Operations and Activities    
  International Fund for Agricultural Development

Project ID: 1198
Executive Board Document: EB-2001-72-R-21-Rev-1

National Programme for Local Development (PRONADEL)

The overall objective of the programme is to increase the access of poor rural communities to rural investments, productive activities and technical services in order to improve their food security, income and employment levels, and enhance the sustainable management of natural resources. This will be achieved by:

(i) strengthening local organizations and institutions to enable them to address development needs and undertake self-management development initiatives;

(ii) enhancing the quality of private rural development services and expand their geographic coverage;

(iii) providing financial support for local initiatives that will lead to long-term development; and

(iv) establishing effective management processes and an efficient programme management unit (PMU).

Emphasis will be placed on the strengthening of local institutions, i.e. target group organizations, rural development entities (RDEs) and municipal governments; a rural development fund (RDF), through which organized groups will have access, inter alia, to rural technical services and community infrastructure investments; and on improving existing project implementation processes at the central and field levels (managerial, field, operational) so as to establish an enhanced institutional structure for rural poverty reduction and effective project implementation and development impact.

IFADs target groups are mostly located in the hillside areas of the country, which register the highest incidence of poverty and are affected by fragile social conditions, a vulnerable environment and low agricultural productivity, all of which limit opportunities for capitalization and development. The proposed programme will directly benefit

(i) some 15 000 families of smallholders, landless farmers, poor rural women and indigenous populations from four distinct ethnic groups; and

(ii) 1 000 rural microentrepreneurs.

At least 30% of the direct beneficiaries will be rural women. The intended beneficiaries have family incomes below the poverty line and live in municipalities where the estimated Human Development Index (HDI) is below the national average of 0.576. The programme will expand the geographic coverage beyond the 81 municipalities covered by the National Fund for Sustainable Rural Development Project (FONADERS) approved by the Executive Board at its Sixty-Eighth Session in December 1999.

Loan amount:

SDR 15.5 million (equivalent to approximately USD 20.0 million) on highly concessional terms.

Total project costs are estimated at USD 31.3 million, of which USD 5.0 million will be provided by Central American Bank for Economic Integration (BCIE)and USD 2.0 million by the Global Environmental Facility/United Nations Development Programme (GEF/UNDP).

Cooperating Institution:

BCIE

Project ID: 1128
Executive Board Document: EB-99-68-R-25-Rev-1

National Fund for Sustainable Rural Development Project (FONADERS)

Within the framework of the government-initiated Sustainable Rural Development Programme, which forms part of the National Master Reconstruction Plan for Honduras, this six-year IFAD-initiate d project aims to support rural development and reconstruction in the aftermath of Hurricane Mitch. The overall objectives of the project are to bring about sustainable increases in agricultural and livestock production and in food security; ensure the adoption of sustainable practices in natural resource use and management; and repair the damage caused by Hurricane Mitch. Specifically, the project seeks to:

- develop local capacity in the areas of information, knowledge, technology, access to markets and financing, infrastructure and other production services; and

- establish a fund for cofinancing technical assistance services, community investments in productive infrastructure and sustainable natural resource management, and for financing profitable small-scale productive activities.

Although FONADERS is part of a programme with national coverage, project activities focus on 81 municipalities grouped in seven clusters. Over 90% of the population in the project area is rural. The total target population consists of 111 000 families in 850 hamlets, covering the poorest and most marginalized municipalities. Other families will benefit indirectly from investments in small infrastructure projects and reconstruction of facilities damaged by Hurricane Mitch, including, for example, the repair/replacement of small bridges and access roads. All actions are oriented towards gender-balance, assuring women heads of households and household members equal opportunities in accessing project services and benefits and in decision-making committees established by the project. In fact, at least 30% of rural development fund financing is expected to benefit women.

Innovative Features:

- This project will use an explicit mechanism for targeting the poorest and more marginalized areas and communities. This targeting mechanism will be grounded in the baseline study, which classifies the various groups of poor in the project area.

