Announcement of IDA Assists Rural Development in Senegal on June 24, 1976

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 !DA NEWS RELEASE NO. 76/38 JUNE 24, 1976 IDA ASSISTS RURAL DEVELOPMENT lN SENEGAL A $6.3 mill ion credit was approved today by the International Development Association (IDA), an affiliate of the World Bank, for a second rural development project in Senegal. The second Sedhiou project is designed to increase and diversify agricultural and 1 ivestock production in Casamance. The project wi 11 encourage farmers in the Sedhiou district of Casamance to adopt improved crop and 1 ivestock production • techniques by supplying them with inputs, credit and technical assistance. The project will carry the 4,150 farm families already participating in the previous project to higher levels of technology and induce 3,250 farm families now using traditional farming methods to adopt the improved cropping techniques which have proved effective under that project. In addition the project wil 1 encourage 4 1 800 families from both groups to take up better livestock practices. It will also help strengthen cooperatives by management training and by promoting the organization of cooperative unions. The project will benefit about 7,400 farm families (80,000 people in all), representing about 40% of the rural population of the district. The IDA credit to Senegal ts 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 1 s • administrative costs . Note: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Second Sedhiou Senegal $14.9 milli·on • I. DA FI NANC I NG : $6.3 million, standard IDA terms OTHER FINANC[NG: Caisse Centrale de Cooperation Economique (CCCE), $3.2 mi11 ion for a 20-year term, including 5 years of grace, at 4.5% interest per annum. IMPLEMENTING ORGANIZATION: Project RiZ Sedhiou, B.P. 175, Ziguinehor, Senegal PROJECT DESCRIPTION: It consists of: (a) strengthening the existing PMU to enable it to carry out its additional responsibilities; (b) promoting the use of improved farm practices, such as destumping, plowing, use of improved seeds, pesticides, fertilizers, different cropping patterns and animal traction; (c) pro- moting improved 1 ivestock husbandry through better animal health care and use of supplementary feedstuffs; (d) constructing and operating a feed mill; (e) establish- ing water-control schemes for the improvement of 1,650 ha of paddy rice fields, and financing a soil and hydrological survey of 15,000 ha of potentially irrigable land; (f) settling about 400 farm families on an abandoned Government farm; (g) providing training facilities for project staff and farmers; (h) organizing the supply of farm implements, fertilizer, pestictdes, and seeds, and distributing these to project farmers either for cash or under medium-term and seasonal credit arrangements; (i) installing 35 small cooperative-owned rice mills; (j) strengthening cooperative • institutions in the project area; (k) monitoring and evaluating project activities; and (l) financing a regional planning unit that would prepare a master plan for the agricultural development of Casamance and which would subsequently prepare one or more of the development projects identified in such a plan. PROCUREMENT: The cost of civil works, equipment, farm implements, and vehicles will total about $5. 1 million. Individual contracts for buildihgs, water-control works, equipment and vehicles costing more than $50,000 (aggregating about $3.4 million) will be awarded on the basis of international competitive bidding in accordance with the Bank Group's guidelines for procurement. Locally manufactured goods wil 1 be allowed a preference of 15% or the level of applicable import duty, whichever is lower, when comparing domestic with foreign bids. Contracts for less than $50,000 (expected to total $1 .4 million) including small buildings and wells, will be awarded on the basis of competitive bidding advertised locally and in accordance with procedures which are satisfactory to IDA. Equipment purchases, such as office furnishings and equipment for agricultural demonstrationsi in amounts of less than $10,000 (totalling $0.3 mi}l ion) will be purchased directly from local suppliers. Consultant serv:ces, including expatriate management staff ($1.5 mi 11 ion) 9 will be obtained according to IDA's normal procedures. Fertilizers and pesticides ($1 .8 mil 1 ion), produced locally at competitive prices, will be procured by ONCAD according to local procedures acceptable to IDA. Seeds ($0.4 mill ion) wil 1 be procured directly by PMU from participant farmers. CONSULTANTS: Total consultants• services wil 1 amount to 49 man/rronths for a ECONOMIC RATE OF RETURN: total cost of $300,000 in current prices, or $74,000 per man/year on average. ESTIMATED COMPLETION DATE: 23% Mid 1980 • - 0 -