Announcement of Burundi Receives 5.2 Million Dollars Credit for Coffee Improvement Project on November 20, 1975

·world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA News Release No. 75/70 November 20, 1975 BURUNDI RECEIVES $5. 2 MILLION CREDIT FOR COFFEE IMPROVEMENT PROJ'ECT The International Development Association (IDA), an affiliate of the World Bank, has approved a $5.2 million credit to Burundi to help finance a second coffee improvement project. Most of Burundi's population of 3.5 million people depend on subsistence agriculture for their livelihood; many earn a small cash income from the • production of coffee, Burundi's principal export • The project will provide approximately 110,000 smallholder farmers of the Ngozi Province with instruction in better coffee cultivation practices and with fertilizers, insecticides, and tools. It w:i.11 also initiate agricultural extension work and will include an experimental rural development scheme, a coffee research program, reconstruction and repair of small bridges, culverts, water supply sources, and the construction of four coffee washing stations. Farmers in the high potential coffee areas who combine coffee improvement inputs and better cultivation practice with the use of selected seed and fertilizers for maize are expected to increase the net value of their annual production by up to $35, an increase of about 11 percent. The IDA credit to Burundi is for 50 years including 10 years of grace and interest free, except for a service charge of 3/4 of 1 percent to cover IDA's administrative expenses. · Note: Money figures are expressed in US dollar e~uivalents • • Form No. 1121 (9-75) TECHNICAL DATA • • PltOJECT: Second Coffee Improvement COUNTRY: :Burundi TOTAL COST: $7. 5 million IDA FINANCING: $5.2 million on standard IDA terms OTHER FINANCING: Kuwait Fund $1.2 million; Government contribution $1.1 million. IMPLEMENTING ORGANIZATION: Office des Cultures Industrielles du Burundi (OCIBU) B.P. 450, Bujumbura, Burundi. PROJECT DESCRIPTION: The project will involve: instruction for approximately 100,000 smallholder farmers of the Ngozi province in better coffee cultivation practices and with inputs such as fertilizers, insecticides and tools; an experimental rural development scheme, a coffee research program; reconstruction and repair of small bridges, culverts, water supply sources and the construction of four coffee washing stations. • PROCUREMENT: International Competitive Bidding under IDA guidelines for procurement of fertilizers and insecticides. Vehicles, fann tools, livestock, miscellaneous equipment and materials will be procured locally in accordance with normal Government procedures. CONSULTANTS: Twenty-four man-years of technical assistance will be provided covering the services of a project manager, two agronomists , a coffee processing expert, a construction engineer and a finance officer. They will be employed under terma and conditions sa.tisfactory to IDA. ECONOMIC RATE OF RETURN: 21 percent ESTIMATED COMPLETION DATE: 1980 -0- •