Announcement of Ten Million Dollars for Integrated Agricultural Development in Sierra Leone on May 1, 1975

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT. ASSOCIATION 1818 H STREET, NW. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank News Release No. 75/29 IDA News Release No. 75/20 May 1, 1975 $10 MILLION FOR INTEGRATED AGRICULTURAL DEVELOPMENT IN SIERRA LEONE The World Bank and its affiliate, the International Development .Asso- ciation (IDA), are providing $5 million each for an integrated agricultural development project in Sierra Leone. Agriculture accounts for 75% of Sierra Leone's national employment and 16% of its exports, but has been growing only at an annual rate of 1.6%. This has caused a decline in per capita income in the rural areas and heavy d2pendence on food imports. Sierra Leone places high priority on achievement of self-sufficiency in rice, the staple food of the population, to increased production of export crops and to more balanced regional development. The ~ project being assisted by the Bank and IDA supports these policy objectives. At full development in 1985, the project will bring major economic and social benefits to Sierra Leone. It will result in an additional production of 10,500 tons of white rice, 3,200 tons of palm oil, 750 tons of· palm kernels, 550 tons of cocoa and 1,100 tons of groundnuts. Th:l.s in turn will help the country save about $5 million in foreign exchange each year. About 14,000 farmers and their families will directly benefit. The net income of these farmers will increase from $60 to $100 in the Eastern Area of the country and from $30 to $40 in the North. The project will help to reduce the abso- lute level of poverty in the North and bring income levels in the East closer to the national average. An additional 65,000 farmers will benefit from improved connnunications and services. The project is.scheduled to be completed in 1980 at a total estimated cost of $13.7 million. It includes the construction and improvement of about 300 miles of crop extraction roads, 200 village wells, credit for investment in on-farm development, 17 market centers and technical assist- ance. The IDA credit to the Government will be for a term of 50 years, including 10 years of grace. It will be interest free, except for a serv- ice charge of 3/4 of 1% to cover IDA's administrative costs. The Bank loan is for ·25 years, including 5 years of grace, with interest at 8-1/2% per annum • • Note: Money figures are expressed in US dollar equivalents.  • T E CHNI CAL DAT A PROJECT: Integrated Agricultural Development COUNTRY: Sierra Leone TOTAL COST: $13.7 million BANK FINANCING: $5 million, for 25 years, 5 years of grace, with 8-1/2 io interest per annum IDA FINANCING: $5 million, standard IDA terms. OTHER FINANCING: The Government of Sierra Leone IMPLEMENTING ORGANIZATION: Ministry of Agriculture, Government of Sierra Leone, Freetown 1 Sierra Leon~ PROJECT DESCRIPTION: The project includes a) for the Northern Area construction of 200 village wells; construction and illprovement of 300 miles of crop extraction roads; a farmer training center, five market centers; houses! stores and offices, farm development service~J; short- and medium-term credit for on-farm investments; and research; b) for the Eastern Area, 12 market centers, houses, warehouses; expansion of farm support services; • provision of medium- and long-term credit and the establishment of a Farm Finance Company to serve the area; and c) for the Ministry of Agriculture, establishment and staffing of a project evaluation and services unit. PROCUREMENT: Procurement of vehicles, plant, equipment, fertil- izers, pesticides and, tools under. contracts with a value of more than Le 20,000 ($24,000) will be through international competitive bidd-ing (ICB). A maximum limit totaling $200,000 will be set for those items pur- chased through local competitive bidding involving contracts of less than $24,000. Domestically manufactured goods will be allowed a preference of 15 percent, or applicable customs duty, whichever is lower, when comparing domestic bids with those of foreign manufacturers. Contracts for construction, materials and furnish- ings valued at Le 1.1 million ($1.3 million) will be awarded on the basis of com~ petitive bidding advertised locally and in accordance with procedures satisfactory to the Bank; foreign firms will be eligible to partic.ipate but it may not be at- tractive to them due to the dispersed location of the work and the small size of individual contracts. Road construction will be carried out on force account be- cause of the shortage of suitable contractors. CONSULTANTS: About 20 man-months of consultants' services will be financed under the loan/credit to assist the Ministry of Agriculture in project planning, evaluation and other specialis~ areas, and 28 man-years of management and technical specialists to assist in project im- plementation. • ESTIMATED COMPLETION DATE: 1980