Announcement of Ten Million Dollars Loan, Fifteen Million Dollars Credit to Turkey for Fruit and Vegetable Export Project on June 14, 1971

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM~NT • 1818 H INTERNATIONAL D:EVELOPMENT ASSOCIATION STREET, NW WASHINGTON D.C.20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No,, 71/45 Subject: $10.0 million loan, $15.0 mil- IDA Press Release No. 71/25 lion credit to Turkey for fruit June 14, 1971 and vegetable export project The World Bank and its affiliate, the International Development Association (IDA), have approved a $10.0 million loan and a $15.0 million credit, respectively, to meet the foreign exchange costs of a $44 million fruit and vegetable export project in Turkey. The project will improve production, collection, grading, packing, marketing and transportation and is expected to increase fruit and vegetable • export earnings from $20 to $50 million a year. It will also create new jobs for about 4,800 workers. Componen'ts of the project include two ferry ships providing twice weekly service from Izmir to southern Europe, 380 refrigerated trailers and 100 towing units, export handli-- facilities with a 150,000 tons capacity,. development of about 20,000 acres of fruit orchards by about 2,000 farmers and 150 acres of nurseries, as well as technical assistance, training and research. Agriculture accounts for most of Turkey's exports. Traditional products such as cotton, tobacco, hazelnuts, raisins and figs offer only limited prospects for expansion.· However, a good potential market exists in Europe for fresh fruit and vegetables. The project will provide the quality standards, continuity and timing of supply; an~ the marketing organization • to enable Turkey exports to meet· the demands of highly selective and competitive European markets. /t00re Bank P.R. No. 71/45 • IDA P.R. No. 71/25 - Turkey - fruit & vegetables - 2 - The Turkish climate and growing conditions are well suited for the project. They include a long growing season and cover the period when European prices are highest. The new facilities, together with the transport system, will put Turkey in a competitive position with other producers on the south and east shores of the Mediterranean. The World Bank Group financing is its sixth and largest for agriculture in Turkey, but the first in this particular sub-secto:(. The loan and credit are being made to the Government of the Republic of Turkey, which will make the funds available to the Agricultural Bank of the Turkish Republic (ABT). ABT, in turn, will relend to sub-borrowers for purchasing transport equipment; for erecting packing houses, cold storage, and box factories; and for on-farm development. The Bank loan is for 20 years, including a five-year grace period, at • 7!(/o. The IDA credit is for 50 years, including a 10-year grace period. It is interest free but carries a 3/4 of 1% service charge to meet IDA's administrative expenses. A new Fruit and Vegetable Export Project Unit within the Ministry of Foreign Economic Relations (Ankara, Turkey) will coordinate the project. - 0 - •