$8.4 million-loan from OFID

OPEC Fund takes part in financing agricultural development project

The parliament approved a loan agreement signed with the OPEC Fund for International Development (OFID) to finance a project for sustainable development in hilly areas.

OFID will offer the Council for Development and Reconstruction (CDR) $8.4 million with an annual interest rate of five percent. The repayment of the loan will be divided into 24 payments over a period of 12 years, with each payment equivalent to $35,000. The first payment is due in July 2018.

The project aims at reducing poverty among the rural population of the country through improving water and soil management, enhancing agricultural production and market linkages, and strengthening the capacities of the implementing agencies and partners.

The funds will be used for establishing Water and Soil Conservation facilities, including excavated ponds, hilly lakes, and irrigation networks. The project also involves offering technical support to farmers through establishing Farmer Service Centres (FCSs) to assist farmers in developing marketing potential for products.