THE Inter-American Development Bank on Wednesday announced the approval of a $16.8-million loan to Jamaica to finance a programme designed to improve the country’s irrigation system.

The project, according to the IDB, will strengthen the National Irrigation Commission and support its plan to progressively focus on planning, monitoring and regulating the irrigation sector while withdrawing from operations and maintenance. A new business strategy will be developed, and the management information system and the accounting and billing systems will be strengthened under the programme, said the IDB.

At the same time, the new entities that will be in charge of operating and maintaining the new irrigation systems – the Water Users Associations – will be progressively established, consolidated and strengthened.

The reorganisation is designed to achieve a more decentralised and efficient operation of the irrigation systems on a cost recovery basis. In conjunction with the reform, land titles of many farmers using the irrigation system will be properly legalised, and agricultural production is expected to rise in value, according to the IDB.

Technical assistance and training will be provided to producers to enable them to achieve the full economic benefit of irrigating their crops. They will learn production, marketing and management techniques and be encouraged to diversify crops, taking advantage of products with a higher value than previously produced.

As part of the loan agreement, money will be spent on irrigation infrastructure, constructing new systems at Colbeck, New Forest/Duff House, and Essex Valley, while rehabilitating the systems at Yallahs and St Dorothy.

The programme is expected to increase the amount of irrigated land in the project area to 1,700 hectares from 500 hectares, raising the total amount of irrigated land in the country by nearly seven per cent.

“The project reflects the IDB strategy for Jamaica of supporting programmes that strengthen the private sector, modernise the public sector and improve environmental management,” said a statement from the international agency.

The loan is for a 20-year term, with a five-year grace period, at a variable interest rate.