Announcement of Three Million Seven Hundred Thousand Dollars Credit for a Rice Irrigation Project in the Federal Republic of Cameroon on January 27, 1972

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 72/9 Subject: $3.7 million credit for a rice January 27, 1972 irrigation project in the Federal Republic of Cameroon A World Bank Group project aimed at improvements in the standard of living and featuring a fourfold increase in the cash income of some 2,800 farm families in ·.:ameroon will be assisted by a credit equivalent to $3, 7 million approved today by t~e International Development Association for an estimated $7.6 million rice irrigation p1oject. Cameroon's Third Five-Year Plan accords a privileged place to the agricultural sector which is the mainstay of the economy and employs about three-fourths of the country's labor force. Agricultural modernization and improvements are planned by the Government to respond to the need for increased production of domestic foodstuffs and livestock, a3 well as increased production for export. Rice production deserves high priority among food crops because of increasing consumption and rapid growth in urban population. Cameroon has been shown to have good rice-·growing potential in certain areas. A feasibility study was prepared, financed • by the French bila~eral aid agency (FAC), and assisted under the FAO/IBRD Cooperative Program for increased rice production in northern Cameroon, where 70% of the country's rice output is produced. It is anticipated that in addition to the primary aim of improved rice prodYction for local consumption the project will, at full development, permit the export of 20% of the incremental production to neighboring countries. The project includes provision for reinforcement of the 30-mile Logone dike and improvement of a parallel road, construction of four pumping stations, rehabilitation of 3,200 acres of existing irrigation and drainage networks, the construction of new networks to serve about 7,400 acres on-farm development works, and the construction of a rice mill with an annual capacity of 10,000 tons of paddy. Farm machinery and the expansion of management and extension services will also be provided. The project is located on the west bank of the Logone River, in the Yagoue district, Cameroon.-'s largest rice-growing area. Responsibility for implementation of the project will be with SEMRY (Societe d 1 Expansion et de Modernisation de la Riziculture a Yagoua) established by the Cameroon Government for modernization and expansion of rice production, and recently reorganized under the Federal :Ministry of Planning. The IDA credit is to the Federal Government of Cameroon for a period of 50 years, including a 10-year grace period; it is interest free except for a 3/h of 1% service charge to cover IDA 1 s administrative expenses. The Government will pass the proceeds of the credit on to SE11RY, approximately $500,000 as a grant and the remaining $3.2 • million as a loan • - 0 -  January 27, 1972 • TECHNICAL DATA PROJECI: Rice irrigation COUNTRY: The Federal Republic of Cameroon TOTAL COST: $7. 6 million IDA FINANCING: $3.7 million, 50 yearsj 10 years of grace,no interest, service cha:rge of 3/4 of 1%. OTHER FINANCING: Arrangements have been made for financing and relending to SEMRY (Societe d'Expans:f.on et cle Modernisation de la Riziculture a Yagoua). FAC is contributing to local and foreign costs of $1.3 mil- lion and CCCE and the Government are contributing to local costs of • 14% an.d 20% respect! vely. IMPLEMENTING ORGANIZATION: SEMRY will have responsibility for implementa- tion. PROJECT DESCRIPI'ION: Provision of controlled water ::;upply by reinforce•nt of the Logone river dike, construction of pumping stations, irrigation and drainage networks, construction of a rice mill and related buildings, execution of on-farm developDM:!nt works, provision of equipment, engineering and supervision. PROCUREMENT: Civil works, rice mill and storage facilities, farm equip- ment, management and extension services and consultants. All equip- ment and civil works contracts will be rendered on the basis of international competitive bidding. CONSULTANTS: Suitably qualified and experienced consultants will be employed to help SEMRY prepare final designs, tender documents and to supervise execution of civil work contracts and on-farm works. ESTIMATED COMPLETION DATE: 1975 - 0 - •