Announcement of Twenty-Nine Million Dollars for Rice Irrigation in Cameroon on January 23, 1978

FOR IMMEDIATE RELEASE. •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202} 393-6360 BANK NEWS RELEASE NO. 78/38 JANUARY 23, 1978 IDA NEWS RELEASE NO. 78/33 $29 MILLION FOR RICE IRRIGATION IN CAMEROON Some 7,000 families, 1 iving in one of the poorest areas of Cameroon, will benefit from a $55 million rice irrigation project being assisted by the World Bank and its affiliate, the International Development Association (IDA). Both the World Bank and IDA are lending $14.5 million each to help finance the Second SEMRY Rice Irrigation Project in Yagoua, in the northern region of Cameroon. Also contributing are two French aid agencies: the Caisse Centrale de Cooperation Economique (CCCE), with a loan of $8.2 million, and the Fonds d'Aide et de Cooperation (FAC), with a grant of $4 mi.llion. The Cameroon Government will cover the remainder of the project cost, estimated at $ l 4. 4 rn i 1 I i on . • The project will be administered by a government-owned company, SEMRY, which is responsible for the expansion and modern1zation of rice production in the Yagoua area. The project includes the construction of two dikes, an irrigation and drainage system, feeder and access roads and headquarters and f}rovision of services. lleavy earthmoving and agricultural equipment~ .. an'd vehicles will also be provided as well as credi~, training, researah and health services. The objective of the project is to increase the production of rice and other crops on about 15,000 hectares of land along the Logone River. It is hoped that 7,000 farm families participating in the new project will experience a more than threefold increase in their net income. Through the construction of a reservoir, the project is also expected to lead to the creation of good pasture land for livestock during the dry season, and the introduction of fishing possibilities, thus creating a supplementary source of protein. Other indirect benefits include the initiation of research on dry-land food crops and establishment of an organization to promote research results among the farmers and the introduction of a health program. This is the second SEHRY rice project being supported by the World Bank. The first one, in the same area, increased rice production by providing similar infrastructure: an irrigation network on about 4,500 hectares, a rice mill and by providing mechanical services and extension, as well as technical assistance for the administration of SEMRY. The World Bank loan of $14.5 million will be at an annu~l interest rate of 7-~5%,for 20 years, including 5 years of grace. The IDA credit, also • of $14.5 mill ion, will be on standard terms of 50 years, with 10 years of grace, at no interest except for a service charge of 3/4 of. 1_%.for administrative expenses. NOTE: Money figures are expressed in U.S. dollar equivalents.  T E CHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Second Semry Rice United Republic of Cameroon $55.5 million • BANK FINANCING: $14.5 mill ion for 20 years, including 5 years of grace, at an annual interest rate of 7.45 percent. IDA FINANCING: $14.5 lili 11 ion, standard I DA terms. OTHER FINANCING: Government of Cameroon $14.4 million Caisse Centrale de Cooperation Economique (CCCE) $8.2 million Fond d 1 Aide et Cooperation (FAC) $4.0 mill ion IMPLEMENTING ORGANIZATION: Societe d'Expansirm et <le 1-ic,1ernisr1tion rl0 la Riziculture de Yago ua ( SE MR Y) , B• P • 46 , Yago ua , Un i t ,J Rep ub l i c of Cameroon. PROJECT DESCRIPTION: The project will consist of the construction of two dikes, totalling 48 kilometers (km), with main intake structure, feeder canal, regulators, and drainage outfall; the construction of an irrigation and drainage system, including on-farm works and feeder roads, serving an area of 7,000 hectares (ha); the construction of access roads totalling 50kr,and linking, in particular, the main localities in the project area. Among the other components are the construction of a headquarters and services complex; the purchase of heavy earthmoving and agricul- • tural equipment, and vehicles; and the provision of support services, including credit for the 7,000 farm families participating in the project; and a health program. PROCUREMENT: Contracts have been awarded fol lowing international competitive bidding in accordance with Bank guidelines for: (l) the construction of the main civil works (S12.2 million) and (2) the supply of heavy earthmoving equipment for force account work ($4.9 mil lion). Contracts for fertilizer requirements, the purchase of land preparation equipMent (1.4 million), rice mill machinery, equipment and trucks ($4.3 mil lion), as well as all other vehicles, garage and workshop equipment, and electricity, water and telephone networks ($1.9 million) will also be subject to international competitive bidding. Domestically manufactured goods will be allowed a preference of 15 percent, or the level of the applicable import duty, whichever is lower. Miscellaneous items of equipment and furniture not exceeding $100,000 will be procured under local competitive bidding satisfactory to the Bank. For contracts of less than $20,000 for office furniture and equipment ($0. 1 million) ,direct procurement on the· basis of several quotations will be acceptable. The irrigation and on-farm works (S5.5 million) and the project headquarters, lodgings, offices, machine and repair shops, as well as the rice mill buildings and storage facilities ($6.4 mil lion) will be built by SEMRY on force account. Similar force account works have been carried out efficiently in SEMRY l and the existing construction team is able to carry out the works at a considerably lower cost than civil works contractors. ECONOMIC RATE OF RETURN: 14 percent. • ESTIMATED COMPLETION DATE: 1983 0