Announcement of Papua New Guinea to Carry Out Provincial Development with World Bank Assistance on April 8, 1982

. . fOR IMMEDIA l f REU ASf . World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.~ Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/75 Contact: Sundaram Sankaran IDA NEWS RELEASE NO. 82/53 (202) 477-3962 Apri 1 8, 1982 PAPUA NEW GUINEA TO CARRY OUT PROVINCIAL DEVELOPMENT WITH WORLD BANK ASSISTANCE Papua New Guinea plans to improve living conditions in Enga Province with the help of $8 mi 11 ion in funds from the World Bank. The World Bank itself ivill provide a loan of $6 mill ion, and its affiliate for concessionary lending, the International Development Association (IDA), is to give a credit of SOR 1 .7 million ($2 million). The $16 million project is the first phase of a proposed eight-year plan for the region, which is one of the poorest and least developed in the country. Agricultural development efforts under the project will focus on increasing production of both subsistence and cash crops through the introduction of improved sgricu1tura1 practices to farmers, increasing the local supply of fuelwood by supporting the development of forestry resources, and improving livestock activities by estab- lishing a breeding center for sheep, goats, and buffaloes. Under the project, roads will be upgraded, and health and community services will be improved. In addition, assistance will be provided for increasing the efficiency of the provincial government. World Bank lending to Papua New Guinea has n.ow reached $210.2 mi 11 ion. The World Bank loan for the Enga Province project is for a period of 17 years, including a grace period of four years,with an interest of 11.6% per annum. The IDA credit is for 50 years, including 10 years of grace; it is interest-free, but carrces a service charge of 3/4 of 1% per annum. NOTE: IDA credit 7 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 c,moUh!: of the IDA credit reflects the exchange rates existing at the time of ne~otiation of the credit • • b  T E CHNI CAL DAT A PROJECT: COUNTRY: TOTAL COST: Enga Provincial Development Papua New Guinea $16 mi 11 ion • BANK FINANCING: S6 mill ion for a period of 17 years, including four years of grace, with interest at 11n6% a year IDA FINANCING: SOR l .7 mill ion ($2 million) on standard IDA terms OTHER FINANCING: Government of Papua New Guinea, $8 mi 11 ion . IMPLEMENTING ORGANIZATION: Department of Enga Office of Project Coordination Department of Finance Post Office Ward's Strip Waigani, Port Moresby, Papua New Guinea TELEX: FINANCE NE 22218 PROJECT DESCRIPTION: It consists of: (a) agricultural development, including subsistence and cash crops, forestry resources, and 1 ivestock activities; (b) infrastructure development, including road upgrading, development of hydro- power, and building office b · ;ks and staff headq4arters; (c). hE:afth services improvement; (d) improvement of the education system; (e) strengthening of community development • activities; (f) expansion of business development services; and {g) institutional devel ment to increase the efficiency of the provincial government. PROCU.REMENT: Al 1 civi 1 works ($8.5 mi 11 ion) including roads wi 11 be carried out following local competitive bidding procedures or by the Department of Works and Supply under force account if suitable contractors are not avail .ble. Vehicles ($0.3 mil lion) and equipment ($0.7 mil 1 ion} wi 11 be procured through local competitive bidding procedures. Procurement documents for contracts over $400,000 w111 be submitted to the Bank prior to tendering and award. CONSULTANTS: Project implementation wi 11 require a total of 750 man-months of expatriate assistance at a total cost of $2.6 million. ECONOMIC RATE OF RETURN: 17% on a 30-year investment program comprising roads and agricultural development ESTIMATED COMPLETION DATE: 1985 - 0 - •