Announcement of IDA Provides a Four Million Five Hundred Thousand Dollars Credit for Forestry in Mali on March 8, 1979

' • 0 FOR IMMEDIATE RELEA.SE · ~ •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/48 March 8, 1979 IDA PROVIDES A $4.S MILLION CREDIT FOR FORESTRY IN MALI The International Development Association (IDA), the World Bank's soft-loan affiliate, has approved a credit of $4.5 million to assist a forestry project in the Republic of Mali. This is the first forestry project financed by IDA in the country. It will help meet fuelwood and building pole requirements in urban areas and introduce modern forest management techniques on a trial basis. The project will establish 3,400 hectares (ha) of industrial rainfed plantations near Bamako, and 70 ha of partially irrigated tree plantations on a trial basis near Mopti. Another 60 ha of rainfed tree plantations will be established on a trial basis near Segou. Three • forestry nurseries wi 11 be planted. Modern forest management techniques will be tried out and studies will be executed to examine the potential for rural forestry activities with participation by the local population. The impact of the project on the environment will be substantial. It is expected fuelwood production will be sufficient to avoid the cutting of some 10,000 ha of bush fallow at the beginning of production and up to some 30,000 ha in later years. The project will prevent soil erosion and increase soil fertility by lengthening the time that the land can remain under bush fallow. The total cost of the project is $9.4 million. The French Caisse Centrale de Cooperation Economique and the Fonds d'Aide et de Cooperation will provide $1.4 miilion and $1.3 million, respectively to the financing of this project. r The IDA credit is being provided for 50 years, including 10 years of grace. It will bear no interest, except for a service charge of 3/4 of 1% per annum to cover IDA's administrative services. • NilTE: Money figures are expressed in U. S. dollar equivalents . FORM NO. 1121 (5-76) T ECHN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Forestry .Repub 1 i c of Ma 1 i $9.4 mi 11 ion • IDA FINANCING: $4.5 million, standard IDA terms OTHER FINANCING: Government of Mali, $2.2 million Caisse Cent . . ale de Cooperation Economique (CCCE), $1.4 million Fon~s d'Aid~ et de Coop~ration, $1.3 million , I ~ IM~LEMENTING ORGANIZATION: Operation Amenagernent et Productions Forestieres Bamako Republique du Mali PROJECT DESCRIPTION: The project will: (a) establish 3,400 hectares (ha) of industrial rainfed plantations; (b) establish on a trial basis 60 ha of rainfed tree plantations and 70 ha of partially irrigated tree plantations; (c) apply modern forest management techniques on a trial basis; (d) establish three rural forestry nurseries and rehabilitate an existing one; and (e) execute studies to investigate more efficient wood uses, to examine pos- sibilities to set up rural forestry activities that would generate participation by the local population, and to examine the scope of a follow-up project. PROCUREMENT: Contracts for machinery and vehicles ($1.6 mi 11 ion • excluding contingencies) to be financed jointly by IDA and CCCE will be awarded on the basis of international competitive bidding in accordance with IDA guidelines. Domestically manufactured goods will be allowed a preference of 15% of c.i .f. price or the level of import duties, which- ever is lower. Contracts for the construction of houses, offices, and workshops will not be attractive to international contractors, and will be awarded on the basis of competitive bidding advertised locally in accordance with local procedures acceptable to IDA. For contracts of less than $20,000, local procurement on the basis of several quotations will be acceptable. CONSULTANTS: Expatriate staff will assist with financial manage- ment and technical supervision of the government's Forestry Management and Production Agency (OAPF). About 12 man-months of con- sultant services will be required to study better uses of wood, explore rural forestry possibilities, and to prepare a feasibility study for a follow-up project. Another 27 man-months of consultant services wil! be needed to supervise irrigated tree plantations, monitor tree plantations and natural forest management techniques, examine the feasibility of planting different tree species, set up an evaluation program and supervise its initial implementation by the OAPF. ECONOMIC RATE OF RETURN: 11% on the industrial rainfed plantations. Rates of return have not been calculated on the other components, which are experimental in nature. • ESTIMATED COMPLETION DATE: 1984 - 0 -