GOR RELEASES 2009-2012 AGRICULTURAL INVESTMENT PLAN

UNCLAS KIGALI 000747 SIPDIS E.O. 12958: N/A TAGS: EAGR EAID ECON RW SUBJECT: GOR RELEASES 2009-2012 AGRICULTURAL INVESTMENT PLAN ¶1. (U) The Ministry of Agriculture (MINAGRI) on November 13 provided a copy of its 2009-2012 investment plan to post. The investment plan is the financing component of MINAGRI's second overall Strategic Plan for the Transformation of Agriculture (PSTA II). The PSTA II implements Rwanda's Comprehensive African Agricultural Development Program compact (CAADP). (Note: CAADP is a country led program under the African Union/New Partnership for African Development. End note.) The PSTA II has four programs: (i) intensification and development of sustainable production systems; (ii) support to the professionalization of producers; (iii) promotion of commodity chains and agribusiness development; and (iv) institutional development. The total value of the investment plan is $848 million, while the estimated contribution so far from GOR, the private sector, and donors represents only 48 percent of the total need. ¶2. (U) The investment plan identifies overall investment gaps at the program level for GOR fiscal years 2009-2012: Program 1- Total Cost: $658.5 million, Total Gap: $331.8 million Program 2- Total Cost: $42 million, Total Gap: $15.5 million Program 3- Total Cost: $128 million, Total Gap $88.5 million Program 4- Total Cost: $19.5 million, Total Gap: $6 million ¶3. (U) The investment plan also identifies sub-programs that are deemed "absolute priorities for the Ministry of Agriculture." They are: Sustainable Management of Natural Resources and Water and Soil Preservation; Food Security and Vulnerability Management; Research for Transforming Agriculture; Strengthening Rural Financial System; Institutional Development. Where budget support is not an option MINAGRI has asked donors contribute to a "basket fund" in order to reduce transaction costs. ¶4. (U) Comment: Post will provide additional reporting on specific aspects of this plan and food security issues in Rwanda. End Comment. SYMINGTON