MEMORANDUM OF AGREEMENT

 

Memorandum of Agreement (MoA) between the Ministry of Agriculture, Fisheries and the Environment’s Young Farmers Programme, (hereinafter referred to as MOAFE-YFP), and the National Development Foundation of Dominica (hereinafter referred to as NDFD).

 

Whereas:

 

1.      Under the MoA between the MOAFE-YFP and the NDFD, a Young Farmer Agricultural Credit Scheme, hereinafter Credit Scheme (CS) has been established.

2.      The NDFD has agreed to administer the facility on behalf of itself and the MOFE-YFP by providing agriculture credit to selected participants.

3.      The MOAFE-YFP has made an initial amount of one hundred and fifty Eastern Caribbean dollars (EC$150,000) available to be used for the Credit Scheme.

4.      The NDFD has agreed to provide additional funds for requests above the maximum of ten thousand (EC$10,000) available per Participant. Interest rates on the additional funds to be determined by NDFD.

Have agreed as follows:

 

To execute the resources of EC$150,000 earmarked within the Young Farmers Programme (YFP) utilizing the resources from STABEX 96/97 Agricultural Diversification Programme (ADP), for the establishment of a special Young Farmer Agricultural Credit Scheme (see Annex 1).

The CS will be governed by the following articles of agreement:

Article 1 – Definitions

 

Section 1.1 – Wherever used in this MoA, unless the context shall otherwise require the several terms and expressions shall have the same meaning as outlined below:

a)     Young Farmers Agricultural Credit Scheme (CS) – a special financing established by the Ministry of Agriculture, Fisheries and the Environment in collaboration with the National Development Foundation of Dominica (NDFD) to negotiate, secure and administrate funds for providing short-term credit with the aim of improving the availability and access to credit by youths engaged in agriculture. A maximum of ten thousand dollars (EC$10,000) will be made available to selected participants at a discount rate of 5.5% per annum. Such interest earned to be used by the NDFD for management of the faculty.

b)     Selection Committee (SC): A sub-committee of the Programme Steering Committee (PSC) established by the PSC Chairman to select screen and approve business proposals submitted for financing under the Credit Scheme (CS).

c)       Participant: Any young person or group engaged in the Agriculture, Fisheries, and Forestry sectors between the age of 18 – 35 years having submitted a Business Plan or proposal for consideration under the Credit Scheme.

d)     Agri-Enterprise (AE): An agricultural and related agribusiness that is planned for the production and/or marketing of differentiated farm products or commodities.

Article II – Implementation

 

Section 2.1 – Overall Objectives

 

The Young Farmers Programme seeks to identify special young farmers to participate in the Credit Scheme thus

a)     Improving institutional support service in agriculture for young persons;

b)     Strengthening the technical capacity of youth to engage in agricultural development activities;

c)      Improving youth access to critical financial resource that seeks to increase and enhance their participation in agriculture.

Section 2.2 – Eligibility Criteria

 

Participants who fall within the target group must meet the selection criteria (see Annex 2) in order to access the facility.

Section 2.3 – Application Process

 

Each Participant will submit an application for credit to the selection committee. The application should include:

a)     A business/farm plan or proposal based on a selection criteria (see Annex 3) which includes details or arrangements for land, labour, equipment, and marketing.

b)     An application form filled and submitted to the selection committee (SC).

c)      A recommendation from the extension, forestry or fisheries officer from the agricultural region where the farm/business will be located.

d)     Evidence of previous agriculture related training.

 

Article III – Administrative Responsibilities

 

Section 3.1 – NDFD

 

a)     The NDFD is responsible for the management of the funds based on the lending policy of the CS (See Annex 4) institutional requirements for securities on these loans. All other institutional procedures and regulations of the CS lending, governing the application, approval, disbursement, monitoring, and collection of the Credit Scheme will apply.

b)     The NDFD shall maintain a separate account for depositing funds disbursed by the MOAFE-YFP and principal repayments from borrowers under the Credit Scheme. This account will be called the Young Farmers Agricultural Credit Fund, which will attract normal interest rate for the enlargement and benefit of the scheme.

c)      The management of the scheme will carried out by the Executive Director of the NDFD assisted by the NDFD projects staff with the support from the NDFD Accountant and its technical and administrative staff.

d)     The NDFD Project Officer will ensure full collaboration and close liaison with the Programme Steering Committee (PSC), YFP Manager, and the YFP – SC for the timely implementation, administration and impact of the Credit Scheme and will serve as representative of the NDFD at PSC and SC meetings.

e)     The NDFD shall ensure that all records (contracts, purchase orders, invoices, bills, receipts, and other relevant documents) evidencing disbursement of funds are retained and copies submitted to the YFP on a quarterly basis.

