Feb 16, 2007 (ROME) -– A US$29.85 million project for better water management in the Butana region of the Sudan will enhance the ability of about 80,000 poor rural households’ to cope with drought conditions.

The Butana Integrated Rural Development Project will be backed by a loan of US$24.8 million from the International Fund for Agricultural Development (IFAD). The Government of the Sudan will contribute US$4.29 million and US$760,000 will be provided by the people living in the project area.

The loan agreement was signed at IFAD headquarters today by Mohamed El Amin Kabashi Eisa, Minister of Agriculture and Forestry in the Republic of the Sudan, and Lennart Båge, President of IFAD.

The project will assist rural people in five states that share natural resources in the Butana region. In particular, the project will boost their incomes from livestock production and other small businesses and at the same time ensure the sustainable management of natural resources. It will also improve animal nutrition, access to veterinary services and the organization of meat and dairy marketing.

Smallholder farmers in the region are expected to benefit from higher meat and milk production, lower production costs, and improved market prices.

The Butana region of the Sudan is comprised mainly of smallholders and has been prioritised by the country’s government to receive support as it is one of the poorer drought-affected areas of the country.

Since starting operations in 1978, IFAD has provided financing for 15 projects and programmes in the Sudan, with loans and grants totalling US$211 million.

(IFAD)