Upper Huallaga Agricultural Development Project

The project involves developing and applying agricultural production packages and strengthening public sector agricultural support services in coordination with the Peruvian coca-eradication program. The project consists of seven components: (i) carrying out adaptive research to determine the agronomic, economic, and socio-cultural feasibility of agricultural production packages; (ii) developing and testing agricultural production packages; (iii) expanding and upgrading the National Agrarian University of the Jungle (UNAS) training facilities; (iv) providing short and medium-term credit; (v) strengthening agricultural scientists and farm production activities; (vi) improving land registration, grain storage facilities, agriculture and resource information; and (vii) providing potable water and related sanitary facilities. The project will be implemented over a six-year period, with a total budget of $15 million in loan funds and $2 million in grant funds. The project will be financed by the United States Agency for International Development (USAID) and will be implemented by the Peruvian government. The project will have several benefits, including improving agricultural productivity, increasing food security, and reducing poverty in the Upper Huallaga region. The project will also contribute to the development of the Peruvian agricultural sector and the reduction of coca production in the region. The project will be implemented in accordance with the terms and conditions of the Project Agreement, which include the following conditions: (i) the Cooperating Country shall repay the loan to AID in U.S. dollars within 25 years from the date of first disbursement, with a grace period of not more than 10 years; (ii) the Cooperating Country shall pay interest on the loan at a rate of 2% per annum during the first 10 years and 3% per annum thereafter; (iii) goods and services financed by AID shall have their source and origin in the Cooperating Country or in countries included in AID's Geographic Code 941, except as AID may otherwise agree in writing; and (iv) the Cooperating Country shall furnish to AID, in form and substance satisfactory to AID, evidence that it has committed to a coca-eradication program in the Upper Huallaga Valley. The project will be implemented in accordance with the following conditions: (i) the Cooperating Country shall furnish to AID, in form and substance satisfactory to AID, an operating plan for research; (ii) the Cooperating Country shall furnish to AID, in form and substance satisfactory to AID, an operation plan for extension; (iii) the Cooperating Country shall furnish to AID, in form and substance satisfactory to AID, a plan for the procurement of vehicles, including trailbikes; and (iv) the Cooperating Country shall furnish to AID, in form and substance satisfactory to AID, evidence of a program in the Agrarian Bank for subleasing for agricultural credit under the project.