WASHINGTON, DC, August 10, 2022 – The World Bank today approved a $300 million loan that will benefit nearly 130,000 families in rural communities and producers in Bolivia. The funding will help increase food security, market access and the adoption of climate-smart agricultural practices in the country.
At least 1,000 rural community associations are the main beneficiaries of the Innovation for Resilient Food Systems (Rural Alliances – PAR III) project, which will help reduce vulnerability to acute and chronic food insecurity through small-scale investments in infrastructure and services and improving nutrition by integrating technology into agricultural activities and training to manage it. In addition, some 1,270 rural producer organizations will form productive alliances to facilitate their participation in value chains with business partners and access to technical assistance providers to achieve improved and more equitable access to markets, technologies and organizational skills. RAP III will also implement some 290 complementary productive infrastructure sub-projects.
“High inflation affecting food and energy prices, the impact of COVID-19 and climate change are impacting rural producer households, pushing more people into extreme poverty and hampering the fight against global hunger and malnutrition. For this reason, in Bolivia and several other countries in the region, the World Bank supports investments in agriculture resilient to climate change, the promotion of sustainable food production and the transformation of food systems”, said Marianne Fay, World Bank director for Bolivia, Chile, Ecuador and Peru. “Agriculture is a key sector for the Bolivian economy, with significant potential to reduce rural poverty and dependence on the extractive sectors”, she says.
The World Bank has a long history of supporting rural development in Bolivia, including successive phases of the Rural Alliances Project (PAR) for more than 16 years and the Community Investment Project in Rural Areas (PICAR). Both projects have significantly improved the production capacity and market access of rural producer organizations, investments in infrastructure (nearly half of which are managed by women), training and knowledge transfer.
The new financing granted to the Plurinational State of Bolivia corresponds to a loan from the International Bank for Reconstruction and Development (IBRD) with a term of 26.5 years and a grace period of six years. Rural community organizations (RCOs), rural producer organizations (RPOs), and municipal and departmental governments will contribute $51.2 million in matching funds to the project.
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PRESS RELEASE No.: 2022/ALC
Luis Carlos Perez
+1 202 629-7390
La Paz, Bolivia
+591 2 2613326