Project for the poor and herders to continue

Economy | Agriculture
2017-02-02 11:37:54

Ulaanbaatar /MONTSAME/ During yesterday’s cabinet meeting, the Government backed to establish an agreement on additional financing of ‘Project for Market and pasture management development’ between the Government of Mongolia and International Fund for Agricultural Development and decided to send the draft to relevant Standing Committee for its consent.  

The project was implemented in 89 soums of Arkhangai, Bulgan, Gobi-Altai, Khovsgol and Khentii in 2011-2016 and gave support to 120 herders’ groups and 455 female-dominated groups. Additional USD9.06 million planned to be spent for poverty reduction and livelihood improvement of poor citizens and herders through creating value chain in aimags and soums involved in the project prior.

Within the project, pasture capacity and grazing will be controlled and evaluated and pastureland will be properly utilized based on social responsibility and joint involvement. Moreover, measures will be taken to increase prices of agricultural raw materials and the project will give financial and non-financial support to groups of herders and women and connect them with buyers and producers.

The additional finance of USD9.06 million has a term of 25 years, including a grace period of  5 years with 1.25 per cent interest and 0.75 per cent service charge.