Myanmar will receive a loan of US$200 million (K277 billion) from World Bank to implement the National Food and Agriculture System Project (NFASP) to rehabilitate rural farmers after the COVID-19 pandemic is over.
“Through the projects, we mainly intend to overcome the crisis in the agricultural sector brought about by the pandemic, provide the low-income families with food, and generally improve agriculture in Myanmar,”said Deputy Minister for Agriculture, Livestock and Irrigation U Hlaw Kyaw.
Of the $200 million worth of loans, $135.33 million will be used for agricultural research and development, agricultural inputs and dissemination of agricultural knowledge and $54.32 million will go towards improving the quality of agricultural produce, boosting competitiveness, establishing norms to compete in international markets, and control of animal diseases.
A total of $10.02 million will be used for project management, and $330,000 will be kept as emergency funds, according to the deputy minister.
The projects funded with the loan will be carried out in 228 townships – 38 in Yangon Region, 31 in Shan State, 29 in Mandalay, over 20 in Bago and Magwe, two in Tanintharyi, five in Kayah, seven each in Kayin and Nay Pyi Taw, eight each in Chin, Mon and Rakhine, and nine in Kachin.
Implementation of the project will start on June 30, 2020 and end on Dec. 31, 2025.
As of Dec. 31, 2019, the Agriculture Ministry had signed agreements on a total of $2.46 billion worth of loans. So far, it has received $1.131 billion of that money. The ministry currently has $903.214 million worth of outstanding loans to repay, according to Deputy Minister for Finance, Planning and Industry U Maung Maung Win.