AGRIC CREDIT II

closed

The objective of the project is to support national programs of agricultural development and agrarian reform, thereby expanding domestic food production and consumption, increasing exports and import substitution, generating employment, improving incomes and strengthening institutions for agricultural planning and development and for natural resource conservation. The project comprises: (1) a line of credit for investments in crops, livestock, agricultural machinery and municipal abattoirs; (2) flood control and drainage works for banana and plantain development; (3) a pilot reforestation program; (4) studies of groundwater resources, COHBANA's organization, and use or waste bananas and plantains for animal feed; and (5) incremental PU expenditures and related training and technical assistance. Almost 90 percent of the expected 12,800 persons who would benefit directly from the project have present incomes which fall beneath the rural poverty line; the project would help raise their annual incomes substantially.