Announcement of IDA Approves Credit for Rural Development in Burundi on December 10, 1981

. , . -: FPR~ I . EOIATf R~LE~SE •world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA \l~EWS RELEASE NO. 82/20 Contact: Hugh Blackman December 10, 1981 (202) 477-3879 IDA APPROVES CREDIT FOR RURAL DEVELOPMENT IN BURUNDI Small farmers in Burundi will be assisted by a credit of SOR 14.2 million ($16 million) approved by the International Development Association (IDA), the concessional lending affiliate of the World Bank. About 150,000 farm families in Ngozi province will be supplied with extension services under an integrated rural development project costing $29 million. The project aims at improving the quality of the coffee and foodcrops produced by small farmers. It also seeks to improve the farmers' productivity, thereby raising farm incomes. The quality of the coffee grown will be improved with the prov1s1on of 15 new coffee washing stations. Rural living conditions will be improved by providing • safe water sources, equipping social centers, developing wood resources, and improving the road network. These development activities wiJl be carried out by a new organization, the Regional Development Company of Buyenzi, established with technical assistance financed under the project. This company is the sixth regional company created by the government to help the small farmer. The objective is to integrate government services in a single organization, under independent management. Ngozi province, covering about 2,700 square kilometers, has a population of about 700,000. It is the most densely populated region in Burundi, and coffee growing is the main source of income. The new project will have a monitoring and evaluation system that will ensure adequate data collection. There is also provision for a periodic review of the Government's policies relating to coffee production. Two IDA credits totaling $7 million have been approved previously to help coffee growers in the country. The integrated rural development project will be cofinanced by two loans: $7 million from the International Fund for Agricultural Development, and $3 mi 11 ion from the Kuwait Fund for Arab Economic Development. T:1e I DA credit of SOR 14.2 million to the Republic of Burundi is repayable over 50 years with 10 years of grace; it is interest-free but carries a service charge of 3/4 of 1% to cover 1DA 1 s administrative costs. The credit will be committed when funds become available • • NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit. FORM NO. 1121 (5-76) PROJECT: ,ntegrated Rural Oevelopment/Ngozi ff J .,, COUNTRY: Burundi TOTAL COST: $28.95 million IDA FINANCING: SOR 14.2 mi I lion ($16 mi 1l ion), on standard IDA terms OTHER FINANCING: Government of Burundi, $2.9 million; International Fund for Agricultural Development:> $7 million; Kuwait Fund, $3 million IMPLEMENT I NG ORGAN IZAT i ON: Reg i ona 1 Deve 1opmen t Company (RDC")~ Ministry of Agriculture Ngozi Province, Burundi PROJECT DESCRIPTION: It will comprise: a) a program to provide extension services and agricultural inputs; b) the construction and equipment of 15 coffee washing stations and the strengthening of the maintenance and management of handpulping centers; c) reafforestation ano erosion control measures; d) improvement of the road and water supply network and social infrastructure; e) a pilot swamp d~velopment program; f) the construction of marketing warehouses; g) studies, research, training, and project monitoring; and h) technical assistance. ~ PROCUREMENT: Contracts exceeding $100,000 for the supply of fertilizers and pesticides {about $3 million including contingencies) will be awarded on the basis of international competitive bidding in accordance with Bank/!DA guidelines. Contra·cts for inputs, materials, tools, vehiclesf and equipment other than washing station equipment (about $3.6 million), costing less than $100,000 individually, will be awarded on the basis of government procurement procedures, with quotations sought _from all suppliers represented in Burundi and offerfng adequate guarantees of service and supply of parts. To ensure continuity in operations, and facilitate maintenance, the machinery and equipment to be procured for the washing stations (about $1.2 million) will be purchased directly fioni existing suppliers provided that adequate justification is furnished to IDA. Construction of staff housing) traini~g facilities> offices, warehouses, roads, and bridges will be carried out by force account. CONSULTANTS: Internationally recruited technical assistants will be employed to strengthen RDC's management and train local staff: an extension and training expert for about 48 man-months, a washing stations manager for ,bout 48 man-months, an accounting and finance manager for about 48 man-months~ rl bacteriologiit for coffee research for ~8 man-months, a topographer for six man-months, a a construction specialist for 48 man-months, a draftsman for three man-months, and a land use specialist for 48 man-months. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 80% for directly productive components. 1986 - 0 - •