Agricultural Sector Program

                                    ECUADOR


SECTOR:                 Agriculture

PROJECT NAME:           Agricultural Sector Program
                        (831/OC-EC; 832/OC-EC)

TOTAL COST:             $94.0  million

FINANCING:
      IDB               $92.5  million
    LOCAL               $ 1.5  million

DATE OF APPROVAL:       November 16, 1994

GENERAL DESCRIPTION:    The objective of this program is to promote the growth
                        of Ecuador's agricultural sector; rationalize the use of
                        its productive resources; and launch a process to raise
                        campesino income.  The program will strengthen the
                        mechanisms for environmental management, conduct
                        entrepreneurship training for campesinos and promote the
                        private sector, in general.  Specifically, the sector
                        program will support: (a) deregulation of markets for
                        agricultural inputs and products; and (b) institutional
                        reorganization of the agricultural public sector.

                        The technical cooperation component will: (a) support
                        the institutional and policy reforms undertaken by the
                        government and proposed under the program; and (b) equip
                        the government with the technical capacity to formulate
                        and evaluate development policy, promote equity and
                        conserve natural resources in the rural sector.

CONSULTANTS:            The Inter-American Institution for Cooperation on
                        Agriculture (IICA) will be hired by the Ministry of
                        Agriculture (MAG) to administer the public bidding
                        processes for the procurement of technical services
                        and for the prequalification of consultants.

GOODS AND EQUIPMENT:    IICA will also administer the procurement of equipment. 
                        Equipment valued at more than $350,000 equivalent will
                        be procured through international public bidding.

EXECUTING AGENCY:       The Ministry of Agriculture
                        Ministerio de Agricultura y Ganaderia (MAG)
                        Avenida Amazonas y Eloy Alfaro
                        Quito, Ecuador
                        Telephone:  (593-2) 563-622
                        Fax:        (593-2) 500-873
                        Contact:    Ing. Mariano Gonzalez, Ministro