Announcement of Bank and IDA Lend Eighteen Million Dollars for Fisheries Project in Gujarat on April 4, 1977

.;\/arid bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/76 APR I L I+ , 19 77 IDA NEWS RELEASE NO. 77/43 BANK& _IDA U:ND $18 MILLION FOR FISHERIES PROJECT _IN GUJARAT The \.forld Bank and its affi 1 iate, the International Development Association (IDA), are providing $18 mill ion for a project designed to increase fisheries production in India's Gujarat State. IDA is extending a credit of $4 million and the World Bank a loan of $14 million on "Third Window" terms. India is one of the most protein-deficient areas in the world. Consequently the country is placing increasing em- phasis on the development of fisheries. Apart from supplementing • local diets, fishery development is also important for exports . India is presently the world's largest exporter of shrimps, which in 1975 contributed $140 mil lion in foreign exchange. The project being assisted by the Bank and IDA are part of effort to increase fisheries production. The $38 million project comprises harbor improvement works and shore facilities serving the ports of Mangrol and Veraval, the development of infrastructure for eight fishing villages situated between Mangrol and Veraval and credit for investment in motorized fishing vessels and canoes. At full development, the project is expected to help increase fisheries production by about 44,600 tons a year (including 3,700 tons of shrimps) valued at $8. 1 million. The Bank's "Third \1indow 11 loan of $14 million will carry interest at 4.5% per annum. An additional 4% will be paid to the Bank by the Interest Subsidy Fund, representing the difference between the Bank's current interest rate of 8.5% and the charge to India. • The IDA credit to India is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% to cover IDA's administrative costs. NOTE: Money figures are expressed in U.S. dollar equivaients. FORM NO. 1121 (5-76) T ECHNI CAL D A T A P~OJECT: COUNTRY: Gujarat Fisheries India • TOTAL COST: $38 million BANK FI NANC I NG : $14 million loan on Third Window terms IDA FINANCING: $4 million credit, standard IDA terms OTHER FINANCING: Governments of India and Gujarat; Agricultural Refinance and Development Corporation; and participating banks and fishermen IMPLEMENTING ORGANIZATION: Project Supervision Committee, Government of Gujarat, Department of Agriculture, Forests and Cooperation, Sachivalaya, Gandhinagar, Gujarat, India. PROJECT DESCRIPTION: It includes: a) improvement of the fishing harbors and shore facilities at Mangrol and Veraval; b) provision of credit to entrepreneurs to establish fish processing, freezing, and ice plants at the two harbors; c) construction and equipping of 270 14.8-meter mechanized fishing • vessels and their sale on credit to fishermen; d) assistance to traditional fishermen by the (i) provision, on credit, of 350 9-meter fishing canoes equipped with outboard motors and gear, and of 1,400 outboard motors; (ii) improvement in the infrastructure serving eight fishing villages and (iii) improvement in the fish marketing system of these villages; e) provision of two fish net manufacturing machines; and f) technical assistance. PROCUREMENT: International competitive bidding (ICB) will be followed for procurement of (i) 1,400 outboard motors, (ii) dredging equipment, (iii) plant and equipment required for shore facilities and (iv) for harbor improvement works contracts at Veraval. The total value of contracts sub- mitted to ICB is estimated at $8.75 mill ion. ECONOMIC RATE OF RETURN: 24% ESTIMATED COMPLETION DATE: 1983 - 0 - •