Announcement of Uruguay Receives Seventeen Million US Dollars Loan for Fifth Livestock Development Project on October 9, 1975

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393·6360 BANK NEWS RELEASE NO. 75/84 OCTOBER 9, 1975 URUGUAY RECEIVES $17 MILLION LOAN FOR FIFTH LIVESTOCK DEVELOPMENT PROJECT The World Bank is providing $17 million for a livestock project in Uruguay designed to support the Government's livestock development program. The project with a total cost of $32.7 million will support a lending program during 1976-77 for the development of beef and dairy production. The project will consist of investments totaling $23.8 million • for pasture and other on-ranch improvements; $0.8 million to help de- velop contractor machinery services; and $lo2 million for technical assistance to help improve pasture technology, management and to train local personnel. Technical services and related goods will be provided to support the credit program as well as local and overseas training for technicians. It will also help finance a credit program to increase beef, cattle, dairy and pig production through loans for farm-ranch development. The project will promote the Government's objective of increasing exports. Over the short run, the project will contribute to enlarging the country's capacity to retain the maximum size of the herd possible 3 and over the long run, it will facilitate the expansion of beef exports. The more intensive use of existing pastures will permit the continued freeing of fertile land for crop production, and in this way contribute to increased agricultural production for export. The Bank loan is for a period of 15 years, including 5 years of grace, with interest at 8-1/2% per annum . • Note: Money figures are expressed in US dollar equivalents. Form No. 1121 (9-75) PROJECT: TECHNICAL DATA Fifth Livestock Development • COUNTRY: Uruguay TOTAL COST: $32.7 million BANK FINANCING: $11-~illion, for 15 years, including 5 years of grace, with interest at 8-1/2% per annum OTHER FINANCING: Banco de la Republica Oriental del Uruguay (BROU) and Central Bank's Livestock Fund (LF), $6.7 million; and subborrowers' contributions, $9 million IMPLEMENTING ORGANIZATION: Plan Agropecuario (PLAN), Comision Honoraria del Plan Agropecuario, Ciudadela 1471, Montevideo, Uruguay. • PROJECT DESCRIPTION: The project will support a lending program over a two-year conunitment period for the development of beef and dairy production. Technical services and related goods will be provided to support the credit program. The project includes provision of local and overseas training for technicians. PROCUREMENT: International competitive bidding will be required for the procurement of vehicles, machinery and equipment directly imported by PLAN whenever the size of individual or group of contracts exceeded $100,000. Similer type of contracts of less than $100,000 will be awarded in accordance with local procedures, which include local competitive bidding and are considered satisfactory. Sub- borrowers will procure investment inputs through normal conunercial channels. CONSULTANTS: The project will finance the hiring, through international recruitment, of a technical director and a senior agricul- ture.economist for PLAN. PLAN will be responsible ft~ recruitment. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 18% 19 78 -0- •