Announcement of Forty Four Million Dollar Loan and Thirty Million Dollar Credit for Multipurpose Irrigation and Power Project in Turkey on February 15, 1973

INTERNATIONAL BANI{ FOR RECONSTRUCTION AND DEVELOPMENT • 18 1 8 H INTERNATIONAL DEVELOPl\'IRNT ASSOCIATION ST R E ET, N W Banlc Press Release No. 73/10 WASHINGTON D.C.20433 TELEPHONE. EXECUTIVE 3-6360 Subject: $44.0 million loan a.nd $30.0 million IDA Press Release No. 73/7 credit for nrultipurpose irrigation February 15, 197 3 and power project in Turkey A multipurpose irrigation and power project in Turkey to help meet growing demand for electricity, increase agricultural production and exports, raise farmers' incomes, and help prevent flooding of the Ceyhan river will be assisted by a World Bank loan of $hh.O million and a $30.0 million credit by the Bank's affiliate, the International Development Association (IDA). The project will cost an estimated $326.6 rrrlllion equivalent and is located on the Ceyhan Plain in the Cukurova Region of Southern Turkey. It is just east of the Ceyhan Irrigation Project which the Bank Group is helping to finance with loans and credits amounting to $69.2 million. In addition, loans and credits totaling $hh. 7 million have been made for power projects in tha Cukurova Region. The project will add 138 megawatts to Turkey's generating capacity, irrigate and drain some 240,000 acres, and provide flood protection for about 85,000 acres of irrigable land. It has been designed so that an additional 80,000 acres can be irrigated at a later date~ The project also includes an integrated extension service, provision of farmers' credits, dairy cattle for farm demonstration, feeder roads, buildings, consultant services • and training • At full development, the project is expected to increase the value of annual produc- tion in the area $35.1 million over what it would be without the project and provide an additional $6.0 million equivalent in power benefits. Much of the increased production will be in cotton, fruit and vegetables for export, earning about $20 million a year in foreign exchange. Some 16,000 farm families in the area will benefit from the project through greater employment and increased earnings. Family labor employment is expected to double and hired labor to quintuple. In addition, the project will generate employment in the supply of inputs, processing and marketing, and in transportation. An earthfill dam will be built upstream of the irrigation and flood control area. anl a power plant with three 46-megawatt turbines and generators will be constructed, Existing flood control dikes will be raised, reinforced and extended downstream for a total of 38 miles. The irrigation system will include 100 miles of main conveTc:1nce canals, 92 miles of main and 86 miles of secondary canals, and some 1,250 miles of canalettes or pipes; and nine pumping stations. For the drainage network, about 1,180 miles of drains and ancillary structures will be built. Approximately 300 miles of all-weather feeder roads will be constructed in the area. on·-farm development is to include land planning and levelling, drainage works and land reclamation. Seven centers for operation and maintenance, supervision, and extension services are to be built, including offices, stores, staff houses and sheds. • The World Bank loan is for 30 years, inclut..J.ng a nine-year grace period, with interest at ~ per annum. The IDA credit is for 50 years, including 10 years of grace, and is interest free except for a 3/4 of 1% service charge to cover acbninistrative expenses. -0- Pll>JBCl: TEQINICAL DATA. Multipurpsoe paver and irrigation February 15, 1973 • OOURTRY: Turkey TOTAL <X>ST: $326.6 millicn BJNIC FINANCING: $44.0 million, 30 years, 9-year grace period. 71a interest per annum. IDt\ nNANCING: $30.0 millim, SO years, 10-year grace period, interest free except for 3/4 of 1% service charge to meet administrative expenses. OTBER FINANCING: Government of Turkey. IMPLEMENTING ORGANIZATICBS: DSI - State Hydraulic Works Agency, Ankara. Turkey• construction of dam, power plant, flood protection works• irrigation and drainage works; Topraksu - Soil Conservation Agency. Ankara, Turkey, farm development works, feeder roads; Extensim Seivice. Ministry of Agriculture, Ankara, Turkey, extension services; ABT - Agricultural Bank of Turkey. Ankara, Turkey, agricultural credit. PBOJEcr DESCRIPTICfi: Construction of dam upstrean from Ceyhan in Southern Turkey for irrigation, flood control and power generation; construction • of 138 megawatt power plant at dam; provision of irrigation syste.m serving some 240,000 acres, flood protection for acme ao.ooo acres; on- f arm development including land levelling, drainage; construction of about 300 miles of all-weather feeder roads; construction of buildings, workshops, conmunicationa facilities; technical assistance. Pll>CUREMENT: Equipment, materials, vehicles financed out of proceeds of Bank loan and IDA credit to be procured through international competitive bidding with 15% preference margin for local suppliers; civil works subject to intemational competitive bidding except for land levelling. first three irrigation and drainage contracts, and buildings. workahop·s and coanunications facilities which require special timing or which are too •all and diverse to warrant intematicnal competitive bidding. CX>RSULTANTS: Consultants to be selected for: assisting in construction of on-farm development works and :Improvement of heavy equipment utiliza- ticn; assisting Extension Service :l.n coordinating activities in the field; assisting in supervising ccxistruction of dam and power plant; advising on special probleill& during design and conatructicm. Project has been studied over a period of years with the assistance of Italcan- ault of Italy, IEO> of the United States, Dapta and Gizbili of Turkey, and Acres-Syndibel-Su Yapi of Canada-Belgium-Turkey. • ESTIMATED COMPLETION DATE: Mid-1981. - 0 -