Rwanda

The Africa food crisis response: use of resources released from non-agricultural projects in Rwanda

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1. Introduction

1.1 On July 24, 2008 the Boards of Directors through Resolution B/BD/2008/14 Rev.1 - F/BD/2008/09/Rev. 1, approved the Africa Food Crisis Response (AFCR). The AFCR provides the framework for accelerated support to Regional Member Countries (RMC) affected by increased food prices. The Boards of Directors also approved on 8 August 2008, by Resolution ADF/BD/WP/2008/64/Add.2 - ADB/BD/WP/2008/113/Add.2, the indicative list of non agriculture projects to be considered for restructuring, including those for Rwanda.

1.2 The Government of the Republic of Rwanda (GOR) has accepted the Bank's proposed short term measures to address the current food crisis affecting its Regional Member Countries. Subsequently, the GOR has submitted to the Bank a request for restructuring one (1) non-agricultural project, the "Programme d'Alimentation en Eau Potable et Assainissement en Milieu Rural" in Rwanda to make available a total amount of UA 3.442 million for the purchase of agricultural inputs to boost crop production in the country. The project earmarked for this restructuring exercise and the amount projected to be released towards the AFCR is shown in Annex 1.

2. Project Background

2.1 Brief Description

The project selected for the restructuring exercise is the "Programme D'Alimentation en Eau Potable et Assainissement en Milieu Rural". Brief description of this project has been provided in Annex 2.

2.2 Implementation Status of the Projects

The project involved has been carefully evaluated ensuring that the reallocation of these resources will not affect the attainment of its initial objectives. To this end, this project, with un-disbursed balance which will not be required before its closing date, has been selected for this food crisis initiative.

2.3 Implementation Arrangements

2.3.1 The resources freed from the project will be managed by the Ministry of Agriculture and Animal Resources as the Executing Agency which will submit a work program to the Bank justifying the use of resources.

2.3.2 The Ministry of Agriculture and Animal Resources will be responsible for the procurement and distribution of the fertilizers; and the extension service in the field will oversee food production on the ground. The actual food production will be handled at the individual farmer's level. The Ministry will set up a Fertilizer Committee for an oversight role on the procurement process, payments and distribution. The fertilizers will be distributed through the extension service distribution networks.