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Republic of Yemen

Wadi Hadramaut Agricultural Development 

(Phase III)


 

Loan No.: 357 Interest Rate: 3.0%
Beneficiary: Ministry of Agriculture and Irrigation Grace Period: 6 years
Project Cost: KD 8.7 million Maturity: 25 years
Amount of Loan: KD 4.0 million Repayment: 39 semi-annual installments
Date of Loan Agreement: 07/05/1998 First Installment: 6 years following the first disbursement
Date of Effectiveness: -    

 

Objectives:

The project aims at consolidating and expanding agricultural development in Wadi Hadramout so as to ensure a sustainable increase in agricultural production with due attention to the environment. The project is scheduled to supply the agricultural services, farm inputs and other needed supplies for the achievement of these objectives.

Description:

The project which is expected to be completed by the end of the year 2002, consists of the following main components:

  1. Groundwater Irrigation Development: Construction of 54 tube wells and supply of equivalent number of pumps and engines. Land leveling and the construction of irrigation canals networks on 1300 ha.

  2. Roads: Construction of 32 km long farm roads .

  3. Spate Improvement: Improvement of Spate irrigation for an estimated gross area of 2,700 ha and the construction of 16 km long flood control bunds.

  4. Agricultural Research: Providing funds for salaries and training of technical staff, construction of additional buildings, providing transport and incremental operation costs.

  5. Agricultural Extension: Providing funds for the construction of offices, houses, hiring additional staff, purchase of vehicles and equipment, training and incremental operation costs.

  6. Fruit-trees Nursery: Providing funds to diversify the types and increase fruit-trees transplants to be distributed to the farmers .

  7. Agricultural Inputs: Funding the purchase of tractors, cultivation and harvesting implements, and fertilizers and pesticides.

  8. Irrigation Maintenance Unit: Providing funds for the establishment of the irrigation maintenance unit within the project management unit to supervise the operation and maintenance of the irrigation structures.

  9. Project Management Unit: Providing funds for the necessary buildings, purchase of office furniture and equipment, and the hiring, transport and training of project staff.

  10. Studies: Providing salaries for local and expatriate experts to monitor the suitability of the ground water and soil resources for intensive cropping.

  11. Consulting Services: Providing engineering services to supervise the project's implementation.

Financing:

The Arab Fund loan represents about 46% of the total project cost. The International Development Association (IDA) had provided a loan of US$ 6.3 million and is expected to provide another loan of about US$ 5 million. The remaining costs will be financed by the government of Yemen.

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