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Mountain Areas Development Programme

Mountain Areas Development Programme

The programme builds on the achievements of the Northeastern Districts Rural Development Project and the Small-Scale Irrigation Rehabilitation Project. The first phase focuses on 14 mountain districts where IFAD has already supported activities, and on seven new districts, targeting poor households with small farms. The typical farming family in the programme area comprises four persons. They cultivate on sloping land, growing cereals, fruit, grapes, potatoes and fodder. The average family owns one cow and about 10 sheep or goats. The family income often is supplemented by remittances from family members working in cities or abroad.

People in mountain districts are poor because their farms are small, their land is poor and sloping, and they lack access to markets and off-farm employment. The resource base is narrow, social services are deteriorating, and infrastructure is dilapidated. Production is low because farmers cannot afford to purchase good seeds and new equipment. Processing facilities in mountain districts are inadequate. In recent years, large numbers of refugees from the Kosovo, many housed in private homes, put a further strain on the family economy and the infrastructure system in the area.

The programme’s aims are to increase farmers’ production and productivity, improve household food security, increase income from agricultural and related rural enterprises, and improve infrastructure. To achieve these aims and raise the standard of living of people in the area, the programme established the Mountain Areas Development Agency (MADA), which is responsible for programming, planning, managing funds and providing support for development, including technical, financial and managerial support.

IFAD’s loan primarily finances MADA and the Mountain Areas Finance Fund, irrigation rehabilitation and community pasture and agricultural development. The IFAD grant supports institutional development and MADA and MAFF activities. MADA operates in synergy with partners in the programme. It contracts existing agencies, NGOs and the private sector to carry out works according to priorities defined by participating poor people. As members of water users' associations, seed growers' associations and other groups, participants have an active role in the design and implementation of activities.

Initial activities include providing rural financial services such as lending to village group credit funds and small trader associations. Activities also include support for formation of water users' associations and rehabilitation of rural infrastructure, particularly small gravity-irrigation schemes, feeder roads and water supply. In addition, programme activities support primary agricultural production, particularly pasture management, veterinary care and assistance for crop and livestock production.

 

Source: IFAD


Status: Closed

Country

Albania

Approval Date

09 December 1999

Duration

1999 - 2007

Sector

Agricultural Development

Total Project Cost

US$ 22.84 million

IFAD Financing

US$ 13.67 million

Co-financiers (International)

United Kingdom: Department for International Cooperation US$ 1.86 million

Italy US$ 1.01 million

Co-financiers (Domestic)

Beneficiaries US$ 1.24 million

National Government US$ 2.91 million

Financing Gap

US$ 1.06 million

Financing terms

Highly Concessional

Project ID

1100001129


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President's report

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