Announcement of Thirteen Million Dollars Credit to Dominican Republic for Irrigation on January 19, 1973

\)"r,-: 11.1.0,,,,,~,i,,., • INTERN.ATIONAL DEVELOPMENT ASSOCIATION (~) 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 73/4 Subject: $13.0 million credit to January 19, 1973 Dominican Republic for irrigation The International Development Association (IDA), an afZiliate of the World BankJ has approved a $13.0 million credit to help finance the largest irrigation scheme ever undertaken by the Dominican Republic. The project, in the valley of the Yaque del Norte river, will ha·ve a total cost estimated at $39 million equivalent, of which $2J.O million represents the foreign exchange component. The Inter-American Development Bank has under activ.e consideration a Fund for Special Operations parallel loan for an amount in hard currencies equal to IDA's credit. The remaining one-third of the project cost will be covered by the Dominican Government. The project will provide water supply to 68,000 acres by replacing and improving the existing irrigation system for about 35,000 acres and bring about 33,300 acres of new land under irrigation. At the same time, it iri.11 provide for future expansion of the system by building a main irrigation canal with adequate capacity to serve a total 100,000 acres. • Agriculture is the most important sector of the Dominican Republic economy. accounts for nearly 25% of the country's GDP, about €D% of total employment, and than SD% of commodity export value. The IDA-supported project will p1ay a major in the Gove:-mnent's agricultural development efforts, since it will be the first integrated land reform and agricultural development project to be carried out in country. It more role the The project is expected to provide land for some 2,000 new smallholder farmers, create new employment opportunities and improve the distribution of income among the population. The project works include: a diversion dam, a sluice structure, desilting works and an intake structure on the Ya.que del Norte river at Santiago de los Caballeros; a 45-mile concrete line d main canal; a distribution system of concrete lined canals of 1 about 185 miles; a 300--mile drainage system, nearly half of it using reconditioned natural drains; about 235 miles of roads along the main and secondary canals; on-farm irrigation, drainage canals and land levelling; a pumping plant to serve about 4,000 acres above the main canal; and equipment including a telecommunication system to connect the key opera.ting stations for the proj'9ct. Contracts for civil~Q.rks and equipment to be financed by the IDA credit will be awarded on the basis of intern.a.tional competitive bidding. The credit is being extended to the Dominican Republic on normal IDA terms of 50 years , including 10 years c,f grace, without interest . There will be a service • charge of 3/4 of 1% to cover IDA 1 s administrative expenses. The Government will pass the proceeds of the credit and its own contribution to the National Hydraulic Resources Institute, which will be resp()nsible for the construction, operation and maintenance of the irrigation system. Other agencies of the Government will cooperate in the agricultural development phas,e of the project with extension assistance, credit, agrarian refonn and research. - 0 -  • January 19 ~ 1973 TEClilUCAL DATA PROJECT: Yaque del Norte -- irrigation, drainage, agrarian reform and agricultural development. COUNTRY: Dominican Republic TOTAL COST: $39 million IDA FINANCING: $13.0 million, 50 years, 10 years of grace, interest fr~e but a 3/4 of 1% service charge to cover IDA' s adm.i.nistrative expenses. OTHER FINANCING: The Inter-American Development Bank has under active con§3idera- tion a Fund for Special Operations parallel loan for an amount in hard currencies equal to the IDA's credit~ The remaining part will be covered • by the Government of the Dominican Republic. EXECUTING AGENCY: Institute Naci.onal de Recursos Hidraulicos, Centro de los He.t:oes, Santo Domingo, DominlcA.Il Republic. PROJECr DESCRIPTION: The project consists of: the rehabilitation and enlarge- ment of the irrigation area dovmstream of Santiago, to provide efficient and secure irrigation to an ar~-aa of about 58,000 acres (11,000 acres on the left bank and 57,000 acres on the right bank); the acquisition of land under the laws of the. borrower and their distribution to poor f armeu: pursuant to legislation; the provision of supporting services fo:r agricultural and livestock production in the area; and the provision of techrdcal assistance to farmers in the area and to train technical personnel. PROCUREMENT: Civil works, on-farm works and equipment to be financed by IDA would be submitted to international competitive bidding in accordance with the Guidelines for Procurement under IDA credits. TECHNICAL ASSISTANCE: A consulting firm would be retained to assist the borrower in carrying out detailed surveys, final design and supervision of the d:vi.l works for the irrigation and drainage systems. Another consulting fipn would assist the borrower in carrying out the agricultural development phase of the ptoj ect, including credit~ research, operation and maintenance, agrarian reform and extension. ESTIMATED COMPLETION DATE: December 1979. - 0 - •