AfDB and IFAD formalizes financing agreement to promote agricultural sector in Burkina Faso

BURKINA FASO – The African Development Bank and the International Fund for Agricultural Development (IFAD) have signed an agreement for the funding of the Léraba Plain Management and Development Project (PAVAL).

The agreement was signed by Ms. Hassatou Diop N’Sele, Acting Vice-President in charge of Finance, on behalf of the AfDB Group, and by Mr. Donal Brown, Assistant Vice-President in charge of the program management, on behalf of IFAD.

The deal allows AfDB to administer the loan granted by IFAD to the Government of Burkina Faso.

We are particularly pleased with the confidence granted by the IFAD for the administration of its loan for the benefit of PAVAL, being the first agreement administration of funds between our two institutions,” said Ms. N’Sele.

PAVAL is a hydro-agricultural development project downstream of the Niofila-Douna dam, located in the Cascades region around the town of Douna in western Burkina Faso.

The project facilitates gravity irrigation of 1410 ha and the construction of infrastructure complexes to create micro-development hubs likely to boost the local economy.

It is designed to emphasize the value chain approach in an inclusive manner with the development of the rice, maize, and horticulture sectors.

The project also takes into account the gender approach with the involvement of women and young people in decision-making and sharing of the fruits of growth.

To support this project, the AfDB Group Board of directors had earlier approved a loan of US$30.11 million and a grant of US$5.48 million from the African Development Fund, its concession counter.

An additional loan from International Fund for Agricultural Development is to be administered by the AfDB amounting to US$9.19 million.

The funding is dedicated to taking charge of a large part of the activities of component B of the project, relating to the development of the developed irrigated areas.

It will make it possible to increase the productivity, production, and agricultural income of farmers (men, women, and young people) in a sustainable manner.

The financing and support by AfDB and other donors will improve the agriculture sector to greatly reduce the threat of recurring famine in the West African country.

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