Announcement of Six Million One Hundred Thousand Dollars IDA Credit for a Cotton Project in Dahomey on February 17, 1972

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 72/12 Subject: $6 .1 million IDA credit for February 17, 1972 a cotton project in Dahomey Dahomey's cotton production will be increased under a project for intensifica- tion of cotton cultivation in the Borgou and 7..ou, with financial assistance equivalent to $6.1 million approved by the International Development Association, an affiliate of the World Bank. Prospects for cotton in Dahomey are good. The present project represents the culmination of a program started in 1966 with French assistance to achieve a higher standard of living for farmers who. account for over 80% of the population, and to im- prove Iahomey•s balance of payments. Since independence Dahomey's efforts to accelerate agricultural development have been focused mainly on exports -- including cotton -- because land is her only physical resource. FAC (Fonds d'Aide et de Cooperation) of France is financing the present project concurrently with IDA • • The project is located in the center and north of, the country, where conditions are suitable for the cultivation of good quality cotton. It is expected to increase the number of cotton growers from 29,000 to 41,000. It will, over the 1971-74 period, largely contribute to a doubling of Dahomey's foreign exchange earnings from cotton. In addition, some 8,200 acres of low-lying lands will be developed for rice cultiva- tion1 The project· includes provision of staff and equipneint to .administer extension, credit and marketing services, construction of two ginneries, rehabilitation of 385 miles of feeder roads, and funds for an agricultural div·ersification study in the project area. The project will be implemented mostly by SONA.CO (Societe Nationale Agricole pour le Coton) with the assistance of CFDT ( Compagnie F'rancaise pour le Developpement des Fibres Textiles) and SATEC (Societe d 1Assistance Tec:hnique et de Cooperation). Direction des Travaux Publics (DTP) will carry out road works. The IDA credit of ~.1 million will cover about 48j: of the estimated ~-7 million total project costs. The French Government aid and cooperation fund FAC is contributing a grant equivalent to $3.1 million to help finance the project. The borrower is the Republic of Dahomey and the IDA credit. is for .50 years including a 10-y-ear grace period. It is interest free, but there is a service charge of 3/4 of 1% to meet IDA 1 s administrative expenses • • - 0 -  • February 17, 19 72 TECHNICAL DATA PROJECT: Zou-Borgou Cotton Project COUNTRY~ The Republic (/f Dahomey TOTAL CX>ST: $12.7 million BANK FINANCING: $6.1 million, 50 years, 10-year grace period, interest free except for 3/4 of 1% service charge to cover IDA' s administrative expenses. OTHER FINANCING: France, $3.1 million; Government, $3.5 million. IMPLEMENTING ORGANIZATION: Societe Nationale Agricole pour le Coton, SONACO, Parakou, Dahomey. PROJEcr DESCRIPTION: Increasing the cotton area in the Zou-Borgou areas from • 72,000 acres in 1971 to 145,000 acres in 1974, and the number of cotton growing farm families from 29,000 to 41,000. Development of 8,200 acres of low lying land for rice cultivation. Staffing and equipping SONACO. Establishing a revolving agricultural credit fun~. PROCUREMENT: Constructing two additional ginneries; providing six small rice hullers; rehabilitating 385 miles of tertiary roads;, carrying out applied cotton research, and preparing a diversification project for the Zou and Borgou areas. Fertilizers, insecticides sprayers, farm equipment, corrugated steel culverts, vehicles, ginneries (~omponents), rice hullers subject to international competitive bidding. Construction of small buildings to be let locally. CONSULTANTS: Compagnie Francaise pour le Developpement des Fibres Textiles, CFDT: for the Borgou area. Societe d'Aide Technique et de Cooperation, SArEC: for the Zou area. ESTIMATED COMPLETION DATE: December 1974. • - 0 -