THE GOVERNMENT yesterday signed a $1.3 billion loan with the Inter-American Development Bank (IDB) for the financing of the first phase of the National Irrigation Development Plan (NIDP) at the Ministry of Finance, Heroes Circle.
The money will also assist the 'institutional strengthening' of the National Irrigation Commis-sion (NIC) to help it meet the needs of its expanded role in administering the NIDP.
Under the first phase of the project, the farming communities of Yallahs, St. Thomas; Colbeck, St. Catherine; New Forest/Duff House, Manchester and Essex Valley and St. Dorothy in St. Elizabeth will benefit from the construction of wells, pump houses, power supply, pipe networks, pumping equipment and on-farm systems on completion of the new irrigation systems.
FULL IMPLEMENTATION
"These projects are expected to increase the presently irrigated area of 25,000 hectares by 60 per cent and will directly benefit over 6,900 farm families," said Donald Buchanan, Minister of Water and Housing, at the signing ceremony. He added that the "full implementation of the plan will increase total annual agricultural production by $8.2 billion and generate an average increase of $3.4 billion in annual income."
The NIDP master plan, which is being executed in collaboration with the IDB, provides for the establishment of 51 new irrigation projects at a cost of $6.5 billion to be completed by 2015. The plan provides a blueprint for the development of the irrigation system islandwide.
FINANCIAL AND
INSTITUTIONAL ANALYSES
Mr. Buchanan revealed that the Government also signed two agreements with the IDB to cover the cost of IDB consultants who will provide pre-appraisal activities such as the feasibility studies, financial and institutional analyses of the NIC, water resources and environmental assessments and investigating land tenure issues.
In order to benefit from the project, Mr. Buchanan said farmers have formed themselves into 'Water Users Associations (WUA)' which would act as an umbrella group to ensure compliance. He said farmers will have to pay for the water they receive.
In addition, the Minister said farmers will benefit from technical assistance as well as training "in the correct use of relevant agricultural and marketing techniques to properly manage their natural and financial resources under irrigated conditions. This will be done with assistance from the Agricultural Support Services Project (ASSP) in the Ministry of Agriculture.
This phase of the project is expected to get under way in early 2006.
