Announcement of Tanzania to Expand Forest Plantation Development with Twelve Million US Dollars IDA Credit on April 15, 1982

. ~ . . . H .)R ~1\iME-DIA ,.. . 11· ,j{EU . . As;P · .. I 1 World e Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (2~2) 477-1234 IDA NEWS RELEASE NO. 82/55 Contact: Pushpa Schwartz April 15, 1982 (202) 477-5306 TANZANIA TO EXPAND FOREST PLANTATION DEVELOPMENT WITH $12 MILLION IDA CREDIT Tanzania will continue development of its forest plantations with an SOR 10.5 mi11ion($12 million) credit from the International Development Association (iDA), the World Bank's affiliate for concessionary lending. The credit will be used for the $15 million Sao Hill Forestry Project, which was prepared by the Food and Agriculture Organization/World Bank Cooperative Program~ It is the second phase of a development program aimed at meeting domestic demand for softwood to supply sawn timber and pulp. The project will maiJtain about 18,000 hectares of existing pine and eucalyptus plantations through pruning, thinning, scaling, and replanting operations. It will also establish and maintain 10,000 hectares of new plantations by setting up nurseries, • preparing the land, planting, fertilizing, weeding, and carrying out research . Because of the threat of forest fires in the dry season, the project will improve the existing fire protection system through the maintenance of fire breaks, towers, and control centers. New equipment will be purchased for fire protection as well as for plantation operations. Upgrading of secondary roads and tracks will also be carried out . Technical assistance will be provided for the project to strengthen the mechanical engine~ring services, to establish an improved financial management and planning system, and to develop improved silvicultural practices and field operations~ Environmental benefits derived from the establishment of tree plantations include protection of forests and maintenance of soil cover within the project area. World Bank lending to Tanzania so far this year inc:ludes four IDA credits amounting to $71 million. The IDA credit for the Sao Hill project is for 50 years, including 10 years of grace; it carries no interest but bears a small annual service charge of 0.5% on the undisbursed baiances of the credit, and 0.75% on the disbursed balances. 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 SOR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit. I tt#t WltC I tf ,.; He 1M  T E CHN I C AL DAT A \ ~ t: f PROJECT: COUNTRY: TOTAL COST: Sao H11l Forestry - Phase II Tanzania $1 S mi 11 ion • I I DA FI NANC 1NG : SDR 10.5 mt"lllon (.$12 million), on stand_ard terms; pl~s an a~nu~l ~ervice charge of ti.st on the undlsbursed balances of the credit, and 0.75% on the disbursed balances. OTHER FINANCING: Government of Tanzania, $3 mi 11 ion fMPLEMENTING ORGANIZA1'10N: Ministry of Natural Resources and Tourlsrra (Forest Division) P.O. Box 9372 Dar es Salaam, Tanzania PROJECT DESCRIPTION: The projec:t wt 11 consist· of: (a) furthet' develc;,pment of about 18,000 ha of Phase I forest plantations; (b) establishment and development of about 10,000 ha of new forest plantations for production of sawlogs and pulpwood; (c) construction of about 160 km of forest secondary roads and 725 km of tracks; upgrading of some 120 km of secondary forest roads to·primary standard; and the • ma I ntenance, of such· ·roads and tracks; (d) construct Ion of 58 staff houses and other bufldtngs an·d structures.,a.nl main.tenance of such houses and buildings; (e) _strengthening of the mechanical engineering services, designing financial and management information svs- ·tems for the project management, and pr<ividinii.short" study tou·rs. for selected project . staff; ana {f) twelve man-months of short-term consul tandes ~nd .studfes to review the project's fire protection system, the die-back problem of pine trees in Sao Hill, stumpage rates, and pricing of forestry products in the country,and existing and planned programs for national vi 1lage afforestation. PROCUREMENT: Vehicles, tractors, machinery and equipment,and Initial spare parts($ 1.7 mill ton) will b~ bulked as far as practicable. Orders of $100,000 and above will be procured through international competitive bidding (IC8) from suppliers who agree to maintain lnventorles of spare parts in Tanzania. Domestic manufacturers will be. allowed a preference of 15% or the existing rate of duty, whichever Is lower. Vehicles, tractors, machinery,and equipment of less than $100,000 will be procured (up to an aggregate of $300,000) in accordance with the government's local competitive bidding procedures. Civil works will be constructed under force account by the project's Civil Works Section. · CONSULTANTS: The following internationally recruited consultants or spectalists will be needed: a forest fire protection special 1st, a consultant to do a comprehensive study of stumpage rates and the pricing of forestry products, a forest physiologtst, and two village afforestation specialists. ECONOMIC RATE OF RETURN: 30% ESTIMATED COMPLETION DATE: 1987 - n - •