Announcement of IDA Approves Twenty-Nine Million Five Hundred Thousand Dollars Credit for Agricultural Project in Ghana on April 24, 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. 80/51 April 24, 1980 IDA APPROVES $29.5 MILLION CREDIT FOR AGRICULTURAL PROJECT IN GHANA The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a $29.5 million credi~ for an agricultural project in Ghana's Volta Region. The project, the total cost of which is $48.7 million, is designed a.., the first phase of a continuous program of agricultural development in the region. It will concentrate on major field crops, related support services, rural infrastructure, and on the establishment of an efficient agricultural service. At present about 84% of the region's farm families have less than four hectares on which they grow cereals, roots, and legumes for subsistence, and tree crops, fruits, and vegetables for supplemental cash income. Under the project a package of basic agricultural services will be provided ~ farmers in the project area. On-farm trials and adaptive crop research will be ~nducted; ten 20 to 30-hectare pilot schemes for low-1 ift pump irrigation will be established; and agricultural machinery will be provided. The Ministry of Agriculture's veterinary and fisheries extension services will be strengthened to provide better support to the region's livestock farms and fish ponds. The Ministry's Regional Office will be strengthened with technical and managerial staff and logistic support. Its staff and farmer training facilities will be expanded and its home extension program upgraded. In addition, some 65 farm service centers will be built and equipped and the Adidome Farm Institute will be renovated and expanded. New access roads wit 1 be built and existing access and feeder roads will be improved. In about five years the annual income of some 60,000 farm families, or 35% of the total in the region, is expected to increase from about $1,160 to $2,300 in the south, and from about $2,100 to $3,000 in the north, thereby making possible higher standards of living and nutrition. Additional on-farm employment at full development is expected to total about 2.6 million man-days per year. Increased food production due to the project will help to reduce imports and result in about a $6 ~ill ion annual foreign exchange saving. The International Fund for Agricultural Development is providing a $12.S million loan in co-financing for this project. The IDA credit of $29.5 mil lion to Ghana is for 50 years, including 10 years of grace. It is interest free but will • carry a 3/4 of 1% ~ervice charge to cover IDA's administrative expenses . NOTE: Money figures are expressed in U.S. dollar equivalents . • FOAM NO, 1121 (5-.76) ( T ECH N I CA L D A TA PROJECT: COUNTRY: TOTAL COST: Volta Region Agricultural Development Ghana $48. 7 mi 11 ion • IDA FINANCING: $29.5 million, standard IDA terms OTHER FINANCING: International Fund for Agricultural Development (!FAD), $12.5 mill ion; Government of Ghana, $6.3 million; and local banki~g institutions, $0.4 million. IMPLEMENTING ORGANIZATION: Regional Agricultural Coordinator's Office of Ministry of Agriculture Ho, Volta Region, Ghana PROJECT DESCRIPTION: The project aims to raise agricultural production and farm incomes in the Volta Region through the provision of a pack- age of basic agricultural services. It will include: improved extension services, credit and training for farmers; the construction of 65 farm service centers for the distri- bution of farm imputs, staff housing, and project offices; expansion of. the Adi dome Farm Institute· construction and improvement of access and feeder roads; strengthen- ' . ing of the Min-istry PROCUREMENT: 1 of Agriculture's (MOA) Regional office; and consultant services. Al goods and services join~ly financ d by IDA and I.FAD wi of fertilizers chemicals insecticides, drugs, vehicles, tractors, equipment 7 be procured in accordance with IDA gu1del 1n s. Procuremen~ 7 1. and machin- ery, construction materiais for acces~ roads, and steel frame buildings for :arm Service_ Ce n t er s ( FSC s ) , unde r con t r act s wi th an es t i ma t e d va 1ue of $5 0 , 000 o ~ mo re ! wI l l be unde r taken through international competitive bidding. Such procurement 1s estimated to have an aggregate value of $11 .8 million. For contracts over $25,000 but less than $'i0,000, totaling about $1 mi 1 J ion, local competitive bidding wi 11 be employed, in accordance with procedures acceptable to IDA. The same items purchased through contracts of less than $25,000 and not exceeding an aggregate value of $0.5 million, will be procured through competitive shopping. In bid evaluation, domestically man- ufactured goods wil 1 be al lowed a 15% preference over the c.i .f. price of imported goods or the apl icable duty~ whichever is less. Civil wor~s contracts for buildings (except steel frame buildings for FSCs), housing, and improvement of feeder roads, with a total value of about $12.9 million, will not be attractive to foreign con - tractors due to dispersed location and small size of contracts; such contracts will therefore be awarded on the basis of local competitive bidding. Local competitive bidding will also be employed for procurement of items such as, fishing nets and gear, a~imal feeds, and small farm tools and equipment,amounting to about $1.6 mil- lion. CONSULTANTS: About 27 man-months of short-term consultancy services will be required to assist the MCA in the following areas: (a) providing experienced guidance· in specifying and achieving project objectives, and in the introduction of the "training and visit" extension system; (b) reviewing the effectiveness of MOA's recently decentralized operating structure; (cl planning and • designing the project's evaluation and monitoring program; (d) assisting the Animal Research Institute in reviewing the nutrition and feed situation for all kinds of livestock; and (e) preparation of a second phase of the project. Most of the consult- ants are likely to be recruited internationally, but efforts will be made to encourage • .•. I  2 .participation by local universities and other qualified institutions. The qualifica- tions, experience of the consultants, and the terms and conditions on which they are apJDnted, will need to be satisfactory to IDA. ECONOMIC RATE OF RETURN: 16% ESTIMATED COMPLETJON DATE: 1985 0 • • •