Bioeconomy and Sustainable Regional Development project

pipeline

The proposed Project is a financial intermediary project that seeks to expand access to finance for activities that promote the bioeconomy, sustainable agricultural practices, restoration of degraded forests and pasture, and water security. The Project will be implemented by the Ministry of Integration and Regional Development (MIDR), through the 3 Regional Development Funds for the North (FDNO), the Northeast (FDNE) and the Center-West (FDCO) regions. Financial products will be channeled through participating public financial institutions, that will act as financial intermediaries in delivering subloans. MIDR will coordinate these efforts, through its 3 superintendencies, capitalizing on the banks’ extensive networks to reach eligible borrowers efficiently.The Development Funds finance strategic private investments aligned with regional priorities and national development objectives, in underserved regions. The Project aims to close the persistent gap between demand for long-term credit and the limited availability of concessional financing. Targeted investments will include bioeconomy value chains, sustainable forest concessions, climate-smart agriculture, and improvements in water supply, sanitation, and irrigation systems.By doing so, the Project also seeks to enhance the economic and climate resilience of targeted beneficiaries (private sector actors, cooperatives, farmers and local entrepreneurs). The proposed project consists of two components: (1) Credit lines for FDNO, FDNE and FDCO to finance blue (WSS and irrigation) and green sectors (forest, Climate-Smart Agriculture, bioeconomy) and (2) Capacity Building and Project Management .