REPOBLIKAN 'MADAGASIKARA Tanindrazana - Fahafahana - Fandrosoana
Law No. 2004-016 authorizing the ratification of the Loan Agreement No. 621
between the REPUBLIC OF MADAGASCAR and INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT on the financing of the | || "Rural income Promotion Programme"
EXPLANATORY MEMORANDUM the Rural income Promotion Programme (PPRR) has set itself specific objectives:
improving the access of producers to markets and enhancement of products as part of "partnership poles";
Intensification and diversification of the productive base sustainably by the micro-project implementation;
Access to appropriate financial services.
The program will run for 8 years, with a first phase of 3 years.
The area of intervention will cover:
first phase, the 4 sub-prefectures Vavatenina, Fénérive East, Soanierana Ivongo and Sainte-Marie;
Second phase, the intervention area will be expanded flexibly according to demand from grassroots producers or traders.
A first intermediary mission by the end of the 3rd year will establish the relevance of the intervention in other sub-prefectures.
In total, the proposed intervention area corresponds to a population of 1.2 million inhabitants and 87 rural municipalities.
The program aims to achieve the following expected benefits:
additional revenue of USD 3.5 million per year in stride with the poles, the market access centers, micro-projects, the opening up and development of micro-finance;
30,000 beneficiary households, including 10,000 by micro-projects, 20,000 from other types of activities. Is an additional annual income of 6.000.000 FMG per household per year;
Various unquantifiable benefits such as:
improving living conditions; the ability of communities to take charge of their development
; reducing dependency of rural informal
credit system.
PPRR The program is built around a two-pronged strategy:
one hand, the development of partnership centers around activity centers, to improve rural access to the market.
These centers, with an average radius of ten kilometers, (which corresponds to the average size of a rural commune) will be managed by local farmers' unions and develop partnerships with interested commercial operators.
Several types of centers and units were identified namely:
collection centers for cash crops; processing units, especially for the distillation of essential oils
; storage centers for paddy, functioning as
villagers community granaries.
These centers, equipped and less isolated, constitute gateways for the different actions of the program.
Other hand, it will build on the momentum generated by the poles to strengthen community structures to support the grassroots development without neglecting the most vulnerable populations, and support the improvement and diversification of the productive base.
The PPRR has four components:
The first component concerns the development partnership poles between producers, trade and economic operators, opening up actions and support services which relate to market access centers (CAM);
The second component relates to operations in support of the rural organization (improving local governance, strengthening producer associations), as well as operations in support of the intensification, diversification and sustainability of the production ;
The third component is the development and facilitating producer access to rural financial services adapted;
the fourth component concerns the functioning of the Programme Management Unit (PMU) and support for improving national policy framework including land tenure and decentralization.
The total cost of the program including physical and financial contingencies amounted to 28, 246 million USD, or 202 billion FMG, distributed as follows among the various contributors:
Government: IFAD Beneficiaries: Operators: OPEC: local Government:
$ 5,225,560 $ 14,499,720 $ 645,140 $ 91,550 $ 7,663,700 $ 121,020
the program's target populations include:
Rural households with little or no land; rural households mainly dependent cash crops; rural households mainly dependent on food products; economic operators who will be partners
rural households.
This is the purpose of this Act.
REPOBLIKAN 'MADAGASIKARA Tanindrazana - Fahafahana - Fandrosoana
Law No. 2004-016 authorizing the ratification of the Loan Agreement No. 621
between the REPUBLIC OF MADAGASCAR and INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT, on the financing
"Rural income Promotion Programme"
the national Assembly and the Senate have adopted in their respective session dated 23 June 2004 and 06 July 2004, the Act which reads as follows: || | Article - Is authorized the ratification of the Loan Agreement No. 621, concluded on 24 February 2004 between the Republic of Madagascar and the International Fund for Agricultural Development on the financing of the "Rural income Promotion Programme".
Article 2 - This Law shall be published in the Official Journal of the Republic. It shall be enforced as State law.
Antananarivo, July 6, 2004
,
THE PRESIDENT OF THE NATIONAL ASSEMBLY ft
Ramampy LECHAT Marie ZénaÞ
SENATE PRESIDENT Rajemison Rakotomaharo