Implementing Agency:
Department For International Development (LACAD)

Managing Institute:
ITDG (Intermediate Technology Development Group)

Contractor:
ITDG (Intermediate Technology Development Group)

CEPCO

INPET

Project Code: 122-508-002	Start Date: 01/03/96	End Date: 01/02/99
Commitment: £771,771	Status: Current	Type of Funding: Bilateral - TC

Project Background:
In the 1970s (and for some time prevously) communities in the San Martin region produced a diverse range of crops and livestock for both their own and market consumption. A combination of government subsidies for rice and maize, and immigration of people from the high plateau, used to very different farming systems, led to a concentration of single crop types. With the loss of central control in the rural areas and loss of state subsidies for maize and rice, the production of coca began to rise.

In the past two years, terrorist activity has declined to zero in all populated parts of the region and central government has undertaken concerted action against coca growing and export. This has significantly reduced the income form coca production in the region and has left many poor households seeking alternative farming options in what has become a seriously degraded environment.

Project Objectives:
The project aims to generate income and employment and to reduce environmental degradation in five districts of the San Martin region of Peru. Three NGO's will assist the development of small scale agro-industry.

Intended Outputs:
The development of at least 24 viable agro-industrial enterprises across the project area.

Delivering environmental education to all schools in the 4 rural districts.

Reforestation of degraded riverine and hillside areas by the 4 rural communities.

Sustainable crop production in, and reforestation of, 120 family smallholdings (chacras).

Dissemination of experience gained by the project to other institutions doing related work.

Strengthening the regional network of government, private and NGO institutions working towards replacement of coca production with environmentally-sustainable alternatives.