Announcement of Five Million Dollars Loan, Three Million Dollars Credit for Tunisian Agriculture on July 6, 1971

FOR IMMEDIATE RELEASE • INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT INTJi~RNATIONAL DRVELOPMF~NT ASSOCIA'l~ION 1818 H STREET, NW. WASHINGTON D.C. 20433 TELEPHONE; EXECUTIVE 3-6360 b~~k Press Release No. 71/64 Subje;t: $5.0 million loan, $3.0 milH~tt ID~ Press Release No. 71/32 credit for TUL,isian agricultore f dy 6, 1971 A project to increase wheat and dairy production in northern Tunisia -5.od to create desert oases for date crops in the south of the country wi.1'1. be assisted by World Bank Group financing, it was announced today. The World Bank is providing a $5.0 million loan and its affiliate, the International Development Association (IDA), is supplying a $3. 0 mil·· • Hon ere di t to cover the foreign exchange component of the estimated $JS. c, n::1 ..ilion project cost. The project is expected to increase production of wheat, dates and ;:,ff-season vegetables, resulting in foreign exchange earnings or saving£ cf about $8 million annually. In addition, it will expand milk output tc 1:<::1.p meet rapidly rising domestic demand.. The project will be implementec ic the private commercial farm sector. Approximately $9.0 million of project costs will be for grain farm fftf..:Chanizati.on in the north. Banque Nationale de Tunisie (BNT) will pro·d.d-.: sci:1.e 850 grain farmers with credit for purchasing mechanized fann equipm.ctJt · Almost one-quarter of the costs will be the financing for creation r.f n ...'.ses in the southern desert with approximately 18 date-palm plantati.onA f.ve.raging about 125 acres. This component --· including wells and irrigar: ·, ,;: . . • 1 . =1.t1<l preparation, nursery stock, equipment and buildings ···- will be carnc<. out hy Societe Tunisienne de l' Indus trie Lai tie re (19 Rue de Port, Tunj s ~ • 1ank P.R. No. 71/64, IDA P.R. No. 71/32 - Tunisia - 2 - Tunisia) which processes and m~rkets most of Tunisia's date crop. The plantations will eventually provide jobs and housing for about a thousand. desert nomad fa~ilies. The balance of the project costs will be for assisting in the develop- ment of dairying through loans to dairy farmers for purchasing irrigation and mechanized equipment, farm improvements, and new livestock. The Bank loan. is being made to BNT, (19 Avenue de Paris, Tunis, Tun:f.s -..~) which will carry out the project, and is guaranteed by the Government. It is for 15 years, including a five-year grace period, at 7~%. The IDA credit is being made to the Government, which will relend it • to BNT. It is for 50 years, including a 10-year period of grace, and is interest free except for a 3/4 of 1% service charge to meet IDA's administrative expenses. Financing will also be provided by sub-borrowers of the BNT loan -- approximately $4.3 million; by BNT from its own resources approxlmately $2.5 million; and by the Government -- $200,000. - 0 -