IFAD photo by Alfredo Carrasco Ecuador - Fishing community in the canton of San Lorenzo.

Project area. The project area includes Esmeraldas Province in the coastal region and parts of Carchi and Imbabura Provinces in the highlands. This area is known as the Ibarra-San Lorenzo economic corridor.

Target group. The project area has a total population of 83,755 inhabitants. Of these, about 78 per cent fall under the poverty line as measured by the unmet basic needs method. The area is ethnically diverse, with Afro-Ecuadorians making up 34 per cent of the population and indigenous peoples 7 per cent. The project expects to benefit 12,500 rural households directly.

Project objectives. The project's overall goal is to reduce poverty levels among Afro-Ecuadorian, indigenous and mestizocommunities in the project area. Its specific objectives are to improve environmental and natural resource management, facilitate access to markets, and strengthen household and community cultural and financial assets.

Project description. In addition to project management, three components are currently envisaged:

• Managing environmental and natural resources. The project will further the use of appropriate technologies for soil and water management (especially in hillside areas), increase the sustainable use of coastal resources by beneficiary organizations and associations, and improve the livelihoods and living conditions of Afro-Ecuadorian and indigenous communities.
• Facilitating and developing business ventures and value chains. Under this  component, the project will help small-scale farmers’ associations and microentrepreneurs gain access to markets and establish business ventures in areas such as handicrafts, rural tourism and the sustainable use of coastal resources. The project will also introduce methodologies for participating in value chains and cofinance strategic alliances among at least three main stakeholders in a given business venture and/or value chain.
• Recovering ancestral knowledge and reaffirming cultural identities. The project will carry out activities that recover and add value to the cultural heritage of Afro-Ecuadorian and indigenous communities in the project area, while also introducing income-generating cultural activities.

IFAD photo by Edgar Pita Ecuador - Housing conditions in the project area

Important features. The project is in line with the main thrusts of the National Development Plan and with Plan Ecuador, the Government’s integrated development approach for the northern provinces. It is consistent with IFAD's 2004 country strategic opportunities paper in terms of its emphasis on territorial development, the promotion of off-farm employment and income-generating activities, and its support of cultural initiatives. The innovations introduced in the IFAD-supported Development of the Central Corridor Project, such as community contracting and competitive fund transfers, will be replicated in this project. Recognizing the extreme poverty and the severe environmental conditions faced by the inhabitants of a number of targeted villages, the project will also introduce innovative approaches for improving their living conditions.   

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Potential cofinanciers. Discussions are ongoing with the Global Environment Facility and with Banco de Desarrollo Económico y Social de Venezuela (BANDES) in the context of an inter-institutional cooperation framework agreement between IFAD and BANDES.

Facts and figures Region: Latin America and the Caribbean Project name: Ibarra-San Lorenzo Development Project Country: Ecuador Project ID number: 1354 Nature of project: Rural development Project cost (provisional): US$12.0 million Estimated IFAD financing: To be determined Cofinancing gap: See section on potential cofinanciers Domestic contribution: To be determined Proposed terms: To be determined Stage of project cycle: Under detailed design Next step in project development: Completion of project design scheduled for June 2008. This will be preceded by a donors meeting on 5 May 2008 at the United Nations Development Programme office in Quito Tentative date for consideration by the Executive Board: December 2008 Project duration: Six years Tentative project start-up date: To be determined Implementing agency: To be determined Borrower: Republic of Ecuador Hot links IFAD operations in Ecuador Rural poverty in Ecuador Planned project activities disclaimer Contact information Ms J. Stubbs Director, Latin America and the Caribbean Division Ms X. Flores Country Programme Manager e-mail: x.flores@ifad.org International Fund for Agricultural Development (IFAD) Via Paolo di Dono, 44, 00142 Rome, Italy Tel: + 39 0654591 e-mail: ifad@ifad.org