Section 3.2 – MOAFE – YFP

 

a)     The MOAFE – YFP will provide training and project implementation guidance while production and market support and monitoring services will be sought for Participants through the MOAFE, DEXIA, IICA, and other supporting institutions.

b)     The Young Farmers Programme Manager in collaboration with the Selection Committee (SC) will screen all applications and submit recommended applications for consideration by the NDFD, which will arrange for the necessary interview and determination of the feasibility and approval of request.

c)      The MOAFE represented by the Programme Steering Committee (PSC) and the YFP Manager shall make available funding of EC$150,000.00 to be disbursed in three (3) successive tranche of EC$50,000.00  to NDFD.

d)     The YFP will continue to seek and negotiate additional funding for the growth and enlargement of the Credit Scheme.

Section 3.3 – Participating Farmers

Beneficiaries are required to

a)     Sign a loan agreement with the NDFD for the use of funds.

b)     Maintain records and details of transaction financed under the scheme and submit simple statements of accounts in respect to their business/farm operations.

c)      Provide access to MOAFE-YFP and NDFD personnel for the purpose of monitoring and evaluating their agrienterprises.

d)     Commit the managerial resources and seek the technical support required to ensure full implementation of the agrienterprises and proper use of funds received under the Credit Scheme (CS).

 

 

Article IV – Reporting, Review and Financial Audits

 

Section 4.1 – Reporting

 

The NDFD shall provide reports and information on a quarterly basis to the MOAFE – YPF as reasonably requested concerning:

The number of requests/applications received/approved

a.      Number of approval/disapprovals

b.      Amount of credit  funds approved and disbursed

c.      Purpose or use of funds (Nature of Enterprise, Units, Acreage)

d.      Agricultural region of applicant operations and farm location

e.      Demographic information (age, sex, educational status, address)

Section 4 .2– Review

The NDFD through its representative on the PSC will fully participate in review exercises to be undertaken in the third (3^rd), sixth (6^th), ninth (9^th) and twelfth (12^th) months of the YFP, implementation schedule. These reviews shall focus on

                          i.      The progress on the administrative and implementation components of the scheme

                        ii.      The performance of the NDFD obligations under the MoA

                      iii.      The achievements of the specific objectives of this Credit Scheme (CS) with the view of providing the basis for continuation and the future structure of the scheme base on findings/recommendation emanating from these reviews.

                       iv.      Audits are performed by the EU Delegation; to facilitate such audit the NDFD and MOAFE-YFP shall furnish all information concerning the financial and administrative aspects of the Credit Scheme (CS) as the delegation may reasonably request.

Article V – Effect and Cancellation

 

Section 5.1    This agreement shall enter into force on the date on which this agreement is signed or upon receipt of funds by the NDFD, whichever is later.

Section 5.2    All amendments, additions or deletions shall be made to this MoA through mutual agreement and approval of the NDFD and the PSC, and endorsed by the Permanent Secretary (PS) of the MOAFE.

Section 5.3    This MoA and the responsibilities of the parties here within shall terminate upon full disbursement of the Credit funds once all conditions, reviews and reports outlined in Article II – IV are fulfilled by the respective parties as required.

Section 5.4    The NDFD may, after joint review, consultation and written notice and obtaining written agreement with the PS-MOAFE, cancel disbursement of any remaining amounts of the credit funds, which will be returned to the MOAFE.

Article VI – Dispute Resolution

 

Section 6.1    Any dispute with regards to or in connection with this MoA which cannot be settled by mutual agreement of the NDFD and the PS-MOAFE/ PSC within six months shall be settled by arbitration in accordance with the provisions of arbitration laws of the Commonwealth of Dominica.

Section 6.2    No delay in exercising any rights or remedy accruing to either party in connection with the Credit Scheme under this agreement shall be construed as a waiver of such remedy.

Article VII – Notice

 

Section 7.1     Any notices, requests or agreement between the parties to this agreement shall be in writing to the other one (1) month to that effect.

 

Article VIII – Signatures to Agreement

 

In witness whereof, the parties to this agreement, acting through their duly authorized representatives, have set their signatures:

           

1.            Executing Agency - National Development Foundation of Dominica (NDFD)

 

 

 

 

 

 

 

________________________________________                        _________

MR. BERNARD ETTINOFF (Executive Director)                                             Date

 

 

Witnessed by

 

 

 

 

__________________________________                                        __________________

Ms. Andrea Shillingford (Projects Officer)                                                           Date

 

 

 

2.      Programme Account Holder – Ministry of Agriculture, Fisheries and the Environment

 

 

 

 

 

__________________________________________                    _______________

DR. COLMORE CHRISTIAN (Permanent Secretary)                              Date

 

 

 Witnessed by

 

 

 

 

______________________________________                             _________

MR. OLIVER GRELL

(Chairman: Programme Steering Committee)