Announcement of Six Million Dollars Credit to Liberia for Agricultural Development on July 24, 1975

.world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA News Release No.75/56 July 24, 1975 $6 MILLION CREDIT TO LIBERIA FOR AGRICULTURAL DEVELOPMENT The International Development Association., an s.:ffiliate of the World Bank, is providing a $6 million credit for an agricultural development project centered on Voinjama, in Lofa County in iforthwest Liberia. The $17 million project aims at raising the income and improving the quality of life of some 8,000 of the poorest farm faiµilies in Liberia, each with average holdings of less than 4 hectares, through improved cultivation practices, better transportation, provision of reliable water supplies and disease control. The project will also help to establish sound, reliable institutional and technical support agencies for implementing this and future projects for smallholders. The Lofa County project is an integral part of a comprehensive rural de- • velopment program 'Which includes health, education and transportation, launched by the Liberian Government with the cooperation of several aid donors. The project will assist small farmers , who are among the poorest in Liberia, to improve and/ or develop 5,600 hectares of upland rice, 1,900 hectares of rC!:infed and irrigated swamp rice, 2,800 hectares of coffee and 2,300 hectares of cocoa. The project will also strengthen agricultural support services and institutional framework for agri- culture development; establish farm input delivery systems and improve existing infrastructure. Specifically, the project will include provision of seasonal and development credit to assist the project farmers; a schistosomiasis surveillance unit; construction of 100 village wells; construction and· operation of. staff and farmer training centers; recruitment and training of Liberians for extension, cooperative credit and project management; and the introduction of an agricultural credit system through new institutional arrangements. As~ result of the projectj the average net farm family income is estimated to increase from the present $313 to $913 by the year 1987 and the community as a whole will benefit from improved roads , banking, ed,ucation and health facilities. At project maturity 'in 1987, incremental annual production will a.mount to 7,300 tons of milled rice, 2,500 tons of coffee and 1,600 tons of cocoa, with a total foreign exchange benefit of $9. 3 million. The IDA credit is for 50 years including a 10 year grace period. It is interest free, except for a s~rvice charge of 3/4 of 1% to cover IDA 's administ:r.ati ve expenses. Note: Money figures are ·expressed in US dQllar equivalents.  T E CHNI CAL DAT A PROJECT: COUNTRY: Lofa County AgriculturaJ~ Development Project Liberia • TOTAL COST: $17 million IDA FINANCING: $6 million, IDA standard terms OTHER FINANCING: Government of Liberia (6 million) and USAID ($5 million). IMPLEMENTING ORGANIZATION: Project Management Unit-Ministry of Agriculture. Monrovia, Liberia PROJECT DESCRIPTION: The project will a) assist 8,000 small farmers to improve and/or develop 5,600 hectares of upland rice, 1,900 hectares of rai.nfed and irrigated swamp rice, 2,800 hectares of coffee and 2,300 hectares of cocoa; b) strengthen agricultural. support services; c) ·establish farm • input delivery systems through existing cooperatives; d) strengthen institutional frame- work for agricultural. development; and e) improve existing infrastructure. PROCUREMENT: Procurement ·of vehicles and equipment valued at more then. $25,000 and estimated to total $0.9 million ¥{ill be awarded through international competitive bidding. Domestically manu- factured goods will be allowed a 15% preference or tariff, whichever is lower, in bid comparison. Items costing between $5,000 and $25,000 will be procured through locally advertised competitive bidding procedures acceptable to IDA. .cteimburs ement of inter- nationally recruited staff and consultant costs ( $1. 5 million) will be made agains·t IDA approved contracts. Reimbursement of road maintenance costs, vehicle operating expenses, housing and other accomodation rents, and other operational costs ( total value $1.8 million) will be against certified documentation of IDA approved local procurement procedures. CONSULTANTS: Consultants will be retained to advise the the coffee and cocoa crop developme.nt program and the schistosomiasis surveillance program. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 26% December 31, 1980 •