Turkey - Intensive Dairy Production Project

RESTRICTED FILE COPY Report No. P-89 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF TURKEY FOR AN INTENSIVE DAIRY PRODUCTION PROJECT February 3, 1971 FlTrronA M;ellio WnQt qnil Nnrt*h Afrirn M-nirtmpnt  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMU4ENDATION OF TIHE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF TURKEY FOR AN INTENSIVE DAIRY PRODUCTION PROJECT 1. I submit the following report and recommendation on a proposed credit in an amount in various currencies equivalent to US$h.5 million to the Republic of Turkey. PART I - HISTORICAL 2. The Government of Turkey has asked the Bank Group to finance several interrelated livestock projects, all of which are part of a program for livestock development in Turkey's Second Five-Year Plan 1968-72. The proposed Intensive Dairy Production project was the first project to be ready for appraisal. A second livestock project is being prepared. The proposed credit would be the twenty-first Bank/IDA operation in Turkey and the fourth for agriculture, as IDA has already extended two credits, and the Bank two loans, for irrigation in the Seyhan area and for grain silos. 3. The project was appraised in September/October 1969. Nego- tiations with representatives of the Government and the Agricultural Bank of the Turkish Republic (ABT), started in Washington on May 19, 1970. The Government was represented by Mr. Ahmet Tufan Gul, Economic and Financial Counselor of the Turkish Embassy, Dlr. Orhan Ozdural, Director General of Livestock Development Projects of the Ministry of Agriculture, Mr. M. Peker of the State Planning Organization, Mr. Teoman Koprululer, Financial Counselor of the Ehbassy, and Mr. Onur Gokce, First Secretary of the Embassy. The ABT was represented by its Secre- tary General, Mr. N. Parman. Negotiations were temporarily adjourned on June 5, 1970, to enable the Turkish delegation to discuss several outstanding issues in Ankara. The economic stabi].ization program introduced by the Government on August 10, 1970, affected some of the issues which further delayed the processing of the project. Su`'sequently, discussions about the proposed credt continued th::cough correspondence and missions to Ankara in Sewp-ember and in Decam>er 1970. Final agreement on the credit eiccuTncnts was reached in mid-January 1971. 4. The following is a summary statement of Bank loans and IDA credits to Turkey as at December 31, 1970:  -2- Loan or Credit Amount (US$ million) NuTtnber Year Borrower Purpose Bank IDA Undisbursed Six loans and four credits fully disbu-sed. 60.7 31.h - 59 TU 196b Republic of Turkey Second Cukurova - 2LA.0 2.6 Power 75 TU 1965 Republic of Turkey Industry - TSKB - 10.0 h6l TU 1966 TSKB - Industrial Industry 10.0 - Developnment Bank of Turkey 91 TU 1966 Republic of Turkey Industry - TSKB - 14.9