Press release number: IFAD 35/06

Rome, June 30 2006 - Fishing families and small farmers in remote islands of the Maldives whose livelihoods were devastated by the December 2004 tsunami, will benefit from additional financing for a development programme. The programme focuses on asset recovery and rehabilitation, and on strengthening the country’s fishing and agriculture sectors.

The first financial contribution towards the US$5 million Post-Tsunami Agricultural and Fisheries Rehabilitation Programme was approved by the International Fund for Agricultural Development (IFAD) in April 2005 in the form of a US$2.1 million highly concessionary loan and a grant of US$200,000. The new US$2.1 million loan will add to this. The remaining programme costs will be covered by the Government of the Maldives.

The loan agreement was signed by Maldives’ Minister for Finance and Treasury, Qasim Ibrahim, and the IFAD Country Programme Manager, Sana Foday Kebba Jatta, at the headquarters of the Ministry of Finance and Treasury in the Maldivian capital, Male’ on 28 June.

The devastation caused in the Maldives by the December 2004 tsunami was greater than in any other country in proportional terms. Over a third of the population were directly affected and nearly 10 per cent were displaced in the immediate aftermath of the disaster.

The IFAD-supported recovery, rehabilitation and development programme will help restore the country’s fisheries and agricultural sector. Using the principle of building back better, it will provide fishing communities with new boats and cold storage facilities and build new receiving stations for cleaning and processing fish. Small farmers who lost their harvests will be assisted with sustainable farming techniques to help improve their crops and make them less vulnerable to natural disasters. New farming tools and equipment will replace those damaged by the tsunami and a new agricultural produce market will be built in Male’ to help establish marketing channels for producers on remote islands.

With this loan, IFAD will have committed a total of US$12.4 million to the Maldives for four projects, three of which are completed.

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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.