Announcement of IDA Assists Agricultural Development in Rwanda on December 16, 1976

World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/18 December 16, 1976 IDA ASSISTS AGRICULTURAL DEVELOPMENT IN RWANDA --·----·------·----·------------ A credit of $14 million from the International Development Asso- ciation (IDA), an affi 1 iate of the ~Jorld Bank, wi 11 help Finance a project designed to promote mixed crop and livestock farming and rural development in Rwanda. The Arab Bank for Economic Development in Africa is participating in the financing of the project with a loan of $5 million for 25 years with interest at 2%. The Government of Belgium is making a grant of $900,000. Agriculture is the most important sector of the economy of Rwanda, • accounting for about 65% of gross domestic product, as well as providing the main source of income for 95% of the population and 77% cf export earnings. Rural Development has become the central theme in Rwanda. aspect of the Government's strategy is to combine crop development and An important livestock in more intensive mixed farming, by persuading farmers to keep a cow permanently stabled to provide calves, milk for the family and manure for crops. The $23.3 million project being assisted by IDA is part of the Government's program. The project will assist in the development of Bugesera Est, an area of 65,000 hectares and Gisaka-Migongo with an area of 170,000 hectares. The project includes tsetse control, extension services, live- stock development, agricultural inputs, feeder roads, water development and a limited number of schools and health centers. Assistance will be provided to farm families already in the area and to new settlers. Some 150,000 people will benefit from increased cash incomes, higher agricultural production and improved social services. At full de- velopment, the project will help to increase the production of food crops, • milk, fish and meat, valued at $5.8 million grace. A year . The IDA credit to Rwanda is for 50 years, including 10 years of ft is interest free, except for a service charge of 3/4 of 1%. ---- --- _,,_ ---- - - - -- -- - ------ ----·------- -----·----------- NOTE: Money figures are expressed in U.S. dollar equivalents. ·~,,,,,.-~,.,, , 1",,._,, .. ~,..,.,,,\!_,..,.,r< ,,,_;~,,..... , ......_,,•,·· ·:..- ~·•··•"•.~··~r,.., I .i RM N ,:-, 11 21 {:.i- !G, • T E C HN I CAL DA T A PROJECT: Mixed Farming and Rural Development COUNTRY: Rwanda TOTAL COST: $23.3 million IDA FINANCING: $14 mill ion credit, standard IDA terms OTHER FINANCING: The Arab Bank for Economic Development in Africa Government of Belgium Government of Rwanda IMPLEMENTING ORGANIZATION: tomite de Coordination du Projet, Ministere de 1 'Agricultu're et de 1 'Elevage, Kigali, Rwanda. PROJECT DESCRIPTION: It includes spraying equipment and insecticides for tsetse fly eradication; field extension services and infrastructure· credit for agricultural inputs and livestock; construction and upgrading of access and • feeder roads; drinking water distribution systems; 1 imited number of schools and health centers; two finishing ranches, expansion of an existing breeding ranch, and improved livestock marketing through establishment of stock routes and a pilot finfshing scheme; a research station and pilot irrigation scheme in northern Gisaka; and technical assistance, including training and feasibility studies. PROCUREMENT: Contracts for the supply of vehicles, equipment and agri- cultural inputs exceeding $100,000 will be awarded after international competitive bidding. Contracts for goods costing less than $100,000 wi 11 be awarded on the basis of price quotations from supplier representatives in Rwanda, and in accordance with government procurement procedures. In view of their small size, re- moteness and dispersed location, civil works for extension infrastructure, roads, water points, ranch development and community buildings are unlikely to attract international bids. They wi 11 be carried out on force account or by local contractors after competitive bidding based on local advertisement. ECONOMIC RATE OF RETURN: 32% ESTIMATED COMPLETION DATE: December 1981 • - 0 -