Announcement of Ten Million Dollars Credit to Assist Crop Production by Somali Herdsmen on June 7, 1976

•World Bank 1818 -H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: {202) 393-6360 IDA NEWS RELEASE NO. 76/26 June 7, 1976 $10 MILLION CREDIT TO ASSIST CROP PRODUCTION BY SOMALI HERDSMEN Redevelopment of Somal la's harsh and arid North-West Region wil I be assisted by a $10 mill ion credit from the World Bank affil late, the International Develop- ment Association (IDA). The project will substantially increase the incomes and standard of living of 2,500 families, most of whom now 1 ive at subsistence level. Through measures such as erosion control and water conservation, it will also help to prevent the natural destruction of the most productive lands of the region. The project, prepared by the World Bank and FAO, wi 11 cover about 160,000 hectares of arable land on which about 120,000 nomadic herdsmen are gradually adopting settled agriculture to supplement their meagre incomes. It wil 1 support this trend and investigate the potential of other projects of its kind in the • North-West and Bay Regions. An essential component of the project will concern the development of agri- cultural production based on bunds, which are low, crescent-shaped earth banks about 120 meters long that make ma-ximum use of rainfall and control erosion by 1 imiting runoff. Field bunds will be constructed on 25,000 hectares, and existing bunds repaired on a bout 2, OOOhecta res. Fifty small irrigated farms wil 1 also be developed, assisted by an extension service, while an extension service for dryland farmers wiJ 1 be rehabilitated. About 100 water points will be constructed for domestic supply and 50 for livestock. Facilities for experimental crops, crop demonstration and seed multiplication will be improved under the project. The project will increase production of sorghum, fruits and vegetables, which at the project's full development will be worth about $750,000. It will also result in savings by reducing the need for costly internal grain transportation, and help narrow ii•come disparity between the southern regions and the less-developed North. Employment wil 1 be provided for about 500 people in bund construction, while underemployed farm families will be able to find additiona.,--work. Per capita incomes of those embraced by the project are expected to increase from $46 a year to $80. • The IDA credit is for 50 years, including 10 years' grace, and is interest- free except for a charge of 3/4 of 1% for administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents.  T EC HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: North-West Region Agricultural Development Soma 1 i a $13.2 million • IDA FiNANCING: $10 million, standard IDA terms. OTHER FINANCING: Government of Somalia IMPLEMENTING ORGANIZATION: Ministry of Agriculture Moqadiscio, Somalia PROJECT DESCRIPTION: The project consists of construction of field bunds on 25,000 hectares (ha.), repair of existing bunds on about 2,000 ha. and experimental gully erosion control works; development of 50 small irrigated farms; improvement of crop trials and training facilities at the Aburin dryland demonstration • and experimental farm; extension of the Geed-Deeble irrigated horticultural station for fruit crop trials, nursery production and sorghum seed multiplication; rehabilitation of the extension service to dryland farmers and establishment of a new extension section serving irrigated farms; construction of 100 water points for human consumption and 50 water points for 1 ivestock; and technical services, training and feasibility studies. PROCUREMENT: Orders for tractors, equipment and vehicles above $50,000 by international competitive bidding. CONSULTANTS: a) A firm of consultants will provide a project management team to assist in execution, coordination and supervision of the project and devise a training program for Somalia staff--25.75 man-years; and b) con- sultants will undertake two feasibility studies for evaluation of a prospective second phase project in the North-West Region and a project in the Bay Region, and provide technical assistance to Geed-Deeble Horticultural station and to the development of the 50 small irrigated farms--15.75 man-years. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 11% December 31, 1982 - 0 - •