United States Ambassador Stanley McLelland (left), Finance and Planning Minister Dr. Omar Davies (centre) and Dr. Richard Harrison, acting Permanent Secretary/Chief Technical Director at the Ministry of Agriculture, at yesterday's signing of a contract for a new PL480 agreement. JAMAICA AND the United States yesterday signed a US$5 million (J$200 million) loan agreement under the PL480 programme to help with the funding of local agricultural projects, including the production of ackees and other fruits.
The agreement was signed at the Ministry of Finance and Planning, National Heroes Circle, by Finance Minister Dr. Omar Davies and US Ambassador Stanley McLelland.
Under the pact, financing will be provided for the purchase of about 24,000 metric tons of rice from the US which will be sold on the local market. According to the Ministry, the programme will allow for the involvement of the private sector in the purchasing, processing and distribution of the rice and is not intended to undermine the local market.
The loan is available on easy terms which include a six-year grace period, a 20-year repayment period and interest rates of two to three per cent.
One of the main criteria for PL480 funding is that the proceeds from local sales of commodities should be used to facilitate sustainable agricultural development in the recipient country. According to the US Ambassador, the Jamaican Government met the criteria for funding on the basis of its commitment to use the loan to support the Ministry of Agriculture's Fruit Tree Crop project and the Domestic Food Production Crop project.
"The Fruit Tree Crop and the Domestic Food Crop Production projects are two activities with the potential to strengthen the productive base and stimulate growth in the agricultural and agribusiness sectors in Jamaica," said the US Ambassador.
The Fruit Tree Crop project, which will be allocated $100 million, aims to establish 1,700 hectares of fruit trees, including ackees, over the next three years. It will also go towards setting up a new nursery at Bodles Agricultural Research Station; upgrading the nursery at the Orange River sub-station and improving the productivity of agro-processing plants.
The Domestic Food Crop Production project, which will receive $100 million, is geared towards improving the production and productivity of selected crops for local and export markets. It will utilise about 840 hectares of land distributed over 10 parishes.
