Legislators
at the National Assembly on Friday approved the sum US$29, 800,000.00 signed
between The Gambia government, Islamic Development Bank and the Arab Bank for
Economic Development in Africa (BADEA). The amount is for the financing of the
regional rice value chain development project in The Gambia.
Finance
and Economic Affairs Minister Mambury Njie, who moved the motion said the
project is designed to achieve the National Development Plan (NDP) – a target
of 122,000 metric tons of clean rice to meet local consumption demand for rice
(i.e. 80,000 metric tons). He added that the project will reduce importation
and improve nutritional status of the growing population.
According
to him, it will pave the way for private sector participation in rice
production processes through community agreements that are endorsed by the
government. It is also to strengthen farmers’ organisations so that they will
serve as the entry point to reach farmers and to provide services and manage
machinery in a sustainable manner.
Finance
Minister Njie said the total project cost is estimated to be $29,800,000.00.
$17,300,000.00 will be financed by the Islamic Development Bank, BADEA finance
$ 10,000,000.00 and the government of The Gambia would contribute $2.500,000
towards the project.
“The
Islamic Development Bank financing would come in the form of installment sale
in the amount of $15,000,000.00, a loan of $2,000,000.00 and a grant of
$300,000.00, whereas BADEA’s financing of $10,000,000.00 would be a loan.”
Mr.
Njie mentioned that the project is a rice value chain development project that
will be executed within the rural areas of the Gambia targeting over 80,000
beneficiaries mainly in Upper River Region, Central River Region north and
south. “It will affect several districts and villages in the respective
regions.”
“The
project is adopting a multi-lateral strategic approach that is derived from the
national priorities, lessons learned from previous investment and sector review
and analysis. Thus, this approach is based on private sector engagement, micro
financing and market mechanisms,” he said.
He
added that the component will focus on land improvement that could enhance rice
production and productivity. “It will include land development and
rehabilitation of production infrastructure and irrigation systems.”
He
further added that a total of 3,265 hectares have been targeted out of which
2000 hectares will be implemented by Arab Bank for Africa Development (BADEA)
as a co-financier with 1265 hectares. “The total investment cost to implement
this component is $18,652.000 which accounts for 68% of the total project
cost.”
He
said the other component will focus on providing market infrastructure, storage
and processing facilities development as well as access to roads.
“The
project will be implemented by Ministry of Agriculture, as the executing
agency, the existing Central projects Coordinating Unit (CPCU) will coordinate
the project implementation process and it will be equipped by a loan
implementation unit that includes key dedicated project team including: project
coordinator, Community Officer, Agribusiness Specialist among others to serve
main functions and responsibilities of this project.”
