Announcement of Papua New Guinea Receives Sixteen Million Dollars for Agriculture and Education on October 21, 1976

'•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE 77/26 OCTOBER 21, 1976 IDA NEWS RELEASE 77/10 PAPUA NEW GUINEA RECEIVES $16 MILLION FOR AGRICULTURE AND EDUCATION The World Bank and Its affiliate, the International Development Association (IDA),are providing $16 million to help develop two key sectors of Papua New Guinea's economy -- agriculture and education. A World Bank loan of $12 million will help establish about 1,400 smallholders on some 5,600 hectares for oil palm cultlvatJo~ and provide them with credit, extension services, feeder roads, housing, health, educa- tion and welfare facilities. The project also Includes the establishment of a transport company to serve the smallholders. An IDA credit of $4 million will help finance the expansion of • five educational institutions in the fields of agriculture, health, primary and secondary teacher and technical tralning. It will also support planning and studies essential to long-term development, including an experimental program at five rural vocational centers. The project will help to increase the flow of trained manpower. The World Bank loan Is for 20 years, including 4 1/2 years of grace. It will carry interest at the rate of 8.7%. Part of the loan will be channelled through the Papua New Guinea Development Bank. The IDA credit to the Government is for 50 years including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% to meet IDA's admin- istrative costs. • NOTE: Honey figures, are expressed in U.S. dollar equivalents FORM NO. 1121 (5-76) T ECHN I CAL DAT A PROJECT: COUNTRY: Smallholder Oil Palm Development Papua New Guinea •• TOTAL COST: $18.5 million BANK FINANCING: $12 million loan for 20 years including 4 1/2 years•grace with interest at 8.7% per annum. OTHER FINANCING: Government of Papua New Guinea Papua New Guinea Development Bank IMPLEMENTING ORGANIZATION: Office of Project Coordination Department of Finance Wards Strip Papua New Guinea PROJECT DESCRIPTION: The project will help to establish 1,400 smallholders on about 5,600 hectares for oil· palm cultivatfQn and provide them with infrastructure, including feeder roads, housing, and health, education and welfare facilities. The project will also establish a Government-owned transport company to serve smallhoJders. · • PROCU.REMENT: Procurement of a 11 i terns except road works wi 11 be in sma 11 annual lots, unsuitable for International bidding. Local competitive bidding, employing procedures satisfactory to the Bank and not excluding foreign bidders, will be employed. Road works, which are more in the nature of maintenance, will be carried out under force account. ECONOMIC RATE OF RETURN: 14.5% ESTIMATED COMPLETION DATE: 1984 - 0 - •  FORM NO. 1121 .. (5-76) T ECHN I CAL DAT A ·r t .PROJECT: Education COUNTRY: Papua New Guinea TOTAL COST: $7.4 million IDA FINANCING: $4 million credit, standard IDA terms OTHER FINANCING: Government of Papua New Guinea IMPLEMENTING ORGANIZATION: Office of Project Coordination Department of Finance Wards Strip . Papua New Guinea PROJECT DESCRIPTION: The project will help to finance expansion of five educational institutions (in agricultural, health, primary and secondary teacher training, and technical fields) and, in addition will support planning and studies including 5 Rural Vocational Centers essential to long-term development of the education ~ and training sector. PROCU.REMENT: Contracts for civil works and furniture will be awarded on the basis of local competitive bidding satisfactory to IDA except certain contracts of up to $65,000 each, but less than $275,000 in aggregate, which would be negotiated contracts; and other contracts to a maximum of $250,000 may be carried out by force account. Equipment contracts exceeding $50,000 will be on the basis of Inter- national competitive bidding. Off-the-shelf items, not exceeding $10,000 in each contract up to a maximum aggregate of $100,000 can be purctased on the basis of three price quotations. ESTIMATED COMPLETION DATE: 1981 • - 0 -