- A needs assessment survey, conducted among the ta rget groups, will help formulate local microprojects that are adapted to their different needs.

- Mechanisms are also in place to address gender and ethnic inequities within communities and families and to ensure true participation by beneficiaries/organizations - at all levels of planning and project execution - and to encourage beneficiaries to participate in overall project monitoring/evaluation. The SOF grant, in support of the project's preparatory activities, will be crucial in this regard.

Loan Amount:

SDR 12.0 million (approximately USD 16.5 million) on highly concessional terms.

Total Project Costs:

Estimated at USD 25.7 million, of which USD 3.0 million will be provided by UNDP, USD 1.5 million by the Central American Bank of Economic Integration, USD 993 000 by the Government and USD 3.7 million by the beneficiaries.

Cooperating Institution:

BCIE.

Project ID: 1087
Executive Board Document: EB-98-65-R-25-Rev-1

Rural Development Project in the South-Western Region

The main goal of this six-year IFAD-initiated project is to improve the income and standard of living of the rural indigenous population in the Departments of Intibuc , La Paz and Valle, three of the four poorest departments of Honduras. The institutional, legal and technical capacity will be established to enable small farmers and indigenous organizations to identify, design and implement their own community development projects in order to alleviate the extreme levels of rural poverty in the area. The specific objectives of the project will be to:

(i) increase food security through improved production, local storage of basic foods, and access to markets;

(ii) increase family income through the diversification of agricultural and non-agricultural production and access to technology, markets and training;

(iii) recover and conserve natural resources, particularly in areas of hillside farming; and

(iv) reduce existing social inequities within poor communities and within families, by improving access to opportunities, particularly for women and youth.

The target group will consist of approximately 50 000 families living below the poverty line, of which 12 000 will benefit directly from project activities, including about 11 400 beneficiaries of productive activities. About 560 families will benefit from the microenterprise activities. Of these, about 320 families (32 groups) will participate in coffee-processing activities, 120 families (eight groups) in tree nursery activities, and 50 families (five groups) in the manufacture of metal silos.

Innovative Features:

Given the overexploitation of natural resources and the degree of forest degradation in Honduras, the project is expected to improve family income by prese rving the natural resource base. To this end, the project will implement a blend of community microprojects and individual productive initiatives focused on indigenous Lencas, as well as women, youth, landless persons and other disadvantaged groups. Community microprojects will be implemented through a rural development fund that, on a non-reimbursable basis, will finance small infrastructure and rural development services. Individual initiatives will be supported by a financial services mechanism, consisting of a credit fund and activities to develop the managerial capacity of local, informal financial institutions. The project will provide training to the target group, project managers and contractors of technical services.

Loan amount:

SDR 13.8 million (approximately USD 19.3 million) on highly concessional terms.

Total project costs:

Estimated at USD 22.5 million, of which USD 2.4 million will be provided by the Government and USD 0.8 million by the beneficiaries.

Cooperating institution:

Andean Development Corpor ation.

Project ID: 1032
Executive Board Document:

Rural Development Project in the Central Eastern Region

This six-year project will offset some of the adverse effects resulting from privatization and the withdrawal of the public sector from the provision of agricultural services. Project components are:

- local organization strengthening;

- productive development support;

- financial services; and

- establishment of a development investment fund.

The project will be located in the Departments of El Paraíso and Olancho. The target population will be those rural families below the poverty line whose income is derived primarily from agriculture. Approximately 8 400 peasant poor families are expected to benefit directly from agricultural activities and credit.

Loan amount:

SDR 8.9 million (approximately USD 12.3 million) on highly concessional terms.

Total project costs are estimated at USD 17.0 million, of which USD 1.5 million will be provided by the Central American Bank of Economic Integration (BCIE), USD 1.4 million by private banks, USD 500 000 by the municipalities and USD 1.3 million by the borrower.

Cooperating institution:

BCIE.

 

 


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