Announcement of Two Million Two Hundred Thousand Dollars IDA Credit for a Livestock Development Project in Chad on February 17, 1972

• INTElll~TATIONAL DEVELOPl\ffiNT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 72/13 Subject: $2~2 million IDA credit for February 17, 1972 a lives tock development project in Chad A $2. 2 million C'redit approved today by the International Development Association, an affiliate of the World Bank, will contribute to a $3.5 million livestock development project in the heart of landlocked Chad designed to support Government efforts to stimulate expansion of the livestock industry, and increase foreign exchange earnings. Chad's predominantly agricultural economy depends on cotton exports, and livestock raising for local consumption and exports. Agriculture is the mainstay of most of the populatic.:,. and in order to improve de.velopment opportunities aT\d raise the stan<la.:rd of E,:ring of farm workers, the livestock industry requires expansion. ~ The recently established Ministry of Liv~stock, responsible for administration and development of the industry, is currently receiving financial and technical assistance for well construction, the opening up of grazing land, and other livestock services, from the European Development Ftmd (FED) and French assistance from the Fonds d'Aide et de Cooperation (FAC). The present project, which will supplement these existing programs, was identified under the World Bank/FAO Cooperative Program and includes provision for the construction of about .38 new wells and the repair of over 100 existing wells. Two well-maintenance units will be established in Chad's livestock producing areas, with responsibility for the upkeep of project wells and another 800 existing wellsa A livestock development unit -- established in 1969 by the United Nations Development Programme -- will be strengthened under the project. The IDA credit which represents the Bank Group's first assistance for agriculture in Chad, is being extended concurrently w~th a substantial grant from the United Nations Development Progrannne. The Government is responsible • for $750,000 of local costs • The borrower is the Republic of Clad and 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. - 0 -  • PROJECT: Livestock Development Project COUNTRY: Repub lie of Chad TOTAL COST: $3.4 million BANK FINANCING: $2.2 million, 50 years, 10-year grace period, interest free except for 3/4 of 1% service charge to cover IDA's administrative expenses. OTHER FINANCING: United Nation.s D<.~ve.lopm'=-nt Programme grant. IMPLEMENTING ORGANIZATION: Genie Rural, MiniGtere de 1' Elevage et de la • Connnercialisation de la Production Anim6Je~ de la Production des Eaux et Forets, de la Chasse et de la Peche, Fort Lamy, Chad. PROJECT DESCRIPTION: Project to supplement existing programs of well construction, opening up of grazing lands and supplies of other live- stock services provided by FED and FAC, by construction, repair and maintenance of wells, and strengthening of Livestock Development Unit. PROCUREMENT: Construction of 38 new wells; repair of 102 existing wells; establishment of two tmits to maintain 821 wells in the main livestock producing areas; and strengthtming of the Livestock Development Unit estabiished by UNDP in 1969. Vehicles and ancillary equipment amounting to about $370,000 to be purchased through normal commercial channels against applications verified by the Ministry of Finance. Construction and repair contracts to lowest bidder on the basis of international competitive bidding. CONSULTANTS: FAC technical assistance or consultant will be attached to the Well Maintenance Uni ts. UNDP technical assistance will be responsible for the carrying out of the special studies. ESTIMATED COMPLETION DATE: December 1974. • - 0 -