Strategic Framework
Approach and Rationale
The project, herewith referred to as the
Programme, includes finance for both public and private sector
investment. Programme investment activities have now been
grouped under two main investment components: (i) Infrastructure
and Livelihoods Development in a Decentralized Context and
(ii) Rural Economic Transformation. The third investment component
is Programme Management. The first deals with public investment
(primarily water and roads) and the management of that investment.
As part of this process, Programme funding also includes support
for the decentralization process, strengthening of districts
planning/implementation capacity and the progressive transfer
of responsibility for managing Programme investments to the
districts. The second component – Rural Economic Transformation
– focuses on activities that are driven by income generating
motives and which are clearly within the private sector and
result in private assets. In the first component, the Programme
is dealing with the allocation of government resources for
the creation of economic infrastructure – using grant
rather than credit financing. In the second case, the Programme
aims to create the conditions within which the private sector
can operate effectively.
Objectives
The development goal, as stated in the appraisal
Logframe, has been maintained with minor modification: to
promote an equitable process of economic, human and institutional
development consistent with sustainable mobilization and efficient
use of human, natural and financial resources in Umutara Province.
Central to achieving this goal, as specific Programme objectives,
UCRIDP would (i) improve access by rural households to sustainable
public infrastructure within an equitable, demand responsive
and efficient district planning, resource management and administration
system and (ii) increase the return to households from farming,
livestock and forest management activities through the promotion
of sound technical practices, development of a dynamic market
environment and support for the development of cost-effective
extension and financial services.
Scope and Phasing
The Programme would continue to be province-wide
in scope and include development initiatives in all eight
districts. The full range of activities supported by the Programme
will be available to all districts but the mix will vary depending
on needs and demand.
The low level of project disbursement during
the first phase will likely have repercussions on Programme
phasing. At present, two more phases are foreseen: the second
phase of four years (2004 to 2007) and a third phase of three
years (2008 to 2010). The financing from the twin project
will be completed by 2007, while the first project, coming
under a flexible lending mechanism, will terminate in 2010.
As it is unlikely that the full amount of funding currently
available from the two projects for the second phase (about
USD 40 million) to be spend fully during this phase, it can
be envisaged that considerably more than the original USD
2.5 million will be available for the third phase.
|
