Assurance and conditions to be sought at negotiations
At appraisal the following needs to be given particular attention.
-
Subsidiary agreement with Rwanda National Bank.
This will concern (a) the role of the RNB, and (b) the rate of interest
charged to the RDB and other financial institutions to draw funds
from the RNB used for on-lending, and (c) the provision that funds
drawn by the RDB to pre-finance the cooperative shares will bear no
interest.
- Conditions of effectiveness to include:
The preparation by the Nshili communities of the
list of the beneficiaries of the distribution of the OCIR-Thé
Nshili plantation and of the new smallholder tea plots in the OCIR-Thé
land concession at Nshili, such activity to be funded under the
SOF
-
Condition of disbursement under the tea development
component for other activities than the distribution of the Nshili
OCIR Thé plantation:
Effective assignment of individual plots to all beneficiaries,
including minimum 33% women head of HH
Issue of usufructuary title to all beneficiaries
Formation of cooperatives of beneficiaries and granting of personnalité
juridique to all the cooperatives
Preparation by MINAGRI of the complete documentation necessary for
the transfer of the OCIR-Thé Nshili woodlots and housing compound
to the Nshili Tea Company (NTC), upon establishment of the NTC.
- Condition of disbursement under the coffee diversification
component:
Formal acceptance of TWIN as project technical advisor
and signature of the contract with TWIN in accordance with the principles
established in the appraisal report
Government assurances regarding the policy of location of new coffee
washing stations, to avoid overlapping of areas of influence
-
Government to accept that an internationally recruited
specialist advisor to the project coordinator be recruited for one
year to assist in negotiating all the contracts with the service providers.
Pro-forma contract will be prepared under the SOF. Failure to sign
the contracts with the key service providers within one year from
project effectiveness will cause the cancellation of the Loan!
-
The Ministry of Agriculture to specifically commit
to provide suitable office accommodation for the PCU central office
in Kigali, including space required by TWIN, and for the provincial
units of the PCU in Gikongoro, Kibuye, and Kigali-Ngali.
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