Burkina Faso - AfDB Group Supports Development
US$19 Million ADF Loan and Grant for Rural Development and Protection against Avian Influenza
Tunis, 18 August 2006 – The African Development Bank Group and the Government of Burkina Faso on Friday in Tunis signed a loan and a grant agreement amounting to US$ 19.48 million to finance rural development and the National Avian Influenza control Program in Burkina Faso.
The loan of 12.5 million Units of Account (US*), equivalent to US$18.55 million and grant of US$ 500,000 were signed by Vice President Gantsho Sizwe Mandla for the Bank and the Bukinabe finance and budget minister, Mr. Jean Baptiste Compaore, for his country.
The Board of Directors of the African Development Fund (ADF), the concessional window of the AfDB Group, approved the ‘The Decentralised Rural Development Support Project in the Provinces of Gnagna and Kourittenga (PADER-GK) on July 18, 2006.
Speaking after the signing of the agreements, Mr. Mandla, said the development support loan would finance rural infrastructure and local capacity building activities. "Consequently, it falls within the objectives of the poverty reduction framework and the national food Production strategy of your country", he emphasized.
Commenting on the grant, Mr. Mandla said the grant is aimed at minimizing and even eliminating risks of spreading the epidemic, protect the national poultry economy and preserve the health of the population.
For his part, the Burkinabe Minister, Mr. Jean Baptiste Compaore, commended the speed with which Bank staff put together the dossier for the rural development loan. He also expressed his country’s appreciation for the grant to contain Avian flu, adding that the country was at risk of losing its entire poultry industry to the epidemic if it was not checked.
"I seize this opportunity to reiterate our gratitude to all our technical and financial partners in general and to the African Development Bank in particular for the diligence with which it has helped to eradicate the scourge as well as for its constant favourable disposition to support our development efforts," he said.
The rural development project aims at increasing agricultural production and improving the living conditions of the rural population thereby enhancing the country’s food security.
The major activities of the project will include: The development/rehabilitation of 154 hectares of irrigated areas downstream and 600 hectares upstream of existing small dams, as well as the irrigation of 500 hectares with runoff water and 280 hectares of the valley areas and the construction of the Koala dam-feeder road.
It will also involve the rehabilitation of 8 existing small dams, 114 km of feeder roads, engineering designs and works control and supervision, among others.
The overall cost of the Rural Development Project is estimated at UA 15.28 million, equivalent to US$ 22. 67 million.
The ADF loan will cover 82% of the costs. The Government of Bukina Faso and the beneficiaries will provide the remaining 18%, amounting to UA 1.58 million and UA 1.2 million respectively.
The ADB Group began operations in Burkina Faso in 1970. To date, its commitments in the country stand at US$ 842.60 million in 71 operations.
* 1 UA = USD 1.48386 as at 18/08/2006
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