Announcement of Tanzania Receives 7.2 Million Dollars IDA Credit for Rural Development on April 28, 1977

eA/orld Bank 111 IB II Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/50 April 28, 1977 TANZANIA RECEIVES $7.2 MILLION IDA CREDIT FOR RURAL DEVELOPMENT Tanzania is to receive a $7.2 ~ill ion credit from the International Development Association, the World Bank affiliate, for a rural development program in Tabora, the largest region of the country. The project aims at supporting Tanzania's development strategy which puts emphasis on increased agricultural production by smallholder farmers in villages. The project will be implemented over a five-year period. It will complement and supplement ongoing developments in the Tabora region, some of which are also funded by JDA. Specifically, the new project wi 11 establish pilot programs that wil 1 directly encourage crop and livestock production; provide infrastructural fa- cilities such as water supply, road construction and maintenance; establish a reafforestation program in which villagers will plant and manage the planta- • tions to supply fuel wood for tobacco curing and domest~c use. Technical assistance will also be supplied to train local personnel and help to develop the capacity of the. Region to handle further investments. About 9,000 small-scale farm families (approximately 48,000 people) are ~xpected to benefit directly from the crop and livestock improvement components of the project. The water supply program will result in improved water for an estimated 140,000 to 160,000 rural people by 1981. This will not only bring health benefits, but is expected to stabilize the villages and thus encourage longer-term agricultural investment and production. The Tabora project will be the second integrated rural development project assisted by IDA in Tanzania. The first, in Kigoma, was approved in November 1974, and consisted of investments in village social infrastructure such as water supply, education and health facilities as well as loans for agricultural inputs, transport and storage facilities. The total cost of the new project is estimated at $23.5 million. Contributions to its financing are also expected from the Government of Canada, with a credit of $4.8 million; the United Kingdom's Ministry of Overseas De- velopment, with a grant of $5.6 million; the ~overnment of Tanzania, with $5.26 million; and the participating villages in the Tabora Region with $0.64 million. The $4.8 million Canadian credit will be administered by IDA under the terms of a special agreement recently concluded between the Association and Canada . • The $7.2 million !DA credit will be v11 :)Ld11ciard terms of 50 years, including 10 years of grace. It wi 11 be interest free, except for a charge of 3/4 of 1% for administrative expenses. NOTE: Money fJgures are expressed in U.S. dollar equivalents. FOAM.NO. 1121 (5«76) T ECHN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Tabora Rural Development Program Republic of Tanzania $23 ,, 5 mi 1 1 i on • IDA FINANCING: $7.2 million. Sto~dard IDA terms. OTHER FINANCING: !DA-administered Canadian Credit $4.8 million, United Kingdom (Overseas Development Ministry) $5.6 million, Gcvernment of Tanzania $5.26 million, and Tanzanian Villagers $0.64 million. IMPLEMENTING ORGANIZATION: Regional Development Director, P.O. Box 26. Tabora, Tanzania PROJECT DESCRIPTION: The project will initiate a 5-year region-wide rural de- velopment program of high-priority activities consisting of: (l) inputs and improved extension services for crops and livestock in approximately 42 vi 1 lages; (2) low-cost water supply program and funding for Water Master Plan; (3) improvement of access and network roads and strengthening of maintenance capacity; (4) reafforestation programs for 15 selected villages; (5) production of land use and land capa~ility plan; and (6) technical assistance. ~ PROCUREMENT: For the components financed from the proceeds of IDA and IDA administered credit, procurement for vehicles and spare parts ($1.0 million); tools, laboratory, office and radio equipment ($0.5 million); materials for water supplies ($2.5 million); and production inputs ($1.9 million) will be bulked as far as possible and orders of $100,000 or more will be procured through international competitive bidding in accordance with Bank Group guidelines. In the ~valuation of bids, local manufacturers will be allowed a preference of 15 percent or the existing rate of duty, whichever is lower. Housing, workshop and stores construc- tion and some civil works ($1.2 million) will be done by contractors selected following international competitive bidding in accordance with Bank riroup guidelines. In the evaluation of bids for civil works, local contractors will have 7-1/2 percent preference margin. The.design and construction of water supplies ($2.5 million) is expected to be carried out by force account. For the U.K. financed components, procurement will be in accordance with the U.K. 's guidelines. CONSULTANTS: The Water Master Plan ($1.4 million) is expected to be carried out by consultants under the IDA and IDA admin- istered credit. In addition, 58 man-years of senior technical assistance are included in the project. Furthermore, the roads and Land-Use/Capability components will be carried out under U.K. technical assistance. ECONOMIC RATE OF RETURN: 17% EST It-t ,TED COMP LET ION DATE: 1982 - 0 - •