Romania - Pig Production and Processing Project

Document of FILE Copy The World Bank FOR OFFICIAL USE ONLY To t Report No.P-2] 21-RO REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTUKS ON A PROPOSED LOAN TO THE BANK FOR AGRICULTURE AND FOOD INDUSTRY WITH THE GUARANTEE OF THE SOCIALIST REPUBLIC OF ROMANIA FOR A PIG PRODUCTION AND PROCESSING-PROJECT June 28, 1977 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY, i:OUTVAI E,NT S 1. nfficial Rate Lei 4.97 = 1S$1.00 Leu 1..0 = LS$O. 20 2. l'ourist Pate Lei 12.no =- UTS1. . 00 Leu .n(0 = uS$0. m Conversion Rate for Traded Coods Lei on.oc - US$1.00 Le'i 1.00 US$0.05 FTSCA. Y[AR January 1] - Dlecember 31 (;GLOSSA,Y OF ABBREVIATIONS BAF I - Bank for Agricul.ture and Food Indiustry (COFACE - Compagnie Francaise d'Assurance pour le Commercec 1E"xteri.eur .C(,I - Ixport Cre(lit G:uarantee oepartmviit !'l'HEl"' - Hlermes Kredi.tversicherings-Aktieny.:ese(llschnflt ICA - Intercooperative Association ROMAGRIITEX - Romanian Foreign Trade Company for Agriculture  FOR OMCIAL USE ONLY ROMANIA PIG PRODUCTION AND PROCESSING PROJECT LOAN AND PROJECT SUMMARY Borrower: Bank for Agriculture and Food Industry (BAFI) Guarantor: Socialist Republic of Romania Beneficiaries: State enterprises and Cooperative complexes Loan Amount: US$71 million equivalent Terms: Repayable in 15 years, including a 3-year grace period, through semi-annual installments. Interest at 8.2 per- cent per annum. Relending Terms: Relending to State enterprises at 2 percent per annum during construction and 4 percent after construction. Relending to cooperatives at 3 percent per annum. State enterprise subloan maturities would take into consideration the capacity of respective subprojects to repay from incremental income generated therefrom. Subloan terms would not exceed 18 years including three years of grace. Proj ect Description: Agricultural credit subprojects to be financed under the proposed loan would include investments to be undertaken in 1977 and 1978 for: (a) facilities and initial livestock for about 60 pig breeding/fattening complexes with an aggregate capacity of 1,500,000 animals; (b) facilities and initial livestock for about 40 pig breeding farms with an aggregate annual production capacity of about 100,000 young sows to be used as breeding stock; (c) a pig farm modernization program designed to increase and renovate the production capacity of existing facilities; (d) a pig improvement and selection program extending and developing further the national breeding pro- gram involving breeds of high genetic quality; (e) construction of modern livestock slaughtering and meat processing facilities and specialized sausage processing plants; and | This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - (f) a modernization program for existing slaughter- houses and meat processing plants. Annual incremental pork production resulting from project investments is expected to reach 208,100 tons (live- weight) at full development. In addition, slaughtering and processing throughput capacities would be increased by 252,200 tons (live-weight). The project is expected to reach full production in 1983. Cost Estimates: Local F.E. Total Local F.E. Total % -------Lei '000 -------- -------US$ 000------- F.E. Pig Fattening Complexes Cooperatives 1,139,915 284,150 1,424,065 56,996 14,208 71,204 20 State Enter- prises 700,014 174,624 874,638 35,001 8,731 43,732 20 Pig Feeding Farms Cooperatives 692,048 168,927 860,975 34,602 8,446 43,048 20 State Enter- prises 151,073 34,647 185,720 7,554 1,732 9,286 19 Pig Farm Modern- ization 266,597 62,541 329,138 13,330 3,127 16,457 19 Pig Selection Farms 77,654 17,994 95,648 3,882 900 4,782 21 Slaughterhouse and Meat Pro- cessing Facili- ties 1,543,586 369,800 1,913,386 77,179 18,490 95,669 19 Slaughterhouse Modernization 123,253 30,837 154,090 6,163 1,542 7,705 20 Subtotal 4,694,140 1,143,520 5,837,660 234,707 57,176 291,883 20 Contingency Allowances Physical 223,967 55,530 279,497 11,198 2,777 13,975 Price 105,782 226,230 332,012 5,289 11,311 16,600 Subtotal 329,749 281,760 611,509 16,487 14,088 30,575 Total 5,023,889 1,425,280 6,449,169 251,194 71,264 322,458 22  Financing: _/ Sub- IBRD BAFI borrowers Total _S------- US$ '000