Announcement of Madagascar Receives Twelve Million Dollars IDA Credit for Agriculture on March 8, 1979

FOR IMMEDIATE REJ-EASE _ •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/46 March 8, 1979 MADAGASCAR RECEIVES $12 MILLION IDA CREDIT FOR AGRICULTURE The fnternational Development Association (IDA), the World Bank's affiliate for concessionary lending, announced today the approval of a $12 million credit to support an agricult~ral development project in Madagascar. This project will support the development of 3,700 hectares (ha) of new land for the production of rice and cotton and complete an irrigation system serving about 10,000 ha in the Lower Mangoky Valley. Irrigation and drainage networks will be constructed for 3 1 700 ha, road infrastructure will be developed and concrete canal segments produced for tertiary and quaternary irrigation networks; detailed design studies and supervision of civil works will be carried out. The project also includes the provision of applied agricultural research for the Mangoky scheme, as well • as investigational research and trials on operating problems, overseas study trips and training courses, monitoring and evaluation, and studies to prepare future projects in the Mangoky region. In addition, studies for other agri- · cultural projects will be financed. The project is expected to result in rice and cotton production in- creases of 13,000 tons and 2,000 tons, respectively, valued at $3.9 million a year. About 3,200 families or 19,000 persons will benefit directly from the project, which is expected to create new employment for 8,500 people, and raise farm incomes to an average of $800 compared with farm incomes of $220 a year on traditional farms. Six new primary schools will be constructed and some existing schools will be extended to serve migrant families settling in the project area. A new technical training school will be established, a second~ ary school expanded, and a dispensary enlarged to serve a iarger number of people. Measures will be taken to insure that the project development will not have an adverse environmental impact. The officials of the project implemen- ting agency, SAMANGOKY (Development and Production Agency for the Lower Mangoky Valley), and the Ministry of Health are seeking to control schistosomiasis through treatment of infected areas. The International Fund for Agricultural Development is providing $6.5 million to the financing of this project. • The IDA credit of $12 million is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHNI CAL DAT A PROJECT: COUNTRY: TOTAL COST: Mangoky Agricultural Development Democratic Republic of Madagascar $26.4 mi 11 ion • IDA FINANCING: $12 million, on standard IDA terms OTHER F!NANCING: Government of Madagascar, $4.8 million; Societi pour 1 'aminagement et la mise en valeur de la Vall~e du Bas Mangoky (SAMANGOKY)/Farmers, $2.2 million; Cotton 0 rgan i zat ion/Fa n,,ers, $0. 9 mi 11 ion; I nternat i ona 1 Fund for Agricultural Development, $6.5 million. IMPLEMENTING ORGANIZATION: SAMANGOKY c/o Ministere du Developpement Rural et de Reforme Agraire, 122 Route Circulaire, Antananarivo, Madagascar TELEX: 22339, Gouvernement Ministere du Developpement Rural et de la Reforme Agraire PROJECT DESCRIPTION: This project will improve irrigation and agriculture in the Mangoky delta. It includes: the development of irrigation and drainage networks for 3,700 hectares (ha) and road infrastructure; d~ve1,?-:9"' rner,t. ,c,,f al!tout 3,300 :hc1 of new land, and production of concr.ete canal seqments for • tertiary and quaternary irrigation networks; detailed design studies and supervision of civil works; incremental agricultural production costs; applied agricultural research for the Mangoky scheme; social infrastructure; investigational research and trials on operating problems, overseas study trips and training courses, monitoring and evaluation, and studies to prepare future projects for the Mangoky region; and project preparation activities for agriculture and other new development projects. PROCUREMENT: Contracts for major civi 1 works wi 11 be awarded foJ Jo\fJing international competitive bidding in accordance with World Bank guidelines. These works will comprise extensions to the primary and secondary irrigation and drainage networks, and tertiary drainage system and road works; total value is estimated at about $7.5 million (including contingencies). On-farm develop- ments, insta~lation of the tertiary and quaternary irrigation networks, and manu- facture of canal segments will be carried out by SAMANGOKY, on the basis of arrangements between SAMANGOKY and the government which are also satisfactory to IDA. CONSULTANTS: The government has prepared a list of project proposals which includes promotion of several commercial/industrial crops and integrated regional development schemes; these studies will be conducted either directly by the Ministry of Rural Development and Agrarian Reform or by con- sultar1ts engaged by the Ministry. ECONOMIC RATE OF RETURN: 18% ESTIMATED COMPLETION DAT.E: 1985 - a- •