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USAID and Shell Launch $20 Million Nigerian Development Program


WASHINGTON, DC 20523
PRESS OFFICE
http://www.usaid.gov/
Press: (202) 712-4320
Public Information: (202) 712-4810

2003-095

FOR IMMEDIATE RELEASE
November 14, 2003

Contact: USAID Press Office

Washington, DC -- The United States Agency for International Development (USAID) and the Shell Petroleum Development Company of Nigeria Limited (Shell) announced they are to be partners in a $20 million sustainable development program in Nigeria. The agreement was announced in Washington D.C. by Andrew S. Natsios, USAID Administrator, and Sir Philip Watts, Chairman of the Committee of Managing Directors of the Royal Dutch/Shell Group of Companies.

The partnership is one of the largest country-specific agreements under USAID's new business model, the Global Development Alliance, which promotes public-private partnerships to implement sustainable development programs around the world. By partnering with the private sector, in addition to developing country governments and non-governmental organizations, USAID is able to extend its reach and effectiveness in responding to new global challenges.

Shell will contribute $15 million over the next five years to the partnership and USAID will contribute $5 million. The partnership's program will aim to help build capacity and opportunity for Nigerians in the strategic areas of agriculture, health, and small and medium size enterprise. USAID and Shell initially plan to focus their work on food security through a cassava cultivation support program; the prevention of malaria; and supporting the shrimp export industry.

The cassava project is expected to be the first to commence, with start-up by the end of 2003. Its aim is to provide greater income for cassava farmers in 11 Nigerian states. The program will improve technology transfer to address cassava mosaic disease and to develop cassava processing. It will also help identify further commercial markets for cassava, such as ethanol production, livestock feed and use in baking. In addition to being a staple food, starch from cassava is already used in other industries including textile manufacturing.

The cassava project will be implemented by the International Institute of Tropical Agriculture in Ibadan, an international agricultural research centre which has successfully implemented USAID and other cassava programs. The institute is also a key partner with the Government of Nigeria in the implementation of the Nigerian Presidential Cassava Initiative.

Sir Philip Watts said today, "Shell already spends about $60 million annually in the Niger Delta on its well-established social investment program. I am proud that Shell will now be able to extend this important work with USAID. I am confident that our program together will make a significant contribution to socio-economic development in Nigeria and in the Niger Delta in particular."

Mr. Natsios said, "Investing in people is perhaps the single most important factor in achieving long-term economic growth. USAID is proud to partner with Shell in the Delta region, particularly as we embark on implementing a new $350 million, five-year program of development and capacity building throughout Nigeria."

USAID provides $65-70 million annually in development assistance to Nigeria in the areas of democracy and governance, economics and agriculture, education, health and HIV/AIDS.

The Shell Petroleum Development Company of Nigeria Limited was incorporated in 1937 and is the oldest and largest producer of oil and gas in Nigeria. Shell in Nigeria spends some $60 million each year on social investment, assisting communities to develop agriculture and social infrastructure including community health and educational facilities.


The U.S. Agency for International Development has provided economic and humanitarian assistance worldwide for more than 40 years.

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