Announcement of Four Million Five Hundred Thousand Dollars Credit to Senegal for an Irrigation Project on December 21, 1972

,j • INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 72/71 Subject: $4.5 miJlion credit to Senegal December 21, 1972 for an irrigation project The Intemat:!.onal Development Association (IDA), an affiliate of the World Bank, has approved a $4.5 million credit ·for the Republic of Senegal to help finance an irrigation project in the polders of the Senegal River. Agriculture plays a central role in Senegal's economy; it employs over 70% of the total labor force, and contributes more than 30% to gross domestic product. The agricultural sector is primarily dependent on a single crop, groundnuts, which produces about 60% of the total value added of the sector. The product1.on of groundnuts is severely restricted by ecological conditions; in addition, in the years following independence the Government assigned low priority to agriculture in distributing public investment programs and current budget expenditures. • However, during the Third Plan period (1969/70-1972/73), the govenunent undertook several programs to meet the most urgent needs of the rural sector; and the forthcoming Fourth Plan (1973/74-1976/77) aims at expanding and intensifying these efforts. The main aspects of the new govenunent strategy for agricultural development is directed at increasing productivity of ground- nuts and millet, developing under-utilized land in the southeast and diversify- ing agricultural production. Rice, the second most important food in Senegal, cotton and vegetables are the most promising crops for further agricultural diversification. Depend- ing on climatic conditions, domestic production of rice has been around 10011000 tons while r:f.cP rnnculfll~H rm hsaA t!!~reas.ed steadily rca.ch:!.ug 400,000 tons in 1971, making Senegal West Africa's largest importer of rice at an annual foreign exchange cost of about $25 million. About 80% of domestically-produced rice is grown in the Casamance Region. The first IDA project of $3.7 million gave support to the government policy in that it would contribute to rice pro- duction in Casamance. But the Casamance region alone cannot meet Senegal's • projected ric.e demand, and additional production is required elsewhere, mainly along the Senegal River in the North, where conditions for producti,m are favorable and where population.is relatively dense with few alternative oppot·tunities for productive employment. /more  ' • IDA P.R. No. 72/71 -- Senegal -- irrigation T - 2 - . The project now being-· financed, involves expansion of areas under irri- · gated rice, cultivation with modern techniques and development of a new approach for double cropping of rice and vegetables under irrigation. It consists-of~ constructing a new irrigation system at Dagana permitting the year-round cultivation of 6,750 miles improving water control in' the Debi cuvette and increasing the area irrigated from 640 acres to 2,530 acres; and improving water control in the seven cuvettes forming the Lampsar subproject and increasing the area irrigated from 2,170 acres to 2,670 acres. The project also includes strengthening the Societe d'Amenagement et d'Exploitation des Terres du Delta (SAED), construction, equipping and staffing of a training center at Dagana for SAED personnel and farmers, expansion of the SAED farm machinery pool to permit provision of land preparation serv-lces to farmers using land developed under the project, and a reRearch program to be carried out in collaboration with Institut de Recherches Agronomiques T~opicales (IRAT) to support agricultural operations at Dagana. The total cost of the project is estimated at $7. 4 million equivalent. • The IDA credit of $4 .5 million will finance the foreign exchange requirements of $3.0 million and part of the local costs. The credit will be for a term o~ 50 years including a 10 year grace period. It will be free of interest but a service charge of 3/4 of 1% will be made to meet IDA's administrative expenses. The project will be carried out by SAED, an autonomous agency responsible to the Ministry of Rural Development. SAED is charged with development of the Delta area through constructing and maintaining water control works and by providing extension, land cultivation, credit and marketing services, and rice processing facilities. Goods and services financed under the IDA credit will be procured through international competitive bidding. The project is expected to be completed in January 1976. - 0 - • 1,· • • PlllJECl: River polders TECHNICAL DATA December 21, 1972 CX>UNTRY: Senegal TOTAL CX>ST: $7.5 million IDA FINANCING: $4.5 million, 50 years, 10 years of grace, interest free except for 3/4 of 1% setvice charge to cover IDA's administrative costs, OTHER FINANCING: Govemment of Senegal IMPLEMENTING ORGANIZATI<E: Societe d'Amenagement·et d'Exploitation des Terres du Delta (SAED), Boite Postale 74, St. Louis, Senegal. PROJEcr DESCRIPTION: Constructing a new irrigation system at Dag.ans1 permitting the year-round cultivation of 6,750 acres; improving water: control in the Debi cuvette and increasing the area irrigated from 640 ac!res to 2,530 - acres; improving water control in the seven cuvettes forming the Liampssr subproject and increasing the area irrigated from 2,170 acres to 2,670 acres; strengthening SAED with staff, facilities and equipment t:c, carry • out the project and to provide support for farmers who use lm1d developed under the project; constructing, equipping, and staffing a training center at Dagana for SAED personnel and for farmers; carrying out, through collaboration with Institut de Recherches Agronom.:l.ques Tropicales (IRAT), a program of applied research to support agricult1;Lral operations at Dagana; and expanding the SAED farm machinery pool to Jpem:Lt land preparation services to farmers using land developed under the project. PBOCUREMENT: Intemational competitive bidding will be uaed to let civil works contracts anounting to $5.0 million, and to procure pumping station and hydraulic equipment, tractors, and tools costing about $0.9 million. C.Ontracts for construction of houses and offices ettimated to cost $0.25 million will be let by local competiti-,,e bidding, as will be selected contracts for minor on-farm development works. Vehi,cles ,, mot oz cycles, furniture, office equipment, tools, and other small equ1.pment, valued at a total of $0.08 million, will also be procured by local competitive bidding. Civil works contracts will be broken into sizes small enough for local contractors to execute. Contractors, whether local or foreign, will be permitted to bid for all or any of the contract.a. TECHNICAL ASSISTANCE: Provided by IRAT to carry out a program of applied research to support agricultural operations at Daga11a. tSTIMA:rEp COMPLETICE DATE: January 1976~ ~ - 0 -