Announcement of Dominican Republic Irrigation Project Supported by World Bank on January 25, 1979

... -· ... FOR' IM·MEDl.t,\ TE RELE~SE / ~ ~ • World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/45 ,January 25, 1979 DOMINICAN REPUBLIC IRRIGATION PROJECT SUPPORTED BY WORLD BANK The World Bank has approved a $27 million loan to help finance an irrigation project in the Dominican Republic. The project is intended to increase agricultural productivity and exports, and to improve the standard of living of some 3,200 poor farm families. With an estimated total cost of $50.6 mill ion, the project will be implemented in the Nizac region, southwest of Santo Domingo. It will include the rehabilitation and expansion of the irrigation system to serve 13,700 hectares (ha). • The project will include development works on 2,330 ha of new land to be irrigated and distributed among 800 landless farmers in lots of 3 ha per farmer. Construction of 171.l kilometers of gravel roads is included. The project is expected to result in substantial increases in the output of plantains, rice, tomatoes, cassava, mangos, oranges, and papaya. Of these products, rice, cassava, and plantains are staples of the Dominican diet and will be predominantly absorbed by the internal market. However, certa:n vegetables and fruits produced in the project area will be mainly for exports. The per capita farm income is expected to increase from $420 to $850 a year, after the project is completed in about 5 years. About 13,000 rural families wil 1 indirectly benefit from the additional jobs created in the production and marketing of agricultural products. The $27 million loan to the Dominican Republic will have a term of 17 years, including 4 years of grace, with interest at 7% ~er annum. • 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: Nizao lrrigat:on COUNTRY: Dominican Republic TOTAL COST: $50.6 million BANK FI NANC I NG : $27 million for a term of 17 years, including 4 years of grace, with interest at 7% per annum. OTHER FINANCING: Government of Dominican Republic, $23.6 million IMPLEMENTING ORGANIZATION: lnstituto Nacional de Recurses Hidraulicos (INDRHI) Centro de las Heroes Santo Domingo CABLE: I NDRH I Santo Domingo Dominican Republic TELEX: 4~'84 DR PROJECT DESCRIPTION: It consists of: a) civil works to rehabilitate and expand the irrigation system under the command of the Marcos A. Cabral and Nizao-Najayo canals, to serve 13,700 hectares (ha); and water'level control and measurement :tructures, for proper operation and maintenance of the system; b) on-farm development works on 2,330 ha of new land; c) 24.5 ·kilometers (km) of gravel surfaced secondary roads and 146.6 km of gravel surfaced road along the main canals to facilitate operation and maintenance; d) project unit headquarters for • supervision, administration and execution of civil works; operation and maintenance; and extension and agrarian reform services; and e) equipment for force account con- struction of secondary and terciary canals; operation and maintenance and agrarian reform and agricultural development programs. PROCUREMENT: Civil works for the rehabilitation of the main canals and Imported equipment will be procured through international competitive bidding. Bidding documents for the rehabilitation of the main canal will include a clause requiring that during construction, an established minimum flow be met to irrigate the presently cultivated area. INDRHI will construct canals in new areas and rehabilitate secondary and terciary canals by force account. Contracts for construction of project headquarters and train;ng centers; on-farm development works; feeder roads; and procurement of minor equipment and supplies will follow local procedures acceptable to the Bank. CONSULTANTS: The project will provide up to 250 man-months of both local (142 man-months) and expatriate (108 man-months) consultant services. Internationally recruited consultant services will be used to organize the operation and maintenar.ce of the irrigation systems during the rehabilitation period, including the preparation of operation and maintenance manuals and training of personnel, and to develop a system of water charges to be implemented by INDRHI. They will also be used to inspect the safety of the Valdesia and Barias dams; carry out the study for the operation of the Valdesia dam; and train extension agents and farmers. ECONOMIC RATE OF RETURN: 14.5% ESTIMATED COMPLETION DATE: 1984 - 0 - •