Announcement of IDA to Help Finance Two Projects in Burundi on May 25, 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. 79/83 May 25, 1979 IDA TO HELP FINANCE TWO PROJECTS IN BURUNDI The International Development Association (IDA), the World Bank's affiliate for concessionary lending, will make two credits totalling $6.8 mill ion to the Republic of Burundi. A forestry project designed to increase the supply of wood for fuel and building materials will receive $4.3 mill ion, while an additional $2.5 mill ion will go towards a technical assistance pro- ject which will help the government improve its ability to plan, prepare and implement development projects. Forestry Under the forestry project, nurseries will be established in 30 rural communes to provide seedlings for commune plantations and for sale to local farmers. Two tree plantations will be created to supply wood for fuel and • building poles, charcoal, and saw timber. Local staff will be trained for a national forestry service. Technical assi~tance will be provided for project implementation and staff training. In addition, Burundi 1 s energy use and needs wi 11 be studied, trials wi 11 be made of more efficient charcoal pn:>duc- tion techniques, and new designs will be developed for rural cooking stoves. Future forestry projects will also be prepared. After eight years the nurseries will meet the annual fuel and building requirements of at least 6,000 families. It is expected that the increased supply of fuel will lessen the use of agricultural residues for fuel, making possible increased soil fertilization and reduced erosion. About 400 perma- nent and 3,000 temporary jobs are expected to be created. Technical Assistance The second technical assistance project will continue the assistance to the Ministry of Planning currently provided under the first technical assis- tance project. It will also help reorganize and improve the planning and project preparation for short-term consultancies, for project preparation, including feasibility and pre-investment studies, and for training. Co-financing for the $8.8 mi 11 ion .forestry project wi i l be provided by the European Economic Community Special Action Account ($1 .2 mill ion), the Fonds. d'Aide et de Cooperation of France ($1.86 million}, and the United Nations Development Programme ($700,000). An additional $770,000 will be contributed by the Government of Burundi, which will also provide $500,000 •• for the $3 million technical assistance project. The IDA credits are for a period of 50 years, including a 10-year grace period. There is no interest, but ~/4 of 1% per ~nnum is charged to cover administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents.  .. _. FOAM N0.1121 (5-76) T E C H N I· C A L D A T A PROJECT: COUNTRY; TOTAL COST: Forestry Republic of Burundi $8 . 8 mi J 1 ion • IDA FINANCING: $4.3 million, standard IDA terms OTHER FINANCING: European Economic Community Special Action Account, $1.2 mill ion, to be administered by IOA Fonds d'Aide et de eooperation (France), $1.86 million United Nations Development Programme, $700,000 Government of Burundi, $770,000 IMPLEMENTING ORGANIZATION: Department of Waters and Forests Ministry of Agriculture Bujumbura, Burundi PROJECT DESCRIPTION: It will consist of six major components: a) establishing rural nurseries in 30 communes to produce quality euca- lyptus seed) ings for commune plantations and for sale to farmers; b) developing 2,000 hectares of eucalyptus trees in the Mageyo area as a short rotation plantation to supply fuel wood and charcoal to Bujumbura; c) developing a pine plantation of about 5,000 hectares to produce saw timber; d) training of Burundi staff for forestry ser- vices; e) technical assistance for project management and on-the-job training for Burundi forestry staff; and f) a study of Burundi's energy use and needs, trials of more efficient charcoal production techniques, developing new designs for cooking •• stoves for the rural population, and preparing future forestry projects. PROCUREMENT: Vehicle, material and equipment supply contracts exceed- ing $80,000 will be awarded through international com- petitive bidding. Contracts for materials and equipment valued at $80,000 or less will be awarded following government procurement procedures; for purchases of goods costing over $20,000, quotations will be sought from s~ppliers in at least three coun- tries. Contracts for civil works will be awarded locally following local competitive bidding. Civil works for office and housing construction fina.nced under the EEC Special Action Account Credit will be procured under contracts awarded on the basis of competitive bidding advertised locally, while the construction of workshops will be carried out by force account. CONSULTANTS: Consultant services will be provided for studies and trials and future project preparation. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: About 20% 1984 - 0 - ••  FORM NO. 1121 (5-76) T E C HN I CA L • 0 A TA PROJECT: Second Technical Assistance COUNTRY: Republic of Burundi TOTAL COST: $3 mi 11 ion IDA FI NANC I NG : $2.5 mill ion, standard IOA terms OTHER FINANCING: Government of Burundi IMPLEMENTING ORGANIZATION: Ministry of Planning Bujumbura, Burundi PROJECT DESCRIPTION: It will provide for: a) continuing the technical assis- tance to the Ministry of Planning, currently provided under the First Technical Assistance Project; b) reorganizing and improving the planning • units of the Ministries of Agriculture and Industry; c) selective training of Burundians, either on-the-job or in foreign institutions; d) feasibility and pre-in- vestment studies in selected fields; e) short-term expertise to advise in project preparation, implementation and management; and f) providing equipment and vehicles for foreign experts. PROCU.REMENT: Procurement of equipment and vehicles will be in accordance with Burundi 1 s normal procedures, which include soliciting competitive bids from local suppliers. CONSULTANTS: Consultant services will be provided for long-term advisory services at the Ministries of Planning, Agriculture, and Commerce and Industry and for short-term advisory services for specific studies and project preparation, including feasibility and pre-investment studies . • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: n.a. 1982 - 0 -