Announcement of IDA Provides Twenty Million Dollars Credit to Niger for Dosso Agricultural Development Project on June 9, 1980

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. 80/94 June 9, 1980 IDA PROVIDES.$20.MILLION CREDIT TO NIGER FOR DOSSO AGRfcOLfORAt·bEVELOPMENf PROJ£ct· The International Development Association (IDA), the soft-loan affiliate of the World Bank, has approved a $20 million credit for an agricultural project in Niger. The $39.2 million project conforms with the government's policies of increas- ing agricultural production and improving farm incomes and the standard of living of the rural population. The project, which aims at reversing the present decline in agricultural productivity, is expected to increase production of cereals, cowpeas, groundnuts, bottomland crops, and livestock • • Some 80,000 farm families are expected to benefit from the introduction of improved farming practices for 150,000 hectares (ha) of rainfed cereals, cowpeas, and groundnuts, the improvement of vaccination coverage, and the construction of small-scale irrigation schemes for 200 ha of bottomlands, all of which the IDA credit will help to support. The project also provides for the construction of a training center for extension staff, which will facilitate the introduction of a training and visit extension system, and for the strengthening of a system to supply farm inputs and implements through agricultural credit. An applied research unit will be set up which will concentrate on farming systems, fertilizer use, and soil and water conservation. Co-financing for this project will be provided by the Fonds d'Aide et de Cooperation, $2.3 million grant; the Caisse Centrale de Cooperation Economique (CCCE), $4.5 million loan; and the Caisse Nationale de Credit Agricole, $1. 1 million. The Government of Niger will contribute $7.2 million and the benefi- ciaries of the project $4. 1 million to the $39.2 million total cost of the project. The IDA credit is for 50 years, including 10 years of grace. There is no interest, but 3/4 of 1% per annum is being charged to cover administrative costs. The CCCE loan will be for 20 years, Including 5 years of grace, with interest at 3.5% per annum . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Dosso Agricultural Development Republic of Niger $39.2 million • IDA FINANCING: $20 million, standard IDA terms OTHER FINANCING: A grant of $2.3 million from the Fonds d'Aide et de Cooperation; a loan of $4.5 million from the Caisse Centrale de Cooperation Economique for 20 years, including 5 years of grace, with interest at 3.5% per annum; $1. 1 million from the Caisse Nationale de Credit Agricole; $7.2 million from the Government of Niger; and $4. 1 million from the beneficiaries of the project. IMPLEMENTING ORGANIZATION: Ministere du Developpement Rural Niamey, Niger PROJECT DESCRIPTION: The project, to be implemented over five years, aims at increasing production of cereals, cowpeas, groundnuts, bottomland crops and livestock, in ways that will revers~ the present decline in productivity. It will include: (a) the introduction of improved farming practices for 150,000 hectares (ha) of rainfed cereals, cowpeas, and groundnuts, and the intf0duction of animal traction; (b) the improvement of vaccination coverage, of ~ delivery of drugs and feed supplements, and of animal husbandry practices for beeftllllllll' cattle and work oxen; (c) the construction of sma11-scale irrigation schemes for 200 ha of bottomlands and, for dry-season cropping, improvement of input supply to 3,500 ha of existing bottomlands; (d) the introduction of a training and visit extension system including construction of a training center for extension staff; (e) the strengthening of the farm input and implement supply system; and (f) zpplied research. PROCUREMENT: Procurement of civil works and inputs, amounting to approximately $22 million, will be through international competitive bidding (ICB) in accordance with the Association's guidelines in the case of contracts over $100,000. Competitive bidding in accordance with local procedures acceptable to the Association will govern contracts between $30,000 and $100,000 (estimated to cost $2 million). Contracts of less than $30,000 (estimated to cost $1 million) will be purchased directly from local competitive suppliers. For civil works contracts, local contractors will receive a 7.5% preference, and domestically manufactured goods will be allowed a 15% preference over the c.i.f. price of imported goods, or the applicable import duty, whichever is lower. CONSULTANTS: Twenty-seven man-years of technical assistance and 28 man-months of consultant services will be obtained following procedures acceptable to the Association . ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 25% 1985 - 0 - •