Project / Program Title: “RURAL DEVELOPMENT OF NORTHEASTERN AREAS PROJECT”

Goal:
To support the Albanian Government in connection to the implementation of a balanced program for the development of the rural mountainous and hilly areas by supporting and introducing the on-going initiatives related to the alleviation of the poverty in rural areas.

Objective:
Rehabilitation of the rural basic infrastructure sub-projects
Supporting the private initiatives by funding of the micro loans system in the village
Promoting the agriculture development by development of agriculture extension toward small farms.

The main components of the Project are:
Rural Works Program; Support the rehabilitation of the basic infrastructure by funding 270 different sub-projects identified by the local population, undertaken by the Communes and implemented by using village paid work force;
Small-scale Loans Program; Fund about 8,000 loans for the villages’ inhabitants for purposes income generating rural activities
Agriculture and Livestock Services; Fund the qualification and provision of materials in support of the Governmental programs related to the development of the agriculture extension toward the new system of small farms
Development of Micro-Enterprises; Fund a program related to the promotion and development of indirect agriculture activities necessary to provide production sustainability of the mountainous businesses
Support to the Local Government; Support the qualification and preparation of a new financial system

Target groups:
Rural community of the Project area, especially women as a vulnerable group.

Stakeholders involved:
IFAD, Islamic Bank, Albanian Government, rural community and local government, ADF, construction companies.

Budget:

15 million USD

Duration:

1994 - 2001

Other comments:
This Project is only focused in the rural areas of four regions in the northeastern part of Albania; Kukes, Has, Diber and Tropoja, targeting a population of about 224,000 inhabitants or about 45,000 families. Out of the total funding, about 5 million USD are funds of the Islamic Bank and about 10 million USD are funds of IFAD. A Project management unit was established and operating in Kukes, consisting of local staff and supported by the long-term foreign technical assistance. This office was closely monitoring the Project progress and submitting regular report on this progress.




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