| Project ID: 1159
Executive Board Document: EB-2001-74-R-17
Lower Usuthu Smallhoder Irrigation Project - Phase I
The design of the eight-year Lower Usuthu Smallholder Irrigation
Project (LUSIP) -Phase I aims to create secure access among poor
smallholders to a vital resource previously enjoyed principally
by the large-scale private sector - water. The objectives are to
integrate the smallholder sub-sector into the commercial economy
through the provision of irrigation infrastructure to permit the
intensification and diversification of high-value crops, and to
arrest negative health impacts and environmental degradation. Project
components include: (a) upstream works and a distribution system,
involving the construction of a diversion weir, three dams and other
heavy engineering civil works; (b) downstream development and agricultural
commercialization, involving support for a policy and legal framework
(for land, water, resettlement and farmers organizations), participatory
planning and irrigated farm development, irrigation management institutions
and agricultural commercialization; (c) environmental mitigation
comprising finalization of a comprehensive mitigation plan; resettlement
planning and compensation; public health; and environmental conservation,
monitoring and external review; and (d) project coordination and
management.
About 2 600 households, out of a total of 3 418 households currently
residing in the LUSIP Phase I area, are expected to benefit directly
from project activities. Beneficiaries will generally be smallholders,
mainly involved in sugar cane production, but with some also cultivating
cotton and other high-value crops under irrigation. It is expected
that about 30% of the farmer groups will also be involved in commercial
livestock activities. Beneficiaries are among the poorest in the
country, with average annual per capita income estimated at USD
100. A large secondary group will benefit indirectly from the expansion
of wage employment (labour) and small enterprise opportunities arising
from a vast expansion in cash turnover in the local economy.
IFAD was requested by the Government to participate in the design
and implementation of the project to ensure that the investment
would have the maximum enduring benefit for the rural poor. Smallholders
will form groups/associations, each of about 20 members, who will
jointly cultivate crops or undertake livestock enterprises and will
share the establishment costs, work and income on an equitable basis.
Women and youths will be an integral part of the groups/associations.
Beneficiaries will be responsible for the development, preparation
and implementation of their workplans; they will receive training,
skills upgrading and other capacity-building to enable them to manage
their enterprises and take corrective and preventive measures against
risks to their health and the health of their family members; and
they will participate in the sustained maintenance of flora, fauna,
land/soil and other natural resources.
Loan amount:
SDR 11.90 million (equivalent to approximately USD 14.96 million)
on intermediate terms
Total project costs are estimated at USD 116.54 million
Cooperating Institution:
United Nations Office for Project Services (UNOPS)
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