Accra, Aug. 3, GNA - The management of Agricultural Development Bank (ADB) and Agence Francaise de Developpement (AFD) on Tuesday signed an EUR 14 million financing agreement for the Fourth Phase of the Rubber Outgrower Project in the Western and Central regions.

Under the agreement, ADB would on-lend 2,750 small-scale farmers under the project to cultivate 10,500 hectares of new rubber plantations.

In a statement issued in Accra Mr Ibrahim Adam, Chairman of Board of Directors of ADB, said France had been very supportive of the development of cotton, oil palm and rubber among other forms of agricultural development.

He said the beneficiary farmers on the project should use the opportunity to use improved technology.

Mr Adam advised staff in-charge of the project to reciprocate the gesture of AFD by providing efficient management of the project.

Mr Dov Zerah, Chief Executive Officer of Agence Francaise de Developpement, said the project had so far planted more than 11,000 hectares and the successful development of rubber plantations in Ghana had convinced management of AFD to continue financing the project.

He thanked management of ADB for contributing to the success of the development of rubber out grower plantations.

Mr Zerah said the French agency was willing to pursue a very fruitful collaboration with Ghana in future to support the national economic development strategy.

The project has been co-financed by Agence Francaise de Developpement (AFD) since 1988 and so far, more than 11,000 hectares of rubber plantations have been planted.

Whereas the three previous phases involved loans to the Government for on-lending to ADB, the financing agreement for the fourth phase, is a non-sovereign loan in that it is a loan directly to ADB without government's guarantee.

Indeed, this is the first non-sovereign loan in the history of AFD directly to a local bank for a project dedicated to small-scale farmers.

The fourth phase of the Project is therefore based on a tripartite agreement between ADB as the financial operator, Ghana Rubber Estate Limited (GREL) as the technical operator, and the Rubber Outgrowers and Agents Association (ROAA) representing the interest of farmers.

The money would cover the investment cost of planting, including the maintenance cost during the immature period, with the exception of a part of the labour requirements, assumed to be provided by families of the farmers as their contribution to the investment.

The project is designed to finance 2,750 beneficiary farmers cultivating 10,500 hectares of new rubber planting, with each of the beneficiary farmers planting a maximum of four hectares in the Western and Central Regions.

The financing would be for a period of 15 years with a seven-year grace period.

The signing ceremony was witnessed by Mr Francis Hurtut, French Ambassador to Ghana, Mr Jean-Marc Gravellini, Head of Africa Department at the French Embassy, and Mr Benoit Lebeurre, Resident Manager of AFD.