Agricultural Support Services Programme

The primary objective of the Programme is to raise rural incomes by increasing the efficiency of agricultural production in the coastal plain of Guyana.

The specific objective of the Programme is to rehabilitate Drainage and Irrigation (“D&I”) structures, organize farmers to manage the Operation and Maintenance (“O&M”) of rehabilitated structures and support rice research and agricultural diversification.

The Programme includes four (4) components: (a) Civil works to rehabilitate primary and secondary D&I systems in selected areas; (b) D&I institutional development which includes farmers’ training and extension, and establishment of Water User Associations (“WUAs”) in those selected areas; (c) Rice seed research and production; and (d) Agricultural diversification promotion.

Components:

(a) Civil Works

This component will finance the rehabilitation of drainage and irrigation primary and secondary works. These works will include conservancies, primary and secondary drainage and irrigation channels, and water control structures. This component will also finance the desilting of channels, the revamping of pumping stations, the repairing or replacement of sluice gates and other appurtenances, as well as the repair of the D&I service roads.

The Programme is expected to rehabilitate: (i) approximately 400 kilometers of primary channels; (ii) approximately 800 kilometers of secondary channels; (iii) approximately 400 kilometers of service roads; (iv) 3 pumping stations; and (v) approximately 1,200 sluice gates and other water control structures.

To be eligible for rehabilitation a given primary irrigation system must serve one or more secondary systems to be rehabilitated together or have been already rehabilitated according to the provisions and guidelines set forth in the Operating Regulations Manual of the Programme.

(b) D&I Institutional Development

This component will finance activities aimed at the establishment and strengthening of WUAs and the training of farmers, supporting the National Drainage and Irrigation Authority (“NDIA”) reorganization as well.

(i) WUAs support. This component will finance the necessary technical support for the establishment and strengthening of WUAs for the sustainable management and O&M of the secondary D&I systems in the areas of the Programme. It includes all the activities to organize, register them as legal entities and prepare the contracts with the NDIA.

(ii) Farmers’ training and extension. This component will provide resources for training farmer members of WUAs in four subjects: (a) management and administration skills, some 600 farmers are expected to be trained; (b) D&I best practices for a sustainable O&M of rehabilitated works, some 6,000 farmers will be trained; (c) environmental aspects for the adequate use of pesticides, fertilizers and disposal of liquid and solid waste, some 6,000 farmers will be trained; and (d) extension services to improve yields of traditional crops and the introduction of new crops.

(iii) NDIA strengthening. This component will support the implementation of the D&I tariff structure to be applied to the primary D&I systems, providing training to NDIA personnel to perform their functions and give support to the WUAs.

The activities envisaged under the Programme are aimed to the improvement of the D&I regulatory framework; establishment and strengthening of WUAs; setting efficient user fees and billing & collection procedures for the D&I infrastructure; establishment of individual and group incentives for collecting the D&I user fees; strengthening of the NDIA; execution of the project’s environmental and social management plan, the water quality monitoring plan; and monitoring of the D&I infrastructure sustainability.

(c) Rice Seed Development

This component will finance the introduction and adaptation of disease resistant and high yield new rice seeds varieties. The production of certified seeds on a commercial scale will also be financed under this category through the financing of a seed production facility.

Guyana, through the Guyana Rice Development Board (“GRDB”) will join the Latin American Fund for Irrigated Rice (“FLAR”) and will transfer and adapt in the Burma Research Station new rice seeds with high yield potential and resistance to plagues. The basic seeds obtained will be sold to an enterprise that will multiply the seeds through an arrangement with farmers to reproduce the seeds and a rice seed facility to dry, clean and select the final product that will be sold as a certified seed. The GRDB will make the necessary inspections during the process to provide the certification service. With local resources this Programme will finance the fees to join the FLAR. Laboratory equipment and training of the Burma Research Station personnel, and the design and construction of rice seed facilities will be financed with resources of the Financing.

Rice Seed Facility: This category will finance the design and building of a seed rice facility that will be operated under a management contract, as well as related activities to facilitate and oversee its operation. The indirect beneficiaries of this component will be those farmers who will multiply the seeds for the rice facility, farmers that will buy the certified seeds and millers and rice exporters who will purchase the paddy rice grown with certified seeds.

(d) Agricultural diversification

This component will only finance those activities that require a public intervention to foster private sector environment for investment within the following category supporting services related to research, technical assistance, market information, and plant and animal health certification for new production and exports.

The Program will finance the following activities: (a) technical assistance to streamline procedures and policies to foster entry into new businesses; (b) trade promotion and negotiating tasks; and (c) feasibility studies for establishing a shared facility or service related to diversification efforts.

The estimated cost of the Programme is the equivalent of twenty five million dollars (US$25,000,000). The Inter American Development Bank will provide 90% of the financing while the Government of Guyana will provide 10% of the funds for the programme.

The Programme will be implemented by the Ministry of Agriculture (“MOA”) which will constitute the Programme Executing Unit (“PEU”) to manage, among other things the bidding, contracting, supervision of works and financial statements of the Programme. The PEU will be in charge of the execution of components 1, 3 and 4. With respect to component 2, the NDIA, in close coordination with the PEU, will be responsible for the organization and strengthening of the WUAs, as well as the training of farmers and extension.