Announcement of Twelve Million Dollars for Rural Development in Chad on December 2, 1976

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA PRESS RELEASE NO. 77/13 December 2, 1976 $12 MILLION FOR RURAL DEVELOPMENT IN CHAD About 400,000 rural people in Chad, half of whom will be Sahelian pastoralists will benefit from a $12 million credit approved today by the International Development Association (IDA), a concessionary affiliate of the World Bank. The Rural Projects Fund (RPF), created as a result of the IDA credit, will finance seven small-scale rural development schemes in the country, which is among the world's poorest. Three and a half out of four mi lliori of Chad's population are rural. The rural sector contributes about 90% to exports of which cotton, livestock and animal products • and fish are the main commodities • Cotton, wheat and sorghum production from small-scale irrigation; wet season paddy production from bottomlands; increased meat and milk· production from pastoral wells; reduced losses of farm inputs and cost saving i~ animal marketing are the project's major benefits. The IDA $12 mill ion credit to Chad will be for a 50 year term, including 10 years of grace. It wi 11 be interest-free but wi 11 carry a service charge of 3/4 of l percent to cover 1DA 1 s administrative costs. Note: Money figures are expressed in US dollar equivalents • • FORM NO. 1121 (5-78) T E C HN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Rural Projects Fund Republic of Chad $ 13 • 4 mi 11 i on • IDA FINANCING: $12 million, standard IDA terms OTHER FINANCING: $1 million by French Aid Agency (FAC) IMPLEMENTING ORGANIZATION: Fund Management Unit (FMU) Ministry of Economy, Planning and Transport Ndj arnena - Chad PROJECT DESCRIPTION: Development and initial operation of 42 small-scale pump irrigation perimeters (about 970 ha irrigated) and five service centers along the northern Chari River; construction of 200 warehouses in the Cotton Zone; rehabilitation of a pastoral well network (about 300 lined wells) in the • Batha prefecture in the Sahelian Zone; establishment and initial operation of a tubewell drilling and open well maintenance unit to serve villages in three prefectures in the Cotton Zone, including the rehabilitation of about 146 lined wells and the installation of about 110 tubewells to be operated by foot pumps; minor structural repairs and spot resurfacing spread over about 1,200 km of feeder roads in the Cotton Zone; buildings and equipment for animal-feed production and poultry marketing near Ndjamena; and land improvements and water control works in bottomlands (about 700 ha) in the Cotton Zone. In addition, the project will finance a Fund Management Unit (FMU), technical assistance, training seminars and consultant's services. PROCUREMENT: Procurement of vehicles and equipment (estimated cost $1.8 million), building construction (esti- mated cost $2.2 million), and materials for force account works (estimated cost $1.6 million), wi 11 be through international competitive bidding in accordance with IDA guide- lines in the case of contracts over $50,000; for building construction contracts, local contractors will receive 7 1/2% preference. In the case of contracts of less than $50,000 but more than $10,000, procurement will be through competitive bidding in accordance with local procedures acceptable to IDA. For contracts under $10,000, direct purchasing will be employed. The services of expatriate staff and consultants (estimated cost $1.6 million) will be obtained following procedures acceptable to IDA. ECONOMIC RATE OF RETURN: 17% • ESTIMATED COMPLETION DATE: December 31 , 1979 - 0 -