BOLIVIA - AGRICULTURE SECTOR LOAN

THE FOUR MAJOR COMPONENTS OF THE PROJECT ARE: (1) AGRICULTURAL SECTOR MANAGEMENT; (2) TECHNOLOGICAL DEVELOPMENT AND EXTENSION; (3) EDUCATION AND TRAINING; AND (4) CREDIT. IMPROVED SECTOR MANAGEMENT WILL REQUIRE UPGRADING THE POLICY FORMATION AND RESEARCH ANALYSIS CAPABILITIES OF THE MINISTRY OF CAMPESION AFFAIRS AND AGRICULTURE (MACAG). LOAN FUNDS WILL PROVIDE POLICY AND PLANNING TRAINING FOR MACAG EMPLOYEES AND NEW DATA PROCESSING EQUIPMENT TO UPGRADE AGRICULTURAL AND MARKETING INFORMATION. THREE DECENTRALIZED AGRICULTURAL SERVICE CENTERS (ASC) WILL BE CONSTRUCTED TO IMPROVE THE TECHNOLOGICAL DEVELOPMENT AND EXTENSION ACTIVITIES OF THE MACAG. THE ASC"S WILL PROVIDE CROP-SPECIFIC SMALL FARM TECHNOLOGIES, MARKET AND PRICE INFORMATION, AND A SEED IMPROVEMENT PROGRAM TO THE SMALL FARMERS THROUGH AN ADULT EDUCATION PROGRAM. CREDIT WILL BE MADE AVAILABLE TO HELP SMALL FARMERS PURCHASE AGRICULTURAL IMPROVEMENTS RECOMMENDED BY THE ADC"S. AID WILL PROVIDE $4 MILLION LOAN CAPITAL TO ESTABLISH A REVOLVING AGRICULTURAL CREDIT FUND TO BE ADMINISTERED BY THE SMALL FARMER CREDIT DIVISION OF THE BOLIVIAN AGRICULTURAL BANK (BAB). AN ESTIMATED 30,000 LOANS WILL BE PROVIDED BY THE END OF THE FOUR YEAR PROJECT. EDUCATION AND TRAINING ACTIVITIES INVOLVE THE AGRICULTURAL DEPARTMENT OF THE COCHABAMBA AND SANTA CRUZ UNIVERSITIES. TWENTY-TWO FACULTY MEMBERS WILL RECEIVE LONG- AND SHORT-TERM TRAINING ENABLING THEM TO TEACH ADDITIONAL COURSES IN THE PLANT AND ANIMAL SCIENCES, AND AGRICULTURAL ECONOMICS. THE PROJECT WILL BE ADMINISTERED BY THE MACAG IN CONJUNCTION WITH THE ASC"S, BAB, AND UNIVERSITIES. THE GOB WILL ASSUME 38% OF THE TOTAL PROJECT COST, MOSTLY IN THE FORM OF SALARIES AND OPERATING EXPENSES. THE COMPLEMENTARY AID GRANT PROJECT (BASIC FOOD PRODUCTION #5110346) WILL PROVIDE TECHNICAL ADVISORS.