Announcement of Mali Receives 15.5 Million Dollars Credit for Agriculture on December 16, 1976

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/17 DECEMBER 16, 1976 MALI RECEIVES $15.S~MlLLION CREDIT FOR AGRICULTURE Several international aid agencies are cooperating in a project designed to expand agricultural production in Mali Sud. The Interna- tional Development Association (IDA), an affiliate of the World Bank, today anhounced that it has approved a credit of $15.5 million for the project. The IDA credit wil I be on-lent by the Government of Mali to the Compagnie Mal ienne pour le Developpement des Textiles (CMDT) for 20 years at an interest rate of 9%. The French Fonds d'Aide et de Cooperation (FAC) will make a grant of $1.8 mil lion. The African Development Fund (ADF), the Arab Bank for Economic Development in Africa (BAOEA) and the Caisse Centrale de Cooperation Economique (CCCE) will provide loans of $6 million, • $5 million and $3. 1 mi 1 lion respectively . The proj~ct, which wi 11 cost about $44.6 million, will expand cotton, kenaf, maize and rice production mainly through the intensification of improved cultivation methods. It wi 11 also provide project farmers wi.th technical advice, seed multiplication faci litres, applied researc~ and credit. The project wi 11 improve the animal husbandry of cotton farmers and expand cotton processing facilities. A new rice mill will be built. Studies for the future development of the areas freed from onchocer- ciasis will be undertaken. The project aims to improve the rural health services in the area. The $15.5 million IDA credit wi 11 be for a term of 50 years, including 10 years of grace. It will be interest free but will carry a service charge of 3/4 of 1% to cover IDA 1 s administrative costs. Note: Money figures are expressed in U.S. dollar equivalents. ~ - 0 - i' • ,.• rn~M NO. 1121 (t, .. /6) T E CHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Mali-Sud Agricultural Mali • $44.6 mill ion IDA FINANCING: $15.5 million on standard IDA terms OTHER FINANCING: Farmers, $7 million; Gov.ernment of Mali, $6.2 million; African Development Fund (ADF), $6mi11·ron; Banque Arabe pour le Developpement Economique en Afrique (BADEA), $5 mill ion; Caisse Centrale de Cooperation Economique (CCCE), $3. 1 mill ion; and Fonds d 1 Aide et de Cooperation (FAC), $1 . 8 mi'l 1ion. IMPLEMENTING ORGANIZATION: Compagnie Mal ienne pour le Developpement du Mali B. P. 487 Bamako, Republique du Mali PROJECT DESCRIPTION: The Mali-Sud Agricultural Project aims to increase agricultural production in the area. It involves expanding cotton, kenaf, maize and rice production mainly through the intensification of improved cultivatk,n methods; providing project farmers with technical advice, seed • multiplication facilities, applied research and credit; improving animal husbandry of cotton farmers; expanding cotton processing facilities; improvement of kenaf retting ponds, construction of a rice mill, provision of storage for inputs procurement of vehicles for Compagnie Malienne pour le Developpement des Textiles (CMDT) and improve- ment of agricultural tracks; undertaking studies for the future development of the areas freed from onchocerciasis; improving the rural health services in the area; and training of CMDT staff and of the rural population through young farmers' and blacksmiths' train- ing schemes and a functional literacy program. PROCUREMENT: For the project items financed jointly by IDA and FAC, the following applies: orders or contracts for equip- ment, vehicles, compound fertilizer and construction with a value of more than $50,000 will be through international competitive bidding (ICB) in accordance with IDA guide- lines. Such procurement is estimated to amount to $5 mi 11 ion. Contracts of less than 550.000 will be procured on the basis of competitive bidding advertised locally and 'in accordance with local procedures satisfactory to IDA. Contracts procured under local competitive bidding will not exceed $2 mill ion. Malian contractors will be given u preference of 7. 5% in the eva 1ua ti on of tenders for c iv i 1 works. Procurement of i terns financed by BA~EA, ADF, and CCCE will be carried out under their respective arrangements. CONSULTANTS: Consultant services will total about 46 man-years: 30 man- years of technical assistance to CMDT to help in the general i~olementation of the project and 16 man-years of technical assistance for a research pro- gra~ (cotton, kenaf, maize). ECONOMIC RATE OF RETURN: Estimated at 44% excluding studies and the health component. which account for 4% of the project. ESTIMATED COMPLETION DATE: 1980 - 0 -