Agriculture sector reform

480 Title III program in Guyana, a $30 million program to increase food security through policy and institutional reform in the agricultural sector. The project will finance long- and short-term TA to advise the Government of Guyana (GOG) on reforms, improve Title III program management and accountability for local currency generations, and carry out special studies relating to the reforms. The Title III program will supply Guyana"s wheat import and consumption requirements for 3 years (over 47,000 MT per year), enabling the GOG to allocate scarce foreign exchange to other import needs without compromising food security. Local currency generated by sale of the wheat will be used, inter alia, for sector support related to implementing program reforms, improved accountability, and support of indigenous PVO"s; at least 10% will go for the latter purpose. As for policy conditionality, the GOG will agree to: (1) maintain the macroeconomic policy framework agreed to with the IMF and the World Bank without reintroduction of price distortions; (2) permit the National Milling Corporation to sell flour to any and all buyers; (3) rehabilitate and maintain infrastructure, including sea walls, drainage and irrigation works, and roads and bridges; (4) develop a program to grant long-term leases or sell state-owned lands at market prices, and analyze constraints on rural financial markets (including consideration of restructuring GAIBANK to operate in these markets until private banks are more active in rural areas); and (5) develop a medium-term program for improving agricultural research and extension.