Announcement of Twelve Million Nine Hundred Thousand US Dollars Loan for an Irrigation Project in Guyana on June 17, 1974

INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release ••· 74/52 Subject: $12.9 million loan for.an June 17, 1974 irrigation project in Guyana 'Tile World Bank has approved a $12.9 million loan to Guyana to help improve existent irrigation and drainage systems. 'Tile project will provide rehabilitation, extension and improvement of irriga- tion and drainage systems, roads, and other services for the development of 41,750 acres of land in four contiguous areas along the Essequibo coast at a total cost estimated at $18.5 million. Some 5,000 farmers, mostly smallholders with 2 to 20 acres each, who are am:>ng the poorest in the country, will benefit directly from the project in the Tapakuma area. • The project will help to increase rice production, improve rice quality and strengthen Guyana's position as the major rice producer and exporter in the Caribbean Conuoon Market. After completion of the civil works and on-farm development, about 6,000 acres of land suitable for irrigated cropping will be available for new settlers. No adverse ecological effects are expected from the project. Increased sales and exports of rice will lead to higher farm incomes re- presenting an increase up to 200% by 1980 in the case of subsistence farmers and 37% for large farmers in this depressed rural area. The average annual per capita cash income of the farmers affected by the project will increase from about $50 at present, to $80 when the project is in full operation, arotmd 1980. The Bank loan is for a term of 30 years, including 6 years of grace at an annual interest rate at 7-1/4%. The loan will cover all of the foreign exchange cost of the project. Note: Money figures are expressed in US dollar equivalents . •  June 17, 1974 PROJECT: TECHNICAL DATA Irrigation and drainage in the Tapakuma area and three adjacent areas • (X)UNTRY: The Republic of Guyana TOTAL COST: $18. 5 million BANK FINANCING: $12.9 million, 30 years, 6 years grace, interest 7-1/4% OTIIBR FINANCING: Government budgetary allocations IMPLEMENTING ORGANIZATION: The Ministry for National Development and Agriculture will be responsible for implementing the project. A Project Manager selected in consultation with the Bank will coord:inate all project activities. PROJECT DESCRIPTION: Rehabilitation, improvement and extension of irrigation and drainage systems for development of 41,750 acres; construction of 6 drainage pumping stations and a flood protection dike along the Pomeroon River; reinforcement and expansion of the conservancy dam and reservoir in the Johanna Cecilia Extension area; coi:·c t'ruction and rehabilitation of about 62 miles of all weather access roads and related structures. PROCUREMENT: International competitive bidding except that contractsft for buildings and other civil works estimated at less than $250,000 and equipment, materials and vehicles estimated to cost less than $50,000, would be let on the basis of local procurement procedures. ESTIMATED OOMPLETION DATE: 1980 •