Component Description and Activities

Phasing of the Component Implementation

During the first year of implementation of the reformulated tea component, the organization and management arrangements of the project will be put in place and completed. This consists of: the recruitment of the additional staff to the PCU, the equipment of their premises in Kigali, the preparation and negotiations of contracts with all service providers as well as with extension officers. As far as Nshili is concerned, rehabilitation work on leased land (from the OCIR-Thé concession) will start in year 2 so that saleable green leaves produced can be processed at the Nshili Tea Factory. Nurseries will be implemented in year 1 to supply smallholders with tea bushes that can be planted on leased land from the OCIR-Thé concession and in smallholders’ home gardens from year 2 onwards. Saleable green leaves from those lands will only be available in year 5. As for Mushubi, nurseries have already been implemented and planting in smallholders’ home gardens and on District land will take place in year 1 of the project. Saleable green leaves will be produced on those lands from year 4 onwards. This production will require immediate processing in a nearby factory. The project, the GoR and potential private investors should meet regularly to finalize the implementation of such a factory that should become operational by mid-2009. With regards to smallholders’ associations and holding, these institutions will be set up from year 1 onwards: first year zonal and local associations as well as financial holding; second year provincial association and, third year national federation. During that period, training and technical assistance will be provided to members and elected members of their respective governing bodies.

The following table summarizes the expected phasing of key reformulated tea component implementation activities after year 1.

Table 1: Phasing of Component Activities

Activities related to development of smallholders’ tea plantations in their home gardens will require support from the project beyond the end of the project stipulated in the Loan Agreement. Because, development of home gardens will be carried out in 3 years in order to maintain manageable sized nurseries, the households whose home garden will be developed during year 4 will only start pluck saleable green leaves during year 5 and, during that fifth year, they will still need support from the project (inputs, fertilizers). For that reason, during mid-term review of the project (in 2007), IFAD will consider the possibility of extending the reformulated Tea component of 1 year. However, the financial projections shown in the COSTAB have already integrated a 1-year extension of the Tea component.