Tunisia - Central Tunisia Irrigation Project

Document of j-iLFCOEY The World Bank FOR OFFICIAL USE, ONLY Report No. P-344G-TUI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOWN IN THE AMOUNT EQUIVALENT TO US$16.5 MILLION TO THE REPUBLIC OF TUNISIA FOR A CENTRAL TUNISIA IRRIGATION PROJECT January 3, 1933 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.  CURRENCY EQUIVALENTS Currency Unit - Tunisian Dinar (DT) The exchange rate of the Tunisian Dinar is floating. The rate used in the Staff Appraisal Report, which approximates the current rate, is: US$1.00 = DT.555 DT 1.00 = US$1.80 FISCAL YEAR January 1 - December 31 ACRONYMS AND ABBREVIATIONS BNT - National Bank of Tunisia (Banque Nationale de Tunisie) DGPC - Highway Department of the Ministry of Equipment (Direction Generale des Ponts et Chaussees) ODTC - Central Tunisia Development Agency (Office de Ddveloppement de la Tunisie Centrale) OMIVAK - Kairouan Irrigation Development Agency (Office de Mise en Valeur des Perimetres Irrigues de Kairouan) PPI - Public Irrigation Perimeter (Perimetre Public Irrigue) PS - Shallow Well (Puit de Surface) USAID - US Agency for International Development  FOR OFFICIAL USE ONLY REPUBLIC OF TUNISIA CENTRAL TUNISIA IRRIGATION PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of Tunisia Beneficiaries: Central Tunisia Development Agency (ODTC); Irrigation Office of Kairouan (OMIVAK) Amount: US$ 16.5 million equivalent, including a capitalized front-end fee Terms: 17 years, including four years of grace, at the Standard variable interest rate Project Description: The project is designed to increase agricultural production, farm incomes and employment in Central Tunisia, one of the least developed areas of the country. It consists of invest- ments in: irrigation infrastructure; farm access roads; credit; the support services of ODTC and OMIVAK; aquifer monitoring equipment; a pilot livestock development program and animal production suppcrt services; studies for future investments in the project area; training; and technical assistance. About 12,000 families would benefit overall, and about 1,500 additional jobs would be created. Improved marketing infrastructure and information systems to be provided under the project would minimize the risk of temporary over-supplies of fruits and vegetables with accompanying falls in prices; improvements to the Offices' maintenance units, involvement of farmers in maintenance, increased water charges anc. improved budgeting procedures for maintenance would assure that the rehabilitated irrigation systems are maintained; differential water charges for winter and summer would encourage maximum use of these systems throughout the year; and the experience of the Offices, the strengthening they would receive and the simplicity of project activities would minimize celays in implementation. 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.  - ii1 - Estimated Project Costs; Local Foreign Total _ _ _ $US Millio