Announcement of IDA Assists Agricultural and Livestock Development Project in Rwanda on June 21, 1979

FOR IMMEDJA TE gELEASE , . • World Bank 1818 H Street1 N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477 ~1234 IDA NEWS RELEASE NO. 79/101 June 21, 1979 IDA ASSISTS·AGRICULTURAt AND LIVESTOCK DEVELOPMENT PROJECT IN RWANDA The International Development Association (IDA), the World Bank's soft- loan affiliate, has approved an $8.75 mill ion credit to Rwanda for an agricul- tural and livestock development project in the northeastern part of the country. The project 1 s goal is to preserve and possibly increase the land's potential for production through better use of available resources. The $11.8 mill ion Mutara Agricultural and Livestock Development Project is the second phase of a long-term development project for the region. Under the Paysannat subproject in the southern half of the project area, a basic extension program will be developed. It will consist of anti-erosion control, preservation of soil fertility, intensification of agricultural production by promoting stallfeeding for stock and the use of manure as a crop fertilizer, and reforestation. Staff and farmer training for women as well as men will be • an important component . In the northern project area, the group ranch subproject includes the recovery of 7,000 hectares of degraded rangeland. The first phase's destocking operation to reduce the size of the cattle herd and improve its quality will be continued. This will be followed by a massive pasture improvement program of weed destruction and reseeding. Efficient veterinary services will also be pro- vided. A technical center to be constructed to support both these subprojects will contain a fodder multiplication sector, a zootechnical center, and a small commercial center. Social services will be improved by the construction of seven schools and two health centers. Some 40 wells will be drilled to serve 1,000 families and 2,000 head of cattle in the northern area, and a water sup- ply scheme will be developed to provide drinking water for 8,500 families in the southern area. Technical assistance includes the services of an agronomist/extension specialist and a marketing specialist. The project will also provide consul- tant services to examine particular technical aspects of the project and assist with the technical management of the sub-projects. The project's major benefit will be a halt in the rapid degradation of soil in the area, and the introduction of soil conservation measures. The value of annual incremental production is estimated at $1.8 million at full • NOTE: Money figure~ are expressed in U.S. dollar equivalents. I . ..  - 2 - project development in 10 years. The value of production of typical area farms is expected to increase about 60% to 73%, depending on farm type. Some 65,000 people at the lowest income level will benefit directly from in- creased cash income, subsistence production, and social services. At full • project development, over 3,000 employment opportunities will have been created. The European Economic Community Special Action Account will provide a $1.65 mill ion credit as co~financing. The Government of Rwanda is con- tributing $950,000 to the project, and $460,000 will come from project bene- ficiaries. The IDA and the EEC Special Action Account credits are for 50 years, including 10 years of grace. The credits carry no interest, but bear a service charge of 3/4 of 1% per annum to cover administrative expenses. - 0 - • • FOAM NO. 1121 (5-76) T E C HN I CA L D A T A • PROJECT: COUNTRY: TOTAL COST: Mutara Agricultural and Livestock Development--Phase I I Republic of Rwanda $1 1 •8 mi 1 l i on IDA FINANCING: $8.75 mill ion, standard IDA terms OTHER FINANCING: European Economic Community (EEC) Special Action Account, $1.65 mill ion; Government of Rwanda, $950,000; and project participants, $460,000. IMPLEMENTING ORGANIZATION: Office pour le Valorisation Pastorale et Agricole du Mutara (Agency for Agricultural and Livestock Development of Mutara)--OVAPAM B. P. 178 Kigali, Rwanda Telex: CABPUB 04 PROJECT DESCRIPTION: It consists of: a) a basic extension program, including anti-erosion control, preservation of soil fertility, intensification of agricultural production by promoting stallfeeding of stock and the use of manure on crops, and reforestation; b) preservation of cattle herds and in- creased range and herd productivity; c) construction of a technical center to support a) and b), which will include a fodder multiplication sector, a zootechnical center, and a small commercial center; d) the construction of 7 schools, 2 health centers, 40 • wells, and the development of a water supply scheme; e) road maintenance; and f) tech- nical services for marketing, general services, and training. PROCUREMENT: Contracts for the supply of vehicles and equipment ($600,000) and veterinary drugs and chemicals ($100,000) costing $50,000 or more will be awarded through international competitive bidding (ICB). Contracts for vehicles, equipment, and supplies costing less than $50,000 each (~ggregate: $350,000) will be awarded following government procurement procedures, which are satisfactory to IDA, with the proviso that quotations be sought from aii suppliers in Rwanda who offer adequate guarantees of service and parts supply. Con- tracts for supply of veterinary products, breeding material, and seeds ($380,000) will be procured through international shopping or international advertisement. Civil works for housing, office, school, and health center construction will be carried out by OVAPAM by force account or with community cooperation, or by local contractors fol- lowing competitive bidding based on local advertisement. Implementation of the water supply component ($1.9 million) will be carried out by a qualified firm with experi- ence in shallow well construction in developing countries, preferably in Africa. The contract will be awarded following ICB. Draft tender documents for all contracts equal to or exceeding $50,000, and for the water supply component, will be submitted to IDA for its comments before the invitations to bid are issued. Full information on proposed contracts valued at $20,000-$50,000 will be submitted to IDA for comment prior to award of the contract. Items financed under the EEC Special Action Account credit will be procured in accordance with Schedule I I I of the EEC Special Action Credit Agreement which limits bidding to EEC member countries and !DA member coun- tries which are eligible to receive the Special Action Account credits . • CONSULTANTS: Technical services will be provided for marketing, general services, and training. ESTIMATED COMPLETION DATE: 1983 ECONOMIC RATE OF RETURN: 14% - 0 -