Bolivia will boost income of rural households by improving the use of water resources in agriculture with $57 million financing from the Inter-American Development Bank (IDB). The investment is expected to benefit as many as 7,000 families growing crops in arid or semi-arid regions.
The project will finance improvements, expansion and better governance of at least 50 community irrigation systems. The investment is expected to expand by 11,400 hectares the land area with advanced and traditional irrigation in seven departments of the country, allowing farmers using both traditional and automated irrigation to more than double their productivity and use water resources more efficiently.
The IDB financing is made up of a $45.6 million loan from its Ordinary Capital with a 30-year maturity, a 6-year grace period and a fixed interest rate, and a $11.4 million loan from the Bank’s Fund for Special Operations with payback and grace periods of 40 years and an interest rate of 0.25 percent.