Announcement of World Bank Loan Supports Agricultural Development in Argentina on May 11, 1978

FOR IMMEDIATE R_ELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/85 MAY 11 , 1978 WORLD BANK LOAN SUPPORTS AGRICULTURAL DEVELOPMENT IN ARGENTINA The productivity of Argentina's fertile Pampa and Mesopotamia regions will be improved as a result of an agricultural credit project supported by a $60 mil lion World Bank loan. The agricultural credit project has an estimated total cost of $161.7 mil lion. It will be implemented in selected areas of major agricultural importance and wi l 1 benefit directly about 4,500 farmers. The main components of the project include medium- and long-term agricultural credit combined with technical assistance to increase the relatively low produc- tivity of farms in the Pampa and Mesopotamia, a weed control program to restore the pro<luctive capacity of soi ls in an extensive area, and land clearing to ex- • pand cropping and pasture to presently unproductive wooded areas in the northern provinces • The project wi 11 help Argentina in making significant progress towards fuller exploitation of one of the most fertile agricultural regions in the world. It wil 1 yield economic benefits to the country of over $72 mil lion annually at full develop- ment, from increased output of grains, oilseeds, cotton, and livestock products. An increase in the value of herds wil 1 amount to another $30 million. The Food and Agriculture Organization of the United Nations (FAO) had joined the Bank in identifying and preparing the project under the BANK/FAO Cooperative Program. Credit Commercial de France (Suisse) S.A., Geneva, Switzerland, has agreed to pa rt i c i pate i n the f i rs t ·mat u r i t y of th i s 1o an • The $60 mill ion loan to the Government of Argentina wil 1 have a term of 13 years, including 4 years of grace, with interest at 7.5% per annum. NOTt: Money figures are expressed in U.S. dollar equivalents • • FORM NO. 1121 (5-76) T E C HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Agricultural Credit Argentina $16 l • 7 mi 11 ion • BANK FINANCING: $60 mi 11ion, for a term of 13 years, including 4 years of grace, with interest at 7.5% per annum. OTHER FINANCING: Beneficiaries, $31 . 6 mi 11 ion Participating banks, $70. 1 million IMPLEMENTING ORGANIZATION: Secretaria de Estado de Agricultura y Ganaderia Paseo Colon 974 Buenos Aires, Argentina PROJECT 8ESCRIPTION: It consists of prov1s1on of long-term credit and technical assistance for: (a) On-farm development on livestock and crop farms in the Pampa and the Mesopotamia regions; (b) A pilot program for weed control on crop and livestock farms in three counties of the Pampa; (c) Land clearing of some 90,000 hectares in the northern provinces of Argentina. Farm investment plans, prepared. with technical assistance will improve resource management, intensify the use of land, and fncrease the application of modern inputs and technologies. PROCUREMENT: The investment items to be financed under the project will be procured by_ approximately 4,500 sub-borrowers over a 5-year investment period. Since the items to be procured are varied and would not be suitable for bulk procurement through international competitive bidding, procurement will be through established local commercial agents, who represent a broad spectrum of inter- national suppliers. Sub-borrowers will purchase items directly. Vehicles and equipment related to the technical assistance project component will be varied and individual orders are not expected to exceed $100,000; therefore, these items wi 11 be procured through local competitive procedures. ECONOMIC RATE OF RETUiN: 29% ESTIMATED COMPLETION DATE: 1983 - 0 - •