The State of Palestine

The Rural Development Project

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Loan No.:	376	Interest Rate:	3.0%
Beneficiary:	Ministry of Agriculture	Grace Period:	7 years
Project Cost:	KD 8.8 million	Maturity:	25 years
Amount of Loan:	KD 3.0 million	Repayment:	37 semi-annual installments
Date of Loan Agreement:	13/02/1999	First Installment:	7 years following the first disbursement
Date of Effectiveness:	11/07/1999

 

Objectives:

The project aims at developing the rain-fed agriculture and at improving the incomes and living standards of small farmers in the project area through land reclamation and improvement which includes rock clearance, construction of terraces, fencing, construction of wells and water collection cisterns, construction of agricultural roads, enhancing the capabilities of the agricultural extension services and extending credit to the farmers and women. It also aims at limiting the immigration from rural to urban areas .

Description:

The project, to be completed by the year 2003, comprises the following main components:

1. Land Reclamation: This includes rock clearance in an area of 3,000 hectares, construction of Terraces to protect and improve the productivity of 2,000 hectares, rehabilitation of 1,100 small cisterns for stock watering to be used for supplementary irrigation for vegetables and fruit trees, construction of 730 small storage reservoirs with storage capacity of 50- 100 m3, rehabilitation of existing springs, and the establishment of a plant nursery to produce seedlings for fruit trees required by the project.

2. Agricultural Roads: This includes the construction of about 80 km of agricultural roads of laying base of compacted soil and gravel layer with 30 cm and 20 cm thickness and about 5 m width with 0.5 m shoulder on each side suitable mainly for tractors to facilitate better access to farmers fields for land improvements, transport of inputs and evacuation of production. It also includes drainage structures.

3. Credit: This includes credit funds for the financing of inputs and services for seasonal crops and fruit trees and fencing to provide the necessary protection for crops and fruit trees against wild animals. It also includes credit funds for women to establish small income-generating projects. 

4. Studies and Consulting Services: This includes the preparation of studies and the engineering design and tender documents for the execution of the project component (land reclamation and agricultural roads). It also includes the services for the supervision of project implementation.

5. Project Administration Support: This includes procurement of about 9 vehicles, 4 motorcycles, computer instruments and office furniture, as well as the provision of consultancy services and hiring of non-governmental organizations to help the project management undertake its responsibilities. It also includes the training of staff, procurement of agricultural extension services inputs, personnel salaries, maintenance and materials needed to operate the vehicles. 

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