The first in Bulgaria consolidation project of farmland with private financing gets off the ground, initiated by Advance Terrafund REIT

The first consolidation project of Advance Terrafund REIT will be realized on the territory of the village of Katunets, district Lovetch. Advance Terrafund is the first private investor, initiating real consolidation of agricultural land according to the Rules for application of the Act on the ownership and the use of the agricultural lands in the Chapter for plans for consolidation of farmlands, co-ordinated with the Government Service for Land and Water Management of The Netherlands (DLG). The project will be carried out under an agreement between all interested private landowners in that territory. 
On behalf of the Bulgarian government, a partner in the project will be the Ministry of Agriculture and Food, which will lend its experts’ support and will place for free actual materials and data, treasured in the Land Ownership Authorities. For additional consultancy assistance and   preparation of analysis of the efficiency of the procedures within the consolidation project will take part also DLG - the Government Service for Land and Water Management of The Netherlands. Their activities will be fully paid by the Dutch Government.

 Initially the project will comprise consolidation of 700 ha agriland in the village of Katunets. Additionally, every landowner in the village may join the project with its own land, prior to the final accomplishment of the plan for consolidation. The farmlands in the territory of the village are to be distributed by zones of interest among the landowners depending on the way the land is used, depending on the interests of the local community and according to the different types of agribusiness developed in the village. Land consolidation process will include two methods:
1. Land banking – purchases, sales and swaps of agrilands among landowners in that territory;
2.  Formation of separate plots and enlarged land areas with new borderlines.
The final goal of the project is with the fulfillment of the consolidation plan to form attractive big plots for more effective and contemporary agribusiness.

Land consolidation is a tendency in all states with well-developed agriculture and one of the major preconditions for sustainable development of the agrarian sector. By doing this, the cultivation of the consolidated lands is optimized, which increases the attractiveness and the prices of the enlarged parcels. 
Advance Terrafund’s investments in arable land in this village so far amount to around BGN 1.5 million. The term of the project is a year and a half and is expected to be finalized in March 2010. The expenses for its accomplishment, calculated by Advance Terrafund, are estimated to be close to BGN 200 000 (EUR 102 000). 
The project in the village of Katunets will proof that when the endeavours of the institutions and the private business are united, real benefits for the society and the development of the Bulgarian agriculture can be achieved. This partnership shall lead to improvement of the procedures for organization of consolidation projects and will stimulate their performance in many other settlements. 

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