Announcement of Seven Million Fifty Thousand US Dollars Credit to the Republic of Chad for a Rice Irrigation Project on March 28, 1974

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 ·-nA Press Release 74/16 Subject: $7.5 million credit to the March 28, 1974 Republic of Chad for a rice irrigation project The International Development Association, an affiliate of the World Bank, has approved a $7.5 million credit to the Republic of Chad which, together with a loan of about $4 million from the African Development Fund (ADF), an affiliate of the African Development Bank, will help finance a rice irrigation project. The IDA and ADF financing will be directed to improving the conditions for rice growing in an area of 11,000 hectares of the Sategui-Deressia plain in south- east Chad. Rice growing is already be:ing undertaken by about 1,900 families in the area covered by the project. The project consists of the construction of a 6.2 kilometer canal from the • Logone River, two polders, 102 kilometer feeder roads to serve the project area, a 4-tons/hour rice mill and storage facilities, housing and office buildings. In addition it provides for the carrying out of research and seed multiplication, the provision of extension services. The project will be implemented by Office de Mise en Valeur de Sategui-Deressia (OMVSD), an autonomous authority created by Government under the Ministry of Public Works and Land Development. The authority will engage a management consulting firm to provide key management personnel: engineering consultants will be employed to prepare final designs and supervise construetion work. In addition, extension workers will be made available by the Ministry of Agriculture and further training would be provided for them at the agricultural station. The IDA credit and ADF loan are extended to the Republic of Ch~d for 50 years including 10 years of grace, interest free; however, a service charge of 3/4 of 1% will be paid. The proceeds of the IDA credit and ADF loan will be made available to OMVSD and will be repaid in 50 years including 6 years of grace, by annual in- stallments of CFAF 90 million which will yield 1.4% per annum interest on the loan. • Note: - 0 - Money figures are expressed in U.S. Dollar equivalents.  • TECHNICAL DATA PROJECf: Sategui-Deressia rice irrigation project COUNTRY: Republic of Chad TOTAL COST: US$12 million IDA FINANCING: $7. ~ million, for 50 years including 10 years of grace interest free charge of 3/4 of 1% to cover IDA's administrative cos.ts. OTHER FINANCING: African Development Fund (ADF), 4 million ADF units of anxnm.t (equivalent approximately to a little over US$4 million) IMPLEMENTING ORGANIZaTION:Office de Mise en Valeur de Sategui-Deressia (OMVSD) PROJECI DESCRIPTION: - construction of two polders irrigated by gravity and • serving a net rice cultivated area of 4,000 ha; - construction of 102 km of feeder roade to serve the whole project area of 11,000 ha; - rehabilit'ation of an existing agricultural station to permit applied research and seed multiplication; - construction of a 4 ton/hour capacity rice mill, storage facilities, housing and officesn and - feasibility studies for a second-stage project. PROCUREMENT: - All civil works to be financed by IDA, estimated at US$6.5 million, will be procured under international competitive bidding in accordance with IDA guidelines: small of the - shelf items costing less than $5,000 each and not 2xceeding $50,000 in aggregate value will be pur- chased through normal Government P.rocedures. CONSULTANTS: Management Consultants will be retained to provide expatriate personnel for five key positions in OMVSD; engineering consultants would be engaged to help prepare final designs and bidding documents and to supervise construction works. ESTIMATED COMPLETION DATE: June 1980 •