AGRIC DEVT

closed

The Agricultural Development Project will be the Bank's first operation in the agricultural sector. It is designed to improve access of the private sector to medium- and long-term credit for investments in primary agriculture and agribusiness. Medium- and long-term foreign exchange resources will be made available through World Bank approved commercial banks to finance imports of farm machinery and other equipment needed in the modernization of the sector. The project will be implemented over a four-year period and will consist of two major components: 1) the credit component will finance medium- and long-term sub-loans exclusively to private investors for eligible investments. These will be imports of fixed and movable assets and associated permanent working capital for financially and economically viable investments in agriculture, agribusiness and related activities such as transport, trade, handicrafts, rural tourism, and associated services; 2) the institutional development assistance to the participating financial intermediaries will include: a) technical assistance to strengthen their capacity in the appraisal and supervision of sub-loans, and b) the financing of part of the office and other equipment needed for modernization.