The World Bank Board of Directors approved a US$ 40 million loan today to improve the sustainability of industrial and artisanal fishing in Peru and to increase the productivity and diversity of the country’s aquafarming system. Through the National Program for Fishery and Aquafarming Innovation, the financing will contribute to enhancing Peruvian fishery and aquafarming value chains and to lessening dependence on fish catching.
Peru is one of the world’s leading producers of fish thanks to its geographic location, which enables the country to provide nearly 20 percent of global fish catches, particularly small species such as anchovy. That fishing has been crucial to the national economy, accounting for 7 percent of the country’s exports in the past decade.
This project is aligned with the two main goals of the Peruvian government in this area. The first is to develop the fishery and aquafarming sector to redirect the marine fishing strategy toward the relative increase of species other than anchovy while guaranteeing the sustainability of saltwater species. Second, the government is working to expand the marine and freshwater aquafarming system to promote investment through value chains to increase income, create jobs and improve the nutrition of the population, especially the low-income sector.
“This program will help promote innovation and sustainability of the Peruvian fishery and aquafarming system, support government efforts to stimulate development of the sector, and generate more jobs, economic income and food options for a large share of the population,” said Alberto Rodríguez, World Bank Regional Director for Bolivia, Chile, Ecuador, Peru and Venezuela.
The project will directly benefit more than 12,000 individuals, producers’ groups and small businesses involved in fishing and aquafarming, processing and distribution of aquatic species. It will also work closely with 10,000 institutions, non-governmental organizations, community organizations and government and international agencies that develop innovative fishery activities.
By increasing the sector’s competitiveness and sustainability, the project will contribute to reducing extreme poverty and provide new sources of employment and income for low-income fishermen and aquafarmers. It will also strengthen the governance of the sector through improved monitoring systems, as well as increased analytical capacities for policymaking.
The project has four components: promotion of innovation in the fishing sub-sector; promotion of innovation in the aquafarming sub-sector; strengthening of the National System for the Innovation of Fishing and Aquafarming, as well as of institutions and policies to improve governance of fishery and aquafarming systems; and, strengthening of the institutional and organizational capacity of the Ministry of Production’s Vice-ministry for Fishing and Aquaculture necessary to successfully implement the project.
The program has a total cost of US$ 120.9 million, of which the Ministry of the Economy and Finance will provide US$ 80.9 million. The project is scheduled for completion in 2022. The loan repayment period is 9.5 years, including a 5.5-year grace period.
