Minister of Finance, Winston Jordan and the International Fund for Agricultural Development (IFAD) on Tuesday signed a financial agreement for a hinterland project.
The Hinterland Environmentally Sustainable Agricultural Development Project referred to as the ‘Hinterland Project’ will operate in Region 9 as well as Mabaruma and Moruca in Region 1, a release from the Ministry of Finance said. It will initially only focus on the North Rupununi.
At the signing, Jordan said, “The Guyanese economy has remained un-diversified. Guyana’s `bread and butter sector’, the agricultural sector, also remained unchanged with heavy reliance on sugar and rice (so) this operation is expected to boost the Government’s efforts in diversifying the economy as well as open up new markets and new trade agreements for Guyana.”
The agreement was signed at IFAD headquarters in Rome by Jordan and Kanayo F. Nwanze, President of IFAD.
The total cost of the project is US$11.1 million of which IFAD is providing a US$7.9 million loan and a US$500,000 grant. Other co-financiers are: the Government of Guyana (US$2.4 million) and the beneficiaries themselves (US$300,000).
The release said that the Hinterland Project will: 1. Support communities and producer groups within communities, some 4500 households will benefit. 2. Develop business plans and investment and income generating opportunities and increase market access: Some 2000 households will be targeted. 3. Enable increased access to assets that build community resilience and create enabling productive environment such as water, energy and ICT and ensure that poor indigenous and non-indigenous rural households living in the Project area, whose livelihoods are threatened by economic and environmental risks, are direct beneficiaries. At least 15 per cent of these households will be female-headed households.
The lead agency for the implementation of the Hinterland Project will be the Ministry of Agriculture through its Agriculture’s Sector Development Unit (ASDU) and will be assisted by the Ministries of Indigenous Affairs, Natural Resources & Energy.
