Announcement of World Bank Approves Sixteen Million Eight Hundred Thousand Dollars for Zambia’s Industrial Development on May 16, 1977

.world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/103 MAY 16, 1977 WORLD BANK APPROVES $16.8 MILLION FOR ZAMBIA'S INDUSTRIAL DEVELOPMENT Zambia will be able to save, through import substitution, an aver- age of about $1. 2 mi 11 ion each year in fore i g,n exchange as a rest:1 l t of a $16.8 mill ion World Bank loan for an tndustrial forestry project! The $1.2 million average per annum wil 1 be during the first ten years, Lt will rise to about $15.3 mi 11 ion in the fifteenth year. The project will help Zambia in executtng the country's long-term •• afforestation orogram by planting about 15,000 hectares of pine, 2,500 hec~ tares of eucalyptus and replanting about 2,000 hectares of clearfelled pl an tat ions. The proposed sawm i 11 wi 11 add about 40,000 m3 a year of saw ... wood to the existing sawnilling capacity. The Commonwealth Development Corporation is expected to provtde a loan totalling about $6.2 mill ion. The Bank loan to Zambia will be for 20 years, tncludtng 4~1/2 years of grace, with interest at 8.2 percent per annum. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E CHN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Industrial Forestry Project Zambia $34. 50 mi 11 ion • BANK FI NANC I NG : $16.8 million, 20 years, including 4 i/2 years of grace, with interest at 8.2 percent per annum. OTHER FINANCING: Commonwealth Development Corporation $6.2 million IMPLEMEN71NG ORGANIZATION: Industrial Plantations Division (IPD), P,0. Box 1566, Ndo 1a? Zamb.i a PROJECT DESCRIPTION: The project will consist of: (a) planting of about 3,500 ha of new plantations annually, of which about 3,000 ha will be pine and about 500 ha eucalyptus (total for the Project period: pine 15,000 ha; eucalyptus 2i500 ha); (b) reforestation annually with eucalyptus of approxi- mately 400 ha of clearfelled plantations (total for the Project period: 2,000 ha); (c) • maintenance 1 of al 1 Industrial Plantations Division (IPD) plantations; (d) doubling of IPD s logging and transportation capacity from about 60,000 m3 to about 120,000 mj of roundwood per ear; (e) constructing and equipping a sawmill with a sawnwood capacity of 3 about 40,000 m annually; (f) staff training and fellowships to facilitate (a) and (e) above; and (g) research, experimentation and studies designed to improve land clearing and charcoal production methods. PROCU.REMENT: Award of contracts for sawmilling an~ other heavy equipemnt, tractors and vehicles will be on the basis of international competitive biading in accordance with Bank Group guidelines. Fuel, tools spares, stores, vehicles (including tractors) and other items in contracts of $100,000 or less will be procured under standard Government procedures which are satisfactory. Road and other construction and sawmill building wi 11 be carried out by competitive bidding advertised locally or by IPD if this proves less expensive. CONSULTANTS: Studies and trials designed to improve land clearing and charcoal production methods will require approximately 6 man-months of consultant services. ECONOMIC RA'fE OF RETURN: 11% ESTIMATED COMPLETION DATE: December 3 1 , 1982 - 0 - •