| Project ID: 1091
Executive Board Document: EB-99-66-R-20-Rev-1
Ha Tinh Rural Development Project
In spite of the remarkable economic success achieved over the
last decade, Viet Nam is still one of the poorest countries in the
world, with half its population classified as poor. Within this
context, the primary objective of the proposed six-year IFAD-initiated
project is to improve the incomes and living standards of poor households
in the coastal province of Ha Tinh in north-central Viet Nam and
increase their participation in the development process. Associated
benefits will be improved food security and general well-being for
all the target group, reduced isolation and improved market access.
To achieve these objectives, the project seeks to:
- establish a microfinance programme that provides access to credit
for a range of financially rewarding small enterprises;
- improve the physical infrastructure of the project area;
- improve technical support services; and
- encourage beneficiary participation in the selection of activities
to be undertaken, in providing/monitoring feedback to enable ongoing
adjustment and improvement, and in taking responsibility for the
managerial aspects of the project.
Farm sizes in Ha Tinh are very small, averaging 0.3 ha per household,
and agricultural productivity is low. Approximately 36% of the population
of 1.3 million live below the poverty line, and both poor and very
poor households face considerable food insecurity. Project activities
are targeted to areas where concentrations of poverty are the highest.
Initially, 137 of the 262 communes in the eight poorer rural districts
are targeted, and infrastructure activities will be implemented
in the 48 poorest communes. The project is expected to have a significant
positive impact on women. Interventions aim for a marked improvement
in household food security. Women's access to production technology
will be increased through their inclusion in farmer training and
field demonstrations and through the formation of women's savings
and credit groups with the support of the Viet Nam Women's Union.
Innovative Features:
The following features are new in the context of IFAD-supported
projects in Viet Nam:
- development of a self-reliant model for an area development project
that is based on decentralization of decision-making and control
of funds to the technical departments, accountability of project
implementing agencies to the project's clientele, and reliance on
national management and technical expertise;
- adoption of a process approach to ensure that project activities
are n ot pre-identified before commencement of the project but reflect
the priorities of the communities as identified through annual participatory
planning exercises;
- provision of a community development fund, which allows communities
to finance small-scale infrastructures;
- provision of a development initiative fund, which provides the
flexibility to direct additional resources to the areas of highest
priority, as expressed by the communities, and to the best-performing
components;
- introduction of a farmer-led extension service based on farmer
field schools, rather than re-establishment of paid, government,
commune-level extension workers, which is not sustainable given
the provincial Government's budgetary constraints;
- collaboration with ongoing IFAD-supported projects in terms of
provision of technical assistance for project management and participatory
development;
- introduction of a commune-level revolving credit fund as a sustainable
mechanism to promote savings and credit activities; and
- participation of independent national advisors and representatives
of NGOs in the Project Steering Committee and in the Project Microcredit
Development Board as quality-control mechanisms.
Loan amount:
SDR 11.4 million (approximately USD 15.4 million) on highly concessional
terms.
Total project costs:
Estimated at USD 19.1 million, of which USD 50 000 will be provided
by the private sector, USD 2.3 million by the Government and USD
1.4 million by the beneficiaries.
Cooperating institution:
UNOPS.
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