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Rural Value Chain Infrastructure

Rural Value Chain Infrastructure is designed to leverage investments in commercial infrastructure and facilities and finance essential public infrastructure for the growth and viability of associated value chains.

Two (2) sub-components are:

2.1. Productive Infrastructure and Facilities

2.2. Enabling Public Infrastructure

Subcomponent 2.1: Productive Infrastructure and Facilities

The aim of this sub-component is to encourage investments in commercial infrastructure and facilities for the selected value chains.  Subcomponent 2.1 will have 2 windows;

  1. Commercial infrastructure and facilities, co-financed by District Assemblies (DA) and leased to FBO or agribusinesses (in this case, the Programme provides a 90% subsidy combined with 10% contribution of DA);
  2. Commercial infrastructure and facilities, co-financed by FBOs and value chain drivers; in this case, the Programme will provide up to 70% of the cost of these facilities, matching a financial commitment from the proposed operators and/or beneficiaries of at least 30% of the value of the facilities. The infrastructure and facilities will be operated by a private sector entity for the benefit of the entity and for all other value chain participants.

All will have to show a viable management and business plan and an observable benefit for smallholders. The owner of the infrastructure will be:

(a) the DA that makes the infrastructure or facility available to private value chain stakeholders on the basis of a commercial agreement; in this case, the ownership could be gradually transferred to private sector stakeholders;
(b) a registered FBO or cooperative that is partner in an agribusiness agreement.

Targeting of these facilities will be governed by an Objective Ranking System that quantifies magnitude of both local community and private sector benefit. The Programme will prioritize Districts that will benefit from storage and processing facilities (including Good Practice Centres (GPCs) as learning centres for environmentally and economically state-of-the-art processing and packaging facilities) in consideration of requirements for agribusiness linkages. The Programme will procure consultancy for the design and supervision of works, the environmental assessment and the bidding document, and contribute to the works. The DA could provide the land and contribute to investments, organize procurement and implementation.

Sub-component 2.2: Enabling Public Infrastructure

The aim of this sub-component is to finance enabling public infrastructure for the growth and viability of selected value chains. These are facilities completely operated and maintained by the public sector. The Programme will select public infrastructure on the basis of agreed criteria, which will be made available by GASIP.

Rural roads and farm tracks, rural electrification
This will include the construction or rehabilitation of rural roads and farm tracks (900 km) to facilitate the movement of goods from farmers involved in agribusiness agreements to markets. The Programme will also support rural electrification (450 km) in order to make processing and pump irrigation facilities more competitive. For the enabling public infrastructure, GASIP will support the identification, design and supervision, preparation of bidding documents, construction and/or rehabilitation of the infrastructure. The Programme will provide 100% financing, but the public entity responsible for operation must provide evidence that it will provide necessary operation and maintenance. This evidence is by depositing (2%) of the cost of the road in advance of award of contract. The DA/Department of Feeder Roads (DFR) will include the roads in their maintenance plans.

Water harvesting and management infrastructure
The Programme will support public water harvesting and management infrastructure (target: 5 schemes) through ASAP funding. The additional costs that are required to convert culverts (target: 20 culverts) being constructed on the culvert-supported flood roads and feeder roads into livestock watering points will be funded. As water availability and reliability is set to decrease as a result of climate change, livestock become increasingly vulnerable to droughts. The addition of livestock watering points to these culverts represents an innovative opportunity for ASAP funding to leverage additional climate resilience for smallholders from these construction activities by increasing the availability of scarce water resources to livestock.

For water harvesting and management facilities, GASIP will finance feasibility studies, consultancy services for design, construction and supervision works, an environmental management plan, training of a Water Users Association (WUA). The DA will mobilize the community and organize the selection process of intervention sites, undertake reconnaissance studies and all procedures to acquire the land area via Lease (survey and production of cadastral plans and issuance of lease from the Lands Commission), sign agreements with WUA to define mutual responsibilities. To ensure environmental and social safeguards compliance, Environmental and Social Management Plans (ESMPs) will be developed by the ZPO, EPA, the Environmental Unit of MOFA and Ghana Health Service (GHS). In order to develop national institutional capacity, GASIP will: (a) provide technical and capacity building support to GIDA and EPA; (b) procure major supplies and consumables for GHS that will monitor the health situation around the water management facilities

Speeches at the Launch of GASIP

GASIP

The Ghana Agricultural Sector Investment Programme (GASIP) aims at providing a framework and institutional basis for a long-term engagement and supplementary financing for scaling up investments in private sector-led pro-poor agricultural value chain development. Read more...

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