The Dutch development bank, FMO, has signed a $15 million loan with Agricola Pampa Baja, a Peruvian produce exporter. Under the conditions of the loan, the company must implement and remain compliant with an improved environmental and social plan, which includes an integrated water resource management system.
The agreement further highlights the role development banks can play in furthering sustainable production of commodities in developing regions.
The company recently expanded in the northern arid coast of Peru, an area under the Peruvian government’s Olmos irrigation project, which is transforming desert land into agricultural land for certain crops through irrigation projects. As such, it has been the subject of intensive due diligence and engineering analysis, requiring it to follow best practice and the guidelines set for by FMO.
The loan will be mainly used for land preparation, state-of-the-art irrigation systems, factory equipment (including cooling and packaging facilities). The project also has the support of local farmers, as they will receive proper skills training and know how on best practices, increasing farmer income, production, and contributing to the overall development of these communities.
Suzanne Gaboury, FMO’s director for agribusiness said, “FMO is proud to play a part in supporting Pampa Baja’s geographical expansion activities which will allow them to broaden their off-season production window as well as increase food production and economic development in a remote and under-developed region of Peru.”
Source: peruthisweek.com
