Announcement of Nine Million US Dollars Credit for Diary Development in Sri Lanka on July 15, 1974

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET.NW .. WASHINGTON 0. C. 20433 TELEPHONE EXECUTIVE 3-6360 !DA Press P~lease No. 74/45 Subject: $9 million credit for dairy July 15v 1974 development in Sri Lanka A credit of $Q million from the International Development Association (IDA), an affiliate of the World Bank, will help to increase milk production in Sri Lanka as well as improve the. institutional, technical and financial basis for dairy deve lop1nen t ~ Thf~ • 7 mi U.:.on project will provide credit and technical services for on-farm development of about 1,800 small (5 to 10 acres) and 600 larger (40 to SO acres) dairy farms :f.n the Coconut Triangle and Mid-Country of Sri Lanka's wet zon<:~, including purdrnse. ·,f about 10,400 local and 3,200 imported heifers. Existing mi 1k 1 collection and transport services of the country s National Milk Board (NMB) and co- operatives will. be expanded and improved. Additional technical assistance will he provided in the form of pilot programs to develop and demonstrate systems of communal 4' calf rearing and techniques for milk production in the dry zone area. At full development in 1981,; the project will increase annual milk production by about 43 million pints -- about 20% of present production -- and help Sri Lanka save about $2 million inioreign exchange each year. The project will assist Sri Lanka in the development of its livestock potential and increase the utilization of family labor and create employment fvr about 1,500 workers. Incomes of participating farmers will increase substantially .. The experience gained in financing development of small fanns under the project will contribute to improved and expanded credit operations throughout the dairy sector. Responsib11ity for overall coordination of project implementation will be vested in a Project Committee under the chairmanship of the Ministry of Planning and Economic Affairs and with representatives of the Ministries of Agriculture and Finance, NMB and the participating banks and cooperatives. The project is scheduled for comple.tion in 1979. The IDA credit to Sri Lanka is for a term of 50 years 1 including 10 years of grace. It is interest free, but will carry a service charge of 3/4 of 1% to meet IDA's administrative expenses. The Food aud Agriculture Organization of the United Nations (FAe) joined • the B.m:tk. iti identifying and preparing the project under the Bank/FAO Cooperative Program .. - 0 - Note: Money figures are expressed in US dollar equivalents.  July 1S, 1974 PROJECT: Dairy Development TECHNICAL DATA • COUNTRY: Sri Lanka TOTAL COST: $12. 73 million IDA FINANCING: $9 million, 50 yeart,including 10 years of grace, interest- free except for a service charge of 3/4 of 1% to cover IDA' a administrative expenses. OTHER FINANCING: Government of Sri Lanka, participat:f.ng banks and f anners. IMPLEMENTING ORGANIZATIONS: Day-to-day execution will be the responsibility of a Project Technical Unit to be established in the Animal Production and Health Division of the Ministry of Agriculture, Sri Lanka. The National Milk Board, Colombo, Sri Lanka. PROJECT DESCRIPTION: Credit and technical services for on-farm development of about 1,800 small (5-10 acres) and 600 larger (40-.50 acres) dairy farms in the Coconut Triangle and Mid-Country of the wet zone, including purchase of about 10,400 local and 3,200 imported heifers; credit to the National Milk • Board for supply and installation of equipment for the expansion and improve- ment of existing milk collection and transport services; credit to cooperatives for the construction or improvement of facilities to house milk collection equipment; and establishment of pilot units to demonstrate systems of cotllllunal calf-rearing and techniques for incr~asing milk production in the dry zone. PROCUREMENT: International competitive bidding on the basis of IDA guidelines for milk storage and transport equipment and mobile testing units; and heifers to be imported from selected countries. CONSULTANTS: Three specialists in tropical dairy farming, tropical crops and pastures, and calf rearing. ESTIMATED COMPLETION DATE: 1979. - 0 - •