AGRIC. CREDIT-ADFI II

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The Second Agricultural Credit Project will be part of ADFI's lending program for the next two years; the proposed Bank loan would help finance long-term investments on commercial farms and agro-industrial operations such as processing, preparation, storage and marketing of agricultural projects. It would assist ADFI in making loans to a wider range of farmers than in the past, following the reduction in ADFI's minimum loan amount and would bring about 14,000 ha of land under cultivation. Specific investments to be financed under the project would be buildings and roads (38 percent of total project cost), machinery and equipment (33 percent), irrigation facilities (9 percent), livestock and planting materials (9 percent), land preparation (7 percent) and planting costs (4 percent). The increased production resulting from the project would be mainly for the domestic market, although some quantities of cotton and fruit may be exported.