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(I) Financing Arrangement

The Orissa Tribal Empowerment and Livelihood Programme is being financed by the DFID support of USD 40 million contributing 44% of the total programme cost as grant and the IFAD loan of USD 20 million which contributes 22% of total programme cost as soft loan. WFP contributes USD 12 million (13% of the total programme cost) in the form of food assistance. The contribution from the Govt. of Orissa is USD 9.6 million (11% of the total programme cost). The beneficiary groups & communities contribute 9 million (10% of the total programme cost) in terms of there savings, voluntary labour contribution and funds for the maintenance of the assets created. The formal financial institutions will contribute USD 0.4 million.

(II) Programme Cost and Financing

The Programme is being jointly funded by IFAD, DFID and WFP in partnership with the Government of Orissa. The Programme proposes a long-term development intervention, in the northern and southern tribal belts of Orissa where poverty and deprivation are pervasive. The Programme would fall under IFAD's Flexible Lending Mechanism; DFID would place a Technical Cooperation fund and WFP would provide Food Assistance. OTELP would be implemented over a period of ten years divided into three phases. An initial Inception Phase (12-18months) would allow for deepening the understanding of governance issues and enable any necessary refinements to the modalities for implementing the Programme to be made.The total cost of the Programme, over 10 years, is estimated at USD 91 million. The proposed IFAD loan of USD 20 million would finance 22% of total Programme costs and the DFID grant of USD 40 million would finance 44%. Of the remainder, WFP would contribute USD 12 million (13%) in food assistance; the Government of Orissa, USD 9.7 million (11%); formal financial institutions, USD 0.4 million (0.4%); and the beneficiaries, USD 9 million (10%) in terms of their savings, voluntary labour contributions and funds for the maintenance of community infrastructure.



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