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FADAMA II: BACKGROUND AND APPROACH 7


2. The group must be recognized as a legal civil association with a group constitution and democratically elected leaders consisting of at least a chairperson, secretary, and treasurer.


3. The group must have an active bank or savings account that is in good standing.


4. The group must supply a written commitment to a socially inclusive approach and to compliance with project guidelines and agreements.


5. The group must express interest in and commitment to the project and must apply for Fadama II support.


6. The group must make regular payment of the counterpart funds on a monthly basis.


7. The group must supply evidence of operational and active participation in an FCA or other organized EIG.


These criteria demonstrate that less-organized communities and those not in groups could not benefit from Fadama II subprojects. It is also likely that people living in remote areas where banking services are limited are less likely to benefit from Fadama II.3 The requirement to pay counterpart funds is also a barrier to the poor, particularly in the case of expensive projects, such as rural infrastructure, large processing machines, and irrigation infra- structure. To ensure the inclusion of women, the FCAs were required to have at least 20 percent female beneficiaries.


Project Goals and Components


The project set a target of 50 percent of all participating fadama resource users increasing their average real incomes by at least 20 percent compared with the baseline. The following five components were designed to achieve this goal: 1. Rural infrastructure investment to support creation of economic infra- structure and local public goods that would improve the productivity of households using fadama resources. Under this component, beneficiaries were required to pay 10 percent of the costs of constructing rural infra- structure, such as rural roads, culverts, market stalls, cold storage, bore- holes, and irrigation infrastructure.4


2. Pilot productive-asset acquisition support to enhance the productivity and income of fadama resource users by facilitating the acquisition of produc-


3 However, as discussed in Chapter 5, distance to all-weather roads did not have a significant


impact on the probability of participating in Fadama II. 4 Later we discuss some of the challenges encountered in collecting these co-payments and the subsequent adjustments made to these requirements.


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