Announcement of IDA Provides Twenty-Five Million Five Hundred Thousand Dollars for Tree Crop Development in Sri Lanka on June 5, 1978

FO-R . IMMEDIATE RELEASE ~ eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/83 JUNE 5, 1978 IDA PROVIDES $25.5 MILLION FOR TREE CROP DEVELOPMENT JN SRI LANKA The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of two credits totaling $25.5 mill ion to help finance tree crop development in Sri Lanka. A credit of $21 mill ion will assist Sri Lanka in improving the economic efficiency of the tea industry by lowering production costs and improving the quality of tea. The project includes expanded programs of tea replanting, tea factory rehabilitation, strengthening of two major Government corporations involved in tea estate management, soil conserva- • tion, and improved housing and medical facilities for estate laborers. project is scheduled to be completed in 1985 at a total estimated cost of $30. 8 mi 11 ion. The The other IDA credit of $4.5 mill ion will support Sri Lanka's program to rehabilitate, diversify, and settle degraded mid-country lands. The project consists of the diversification of about 11,500 hectares of marginal tea land, scrub land, or degraded forest and the settlement of about 4,500 landless families on newly established small farms. The project will help Sri Lanka increase its exports of ~pices and coffee and reduce imports of milk products and fuel oil. The IDA credits to Sri Lanka are for 50 years including 10 years of grace. They are interest free, except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs . .- 0 - • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ~ C H N I C A L D A T A PROJECT: COUNTRY: Tree Crop Rehabilitation (Tea) Sri Lanka • TOTAL COST: $30.8 million lDA FINANCING: $21 mill ion, standard IDA terms OTHER FINANCING: Government of Sri Lanka IMPLEMENTING ORGANIZATION: Project Coordinating Committee c/o Program Coordinator Tree Crop Rehabilitation (Tea) Project Ministry Plantation Industries Colombo, Sri Lanka. PROJECT DESCRIPTION: The project includes expanded programs of tea planting for both the public and private sector; strengthening the two major Government corporations involved in estate management; reduction in • total number of factories and expansion and rehabilitation of the remainder; pro- vision of necessary transport; rehabilitation of soil conservation works; and pro- vision of· improved housing and medical facilities for estate laborers; and training for tea industry personnei. PROCUREMENT: With the exception of fluid bed driers, and fuel and herbicide bowsers and trailers, all factory equipment, tractors and vehicles for the corporations ($5.9 million) will be procured through international competitive bidding. Bids from domestic manufacturers will receive a margin of preference - 15% or the prevailing customs duty, whichever is lower. Contracts for new cottages for estate labor ($4.3 million) would be let after local competitive bidding. Field development and housing rehabilitation ($8.8 million) would be undertaken by estate labor on force account. CONSULTANTS: Consultants will be employed to assist in developing the nationwide estate-health investment plan (12 man- months; $25,000) and to provide technical assistance to the National Institute of Plantation Management (30\man-months; $100,000). ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 25% 1983 • - 0 - FORM NO. 1121 (5-76) T E C HN I CAL DA T A • PROJECT: COUNTRY: Tree Crop Diversification (Tea) Sri Lanka TOTAL COST: $6.5 mi 11 ion I DA F I NANC_ I NG : $4.5 mill ion on standard IDA terms OTHER FINANCING: Government of Sri Lanka IMPLEMENTING ORGANIZATION: National Agricultural Diversification and Settlement Authority Peradeniya Road Peradeniya Sri Lanka. PROJECT DESCRIPTION: The four year project will implement the diversification • of about 11,500 ha. and will settle about 4,500 landless families on newly established small farms. Some 1,300 of these farms will also be provided with a dairy cow. About 3,700 ha. of commercial forest plantations would be established. PROCU.REMENT: Si nee pro 1 i ferat ion of makes of imported tractors and trailers ($400,000) and vehicles ($230,000) would create problems of maintenance and repairs, these items will be procured through locally advertised competitive bidding. Small tools, and survey and office equipment ($180,000) wi 11 be procured under iocal procedures. Dairy cattle {$900,000) would be procured through international shopping. CONSULTANTS: Consultants will be employed to advise on variety, selection, processing and marketing of spices (12 man-months; $96,000) . • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 16% 1983 - 0 -