Zambia - Eastern Province Agricultural Development Project

Document of The World Bank FOR OFFICIAL USE ONLY FILE CPY Report No. P-2988-ZA REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF ZAMBIA FOR THE EASTERN PROVINCE AGRICULTURAL DEVELOPMENT PROJECT May 4, 1981 This document has a restricted distribution and may be used by recipients only In the performance of their official duties. Its contents may not otherwise he disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Zambian Kwacha (K) US$1.25 = K 1.00 US$1.00 = K 0.80 GLOSSARY OF ABBREVIATIONS AFC - Agricultural Finance Company CARO - Chief Agricultural Research Officer CFC - Cattle Finance Company DBZ - Development Bank of Zambia DOA - Department of Agriculture ECU - Eastern Cooperative Union GRZ - Government of the Republic of Zambia IFAD - International Fund for Agricultural Development LINTCO - Lint Company of Zambia MAWD - Ministry of Agriculture and Water Development NAMB - National Agricultural Marketing Board PAO - Provincial Agricultural Officer PEMO - Provincial Extension Management Officer PPS - Provincial Permanent Secretary RDC - Rural Development Corporation RDSB - Rural Development Studies Bureau VEW - Village Extension Worker ZADB - Zambia Agricultural Development Bank GOVERNMENT FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY ZAMBIA EASTERN PROVINCE AGRICULTURAL DEVELOPMENT PROJECT LOAN AND PROJECT SUMMARY BORROWER: Republic of Zambia AMOUNT: US$11 Million TERMS: 20 years, including 5 years of grace, with interest at 9.6 percent per annum. PROJECT DESCRIPTION: The proposed project aims at increasing agricultural production and raising the income levels and living standards of small-scale farmers in the Eastern Province through the provision of improved services and includes the following components:- (a) Research: provision of incremental staff, equipment, housing, transport and operating funds for Zambia's agricultural research program; (b) Extension: reorganization of the Eastern Province extension service into a "training and visit" system; and provision of incremental staff and operating costs, vehicles and equipment, staff housing and water supply; (c) Inputs: construction of storage facilities and financing of incremental inputs for delivery to smallholders; (d) Credit: funding of incremental smallholder credit in the province; (e) Technical Assistance: for the Zambia Agricultural Development Bank and the Eastern Co-operative Union, as well as for project implementation; (f) Processing: provision of mechanized groundnut shellers, construction of an insecticide packing plant, and storage and infrastructure at the Chipata cotton ginnery; and (g) Tsetse control: financing of a hand-spraying program to control tsetse flies in Petauke District in Eastern Province. This document has a restricted distribution and may be used by recipients only in the performance of| their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - PROJECT BENEFITS At full development, the project would lead to AND RISKS: significant increases in the production of maize, cotton, sunflower seed and groundnuts in the pro- vince; milk and meat production also will be raised through tsetse control. The major risk would be the failure of the institutions concerned to implement the Project in a timely and efficient manner; technical assistance has been included to minimize this risk. ESTIMATED COST: Local Foreign Total --------------- - US $ 000