Announcement of Guinea Receives Seven Million Dollars Credit for Pineapple Industry on June 30, 1975

• lr'ITERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA News Release No. 75/47 June 30, 1975 GUINEA RECEIVES $7 MILLION C~EDIT FOR PINEAPPLE INDUSTRY The International Development Association (IDA), an affiliate of the World Bank, has approved a credit of $7 million to Guinea to help finance a pineapple development project. This is the first rural develop- ment project being financed by the World Bank Group in Guinea. An irrigated pineapple estate of about 420 hectares will be established under the project. It will be managed by Daboya, a new State enterprise created earlier this year. The project will also improve the road transportation and fruit handling services of Fruitex, the State fruit exporting company. There ·will be technical assistance for project management. Specialists will conduct research on pineapple production, transportation, and marketing. • The project will also provide pineapple growers near the Daboya Estate with a package of support services to help them increase their productivity. The estate will be established near Kindia in Lower Guinea, where climatic conditions favor production of a high quality pineapple. Apart from production of pineapples for export (about 600 to 900 hectares are cultivated for this purpose at present), agriculture in Kindia remains largely at the subsistence level. The Daboya Estate will help to guarantee a supply of high quality fruit for export and thus reverse the decline that has occurred in Guinea's pineapple exports over the last few years. The estate will also demonstrate an integrated approach to agri- cultural development which could be applied to other agricultural production activities and could be duplicated elsewhere in Guinea. In addition, the estate will serve as a center for extending modern farming practices in the region. ~he estate will develop basic cultivation techniques, engag0 in applied research, train personnel, and serve as a demonstration to indi- vidual pineapple growers in the area, the outgrowers; the estate will supply outgrowers with the broad range of support services necessary to improve pineapple cultivation. • The credit will be for a period of 50 years, including 10 years of grace, at no interest. A charge of 3/4 of 1% will be made to cover IDA's administrative expenses. Note: Money figures are expressed in US dollar equivalents.  T E CHNI CAL DAT A PROJECT: COUNTRY: TOTAL COST: Pineapple Development Guinea $8. 5 million • IDA FINANCING: $7 million at standard IDA terms OTHER FINANCING: Government of Guinea, $1.3 million; outgrowers, $0.2 million IMPLEMENTING ORGANIZATION: Entreprise Nationale Agricole de Daboya (ENAD), Fruitex (State fruit exporting company), and the Ministry of Rural Development, Conakry, Guinea PROJECT DESCRIPTION Construction of an irrigated pineapple estate o; about 420 ha to be managed by Daboya; provision of a package of support services to pineapple growers in ·the area surrounding the estate; strengthening of road and port transportation and fruit-handling system • of Fruitex, a wholly-owned Government fruit exporting company; implementation of a program of applied research and trials for pineapple production; transportation and marketing; supplying Daboya and Fruitex with specialists to carry out the ini- tial implementation of the project and providing Guineans with overseas training fellowships in irrigation, pineapple marketing and vehicle maintenance; technical assistance to the Ministry of Rural Development for studies of the rice &nd live- stock subsectors and the identification and preparation of projects in these sub- sectors. PROCUREMENT: All contracts over $50,000 for the procurement of vehicles, farm and irrigation equipment, electrical and mechanical plant, fertilizers and other farm inputs, and packing materials (totaling about $2.8 million) will be through international competitive bidding in accordance with IDA guidelines. Domestically manufactured goods will be allowed a preference of 15%, or the level of applicable import duty, whichever is lower. Contracts for the installation of the irrigation system, land clearing and construc- tion and rehabilitation of buildings ( totaling about $1. 2 million) will be indi vi du- ally too .small and too dispersed over time ( 5 years) to attract international con- tractors and will therefore be awarded on the basis of competitive bidding adver- tised locally and in accordance with procedures to be agreed with IDA. CONSULTANTS: An estimated 47 man-months are required for technical assistance in planning the rice and livestock subsec- tors, and about 80 man-months in relation to research, irrigation and the marketing • and transport studies. ECONOMIC RATE OF RETURN: 18% ESTIMATED COMPLETION DATE: December 31, 1980