Announcement of Twenty-One Million US Dollars for Agricultural Development in Ghana on June 24, 1976

.world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 76/83 June 24, 1976 $21 MILLION FOR AGRICULTURAL DEVELOPMENT IN GHANA Ghana's plan for integrated agricultural development in the Upper Region will be assisted with a "Third Window" loan of $21 million from the World Bank. The $54.6 million project features a package of elements designed to provide son-e 125,000 farm families of the area with better support services, farm inputs and facilities to help increase agri- cultural production and farmer's incomes. The United Kingdom is expected to participate in the project with a financial contribution of $11 mi 11 ion, to be lent on concessionary terms. The Upper Region c8vers more than ten percent of Ghana's land area with a population of 930,000, including nine ethnic groups using different languages. The system of agri- cultural production is complex. In addition to rapidly increasing soi 1 erosion and compe- tition between annual cropping and livestock, there are environmental problems associated with onchocerciasis (riverblindness) and trypanomiasis (sleeping sickness). A need to develop the region as a whole, on the basis of sustainable agricultural production, provides t he ma i n obj e ct i ves- of th i s p ro j e ct . The five-year investment period of the project features four main elements: Farm Develop~ent, including the establishment of 90 service centers providing • extension services and farm inputs, credit facilities for increased production from about 108,000 hectares (ha.) of land already under cultivation, on-farm grain storage facilities, improved animal health services, improved research and seed multiplication, a pilot functional literacy scheme, establishment of a regional radio network in support of agricultural development, improvements in nutrition and health, and training of personnel. Physical Infrastructure, including construction of 120 new, and rehabilitation of 100 existing smal 1 darns, soi 1 conservation measures, construction of 700 village wells, construction of stores, farm services centers, staff housing and provision of vehicles and other equipment, and construction of two cotton ginneries. Institutional Support, including establishment of the Upper Region Agricultural Development Project Management Unit responsible for implementation, establishment of a Farmers Services Company with responsibility for farm input distribution and strengthening of the existing agricultural institutions, including the Agricultural Development Bank and the Upper Regional Development Corporation. Development Planning, including the establishment of an Onchocersiasis Survey Unit to prepare a ten-year development plan and feasibility studies for areas freed from the disease in the Upper and Northern Regions. In addition to benefits for the region's 125,000 farm families, the ~roject could directly benefit between 60 and 90 percent of the total farm population. At full develop- ment the project wi 11 increase average farm income from crop production alone by 32 percent, a~proximately doubling the present annual output. • The ":hir? Window 11 loan of $21 million is for a term of 25 years, including 7 years of grace with interest at 4.85%. An additional 4% will be paid to the World Bank by the Interest Subsidy Fund, representing the difference between the Bank's standard interest rate and the charge to Ghana. Note: Money figures are expressed in US dollar equivalents. FORM NO. 1121 (5-76) T E CHN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Upper Region Agricultural Development Republic of Ghana ~ 54. 6 mi 1 1i on • BANK FI NANC I NG: $2 l mi l 1 i on II Thi rd Wi n dow 11 1o an for 25 ye a rs i n c 1u d i ng seven years of grac~ with interest at 4.85% OTHER FINANCING: Government of Ghana: $13.7 million United Kingdom: $11 million Local Financial Institutions and farmers: $8.9 million IMPLEMENTING ORGANIZATION: Upper Region Agricultural Development Project Executive Committee (URADPEC), Bolgatanga, Ghana, with managerrent by the Project Management Unit (URPMU), Bolgatanga, Ghana. PROJECT DESCRIPTION: The project involves: Farm Development, including the establishment of 90 service centers providing extension services and farm inputs, credit facilities for increased production from about 108,~00 hectares (ha.) of land already under cultivation, on-farm grain storage facilities. improved animal health services, improved research and seed multiplication, a pilot functional literacy scheme, establishment of a regional radio network in support of agricultural development, improvement in nutrition and health, and training of personnel. Physical lnfrastructure including construction of 120 new, and rehabi 1itation of 100 1 ex!5ting smal 1 dams, soil conservation measures, construction of 700 village wells, construction of stores, farm services centers, staff housing and provision of vehicles and other equipment, and construction of two cotton ginneries. Institutional Support, including establishment of the Upper Region Agricultural Development Project Management Unit responsible for implementation, establishment of a Farmers Services Company with re- sponsibility for farm input distribution and strengthening of the existing agricultural institutions, including the Agricultural Development Bank and the Upper Regional Develop- ment Corporation. PROCUREMENT: Procurement of vehicles, animal drugs, sawgins, equipment, transistor radiosh aerial photography, fertilizers, pesticides, tools, Jivestock and other farm and ranch equ,pment under contract with a value of more than $50,000 will be through international competitive 'Jidding. Domestically manufactured goods will be allowed a 15% preference. Contracts for construction of houses, and the purchase of construction materials and furnishings valued at fl0.5 million (US$9. 1 million) wi 11 be awarded on the basis of competitive bidding advertised locally and in accordance with procedures satisfactory to the Bank; foreign firms wi 11 be eligible to participate. The construction of small dams and soil conservation works wi 11 be carried out by the Project Management Unit on force account, but where possible petty contractors wi 11 be employed. ECONOMIC RATE OF RETURN: Overall: 40%; Ranching component: 31% ESTIMATED COMPLETION DATE: 1981 • - 0 -