Announcement of Nine Million Sixty Thousand US Dollars Credit to Madagascar for a Village Livestock and Rural Development Project on July 18, 1974

·/- INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 74/49 Subject: $9.6 million credit to Madagascar July 18, 19 74 for a Village Livestock and Rural Development Project. The International Development Association, an affiliate of the World Bank, has approved a $9.6 million credit to help finance a Village Livestock and Rural Development Project in the Majunga Province and Tsiroanomandidy sub-prefecture respectively located in the Northwest and Middle West of Madagascar. With three million cattle the project area covering about 16.2 million hectares is one of the principal breeding and fattening regions of Madagascar. The project will primarily benefit villages living close to subsistence level. At full development in 1986, the project will produce an additional 70,000 head of cattle (10,600 tons of meat) annually -- an increase of 27% for the project area. Output of pigs, rice maize, manioc and peanuts will increase. About 80% of the incremental beef production will be exported, providing net foreign exchange earnings totalling $10 million annually. Some 80,000 poor rural families consisting • of 400,000 persons in the Majunga Province will be assisted. Their per capita cash incomes will increase from $20 to $30 a year. In the Middle West Zone, per capita incomes in 40 villages (8,000 persons) will increase from $35 to $65 a year. The project will provide a broadly based program to assist traditional livestock and rural development in the project area. It includes development of an intensive veterinary and livestock extension service; improvement of 10,000 hectares of connnunal pasture for about 200 villages, construction of water facilities for 300 villages; improvement or construction of 170 km and maintenance of about 280 km of secondary and tertiary roads; construction of 28 village schools and an agricultural training center and provision of 8 mobile health units; three pilot development programs in the Middle West Zone namely an extension, veterinary and connnunity development program, a beef-share-fattening program and a pig production scheme; and provision of technical services, training, project monitoring and evaluation, and preparation of follow-up projects. The. project will be carried out by the Department of Livestock within the Ministry of Rural Development, wit,'1 the assistance of FAFIFAf.'f.A a newly established livestock unit in the Majunga Province and OMBY and ODEMO in the Tananarive Province. The total cost of the project is estimated at $12.8 million. The Government contribution is estimated at $2.3 million; the villagers will contribute about $1.50,000~ The IDA credit of $9.6 million will cover the foreign exchange and part of the local costs. It is made to Madagascar for 50 years, including 10 years of grace, without interest, except for a service charge of 3/4 of 1% to cover IDA's administrative expenses • • Note: Money figures are expressed in US dollar equivalents.  July 18, 1974 T E CHN I CAL DAT A · . , HTRY: L COST: Livestock and Rural Development project Madagascar $12. 8 million • lNANCING: $9.6 million., for 50 years including 10 years of grace, interest free, except for a charge of 3/4 of 1% to cover IDA's administrative costs. 51GING: Government, $2.3 million Villagers, $150,000 i"fr.Li ,ffJN<.-; ORGANIZATION: FAFIMA in the Majunga Province and OMBY assisted by ODEMO in the Tsiroanomandidy sub-prefecture, both under the direct responsibility Li.vestock Department of the Ministry of Rural Development, Tananariv·e, Madagascar. t:)1'f,,,H,Gi' DESCRIPTION: (a)Development of an intensive veterinary and livestock extension service; (b)Improvement of 10,000 ha of communal pasture for about 200 villages the fntroduction stylosanthes.(c)construction of water facilities for about 300 villages; d} unprovement or construction of about 170 km and maintenance of about 280 km of secondary and tertiary roads. (e)construction of 28 village school and of an agricultural training center, and provision for eight mobile health units. (f)three pilot development programs in the Middle West na~ely an extension, veterinary, and community development program, a beef-share-fattening f {,}p~am, and a pig production scheme; and (g) provision of technical services' training' proj e a ,~ti:11:.:J:'ri.ng and evaluation, and preparation of follow-up projects. • Only the contracts for vehicules and equipment of the amount of $2.4 million will be awarded after international competitive bidding. GOW:itJLTANTS: Two senior veterinary advisers, one animal production advise~ one pig production adviser will be recruited to assist in implementing the project. r.ST I MATED COMPLETION DATE: June 30, 1979 •