Announcement of World Bank Approves Fifty Million Dollars for Orchards Project in Romania on June 23, 1980

FOR IM~EDIATE RELEASE World Bank 18.18 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 8 0 /124 June 23, 1980 WORLD BANK APPROVES $50 MILLION FOR ORCHARDS PROJECT IN ROMANIA The World Bank has approved a $50 mill ion loan for the cultiva- tion of fruit in Romania. Fresh fruits are in short supply in the country due to inadequate domestic production, lack of storage, and import restrictions. The $323.9 mill ion Orchards Project involves the establishment of orchards for apples, plums, pears, peaches, apricots, and sweet and sour cherries. It is expected that production of these fruits will increase by 528,000 tons annually. In addition, the project will pro- vide employment for about 19,500 people. Investments equivalent to a 2-1/2 year portion of the country's • commitments for a planned orchard planting program for the next five years will be made. Project investments will include financing for 29,820 hectares of new orchards and 19 modern fruit packing and controlled atmosphere cold storage facilities. The project will contribute to the adoption of high density planting technology in the country. Provisions have also been made to improve applied research for mechanization of fruit production and harvesting, fruit handling, processing and storage. The World Bank loan is for 15 years, including a 3-year grace period. It is repayable through semi-annual installments with the interest rate set at 8.25% per annum. The Bank for Agriculture and Food Industry, the implementing organization, and other co-financiers will bear $223.9 million of the costs with another $50 million to come from sub-borrowers. 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: COUNTRY: TOTAL COST: Orchards Romania $323.9 million • BANK FINANCING: $50 million for 15 years, including a 3-year gr1ce period. It is repayable through semi-annual Jnstal l- ments with interest rate set at 8.25% per 1nnu..1. OTHER FINANCING: Bank for Agriculture and Food Industry and coflnanciers, $223.9 million; Sub-borrowers $50 million. IMPLEMENTING ORGANIZATION: Bank for Agriculture and Food Industry. Strada Smirdan No. 3 Bucharest, Romania Cable address: AGRO!ANK, Sucharest PROJECT DESCRIPTION: It consists of a) 2-1/2 year tranche of ~om•nian investment commitments for 29,820 hectares of new orchard b) 19 modern fruit packing and controlled atmosphere cold storage f•,ilitles; and c) technical assistance to improve applied research for mechanization of fruit production and harvesting, fruit handling, storage and processing. • PROCUREMENT: Equipment and materials equivalent to $..cv-~O million will be procured through international competitive bidding and $ 2.0 million of equipment and training for technical 1s1i5tance component will be procured through limited international tendering after bid5 from suppliers In at least·three countries. ECONOMIC RATE OF RETURN: 27% ESTIMATED COMPLETION DATE: 1987 - 0 - •