Announcement of Liberia Receives Six Million Dollars IDA Credit for Forestry Development Project on July 13, 1978

FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 ~bA NEWS RELEASE ~O. 79/5 July 13, 1978 LIBERIA RECEIVES $6 MILLION IDA CREDIT FOR FORESTRY DEVELOPMENT PROJECT A project designed to diversify and modernize the forestry sector in Liberia will be assisted by a $6 million credit from the International Development Association (IDA), a World Bank affiliate. The main objectives of the project are to strengthen the newly established Liberian Forestry Development Authority (FDA), introduce a proper framework for forestry development and management, and train Liberians in the forestry sector. The FDA will be provided with increased staff, buildings, vehicles and equipment, and staff train- ing facilities as well as technical assistance to undertake various studies and surveys. The project will also establish a 1,600-hectare industrial trial plantation of fast- growing commercial species. This trial plantation is expected to lead to the establish- ment of a long-term program to develop large-scale industrial plantations in Liberia • starting from the early 1980's . The $6 mil 1 ion IDA credit wi 11 be th,, first investment by the World Bank in the forestry sector in Liberia, a sector that until now has played a comparatively small role in the Liberian economy. Although Liberia has 4.8 million hectares of forest, its exports of forestry products account for only 4% of foreign exthange earnings, ranking fourth behind iron ore, rubber and diamonds as the main export commodities. The Liberian Government is currently making an effort to diversify the base of the economy and the development of the forestry potential is part of this strategy. The IDA credit will cover 34% of the total cost of the project estimated at $17.5 million. The African Development Bank and the German Agency for Technical Cooperation (Gesellschaft Fuer Technische Zusammen.arbeit G.M.e.H.) are providing co-financing of $5 million and $1 .8 million respectively. The Government of Liberia will provide the balance of the costs amounting to about $4.7 million. The IDA credit will be on standard terms of 50 years, including 10 years of grace, It will be interest-free, except for a charge of 3/4 of 1% per annum for administr,ative expenses. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Forestry Development Liberia $ 17 . 5 mi 11 ion • IDA FINANCING: $6.0 mi 11 ion OTHER FINANCING: African Development Bank (ADB) $5.0 million; German Agency for Technical Cooperation (GTZ) $1 .8 million Government of Liberia $4.7 million. IMPLEMENTING ORGANIZATION: Forest Development Authority, Monrovia, Liberia. PROJECT DESCRIPTION: The project will provide the new Liberian Forestry Development Authority with increased staff, buildings, vehicles, equipment, and staff training as well as technical assistance required to undertake various policy studies. The project will also establish a 1,600-ha industrial trial plantation of fast-growing commercial species. • PROCUREMENT: Civil works contracts for buildings and houses will not be su i tab 1e for i nternat i ona 1 competitive bidding s i nee they would be large in number and widely dispersed in location covering 22 forest districts throughout the country. Such contracts, valued at $4.1 million, will be awarded on the basis of competitive bidding advertised locally in accordance with procedures satisfactory to IDA. Contracts for items to be financed by ADB (i.e., vehicles, equipment, operation and maintenance and aerial photography) will be awarded in accordance with procedures satisfactory to ADB. CONSULTANTS: Eighty man-months of consultant services will be needed to provide specialist back-up services to the Forest Development Authority and to undertake studies and surveys relating to forest pol icy proposals and future forestry industry projects. flNANCIAL RATE OF RETURN: ESTIMATED COMPLETION DATE: 17.8% 1983 - 0 - •