Announcement of World Bank Approves Three Loans to Ecuador on April 1, 1976

. ) .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 . BANK NEWS RELEASE NO. 76/29 Apr i 1 1 , 1976 WORLD BANK APPROVES THREE LOANS TO ECUADOR The World Bank has approved $17.5 million for three development projects in Ecuador. A $3 million loan will assist in the financing of a seeds project prepared under the FAO/IBRD cooperative programme. Ecuadorian farmers sti 11 use mainly seed, which is generally of very low physical and genetic purity. This, combined with limitations on other inputs, results in low agricultural yields. The project, which wi 11 integrate government activities in the production and distribut,or of improved seeds, includes installation of three seed processing plants, expansion of storage facilities, construction and improvement of seed warehouses, and training & ~ provrsion of addftional personnel and equipment • • A second loan, of $4 million, will help finance planning, pre-investment and project preparation in the rural development and agricultural sector. The Bank will also support a fourth highway project in Ecuador with a $10.5 million loan. Main elements rn this project are the improvement of about 50 kilometers of the Babahoyo-Balzapamba section on the Guayaquil-Ambato road, a road maintenance program, a sector planning and coordination program, an engineering improvement program to improve the capabilities of the Ecuadorian road construction industry, and a study of the develop- ment potential of the area of influence of a proposed road in northwestern Ecuador. The estimated total cost of the three projects is $31.6 million. Both the seeds project and the technical assistance loans have terms of 15 years, including 4 years of grace, and interest at 8-1/2 percent. The $10.5 million highway loan is for 25 years, including 5 years of grace, with interest at 8-1/2 percent per annum. Note: Money figures are expressed in US dollar equivalents •  )• Form No. 1121 I ( • (9-75) T E CHN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Seeds Ecuador $5 million • BANK FINANCING: $3 million 1 15 years, including 4 years of grace, with interest at 8-1/2% per annum OTHER FINANCING: Government IMPLEMENTING ORGANIZATION: YJ.niaterio de Agricultu~a Guayaquil 1740 Quito, Ecuador PROJECT DESCRIPTION: Installation of three seed processing plants, including storage facilities, for up to a total of 13,000 tons of seeds. These plants will be equipped for weighing, receiving, dry~ng, conditioning, cleaning, grading, treating, bagging, labeling, quality control testing, and storing seeds; expansion of storage facilities. at the four research stations • responsible for providing breeder's seed and for producing ';asic and registered seed, . to handle an additional 500 tons. In addition, the Bolich;e·~ Pichilingue, Portoviejo and Santa Catalina stations will receive basic testing equipment; constrvction and/or improvement of seed warehouses; provision of additional personnel and equipment; establishment of a National Seeds Council for national policy regulation and coordination; and training of personnel in different aspects of the industry, plus related technical assistance. PROCURElvfENT: All contracts for civil works and machinery and equipment for the seed processing plants will be awarded on the basis of international competitive bidding in accordance with the Bank's Guidelines on Procurement, as will the other machinery (notably basic testing equipment, a cleaner, scale and bagging machin for the INIAP plants) and vehicles whose cost exceed $100,000. Equipment and civil works costing less than $100,000 will be procured under local competitive bidding procedures satisfactory to the Bank. CONSULTANTS: Consultants will be engaged to assist in project implementation and advise and train staff in seed processing and storage; advise and train staff in seed production, certification and quality control; and to deal with special problems associated with newly introduced crops. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 48 % 1980 • -0- Form Mo. 1121 (9-75) , TECHNICAL DATA • PROJECT: COUNTRY: Technical Assistance Ecuador TOTAL COST: $5. 6 million BANK FINANCING: $4 million, 15 years, and 4 years of grace at 8-1/2% per annum. OTHER FINANCING: Government IMPLEMENTING ORGANIZATION: JUNAPLA '1t n I s t ry . of P1an n in g 10 de Agosto 600 Qui to, Ecuador PROJECT DESCRIPTION: The project provides technical assistance and associated equipment over a three-year period for • the following subprojects: (a) establishment and training. of a national rural development planning group, within JUN.APL.A; (b) preparation of rural development projects in the province of Tungurahua; (c) preparation of rural and agricultural development projects in the lower Gu~as Basin and a framework plan for water control and agricultural development for this region; .13..nd ( d) pre-investment studies of rural development possibilities in the Esmeraldas River basin zone. PROCUREMENT: Vehicles and equipment will be obtained on the basis of competitive procurement advertised locally and limited to firms that have service facilities in Ecuador. CONSULTANTS: All contracts for consulting services will be subject to prior approval of the Bank. The advisors for the Planning Group will be recruited on an individual basis • • ESTIMATED COMPLETION DATE: 1979 -0- Form No. 1121 (9-75) • TECHNIC ..AL DAT A PROJECT: Fourth Highway COUNTRY: Ecuador TOTAL COST: $21 mi 11 ion BANK FINANCING: $10.5 million, 25 years, including 5 years of grace at 8-1/2% per annum. OTHER FINANCING: Government IMPLEMENTING ORGANIZATION: Ministerio de Obras Publicas y Comunicaciones 6 de Diciernbre y Wilson Quito, Ecuador PROJECT DESCRIPTION: 1) Improvement of the Babahoyo-Balzapamba section (49 km) of the Guayaquil-Ambato road; 2) a pilot road maintenance program in one of the four maintenance districts of M.O.P.; 3) a ~ program to improve planning and coordination in Ecuador 1 stransport sector; 4) a program to improve the planning and engineering capabilities of M.O.P. 's Directorate of Highways; 5) a program to improve the capability of the Ecuadorian roads construction industry; 6) a study of the agricultural potential of the area of influence of the projected Puerto I la-Garrapata road (86 km) and the investments required therefore,and, should such investments prove feasible, an integrated rural development study of the same area. PROCUREMENT: Road improvement contracts to be awarded on the basis. of international competitive biddingr in accordance with the Bank's guidelines. CONSULTANTS: Internationally recruited consultants to be retained for civi 1 works supervision, setting up transport sector agency and highways planning unit, and technical assistance. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 14% for the road improvement component 1979 • -0-