Press Release No. IFAD/18/01

Rome, 25 May - A USD 31.3 million project in the Republic of Honduras, the ''National Programme for Local Development (PRONADEL)'' will receive a USD 20.0 million loan from the International Fund for Agricultural Development (IFAD). A loan agreement was signed today at the Fund’ s Headquarters by Mr. Guillermo Alvarado Downing, Ministry of Agriculture and Livestock, Honduras and Mr. Lennart Båge, President of the Fund.

The area targeted by the project suffers from the risk of harvest losses due to a prolonged dry season and uncertain rainfall; the household economy of the population living in the area is based primarily on subsistence production. Population pressure, over-exploitation of forests and inadequate management of natural resources have led to the deteriorating productive capacity, impoverishment and food insecurity among the rural population. The damage caused by Hurricane Mitch has further contributed to worsening of the situation. The target population consists of approximately 700 000 people who are settled on hillside lands in the poorest regions of Honduras both subject to severe environmental degradation and at risk from natural disasters. Of the target population, the project will focus on 15 000 families in 135 municipalities organized into ten clusters.

The overall objective of the National Programme for Local Development is to increase the access of poor rural communities to rural investments, productive activities and technical services in order to improve their food security. The project’s main component aims to strengthen local institutions and organizations in the project areas. This would endeavor to guarantee that the disadvantaged and marginalized segments of the target population have equitable access to project activities and resources, thus ensuring the effectiveness and sustainability of project achievements. Furthermore, intense training will be undertaken among rural women and youths, indigenous groups and landless farmers within isolated communities to facilitate their involvement in income-generation activities. Once target groups and communities have been identified, microprojects will be implemented by establishing a rural development fund to finance community initiatives.

Project implementation will be demand driven based on the active involvement of its principal target groups in the implementation and evaluation of all productive and income-generating activities.

With this project, IFAD will have financed eight projects in the Republic of Honduras, for a total loan amount of about USD 109.10 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.