Announcement of President Senghor of Senegal signs Fourteen Million Dollars Agricultural Loan on May 22, 1975

INTERNATIONAL BANI{ FOR RECONSTRUCTION AND DEVELOPMENT· '~ ei (~ITTID!Jlli1n,•~} l!!!£!J ·t,,. .,:· INTERNA'rIONAL DEVELOPMENT ASSOCIATION· 1818 H STREET, NW. WASHINGTON D.C.20433 TELEPHONE EXECUTIVE 3-6360 ~nk News Release No. 75/39 May 22, 1975 IDA News Release No. 75/28 PRESIDENT SENGHOR OF SENEGAL SIGNS $lh MILLION AGRICULTURAL LOAN President Leopold Senghor of Senegal and Mr. Robert McNamara, President of the Worl-d Bank Group, today signed agreements for a Bank loan and an Inter- national Development Association (IDA) credit totalling $14 million that will assist an agricultural development project in Senegal. The $7 million IDA credit and the $7 million Bank loan will co- finance with Caisse Centrale de Cooperation Economique of France the provision of extension services over five years to some 34,000 farmerso The project will promote improved farming methods for groundnuts, cereals, cotton and livestock, and will give particular emphasis to increasing cereal production. The project area covers the heavily populated dine Saloum region in the southern part of the Groundnut Basin where about 800,000 people live • • The project will be implemented by the Societe de Developpement et de Vulgarisation Agricole (SODEVA). The project involves strengthening SODEVA by providing it with project headquarters; five district offices and 28 sub-district offices and stores; four senior and 34 jmiior staff housing units; one central and three field staff training facilities and four renovated training centers,and some 25 pickups and heavier trucks. SODEVA's field staff will be increased from about 370·to 500 extension agents, and senior and middle level staff will be increased from about 135 to 190. Six key positions in the project will be held by expatriates. The.project also provides for a study of cereal marketing arrangements to be carried out by qualified consultantso At full developmentj the project will produce an additional annual output of 27 ,ooo tons of grov.ndnuts, 31,000 tons of cereals, 1,000 tons of c_otton, 1,600 tons of milk, 1,500 tons of beef and 6,000 calves. In addition to benefits derived from increased production, the project will help reduce the threat bf soil erosion, and the resulting long term losses in productive capacity. The project will raise the incomes of some Jh,000 farm families (about 350,000 individuals) by about L~O%. Beneficiaries' incomes that now range from between $60 and $100 will be increased to between $80 and $140 per capitao The $7 million Bank loan is for a term of 20 years, including 5 years • of grace, with interest of 8-1/2% per annum. The $7 million IDA credit is for a term of 50 years, including 10 years of grace at no interest except for a service charge of 3/4 of 1% to cover administrative expenses. Note: Money figures are expressed in US dollar equivalents  • T E CHNI CAL DAT A PROJECT: Sine Saloum Agricultural Development Project COUNTRY: Senegal TOTAL COST: $JOo9 million BANK FINANCING: $7 million for a term of 20 years, including 5 years of grace, with interest a t ~ per annum. IDA FINANCING: $7 million at standard termso OTHER FINANCING: Caisse Centrale de Cooperation Economique (CCCE) of France, $8.9 million. The Government and Banque National-de De'veloppement du se"ne'gal (BNDS) will finance the balance~ IMPLEMENTING ORGANIZATION: Soci6te" de D{veloppement et de Vulgarisation Agricole (SODEVA) 142, rue de Bayeux BoP. 3234 Dakar - Senegal PROJECT DESCRIPTION: The credit and loan will co-finance with Caisse Centrale de Cooperation Economique of France the provision of extension services over five years of some 34,000 farmers. The project will promote improved fanning. methods for groundnuts, cereals, cotton and livestock, and will give particular emphasis t · increasing cereal productiono The project will strengthen SODEVA by providing it with a project headquarters; five district offices and 28 sub-district offices and stores; four senior and 34 junior staff housing units; one central and three field staff training facilities and four renovated training centers and with 25 pickups and heavier trucks. SODEVA staff will be increased from about 370 to 500 extension agents, and senior and middl.e level staff will be increased from about 135 to 190, The project provides for a ~tudy of cereal marketing arrangements to be carried out by consultants, and for consultants and complementary staff to SODEVA. PROCUREMENT: Vehicles, equipment and civil works expenditures total about $2015 milliono Contracts for buildings, equipment and vehicles for more than $50,000, aggregating about $400,000, will be awarded on the basis of international competitive bidding in accordance with the Bank Group's guidelines for procurement. Locally manufactured goods will be allowed a preference of 15% or the level of applicable import duty, whichever is lower, when comparing domestic with foreign bidso Contracts for between $10,000 and $50,000 totalling $106 million, including the bulk of civil work~ contricts which are small and widely soattered will be awarded on the basis of competitive bidding locally and in accordance with local procedures, which are satisfactory to the Banko CONSULTANTS : Consultant services, totalling about $200,000, will be obtained accord:ing to the Bank Group's normal procedures. Total consultants' services will amount to 18 man/months. ECONOMIC RATE OF RETURN: • The economic rate of return of the project is estimated at nearly 25 percent over 10 years 0 ESTIMATED COMPLETION DATE: June 1980.