Press release number: IFAD 18/06

Rome, 21 April 2006 - The 87th session of IFAD's Executive Board approved US$145.6 million in loans to support rural development programmes and projects in nine countries: Bosnia and Herzegovina, Brazil, the Congo, India, Madagascar, Maldives, Mozambique, Pakistan and Sri Lanka. The Board also approved US$4.9 million in grants to support rural poor people, in particular women and small livestock keepers.

US$61.5 million in loans for Asia and the Pacific

Pakistan: rebuilding from the rubble
The US$29.6 million Project for the Restoration of Earthquake-Affected Communities and Households will be financed by a US$26.4 million loan from IFAD. The earthquake that struck northern Pakistan in October 2005 claimed more than 73,000 lives, decimated crops and livestock and destroyed infrastructure. Up to 80 per cent of families in poor mountain villages lost their homes in the quake. Households that suffered partial or complete loss of basic livelihoods will participate in the project. Priority will be given to the poorest and most vulnerable, including households headed by women, the elderly and those with little or no access to remittance income. Community infrastructure such as drinking water systems, roads and bridges will be rebuilt and damaged homes will be repaired. Livestock lost in the earthquake will be replaced to give rural families the means to rebuild their livelihoods. The milk produced by a single buffalo is frequently the most reliable source of cash income for a poor family, as well as a crucial part of their diet. The project will be implemented through grass-roots organizations and NGOs.

Additional loans approved for post-tsunami programmes
The Executive Board also approved additional loans for post-tsunami programmes for a total of US$35.1 million. Programmes approved in 2005 for India, Maldives and Sri Lanka to help rural poor people rebuild their livelihoods after the December 2004 tsunami, will receive the additional funding to cover financing gaps.

US$33.1 million in loans and a US$365,000 grant for Eastern and Southern Africa

Madagascar: gaining land and gaining rights
IFAD will provide a US$13.1 million loan and a US$365,000 grant to help finance the US$23.4 million Project to Support Development in the Menabe and Melaky Regions in Madagascar. About 200,000 rural poor people will benefit from the project. They include farming families with little or no land who experience acute food shortages every year and suffer from severe malnutrition. The project will support the recently launched National Land Policy Programme, strengthening the land administration system and securing land rights in order to reduce poverty, promote social stability and stimulate economic growth. Information on land policies and literacy programmes will enable rural poor people to better understand land tenure processes and to exercise their rights. Financing will also be provided for the development of irrigation schemes and the construction of rural roads so that farmers can gain better access to markets. New technology will be made available to farmers so they can increase agricultural production and protect the environment from further degradation.

Mozambique: raising agricultural production and incomes
More than 140,000 smallholders will benefit directly from the US$50.8 million Agricultural Support Programme in Mozambique. The programme is an important part of the Government's National Programme for Agricultural Development and will reform the public extension service including expanding the roles of the private sector and NGOs as service providers. The programme will empower new farmer groups and existing groups and associations, enabling them to articulate their requirements and link with local government to solicit funding and other support from private-sector partners and NGOs. A US$20 million loan from IFAD will help to finance the programme.

A US$30 million loan and a US$500,000 grant for Latin America and the Caribbean

Brazil: moving from subsistence to profit
The US$60.5 million Rural Communities Development Project in the Poorest Areas of the State of Bahia will directly benefit 35,000 poor and landless families living in the semi-arid region of the State of Bahia, where rural poverty and a harsh drought-prone environment form a vicious circle. The project will increase participants' incomes by working with them to transform their subsistence economic activities into market-oriented rural businesses. At the same time, it will ensure the conservation and sustainable use of the natural resources that rural poor people depend on for their livelihoods. Project participants will take part in the planning and management of territorial development activities, a process that will gradually empower rural poor people and their organizations. The project will offer support services for potential young entrepreneurs and provide skills training for young men and women. It will also finance a pilot programme to produce crude oil from castor beans and supply the country's biodiesel market. Small rural producers will run the pilot. IFAD will support the project with a US$30 million loan and a US$500,000 grant.

