IFAD will provide a $42.5 million loan and $1 million grant to finance the Qinghai Liupan Mountain Area Poverty Reduction Project (LMAPRP).
The government of China has committed to providing $42.5 million to support the project.
The total project cost will be $125.3 million. National financial institutions, cooperatives, enterprises and beneficiaries will also contribute.
The agreement was signed on Wednesday by Kanayo F. Nwanze, President of IFAD and Niu Dun, Ambassador and Permanent Representative of the People’s Republic of China to the UN in Rome.
It is expected the IFAD-funded project will increase incomes for approximately 128,000 poor and vulnerable rural households in seven counties in the Liupan
mountain area, which are found in the eastern part of Qinghai Province.
The seven counties include Huangzhong, Huangyuan, Minhe, Ledu, Huzhu, Hualong and Xunhua. The location is one of 14 priority areas for the government of China.
The main goal of the project is to reduce poverty by improving agriculture and livestock productivity, increasing opportunities for farmers to access markets, improving land management and addressing the needs of ethnic minorities.
"The target group lives in 683 poor and remote villages. Approximately 47 per cent of the total population in the project area are ethnic minorities, often very poor and without access to agricultural and financial services," said Matteo Marchisio, IFAD Country Manager, China.
"The project supports China's poverty reduction strategy. Experience has shown that by linking farmers to cooperatives and private-sector partners, they are better able to access markets and leverage higher prices for their food products," Marchisio added.
IFAD has been working with China since 1981. Currently, the Fund is investing a total $862.4 million in 29 programmes and projects, with a total cost of $2.2 billion including co-financing, reaching over 4,393,300 households.
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