Announcement of Fourteen Million Dollars IDA Credit for Rural Development in Togo on September 15, 1977

•World Bank 18'18 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/11 SEPTEMBER 15, 1977 $14 MILLION IDA CREDIT FOR RURAL DF.VELOPMENT IN TOGO The International Development Association (IDA), the World Bank~s soft loan affiliate, has approved a $14 million credit for a rural development project in the cotton areas of Togo. The project will benefit about 53,000 poor farm fami1 ies (over 400,000 people), representing some 20% of Togo's population. Through an increase in the value of their crop production, expected from the project, net cash income per family is expected to doub 1e to $260 by the second ha 1f of the 1980s. Under the project, on-farm inputs will be provided to expand cotton planting by 20,000 hectares, maize by 13,700 hectares, sorghum by 7,500 hectares and groundnuts by 2,700 hectares. As a result, by 1985 about $30 mill ion a year in foreign exchange will • be earned through exports of cotton and groundnuts. Farmers will also benefit from construction and improvement of 700 kilometers of feeder roads under the project. They will also be trained in ox-drawn cultivation methods and will get credit for buying the equipment needed. The national agency, SOTOCO--The Societe Togolaise du Coton--responsible for im- plementing the project will be strenthened through the provision of additional staff, buildings and equipment. Training will be provided for the staff. A seed multiplication and field trials system will also be set up under SOTOCO. The Fonds d 1 Aide et de Cooperation of France will provide co-financing amounting to $5. 1 million for the project. The $14 million IDA credit is for 50 years with a grace period of 10 years. It is without interest but carries a service charge of 3/4 of 1% to meet IDA's administrative costs. • NOTE: Money figures are expressed in U.S. dollar equivalents . FORM NO. ·1121 /5·-76) T ECHN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: RURAL DEVELOPMENT PROJECT IN COTTON AREAS Togo $23.6 million • IDA FIN A.NC ING: $14 million credit, standard IDA terms OTHER FINANCING: Fonds d'Aide et de Cooperation (FAC), France, $5. l million. IMPLEMENTING ORGANIZATION: The Societe Togolaise du Coton (SOTOCO) Atakparne-Togo PROJECT DESCR:P";'ION: It will strengthen SOTOCO by providing buildings and equipment for SOTOCO (including establishment of a seed multiplication and field trials system), and additional management and field staff, and training. It will also provide ox-drawn cultivation tr.aining and credit to farmers for acqui s 1 tion of ox-drawn equipment; expand the Project Monitoring and • Evaluation Unit within the Ministry of Rural Development; and make provision for b1Jilding and improving about 700km. of feeder roads, and incremental on-farm inputs. PROCUREMENT: All contracts of $50,000 or more for the procurement of vehicles and equipment, including road building machinery (about $5.7 million), and fertilizers and insecticides (about $12.7 millfon, of which incremental cost of $3.7 million would be financed under the project), will be awarded through international competitive bidding in accordance with IDA guidelines. Domestically manufactured goods will be allowed a preference of 15%, or the level of applicable duty, whichever is less. Contracts (estimated at $0.3 million) of less than $50,000 equivalent will be awarded according to local procedures acceptable to IDA. Contracts with a total value of $3. 1 million, for buildings scattered over an area too large to attract international competition, will be awarded on the basis of competitive bidding advertised locally, in accordance with local procedures which are acceptable to IDA. Construction and maintenance of feeder roads (about $3.5 million) will be carried out under force account by SOTOCO. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 32% 1981 - 0 - •