A US$12.6 million loan for Central and Eastern Europe and the Newly Independent States

Bosnia and Herzegovina: assisting rural communities
The US$24.5 million Rural Enterprise Enhancement Project will assist 10,000 rural households in some of Bosnia and Herzegovina's poorest municipalities. About 20 per cent of the country's population lives below the poverty line. Poor dairy farmers, fruit producers, small-scale rural entrepreneurs and casual labourers will participate in the project. Financial resources and services will be made available so that farmers can expand their agricultural activities and invest in non-farm related rural enterprises to generate more income. Through the development of producers' associations, the project will enable dairy farmers and fruit producers to gain greater access to markets and to advocate for policy changes. Infrastructure such as storage facilities, feeder roads, water supply systems and rural markets will be reconstructed. The project will also support the establishment of a dairy industry development council to act as an industry advocate for poor dairy farmers and processors. IFAD will provide a US$12.6 million loan to help finance the project.

US$8.4 million in loans for Western and Central Africa

Congo: working with smallholders to bring produce to market
The US$20.8 million Rural Development Project in the Departments of Niari, Bouenza and Lékoumou in the Congo will work with poor rural communities to boost their access to markets, improved agricultural inputs and financial resources. Subsistence farmers who depend on rainfed crops and forest products for their livelihoods will participate in the project and the involvement of women and young people will be a priority. About 30,000 households in general will benefit directly or indirectly from the project, representing half the total population of the target departments. Because transport costs and inefficient markets are the main constraints facing smallholders, the project will work to improve rural infrastructure such as feeder roads to give better access to markets. It will strengthen producers' organizations so that they can negotiate group sale of produce and identify market openings. The project will also support the development of existing rural financial systems so that they can provide appropriate financial services to rural poor people. Better quality inputs will be widely distributed, in particular disease-resistant cuttings for cassava. IFAD will support the project with a loan of approximately US$8.4 million.

US$4.08 million in grants to support rural associations, rural development training programmes and services

The Executive Board approved four grants under IFAD's global/regional grants window.

A US$900,000 grant was approved for the Regional Programme for Rural Development Training (PROCASUR) to support the Learning Routes Training Programme in Latin America. The programme will help develop and disseminate effective and innovative rural development practices and ideas in projects in the region. It will contribute to building an efficient regional market for technical assistance services.

The International Center for Agricultural Research in the Dry Areas (ICARDA) will receive a US$1.08 million grant to help finance the Programme for Rehabilitation of Agricultural Livelihoods of Women in Marginal Post-Conflict Areas of Afghanistan and Pakistan. The programme aims to increase the skills of rural women in marginal and post-conflict areas by improving access to and use of improved knowledge on raising dairy goats. The programme will build on local and traditional knowledge.

A US$500,000 grant for the International Food Policy Research Institute (IFPRI) will help finance the Support Programme to the Poverty Reduction Strategy Paper Process in Western and Central Africa. The programme will foster policy dialogue among the various stakeholders by promoting investments and budget priorities based on poverty reduction strategy papers to respond to the needs of rural poor people.

The International Livestock Research Institute (ILRI) will receive a US$1.6 million grant to support the Programme for Enhancing Livelihoods of Poor Livestock Keepers through Increased Use of Fodder. The programme will work with partners and farmers to enable poor smallholders in Ethiopia, the Syrian Arab Republic and Viet Nam to adopt innovative fodder-based technologies that will help improve the feed security of their livestock.

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IFAD is a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries. Through low-interest loans and grants, it develops and finances projects that enable rural poor people to overcome poverty themselves. There are 187 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.2 billion. IFAD has invested more than US$2.9 billion in these initiatives. Cofinancing has been provided by governments, beneficiaries, multilateral and bilateral donors and other partners. At full development, these programmes will help nearly 80 million rural poor women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$9.0 billion in 705 programmes and projects that have helped nearly 300 million poor rural men and women achieve better lives for themselves and their families. Governments and other financing sources in the recipient countries, including project participants, have contributed almost US$8.8 billion, and multilateral, bilateral and other donors have provided another US$7.0 billion in cofinancing.