The executive approved a bill to ratify a new financing agreement with the International Fund for Agricultural Development for implementing the Inclusive Rural Economic and Climate Resilience Program – IFAD VII. The budget is of US$ 23.7 million, US$5.5 million of which is a grant, IPN reports.
The loan of US$18.2 million is repayable in 25 years at a fixed interest rate of 1.23% and with a grace period of five years.
A number of 24 water supply networks for irrigation intended for 75 agricultural producers will be built within the project. There will be rehabilitated 12 road segments to facilitate farmers’ access to production areas. These will benefit 50 enterprises and over 1,200 households in 12 villages.
Grants to improve resilience to climate change will be provided to about 420 farmers, while over 450 small entrepreneurs, 150 young entrepreneurs and at least 20 small and medium-sized enterprises will get preferential loans.
To diminish the effects of social erosion and the impact of climate change, rainwater accumulation lakes will be built or rehabilitated on an area of over 30 hectares. Also, 200 hectares of forest strips and 200 hectares of grasslands will be rehabilitated.
The agreement will be implemented during six years until 2022. The process will be managed by the current IFAD Consolidated Programs Implementation Unit.
