Announcement of Five Million Loan for Land Reform in Colombia on July 3, 1972

72/S-6 lNTERNATIONAL BAN.K FOR. • ECONSTRUCTION AND . DEVELOPMENT . 1818 H STREET, N.W., WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. J-2 /50 Subject: $5.0 million loan for land July 3, 1972 reform in Colombia The World Bank has approved a $5.0 million loan to Colombia to assist in financing drainage, rg,ads, land preparation and related investments for the develop•nt of about 42,000 acres for dry farming. The project is the Second Atlantico Development Project. A Bank loan of $9. 0 million was made in June 196 7 for the first stage. Colombia has maintained a satisfactory agricultural growth rate in t'ecent years. However, a 3. 3% per annum population increase and uneven land distribution continue to contribute to rural poverty, an exodus toward the cities, and urban memployment. The beneficiary of the loan, the Colombian Institute for Agrarian Reform • (INC.ORA), already owns approximately 14,800 acres of the project area and will obtain the remainder from private landowners either by way of private sale or of expropriation witb compensation in accordance with the Agrarian Reform Law. The su.itable acquir.ad lands will be subdivided into lots of at least 20 acres and distributed to approximately 1,800 small farmers or farm 1,1orkers from the surrounding areas. The $9. 7 million project consists .of design and construction of five Tl&in drains and.lateral and other drains t~ complete the drainage system for about 42,000 acres; 48 miles of main roads and secondary roads; five storage d-pots; acquisition, preparation and allocation of land; purchase of equip- ment; training of INCORA staff; and long-tem credits to dairy farmers. The future net: production cf the proje~t is estimated at $3.l million annually, compared to about $600,000 without the project. The World Bank loan is being made to the Republic of Colombia, and INCORA. will be the beneficiary and responsible for the execution of the project. Thh is the eighth Bank l~an for agriculture in Colombia and the fourth to be • administered by INCORA • The Bank loan is for a term of 25 years, with a period of grace of 6 years, at an interest rate Qf ~ ~•r annuia • .• 0 ...  • July 3, 1972 TECHNICAL DATA PROJECT: Second Atlantico Development COUNTRY: Colombia $9. 7 million equivalent. BANK FINANCING: $5 .0 million equivalent (includes $0.9 million equivalent for interest during construction), 25 years, 6-year grace period, 7!t.% interest per annum. • OTHER FINANCING: Government: $5. 6 million equiv:lent. IMPLEMENTING ORGANIZATION: Agrarian Reform Institute of Colombia (INCORA), Bogota, Colombia; Cable Address: INCORA. PROJECT DESCRIPTION: To help finance second stage of land reclamation and distribution project in Atlantico Department. PROCUREMENT: Drainage works, roads, storage depots, agricultural equipment and land preparation; procurement through international competitive bidding. CONSULTANTS: TAHAL of Israel. ESTIMATED COMPLETION DATE: December 19 7 7. - 0 - •