Announcement of Seven Million Fifty Thousand US Dollars Credit for Irrigation and Rural Development Project in Jordan on July 5, 1974

.INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 74/44 Subject: $7.5 million credit for irrigation July 5, 1974 and rural development project in Jordan. A $7.5 million credit has been approved by the International Development Association (IDA), an affiliate of the World Ba~k, to help finance the Northeast Ghor Irrigation and Rural Development Project. The project is part of a larger 4evelopment scheme for the entire Jordan Valley (East Bank), which aims at developing irrigation and providing rural development facilities to increase production and narrow income distribution disparities. Other parts of the overall project will be financ.ed by USAID, Kuwait Fund, and the German Federal • Republic • The project consists of agricultural development of 7,700 hectares, of which 6,600 hectares are already under irrigation; development facilities for domestic water supply, health education, roads and conununity development to benefit the project population of 25,000 and the provision of agricultural credit to the Agricultural Credit Corporation (ACC) to finance a mobil~ sprinkler equipment, other farm machine,:y and inputs. At full development, by 1983, the annual agricultural production will almost double due to increased production of high value fruits and vegetables. Significant social benefits and institutional improvements are expected and higher income and employment for about 1,700 farm families, all of which will reduce incentives to urban migration. The Food and Agriculture Organization of the Un~ted Nations (FAO) joined the Bank in identifying and preparing the project under the Bank/FAC> Cooperative Program. The IDA credit will be for 50 years, including 10 years of grace, interest free, • except for a charge of 3/4 of 1% to cover IDA's administrative expenses • Note: Money figures are expressed in US dollar equivalents. PROJECT: T E CHN I CAL Northeast Ghor Irrigation Project DAT A July 5, 1974 • COUNTRY: Hashemi te Kingdom of Jordan TOTAL COST: $17.429 million IDA FINANCING: $7 .5 million, for 50 yearf;, including 10 years of grace, with interest free, except for a charge of 3/4 of 1% to cover IDAls administrat,ive expenees. OTHER FINANCING: Gove:m.tnen t IMPLEMENTING ORGANIZATION: Jordan Valley Canmission ( JVC) PROJECT DESCRIPTION: Project is part of a larger development scheme for entire Jordan Valley (East Bank) -- other parts will be financed by German F'aderal Republic., USAID and Kuwait Fund. Project consists of {a) agricultural developnent of 7. 700 hectares, of which 6,6oo are already under irrigation (b) development facilities for domestic water supply, health, education, roads and coJ111IW1ity developnent to benefit the project .~ popilation of 25,000, and (c) provision of credit to Agricultural Credit Corporation (ACC) tAflll' finance the agricultural credit requirements in the project area for mobile sprinkler equipnent, other farm machinery and inputs. Project works include two diversion weirs and siltation reservoirs, 55 km of pipeline network for sprinkler irrigation, a total of 2,760 hectares, 30 km of farm roads, land levelling of 3000 hectares, tile d1.•ainage of 520 hectares; rehabilitation works on East Ohor Canal, two assembly markets and packing and grading stations, treated water for construction of 10 villages, 3 new health centers, 150 classrooms, improving 60 kll or roads and about 10 community developnent centers. PROCUREMENT: '!he irrigation works and the main system of rural water supply grouped into one contract, (US $5.5 million before contingencies) and contracts tor procurement of equipnent and materials exceeding US $10,000 in value {US $3.4 million before contingencies) would be awarded after international competitive bidding in accordance with ID.A's guidelines.. Dane8tic suppliers would receive a preference equivalent to existing import duties or 15 per cent of the c.i.f. cost, whichever is the lower. Other works (US$1.8 million) would be awarded aooording to local competitive bidding in accordance with the Government procurement procedures. CONSULTANTS: '!be borrower is finalizing a contract with NEDECO {•etherlands) and Dar el Hand.as.ah (Lebanon) for design and construction supervision of irrigation works. JVC will eecond local engineers and other staff to work with .the eoneul. ting finns who will provide in-aervice training them. ESTIMATED COMPLETION DATE: March 1977 for civil works and June 1978 for on-farm development • •