Press release number: IFAD 09/02

Rome, 18 February 2002 – A USD 24 million project in the Republic of India, the ‘Livelihood Security Project for Earthquake-Affected Rural Households in Gujarat’ will receive a USD 15 million loan from the International Fund for Agricultural Development (IFAD). A loan agreement was signed today at the Fund, by Dr. Adarsh Kishore, Additional Secretary (Fund Bank), Department of Economic Affairs, Ministry of Finance, Ms. Reema Nanavaty, General Secretary, SEWA and Mr. Lennart Båge, President of IFAD.

The project’s target group will be households affected by the January 2001 earthquake; they live in about 400 selected villages in 12 blocks of three districts in Gujarat which comprises a rural population of about 1 million people or 200 000 households. There is a large mix of ethnic groups in the villages and many face social stratification problems. The project will give priority to salt workers, landless households and women-headed households. The region represents a mix of arid and semi-arid lands that encompass salty marshes, sandy undulating plains, sand dunes and gravely areas resulting in a water stressed region with a declining natural resource base. In addition, the area is highly vulnerable to earthquakes, drought and cyclones, and the latest earthquake only put further pressure on communities whose coping strategies were already overstretched.

The projects objectives will be to secure the livelihoods of economically vulnerable households living in a harsh, disaster-prone and fragile natural environment, while enhancing their preparedness and capacity to contend with future crises. These objectives will be sought by: strengthening the capacity of existing member based community organizations to expand livelihood opportunities; assist marginalized groups in identifying needs and accessing resources; improve communities and households ability to cope with natural disasters; increase the productivity of the natural resource base sustainably and equitably;

The project will support the target group in drought proofing and increase availability of drinking water by constructing wells and rainwater-harvesting tanks on roofs and by renovating and constructing village ponds. It will help beneficiaries diversify through a variety of on and off farm activities (crafts, gum collection and salt production) and create access to microfinance services including microinsurance. Guidance and supervision on the incorporation of earthquake-resistant features in constructions will be given and to ensure that the poor have access to housing funds. The project will be implemented by the Self-Employed Women’s Association (SEWA), which represents informal-sector labour, women and cooperatives. The World Food Program and SEWA will be cofinanciers in this project.

This is the sixteenth project to be funded by IFAD in India. The total commitment has now reached to USD 381 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 603 projects in 115 recipient countries and in the West Bank and Gaza for a total commitment of approximately USD 7.3 billion in 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 available to low-income countries on very favorable 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.