Announcement of Two Million Five Hundred Thousand US Dollars Loan to Zambia for Livestock Program on June 18, 1969

' . FOR IMMEDIATE RELEASE • 1818 H STREET, N.W .• WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 69/42 Subject: $2.5 million loan to Zambia June 18, 1969 for livestock program The first phase of a long-term livestock development program in Zambia will be undertaken with the assistance of a $2.5 million loan fror.a the World Bank, it ·was annoq.nced today. The project consists of the development of 12 Government-owned beef cattle ranches and 5 dairy farms lo~ated throughout the country. The primary objective is to increase the production of beef and dairy products for Zambia's expanding • internal consumption -- a third of the country's requirements are now imported at an annual cost equivalent to $8 million -- and to improve breeding stock. Additional benefits will come from the demonstration of better management prac- tices, improved production and disease control techniques, and the practical training of ranch managers and field assistants. Zambia Cattle Development Ltd. (ZCDL), a subsidiary of the Government's Agricultural Development Corporation, will develop and operate the ranches and farms. Finance will be ma.de available for such investments as on-farm roads, livestock, tractors and vehicles, firebreaks, fencing, water supplies, ranch buildings, stock handling and animal health control facilities. Funds will also be provided for technical services for an artificial insemination program and pasture improvement schemes. In 7 years, 9 of the ranches will produce annually about 8,500 feeder steer • weaners and 4,000 surplus heifers for breeding; 2 others will produce about 3,000 head of grass-fattened slaughter stock. The remaining ranch will be developed /more • Bank P.R. No. 69/42 - Zambia-Livestock Pr·ogram - 2 - entirely for the breeding of bulls and will make available for sale to other project ranches and to Zambia's livestock industry 500 improved bulls and 400 surplus stud heifers. The ranches will achieve full carrying capacity in the tenth year. The 5 dairy farms will be in full production in 5 years producing 20 tons of whole milk a day; they will also have a surplus of 360 dairy heifers in-calf for sale annually. Thus, at maturity the increased value of production generated by the project will be equivalent to $2.7 million annually. The total cost of the project over 5 years is estimated at the equivalent of $5.8 million. The Bank loan of $2.5 million will cover the estimated foreign exchange costs. The Zambia branch of Barclays Bank DCO is providing $1.2 mil- • lion in loan and working capital. The remaining finance will be provided by the Government of Zambia and the ZCDL. The Bank loan will be made to the Government of Zambia for 3 term of 15 years, including 5 years of grace, with interest at 6-1/2%. The Government will relend the proceeds to ZCDL on the same tenns. - 0 - •