WASHINGTON, D.C., August 10, 2022 – The World Bank approved a US$300 million loan today that will benefit nearly 130,000 families from rural communities and producers in Bolivia. The financing will contribute to 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 nutrition enhancement by inserting technology in agricultural activities and training to manage it. Additionally, some 1,270 rural producer organizations will form productive alliances to facilitate their participation in value chains with commercial partners and access to technical assistance providers to achieve improved, more equitable access to markets, technologies, and organizational skills. PAR III will also implement some 290 complementary productive infrastructure subprojects.
“High inflation affecting food and energy prices, the impact of COVID-19 and climate change are having an impact on rural producer households, pushing more people into extreme poverty and hindering the fight against hunger and global malnutrition. For this reason, in Bolivia and several other countries of the region, the World Bank supports investment in climate-resilient agriculture, 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 extractive sectors,” she said.
The World Bank has long supported rural development in Bolivia, including successive phases of the Rural Alliances Project (PAR) for over 16 years and the Community Investment in Rural Areas Project (PICAR). Both projects have significantly improved productive capacity and market access of rural producer organizations, investments in infrastructure (of which nearly half are being 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 maturity period of 26.5 years and a six-year grace period. Rural Community Organizations (RCO), Rural Producer Organizations (RPO) and municipal and departmental governments will contribute US$ 51.2 million in counterpart funds to the project.
Learn more about the work of the World Bank in Latin America and the Caribbean: www.worldbank.org/lac