Announcement of Fifty Million US Dollars Credit to Bangladesh for Import of Raw Materials, Spare Parts, Materials and Chemicals for Agriculture and Industry on October 10, 1974

• INTERNATIONAL DEVELOPl\.fENT ASSOCIATION 1 61 8 H STREET. N .W .. WASHINGTON IDA Press Release No. 74/61 D. C. 204 3 3 TELEPHONE: Subject: EXECUTIVE 3-5360 $50 million credit to Bangladesh October 10, 19 74 for import of raw materials, spare parts, materials and chemicals for agriculture and industry A credit of $50 million from the International Development Association (IDA), an affiliate of ~he World Bank, will assist Bangladesh in maintaining or expanding production in industry and agriculture. The credit will finance imports of raw materials and components necessary for better utilization of existing capacity in the two sectors. Bangladesh is in urgent need of imports of raw materials and com- ponents. Without such imports, much of the country's industrial production would slow down, essential consumer goods would become even more scarce, and • agricultural productiorrwou1d be limited by a lack of raw materials for fertilizer manufacture and spare parts for i.rrigation equipment. part of Bangladesh's foreign exchange requirements for imports of The IDA credit will meet rl!!M materials, components and spare parts during 1974/75. The enterprises selected arre: export-oriented industries like _jute, paper and tea; industries producing basic consumer goods like cotton textiles; and .producers of intenne,Uate goods or services required for production in other sectors (fertilizers, construction, and commercial vehicles). The credit will also finance import of spare parts for low-lift pumps used for irrigation. 'llle IDA credit will be extended to the Government of Bangladesh for a term of 50 years, including 10 yc:ars of grace. It will be interest-free, but will carry a service charge of 3/4 of 1% to cover IDA's administrative expenses. • Note: Money figures are expressed in US dollar equivalents, - 0 -  INTERNATIONAL DEVELOPMENT ASSOCIATI(Jf~ • 1618 H STREET. N.W .. ·WA-SHINGTON IDA Press Release No 74/61-A D. C. 20433 SUBJECT.: TELEPHONE: EXECUTIVE 3-fi1!60 $30 million irrigation credit for October 10, 1974 Indonesia Indonesia will receive $30 million to expand a ..major irrigation project under a credit approved by the Intern.ational Development Association (IDA) 11 an affiliate of the World Bank. The credit was approved during the last fiscal year but ·was signed in Washington _during the World Bank Annual Meeting, by the Finance Minister of Indonesia, Ali Wardhanaa This "Was the last IDA credit for Indonesia, which is now borrowing development funds from the World Bank at the standard interest rate. The $30 million credit just signed will finance a project which will help irrigate 51,000 hectares in the Jatiluhur rice-producing area in West Javao About 300,000 people will benefit when the $68 million project is completed. Production is expected to increase fourfold, to 2}!6,000 to.ns of rice and 34,000 tons of field • crops and vegetables at full developmept in 1988. This "1ill help to reduce rice . imports which in recent years have be.en around one 'Glillion tons per year. will be executed by the Jatiluhur Authority which is responsible for managing the multipurpose development of the Jatiluhur region. The project The project consists of extensive construction works~ including canals, drains and roads. The GoverI11IJent will design and build several pilot on-farm development areas. Tertiary irrigation and drainage canals, tra.ditionally built by farmers, will be constructed by the Authority. Project construction is expected to take six years. Indonesia has already begun-to borrow at the standard interest rate from the World Bank. The first Bank loan of $48 million, which was approved on June 5, will help modernize the nationws. 7,000 kilooeter railway network. The second loan of $25 million for the Jakarta Urban Development Project to expand the Kampung Improve- ment Program and to develop a housing site for low income families was approved on September 17. The IDA credit fo~ irrigation is for a period of 50 years, including 10 years of grace. The credit is interest free except for an annual service charge of 3/4 of i i • to cover IDA's administrative expenses • NOTE: Honey figures are expressed in·u.s. dollar equivalents.  TECHNICAL DATA Project: Irrigation Country: Total Cost: IDA Financing: Indonesia $68 million $30 million for a period of 50 years, including 10 years • of grace, interest-free, service. r,:.harge of 3/4 of 1%, Other Financing: GoverllI:lent of Indonesia. Implementing Jatiluhur Authority Organiza ti(m: Project Description: Major projecr components include rehabilitation of flood embankIDents, construction of flood diversion channel, irriga- tion canals, drains, feeder roads, office buildings; reclama- tion of swamp land; procu~ement of equipment and vehicles, expansion of agricultural extension services; training services; designing and ·constructing pilot areas for on-farm development. Procurement: Vehicles and equipment (US$400,000) will be procured after international competitive bidding in accordance with IDA guidelines. Qualified domestic manufacturers of these goods will be accorded a 15% domestic preference or the actual tariff duty, whichever is less, in the comparison of bids. All civil works except for office buildings and pilot on-farm development Consultants: works, will be subject to international competitive bidding • Jatiluhur Authority will engage internationally recruited consultants to carry out the planning, design and detailed engineering,. construction supervision, to train counterpart staff of the Authority and~to provide assistance in designing • and implementing the pilot on-farm developcent works. Two specialists will also be employed by the Authority, one for agricultural extension and the other for operation and maintenance. Estimated Completion Date: 1980 •