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Ratification of OFID loan agreement No 13606 P of 20 million US dollars for the financing of PIPARV-B

ByWebmaster

Jun 4, 2021

BUJUMBURA June 4th (ABP) – The MPs meeting on Wednesday June 3 in plenary session in the Kigobe House, analyzed and ratified OFID loan agreement number 13606 P of 20 million US dollars for the financing of the Project for the Intensification of Agricultural Production and Reduction of Vulnerability in Burundi (PIPARV-B).

The Minister of the Environment, Agriculture and Livestock, Dr Déo Guide Rurema who represented the government of Burundi, indicated that the goal of the PIPARV-B project is to contribute to the improvement of conditions of life and resilience of the rural people of the central Burundian plateau through an integrated land management approach thanks to an optimal use of natural resources adapted to growing demographic pressure.

The Minister in charge of Agriculture and Livestock specified that the total cost of PIPARV-B is estimated at USD 101 million, the investment costs of which represent 96%.

                                                                          View of the MPs in the plenary session

Regarding the financing acquired, he cited an IFAD grant of USD 27.488 million, an OFID loan of USD 20 million, an allocation of USD 10 million, financing from the Green Climate Fund (GCF) for USD 10 million, the Government contribution of USD 11.635 million, and beneficiary contribution of USD 1.883 million.

For the funding to be sought, Minister Rurema mentioned a WFP contribution of USD 7 million and a funding gap of USD 13 million. He also said that the PIPARV-B project is operating in five provinces and 20 communes. This is Gitega province for Bukirasazi, Giheta, Gishubi, Itaba, Makebuko, Nyarusange and Ryansoro communes. For Karusi province, the project will intervene in Gihogazi, Mutumba and Shombo communes. In Kayanza province, it is the Gatara, Kabarore, Kayanza and Matongo communes that are concerned. In Ngozi province, the target communes are Marangara, Mwumba and Nyamurenza. For Muyinga province, there are three communes including Gasorwe, Giteranyi and Muyinga which will benefit from it.

When putting questions to the Minister in charge of Agriculture, the MPs raised concerns about the funding gap of USD 13 million. The minister reassured that there are promises of funding from certain partners. Regarding the issue of certain projects whose profitability is lower than the invested capital, Minister Rurema said that things have changed and that there is rigorous monitoring and evaluation in terms of project implementation for loss prevention.