News Releases

Nov 10, 2004

IDB approves $15 million loan to Peru to increase competitiveness of agriculture through better information and advisory services

Program to increase productivity of producers in six corridors of coastal region

The Inter-American Development Bank today announced the approval of a $15 million loan to Peru to help finance a program to increase rural productivity by providing better agricultural information and advisory services.

The National Agricultural Information System will be modernized to bring up-to-date information faster and more accurately to rural producers, and a national information network will be created to enable users and institutions to access and share information electronically.

Business advisory services will be provided to groups of rural producers in six economic corridors in Peru’s coastal region: Piura, Chiclayo, Trujillo, Ica, Arequipa and Moquegua-Tacna. Specialized private agencies under the supervision of the Ministry of Agriculture* will administer the services in each of the corridors. New business partnerships and organizations will be set up to market and promote new products or expand existing production, applying modern techniques learned through technical assistance. Agricultural activities will be supplemented by other productive ventures, such as crafts, ecotourism, aquaculture, forestry production and crafts.

The program is expected to result in a significant rise in production and rural incomes, benefiting 300,000 rural families.

In the context of the decentralization process now under way in Peru, public sector institutions responsible for assisting agriculture will be strengthened, particularly at the regional level, through investments in human resources, infrastructure, information technology and communications equipment.

The program reflects the IDB strategy for Peru of promoting competitiveness, mitigating poverty and supporting a modern, decentralized and efficient state. The IDB loan is for a 20-year term, with four-year grace period, at a variable interest rate. Local counterpart funds total $10 million.

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