Announcement of Rwanda Receives 5.8 Million Dollars for Development on July 16, 1976

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/5 JULY 16, 1976 RWANDA RECEIVES $5.8 MILLION FOR DEVELOPMENT The International Development Association (IDA), an affiliate of the World Bank, will support two projects in Rwanda -- one for financing the Rwanda Develooment Bank (BRD). B.P. 1341. Kiqal i. Rwanda, and one for imorovina and develooina the production of cinchona. The two projects will be assisted bv two cr~dits totaling $5.8 million. Rwanda Development Bank (BRO) Project. A $4 mill ion credit will assist in financing BRD's foreign exchange requirements for its development finance operations through mid-1978 as well as audits of BRD's acoounts for 1976, 1977 • and 1978. The main objective is to increase econ0mic benefits through employment cr;eation and increased foreign exchange earnings. The credit is also a major contribution to the rmplementation of the Government's policy of expansion and diversification of the economy; BRO being the only institution for the promotion and financing of industrial investments in Rwanda. The Cinchona Pr~ject. About 3,600 farm families will benefit from this project which, at full development by 198iwi 11 increase Rwanda's cinchona production to a total of about 1,000 tons and its share of the world market from about 4 percent now to about 10 percent. The $1.8 million IDA credit will thus have a favourable effect on Rwanda's balance of payments yielding a net inflow of foreign exchange amounting to about $4 million over the first ten years. Both IDA credits to Rwanda will be for a term of 50 years, including ~ 10 years of grace. They will be interest-free but will carry a service charge of 3/4 of 1% to cover IDA's administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents. FOAM NO. 1121 (5-76) T E C HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Cinchona Rwanda $2 rn i 11 ion • IDA FINANCING: $1 .8 million, standard IDA terms. OTHER FINANCING: Government of Rwanda IMPLEMENTING ORGANIZATION: Ministry of Agriculture and Livestock Kigali, Rwanda PROJECT DESCRIPTION: The project will assist smallholders in improving and developing the production of cinchona. Spe- cifically, it will provide: (a) farm inputs, extension and marketing services to facilitate.smallholder ~·~chona production: (b) additional staff for OCIR and staff training; and (c) consultants' services to assist in the execution of the project and to advise on agricultural development in general. PROCUREMENT: Contracts for agricultural inputs (about $260,000) ex- ceeding $30,000 will be awarded following international competitive bidding in accordance with Bank guidelines. Equipment and vehicles (about $270,000 will be procured after advertising in the local press and in adjacent countries or solicitfng compettttve bids from suppliers represented locally. As no • foreign contractors are 1 ikely to be interested in the limited amount of civil works for staff housing, office space and stores, these works will be carried out by local contractors following competitive bidding or on force account by the Ministry of Public Works and Equipment. Contracts for goods and services costing l~ss than $30,000 wil 1 follow government procurement procedures, which are satisfactory. CONSULTANTS: The following experts will be recru1ted internationally: (a) an agronomist to be seconded as a Cinchona Development Officer to the Office des Cultures lndustrielles du Rwanda (OCIR) to assist in the ex- ecution of the project (60 man-months); (b) Consu!tants as and when needed to assist in the execution of the project and to advise on aaricultural development in general ( 18 man-months). ~ ECONOMIC RATE OF RETURN: 15% ESTI MATEO COMPLET rm· DATE: 19 81 - 0 - •