Funding for rural enterprise agri project may be approved next month

Georgetown, GINA, November 25, 2007.

Funding for the Rural Enterprise and Agricultural Development Project (READ), which seeks to advance Guyana’s agricultural sector, will be presented for approval by the International Fund for Agricultural Development (IFAD) early next month.
            Negotiations for the project were finalised during meetings with Minister of Agriculture Robert Persaud and IFAD Officials during meetings on November 22 and 23, 2007 in Rome, Italy.
According to Minister Persaud, the two-day negotiations were aimed at ensuring that a larger share of the resources is provided for actual projects. Arising out of the negotiations, it was noted that US$3M of the total value of the project will be provided as a grant while the remaining resources will not attract interest, but Guyana will be required to pay a service charge for the project.
Minister Persaud expressed satisfaction that the final negotiations have been completed paving the way for the project to be presented for approval of funding by IFAD’s Board of Directors on December 11 and 12, 2007. Necessary documents have already been signed for the project to be taken to the Board meeting.
He said IFAD is very impressed with Guyana’s ability to conceptualize a project and take it through the necessary process leading up to approval within such a short time-frame. This is the first time that Guyana has developed a project that is ready for approval within seven months since the usual time-frame is about three to four years.
READ is estimated to cost US$6M and is expected to benefit approximately 28, 000 persons. It will include various components including a Rural Enterprise Grant to develop production and marketing systems in Regions Two, Three, Four, Five, Six and Ten. This will include the provision of ‘matching grants’ where the beneficiaries will be required to make contributions to various sub-projects with the remaining resources being provided through READ.
There is also a component for technology development and transfer through which assistance will be provided for the introduction of technology, technical assistance and training. This may include establishment of various demonstration facilities that will seek to promote agro-processing and packaging activities to clusters of farmers.
            READ is intended to increase the incomes of rural households with focus on women and other vulnerable groups by linking producers to markets and strengthening producers, women, youth and local organizations to support growth and sustainability of enterprises and development of targeted communities.
Additionally, the initiative aims to alleviate poverty and promote income generating activities through agricultural and rural diversification with emphasis on non-traditional products.
This will complement other agricultural initiatives undertaken by Government with support from international agencies such as IFAD. This is also in keeping with the Jagdeo Initiative which seeks to significantly transform the processes and products and stimulate innovative entrepreneurial capacity of Caribbean agriculture and rural communities.

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