Announcement of IDA Provides Fourteen Million Dollars for Cocoa and Coffee Development Project in Togo on July 2, 1979

FOR IMMEDIATE RELEASE .world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/109 July 2, 1979 IDA PROVIDES $14 MILLION FOR COCOA AND COFFEE DEVELOPMENT PROJECT IN TOGO The International Development Association (IDA), the World Bank 1 s soft-loan affiliate, has approved a $14 million credit to Togo to aid the development of coffee and cocoa production in the western part of the Plateau Region. An addi- tional $4.6 million will be provided by a credit from the European Economic Commu- nity Special Action Account, to be administered by IDA. The $34.2 million project, to be implemented over the next 5-1/2 years, is a continuation of the !DA-assisted first cocoa and coffee development project, begun in 1974. The project provides for the replanting of about 7,500 hectares (ha) of coffee and about 4,000 ha of cocoa by some 17,000 smallholder farmers. Coffee and cocoa planted during the first project will also be brought into production. • Marketing facilities will be provided for plantains (banana trees) grown as temporary shade for young cocoa trees. Foodcrops will be planted within replanted cocoa and coffee areas as well as outside these areas. Extension services, input supplies (pesticides and insecticides), and credit will be extended to farmers. Low-cost storage space for cocoa, coffee, and input supplies will be built in some 80 villages. Furthermore, research will be carried out under the project on ways to improve planting material and seeds for cocoa, coffee, and foodcrops. About 300 kilometers of feeder roads will be built or upgraded, and these roads and those built under the first project will be maintained. The project will also provide for a financial manager for the implementing agency, the National Cocoa and Coffee Development Agency. Technical assistance will be provided to improve supervision and training of extension agents. Studies will be carried out on the requirements for expanded plantain marketing and on the project's progress, including preparation of a possible third project. The project's primary benefit will be an increase in foreign exchange earnings from a rise in export revenues of cocoa and coffee. Some 110 1 000 members of the 17,000 smallholder families will benefit from higher incomes; the average income of coffee farmers will increase from the present $440 per year to about $830 by 1991, and cocoa farmers' incomes will increase from $1,150 to $1,620 per year. Additional co-financing is being provided by the Caisse Centrale de Cooperation • Economique ($7.7 million) and the Fonds d'Aide et de Cooperation ($3.5 million). The Government of Togo is contributing $4.4 million. The IDA credit is for 50 years, including 10 years of grace. The credit carries no interest, but bears a service charge of 3/4 of 1% per annum to cover administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA l DA T A • PROJECT: Second Cocoa-Coffee Development ·COUNTRY: Repub 1 i c of Togo TOTAL COST: $34.2 million IDA FINANCING: $14 mill ion, standard IDA terms OTHER FINANCING: European Economic Community (EEC) Special Action Account, $4.6 million Caisse Centrale de Cooperation Economique (CCCE), $7. 7 mi 11 ion Fonds d'Aide et de Cooperation (FAC), $3.5 mill ion Government of Togo, $4.4 mill ion IMPLEMENTING ORGANIZATION: National Cocoa and Coffee Development Agency (SRCC) B.P. 2289 Lome, Togo Telex: 5268 PROJECT DESCRIPTION: It consists of: a) replanting of about 7,500 hectares (ha) of coffee and 4,000 ha of cocoa by about 17,000 smallholder farmers, and bringing into production cocoa and coffee planted under the first project; b) providing marketing facilities for plantains (banana trees) grown as temporary shade for young cocoa trees; c) foodcrop plantings within replanted cocoa and coffee areas, and improvement of foodcrops outside the cocoa and coffee areas; d) provision of exter.- sion services, input supplies, and credit to farmers, and construction of low-cost storage space for cocoa, coffee, and inputs, in up to 80 villages; e) research on and • improvement of planting material and seeds for cocoa, coffee, and foodcrops; f) build- ing or rehabilitating about 300 kilometers of feeder roads and maintaining these roads and others built under the first project; and g) providing a financial manager for SRCC, and technical assistance to improve supervision and training of SRCC extension agents and to carry out studies on the requirements for expanded plantain marketing and on the project's progress, including preparation of a possible third project. PROCUREMENT: Equipment, vehicles, and technical assistance financed by the EEC credit ($1. 1 mill ion) will be procured in accor- dance with EEC Special Action Account guidelines. Other items financed by the EEC credit, mainly operating costs and buildings ($3.5 million) will be procured locally in accordance with Bank guidelines. Contracts for goods and services financed by the IDA credit ($50,000 or more; aggregate: $2 million) will be awarded through inter- national competitive bidding in accordance with IDA guidelines. Individual contracts for vehicles, equipment, and goods for less than $50,000 will be awarded through local competitive bidding (LCB) procedures acceptable to IDA. Contracts for less than $10,000 will be awarded following prudent shopping. The total for these items will not exceed $1.4 million. Civil works ($2.9 million) will be carried out under force account by SRCC or will be contracted through LCB. Services of consultants, applied research, and seed multiplication considered satisfactory under the first project will continue under contracts approved by IDA ($5.4 mill ion); $13.5 mill ion will be expended on salaries, operating costs, and farmers' credit. Materials and supplies will be ob- tained in accordance with the borrowers' normal procedures, which are satisfactory. • CONSULTANTS: Consultant services wi 11 be continued from the first proj- ect. ECONOMIC RATE OF RETURN: 18% ESTIMATED COMPLETION DATE: 1985