The Inter-American Development Bank has announced a US$35 million loan to be used to strengthen competitiveness in San Juan de la Maguana province, a major farm producing area. The IDB says the funds are earmarked to strengthen the productive capacity, competitiveness and environmental and financial sustainability of the province, birthplace of President Danilo Medina.
The province’s producers currently face obstacles that limit their ability to convert to new crops and develop market linkages. The IDB program aims to address these limitations by improving access for producers and entrepreneurs to credit services and markets, reducing transportation costs in the province’s road network, and optimizing irrigation systems.
The IDB says the program includes measures to facilitate access to credit for producers on feasible terms as well as finance public investments. These investments, mainly in irrigation and roads, are expected to trigger boosts in productivity and improve market access. Program activities are designed to improve productivity and exports for producers participating in the program, as well as reduce transport time and costs and improve irrigation systems for users. The IDB loan is for a term of 18? years with a grace period of 12 years and an interest rate based on LIBOR. Local counterpart contribution totals US$3.3 million.
www.iadb.org/en/news/news-releases/2013-12-05/productive-sector-competitiveness-in-dominican-republic,10684.html