AGRICULTURAL CREDIT I

closed

The project, which would cover the last three years of Israel's Five-Year Development Plan (1968-1973), has three main objectives: (i) developing the production of export crops (off-season flowers and vegetables, avocadoes, tangerines and mangoes); (ii) increasing the capacity of export handling facilities; and (iii) developing better use of existing water resources. Investment would be in greenhouses, hot-houses, planting material, packing and handling plants, new or improved on-farm irrigation facilities, and small reservoirs and drainage works. Total cost is estimated at $50 million. Twenty percent of cost would be borne by the investing farmer. The participating banks and the Government would contribute 20 percent each, and the balance of 40 percent, corresponding to the estimated foreign exchange component, would be covered by the proposed Bank loan of $20 million.