World Bank Document

 
The World Bank 
Agriculture Modernization Project (P158372) 
Page 17 of 70 
35. 
This sub-component will assist in this vital transformation by piloting establishment of intensive orchard farms 
(with tentative budget of US$65 million)
36
. The aim of the sub-component is to establish demonstration/extension pilots 
for intensive orchards in selected districts specialized in horticulture production, which will help, inter alia, with the 
collective organization of an interested group of farmers, build up their technical and managerial capacities over time, 
and assist with provision of finance as well as external agronomic and business inputs needed for the orchard farms to 
succeed. Adoption of climate resilient technologies will be key to success of these investments. The pilots will involve 
commercially-driven farmers and executed as turn-key services provided by competitively-recruited private companies. 
36. 
Component 2: Supporting Investments in High-Value Horticulture Value Chains (US$200.0 million). The 
objectives of this component are to support investments in crop diversification and high-value horticulture value chains, 
facilitate farmers’ participation in investment opportunities created by economic liberalization, and enable productive 
partnerships/clusters between farm groups and agribusinesses. These objectives will be achieved through a mix of 
technical support, provided under sub-component 1.4, and two credit windows that would offer long-term financing 
tailored to the needs of farmers and agribusinesses: 
i. 
Credit window for farm cooperatives and cooperation in horticulture sector (US$50.0 million): This window will 
provide loans to horticulture farm cooperatives and participants of the cooperations in horticulture sector for 
investments in infrastructure, machinery and equipment, and other assets to promote their collective actions. 
Typical investments would be in intensive orchards and greenhouses, energy efficient irrigation systems; solar 
water heating systems and water lifting using solar photovoltaic stations; adoption of other climate-smart 
water-saving and mechanization technologies; and processing and storage facilities, including to reduce 
exposure to extreme weather conditions. Farm cooperatives will be supported by sub-component 1.4 that seeks 
to strengthen their business capacity and help them prepare bankable climate-informed business plans to 
receive loans.
ii. 
Credit window for productive partnerships (US$150.0 million): This window will provide loans to agribusinesses 
- in trading, processing or final food industries - entering into formal contract agreements with farmers and 
farm cooperatives by establishing productive partnerships, including the provision of advisory services to 
farmers for amongst others better understanding of climate risks and available adaptation measures (e.g. use 
of CSA technologies and practices) and mitigation opportunities (e.g. energy efficient irrigation systems; solar 
water heating systems and water lifting using solar photovoltaic stations, support the conversion of some land 
from production of annual cotton and wheat crops to perennial fruits and vineyards), investments in climate 
resilient infrastructure, and value chain financing, e.g. working capital financing between businesses within a 
supply chain. Farmers participating in productive partnerships could also borrow. Value chain financing can help 
address the input credit constraint faced by small producers, who have contracts with processors or exporters.