Announcement of Five Million Dollars Credit for Livestock Development in Papua New Guinea on November 2, 1972

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 72/61 Subject: $5.0 million credit for livestock November 2, 1972 development in Papua New Guinea The International Development Association (mA), an. ·affiliate of the World Bank, has approved a $5.0 million credit to help finance a livestock development project in Papua New Guinea, aimed at increasing beef cattle, pig and poultry production by smallholders. Under the project, medium and long-term loans will be provided for development of about 870 small beef breeding and fattening farms owned by individuals or groups, and for investments in pig and poultry farms. In addition, there will be an expansion in the livestock extension, education and research facilities of the Department of Agriculture, Stock and Fisheries (DASF). A new Livestock Farmers Training Center and an In-Service Training Center for DASF staff will be established. Potential loan applicants will be selected and screened by the Papua New Guinea Development Bank (PNGDB), and DASF, which will also assist in preparing loan applications. • Loans will be made through PNGDB, which lends to both indigenes and expatriates for the development of industry, commerce and agriculture. The Administration of Papua New Guinea (Goverrunent) has provided all of PNGDB 1 s capital, most of which has been financed by Australian Gov&rnment grants. Papua New Guinea, now administered by Australiaj expects to achieve self-government not before December 1, 1973 but as soon as possible thereafter. The country's economy is dependent largely on agricultural production. More than 10 million acres of land are suitable for cattle raising; livestock, though still a small industry, is growing rapidly. In 1970, part of an IDA credit of $5 million helped to finance the development and stocking of 150,000 acres of cattle ranches and the building of educational facilities to train livestock producers. In addition to helping diversify agricultural production, the project being assisted by the new IBA credit will create substantial additional employment, on the fanns and through the expansion of technical services, feed-grain production and marketing facili- ties. '.rhe output of beef, pig and poultry products will substitute for imports. Over the life of the project, the additional production is expected to result in net foreign exchange savings estimated at $15.5 million. The project is scheduled for completion in 1976 at an estimated cost of $9.8 million, of which $5 million will be covered by the IDA credit. The remainder of the cost will be provided by The Administration of Papua New Guinea, by participating farmers, and by BNGDB. • The Administration of Papua New Guinea will make available $4.6 million of the IDA credit to PNGDB for on-lending to smallholders. The remaining $400,000 of the credit will be used to finance part of the related Government technical services~ The Il)A credit is being ma.de to The Administration of Papua New Guinea. It is for a term of 50 years including 10 years of grace, and is free of interest. An annua1 service charge of 3/4 of 1% on the disbursed portion of the credit will be made to cover IDA's adminiatr.ot:l:v·e expenses,. - 0 - · ·  • November 2, 1972 TECHNICAL DATA PROJECT: Livestock development COUNTRY: Papua New Guinea TOTAL COST: $9. 8 million IDA FINANCING: $5.0 million, 50 years including 10 years of grace; interest free, except for a service charge of 3/4 of 1% to cover IDA's administrative expenses. OTHER FINANCING: The Administr~tion of Papua New Guinea (Govenunent), participating fanners, and the Papua New Guinea Development Bank (PNGDB). • IMPLENENTING ORGANIZATION: Department of Agriculture, Stock and Fisheries, Konedobu, Papua New Guinea, in conjunction with PNGDB, ANG Building, P.O. Box 550, Port Moresby, Papua New Guineae PROJECT DESCRIPTION: To help carry out the Government's livestock development program by providing credit to participating farmers engaged in beef cattle, pig and poultry production. Extension, training and research services and facilities will also be provided. PROCUREMENT: Purchases of vehicles, equipment, feeds and veterinary medicines will be made through regular commercial and Government channels. SERVICES: Items financed by the Government will include expatriate and indigenous staff. ESTIMATED COMPLETION DATE: 1976. - 0 - \ •