Project Summary

Project General Description

The Integrated Agro-industrial Park Support Project (IAIPSP) is designed to support the development of four (4) Integrated AgroIndustrial Parks (IAIPs), already commenced by the Government of Ethiopia (GoE). It aims to provide part of the infrastructure required for agro-industrial activities on the 4 IAIPs and develop requisite skills and agricultural value chain capacity to ensure competitiveness, productivity and inclusivity in their operation. The project aims also to contribute to the structural transformation of the economy, job creation and poverty reduction by contributing to inclusive and sustainable agro-industrial development in Ethiopia. The Expected project outputs include i) the development of waste (liquid/solid) management plants, potable water systems and 5 kilometre of critically needed access roads on 2 of the IAIPs, ii) training of relevant public officials in Staple Crop Processing Zone (SCPZ) coordination, iii) engagement of farmers, cooperatives and unions on value chain development, and iv) equipping the youth with technical (processing) and entrepreneurial skills. The project is structured around three interrelated components: (a) infrastructure development for agro-industrial development, (b) capacity building for sustainable agro-industrialization, etc., as well as project coordination and management.

Project Objectives

Expected project outputs include i) the development of waste (liquid/solid) management plants, potable water systems and 5 kilometre of critically needed access roads on 2 of the IAIPs, ii) training of relevant public officials in Staple Crop Processing Zone (SCPZ)coordination, iii) engagement of farmers, cooperatives and unions on value chain development, and iv) equipping the youth with technical (processing) and entrepreneurial skills.The Support Project will be implemented over five years (2019-2023) at a cost of USD 78 million (including co-financing amounts totalling USD63 million from the European Union (EU), Korea Exim Bank and Big Win Philanthropy).Implementation will be at the 4 Regions, each of which has an already operational Industrial Park Development Corporation(RIDPC). A Project Implementation Unit (PIU) will be set up, dedicated to this project, at each of the 4 Corporations, all reporting to adedicated Coordination Office at the Ministry of industry.

Beneficiaries

The project will benefit, directly, farming households and communities, the youth, women, agribusinessesandstaff of related public institutions. The project will also benefit, indirectly,rural populations in the coverage areas. Through linkages to agro-processing firms in the IAIPs, about 800,000 farming households in farmer cooperatives and unions, within the IAIP and Rural Transformation Centre (RTC) catchment Kebeles and Woredas will benefit from improved access to organised markets providing nutritious foods (and motivation to increased productivity), reduced post-harvest losses and increased incomes in the 5 year life of the project; rising to up to 2 million and beyond in later years. The key commodities of focus are coffee, wheat, barley, sorghum, maize, sesame, legumes, fruits and vegetables, potato, dairy and livestock. It is estimated that 200,000 (50,000 direct and 150,000 indirect) new, sustainable jobs will be created in the IAIPs in the next five years becauseof the project intervention. About 50% of these will go to women and the youth. Skills development interventions, proposed under this project, will particularly prepare 6,000 youth and women with relevant agro-industrial and entrepreneurial skills, especially in the areas of food and beverages and meat and dairy.

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