1 as of 1995 105 million accounting for nearly half

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1 As of 1995, 10.5 million, accounting for nearly half of Peru's population, were classified as poor while two-thirds of the population in the Sierra were classified as poor, half of which were classified as extremely poor (illiteracy rate of more than 40%, school enrolment rate of less than 60%, sewerage coverage of 1 - 17%, water supply coverage of 9 – 56%, infant mortality rate of 111 – 170 in 1,000 and agricultural population rate of 44 – 86%). 2 In April 1997, the World Bank offered US$ 51 million under the Sierra - Natural Resources Management and Poverty Alleviation Project (P042442). This was an investment project with a consistent project period of five years targeting specified small watersheds and aiming at making local farmers develop the capacity in this period to manage their agricultural production activities by themselves.
3 1.2 Project Outline The Project aimed at conserving soil, forests and water resources along with improvement of the agricultural productivity through investment in soil conservation facilities 3 , irrigation facilities, reforestation to ensure the productive and sustainable utilisation of natural resources in the Sierra of Peru, thereby contributing to poverty alleviation in the said area. Approved Loan Amount/ Disbursed Loan Amount 5,588 million yen/ 4,516 million yen Exchange of Notes/ Loan Agreement September, 2000/ September, 2000 Terms and Conditions Main Loans Interest Rate: 1.7% Repayment Period: 25 years Grace Period: 7 years Procurement: General Untied Consulting Service Interest Rate: 0.75% Repayment Period: 40 years Grace Period: 10 years Procurement: Bilateral Tied Borrower/Executing Agency AGRORURAL (former PRONAMACHCS) of the Ministry of Agriculture Final Disbursement October, 2009 Main Contractor (Over 1 billion yen) None Consultant (Over 100 million yen) Nippon Koei (Japan) Related Studies None Related Projects Sierra - Natural Resources Management and Poverty Alleviation Project (1997) Sierra - Natural Resources Management and Poverty Alleviation Project (II) (1999) 2. Outline of the Evaluation Study 2.1 External Evaluator Hajime Sonoda (Global Group 21 Japan, Inc.) 2.2 Duration of Evaluation Study The ex-post evaluation study for the Project was conducted over the following period. Duration of the Study : October, 2011 to September, 2012 Duration of the Field Study : 16 th November to 18 th December, 2011 18 th to 25 th April, 2012 3 During the project period, facilities to prevent soil erosion at sloping land and facilities to encourage the efficient infiltration of rainwater into the ground to increase the soil moisture level were constructed among others by local farmers who were to benefit from these facilities. See 3.4.1 for further details.
4 2.3 Constraints to the Evaluation Study The target area of the Project covered 13 regions scattered throughout the Sierra of Peru. For this ex-post evaluation, as no information on the project effects generally applicable to all of the project sites was obtained, the overall project effects were inferred based on the case studies (involving site visits and a beneficiary survey involving 256 households in 13 villages) in four small watersheds

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