Manila, Oct 9, 2006 AEST (ABN Newswire) - An Asian Development Bank (ASX: ATB) US$18 million loan and grant package will help improve the productivity of farm livestock kept by ethnic groups in the northern provinces of Lao People's Democratic Republic (Lao PDR).
Benefiting about 17,000 households in 400 poor villages, the project will seek to improve production skills and introduce better production technologies.
The project will support greater community participation in decision making, management and responsibility for the project. It will provide revolving funds for villagers to invest in livelihood activities. It will also strengthen marketing activities, improving links to suppliers, and supporting the establishment of trading farms. Government services to support livestock farming will likewise be strengthened.
"By improving livestock productivity and profitability, the project aims to address some of the key challenges faced by rural communities, especially women and disadvantaged groups," says Manoshi Mitra, an ADB senior social development specialist.
In the uplands of northern Lao PDR, livestock form a vital part of households' physical and social capital. Aside from their manure being a source of power, livestock provide food for villagers and a key source of income. Livestock rearing is also an important marker of culture and tradition among most upland ethnic groups.
"The increased trade and transport links being promoted with the Lao PDR in the context of the Greater Mekong subregion offer many opportunities for poor rural communities to increase their incomes," adds Ms. Mitra.
ADB's assistance consists of a $9.3 million loan and a $700,000 grant from its Asian Development Fund. The loan carries a 32-year term, including an 8-year grace period, and an annual interest rate charge of 1% per year during the grace period, and 1.5% per year afterwards.
The Swiss Agency for Development will also provide a $3.5 million grant, and the International Fund for Agriculture will contribute a $3 million grant. The Government and beneficiaries will shoulder the balance of $1.9 million equivalent to meet the project's estimated total cost of $18.4 million.
The Ministry of Agriculture and Forestry is the executing agency for the project, which is due for completion around June 2012.
Contact
Floyd Whaley
Email: fwhaley@adb.org
Tel:+632 632 6848; Mobile: +63 920 938 6488
Graham Dwyer
Email: gdwyer@adb.org
Tel:+632 632 5253; Mobile: +63 920 938-6487
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