Bolivia - Beni Livestock Development Project

RESTRICTED Report No. P - 542 FILE Copy This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED.DEVELOPMENT CREDIT TO THE REPUBLIC OF BOLIVIA FOR A LIVESTOCK RPOJECT May 4, 1967  REPORT AND RECOINMEDATION OF THE PRESIDENT TO THE EXECUrIVE DIRECTORS ON A PROPOSED DEVELOBIENT CREDIT TO THE REPUBLIC OF BOLIVIA FOR A LIVESTOCK PROJECr 1. I submit the following report and recommendation on a proposed development credit in various currencies equivalent to US$2 million to the Republic of Bolivia for a livestock project. PART I - HISTORICAL 2. Tiring the Annual Meeting of 1964, the Bank was approached by the Bolivian Development Corporation for technical assistance in the development of the beef cattle industry in the lowlands. Arrange- ments for project preparation were made under the FAO/IBRD cooperative program and a mission visited Bolivia in July/August 1965. In March 1966, the Ministry of Agriculture and the Agricultural Bank of Bolivia presented an application for a livestock project prepared by the FAO/ IBRD mission. The project was appraised by an IDA mission in August/ September 1966. Negotiations took place in Washington in early IHiarch 1967 with Mlessrs. Mario Salinas Zalles, Under-Secretary at the Ministry of Agriculture, Alberto Valdes Loma, General Manager of the Agricultural Bank, and Gaston Guillen, Chief of the Banking Department at the Ministry of Finance. 3. IDA is the only institution in the World Bank Group which has lent to Bolivia. The status of the previous credits, as of April 30, 1967, is as follows: (US$ million) No. Year Borrower Purpose Amount Undisbursed 61 BO 1964 Republic of Bolivia Power 10.0 1.7 62 BO 1964 Republic of Bolivia Power 5.0 0.7 71.O6 T 2.4 4. Recently, IDA has been asked by Empresa Nacional de Electricidad, the beneficiary under Credit 61 BO, to consider financing further expan- sion of its power generating facilities. 5. A mission organized under the UNESCO/IBRD cooperative program visited Bolivia in September/October 1966 to survey the education system and identify a project. Their report should be completed shortly.  - 2 - 6. The Bank is Eaecuting Agency for a transport survey in Bolivia financed by the United Nations Development Programme. The survey began at the end of March 1967 and should be completed in about 15 months. PART II - DESCRIPTION OF THE PROPOSED DEVEWPMENT CREDIT 7. Borrower: Republic of Bolivia Beneficiary: Agricultural Bank of Bolivia Amount: In various currencies equivalent to US$2 million Purpose: To increase beef production by helping to finance a credit program for livestock producers and providing related technical services. Amortization: In semi-annual installments commencing May 15, 1977, and ending November 15, 2016; each installment to and including the installment payable on November 15, 1986 to be