The World Bank Group’s board of executive directors approved a $200 million financing plan to improve the resilience of farmers and small and medium enterprises (SMEs) in the Lebanese agri-food sector. The “Green-Agri Food Transformation for Economic Recovery” (GATE) Project will support productive investments that improve the agriculture sector’s productivity and enhance access to markets.

The agri-food sector is a lifeline for a large share of the Lebanese poor, providing livelihoods to approximately 20 percent of the population and contributing to food security.

Over the past years, the sector has been severely impacted by the country’s many crises. In addition, the global hike in the prices of fertilizers and fuel, compounded by the foreign exchange crisis in Lebanon, has severely impacted agricultural production.

“The agriculture sector has a key role in unlocking growth, creating jobs, and improving livelihoods, particularly in rural areas,” World Bank Middle East Country Director Jean-Christophe Carret said.

“By addressing the main challenges facing farmers and small and medium agri-food enterprises, GATE will provide a lifeline to a large share of vulnerable farmers and agri-food SMEs. It will support the recovery of Lebanon’s agri-food sector in the short to medium term and lay a pathway toward its sustainable transformation,” Carret added.

The new financing provides an integrated support package that aims to address the challenges farmers and agri-food SMEs are facing as a result of the multiple crises. The project will also support climate-smart investments in agri-food value chains by restoring access to finance for farmers and agri-food SMEs.

Approximately 80,000 farmers (almost 50 percent of the total number of farmers) in rural areas across Lebanon are estimated to directly benefit from various project activities, including financing, capacity building, improved services, and infrastructure.

It is also noteworthy that special attention will be devoted to ensuring equal access to opportunities for vulnerable groups, including women and youth.

A “Project Steering Committee,” chaired by the Minister of Agriculture, the Minister of Energy and Water, and the Minister of Economy and Trade, will be established to oversee the implementation of project activities and address issues that might arise during project execution.

The overall project implementation will be led by the Council for Development and Reconstruction (CDR). The administration of loans to agri-food SMEs will be implemented by Kafalat S.A.L., while the implementation of infrastructure works in rural communities will be implemented by the Green Plan in close coordination with the respective municipalities and unions of municipalities.

The project aims to strengthen the management of the agri-food sector and cooperation across all relevant institutions to ensure a coordinated approach to achieving sector objectives and provide a path toward broader reforms.

GATE has in place multiple layers of mitigation measures to ensure efficient and transparent implementation of activities under World Bank supervision and following the bank’s procurement and financial management regulations and procedures.

A third-party monitoring agent will ensure all contracts implemented under GATE’s umbrella are effectively processed and implemented via regular verification missions and reporting processes, and an independent external auditor will audit all project operations.

The World Bank’s address concluded by saying that, as with all projects financed by the World Bank, a grievance redress mechanism will be established to ensure complaints are managed promptly and effectively.