Press Release No. IFAD/01/2001

Rome, 11 January 2001 – A USD 41.77 million project the ‘Uplands Food Security Project’ in the Democratic People’s Republic of Korea, will receive a USD 24.44 million loan from the International Fund for Agricultural Development (IFAD). A loan agreement was signed today at the Fund’s Headquarters by H.E. Kim Hung Rim and John Westley, Vice - President of the Fund.

The project area comprises 46 cooperative farms in two clusters – Samsu and Phungso counties in the northern province of Ryanggang and Gocksan and Singye counties in the southern province of North Hwangae. All four counties, and the cooperative farms within are predominantly upland. The two separate clusters have been chosen to represent two different agro-climatic areas. The counties were selected given the low-income status, but with potential for profitable and sustainable farming. Project beneficiaries will be approximately 18 000 households, comprising some 76 000 individuals, in the 46 low-income, food-insecure cooperative farms. About 36 000 among them are workers/shareholders in the cooperative farms, 56% of whom are working women.

Poverty and food shortage is notable in these areas. Various factors lending to this include poor soil and climatic conditions in hilly areas where good farmland is scarce and agriculture is not suitable. In the past few years, natural calamities like floods, droughts and hailstorms have hit the counties; the adverse macroeconomic situation has led to severe shortage of essential production inputs; and the Government’s public distribution system does not reach the remote areas.

The overall objective of the project is to develop and demonstrate balanced, sustainable and replicable cropping systems, coupled with environment management, with a view to achieving higher and more secure production and incomes in the cooperative farms. The project will enhance household food security, making available more food, of better quality and greater variety, through increased crop and livestock and higher cash incomes.

Participation in the project will be through membership and leadership in the work teams of the cooperative farms and day-to day interaction with, and representation in, the Cooperative Farm Management Committees.

With this new project, the International Fund for Agricultural Development has financed three projects in the Democratic People’s Republic of Korea, for a total loan amount of USD 69.0 million.

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IFAD is a specialised agency of the United Nations with the specific mandate of combating hunger and poverty in the most disadvantaged regions of the world. Since 1978 IFAD has financed 578 projects in 114 countries, allocating almost US$ 7 billion in the form of loans and grants. Through these projects, about 250 million rural people have had a chance to move out of poverty.

IFAD makes the greater part of its resources available to low-income countries on very favourable terms, with up to 40 years for repayment and including a grace period of up to ten years and a service charge of 0.75% per year.