IFAD signs loan to help develop cashew plantation<\/p>\n
JAKARTA (JP): The government and the Rome-based International
\nFund for Agricultural Development (IFAD) signed a loan agreement
\nyesterday providing US$26.01 million in aid to help finance
\ncashew plantations for small landholders in eastern provinces.<\/p>\n
The agreement was signed here by IFAD president Fawzi al-
\nSultan and Director General for Budgetary Affairs Darsjah.<\/p>\n
Jeremy G.L. Wall, IFAD's project controller for the Asia
\ndivision, told reporters that the fund, the eighth aid package
\ngiven by the organization to develop such projects in the
\ncountry, will mature in 20 years, including a five-year grace
\nperiod, and carry four percent interest per annum.<\/p>\n
He said the government will contribute $12.96 million and the
\nUnited Nations Development Program an additional $0.99 million
\nfor the project, which will cost $43.16 million.<\/p>\n
\"We expect that the project, which will introduce cashew
\nplanting in ergonomically suitable areas, will help increase
\nincomes as well as improve the nutritional status of some 52,000
\npoor farm families,\" he said.<\/p>\n
A Ministry of Agriculture report said that the project will
\ninclude the development of small cashew plantations in four
\nregencies in East Nusa Tenggara, five regencies in West Nusa
\nTenggara and one regency in Maluku.<\/p>\n
\"In addition to the plantations, IFAD will provide technical
\nassistance to help improve food crop production,\" Wall said.<\/p>\n
He expects the project to double Indonesia's current cashew
\nproduction to some 35,000 tons a year, of which 70 percent will
\nbe exported.<\/p>\n
Infrastructure<\/p>\n
Suharyo Husen, head of the bureau for international affairs of
\nthe Ministry of Agriculture, said that besides technical
\nassistance for 5,525 farmers on 506 farms, the funds will also be
\nused to develop infrastructures, including water supply, well-
\ndigging activities and inter-town roads.<\/p>\n
\"We also expect to set up several centers for agricultural
\nstudies in East and West Nusa Tenggara,\" he added.<\/p>\n
Al-Sultan said that IFAD is now negotiating with the
\nIndonesian government on new funds for livestock projects and the
\npiping system in Sulawesi and Ambon.<\/p>\n
Wall told The Jakarta Post that IFAD will provide $25 million
\nto $50 million for the two projects.<\/p>\n
IFAD, which is one of the members of the Consultative Group
\nfor Indonesia chaired by the World Bank, has thus far financed
\neight smallholder and transmigration resettlement projects in the
\ncountry with total aid of $177 million. (fhp)<\/p>",
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