricity and decrease releases of phosphorus.

As nutrients run off from agricultural production is one of the main sources of pollution of the Baltic Sea, NEFCO offers small scale financing for investments in manure handling systems at farms in NW Russia and the Baltic countries. The facility was established in connection with the Baltic Sea Regional Project (BSRP), which was initiated by the World Bank based on funding from the Global Environmental Fund (GEF) with a participation of the Helsinki Commission (HELCOM) and the Swedish University of Agricultural Sciences (SLU) and Local Implementation Unit (LIU) hosted by Local Agricultural Advisory Service. The loans are on favorable terms with a repayment period of up to 10 years. NEFCO is also the fund manager for the GEF funding.

Implemented projects

So far 22 projects have been approved in the Baltic countries, Leningrad and Kaliningrad Oblasts. Of those 19 projects have already been implemented. Several projects are being considered. Total investment in these 22 projects is EUR 12,3 million.

Project criteria

• Environmental Management Systems training required
• significant reduction of phosphorus and nitrogen discharges to the Baltic sea
• cost effective investments
• individual farmers or agricultural companies as borrower
• own financial contribution required

Typical projects approved for financing

• construction of manure storage
• manure spreader
• reconstruction of cow barn
• sawing machine

Project monitoring and reporting to NEFCO

• the project is prepared in co-operation with international consultants and the Swedish Agricultural University to secure the sustainability of the farm
• the implementation is monitored by Local Implementation Unit, which also reports to NEFCO

NEFCO's Agri Credit Facility amounts to 3 MEUR.

Read more: Agri Projects – Case Studies