Announcement of IDA Approves Credit of Six Million Eighty Thousand US Dollars to Assist Coconut Development in Tanzania on October 16, 1980

I FOR IMMEDIATE ~ELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/6 October 16, 1980 IDA APPROVES CREDIT OF SDR 5.2 MILLION ($6.8· MILLION) TO ASSIST COCONUT DEVELOPMENT IN TANZANIA The International Development Association (IDA), the soft-loan affiliate of the World Bank, has approved a credit of SOR 5.2 mill ipn ($6.8 million) to Tanzania for a pilot project in coconut development. Over a five-year period, varietal trials and improved maintenance and rehabilitation trials, covering a total area of 1,200 hectares, will be carried out at several sites in mainland Tanzania as wel 1 as in Zanzibar. A 100-hectare seed garden will be established for the pro- duction of hybrid seed nuts. Soil and hydrological surveys will be car- • ried out for the selection of appropriate sites for the trials, seed garden, and coconut planting. The project also provides for technical assistance, consulting and management services, and the training of Tanzanian staff in coconut husbandry, replanting and rehabilitation methods, and plantation management. A feasibility study will be pre- pared for the next phase of coconut development. The project is expected to provide a firm base for the rehabilitation and future development of the coconut industry in Tanzania. Coconut is grown extensively in Tanzania's coastal regions over an area of about 125,000 hectares and it is a significant source of cash income for smal 1- holders. The fresh nuts and oil are important items in the local diet. The project was prepared by the Government of Tanzania with the assistance of the Food and Agriculture Organization of the United Nations (FAO) World Bank Cooperative Program. The IDA credit to Tanzania is being provided for 50 years, including 10 years of grace. It is interest free but will carry a 3/4 of 1% service charge to cover IDA's administrative costs. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The dollar equivalent of the SOR amount of the IDA credit reflects the ex- • change rates existing at the time of negotiation of the credit . FORM NO. 1121 (5-76) T E CHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Coconut Pi 1ot Tanzaria $8. 5 mi 11 ion • I DA FI NANC I NG: SOR 5.2 million ($6.8 million), standard IDA terms. OTHER FINANCING: Government of Tanzania, $1 .7 mili ion IMPLEMENTING ORGANIZATION: Ministry of Agriculture P.O. Box 9192 Dar-es-Salaam; Tanzania PROJECT DESCRIPTION: It will finance varietal trials and improved maintenance and rehabilitation trials over an area of about 1,200 hectares; a seed garden for the production of hybrid seed nuts; soil and hydrological surveys; the preparation of a feasibil!ty study for the next phase of coconut develop- ment; technical assistance, con3ulting services, and training of Tanzanian staff. ti PROCUREMENT: Orders for vehicles, tractors, attachments and spare parts ($0.7 million) will be bulked as far as possible and pro- cured on the basis of international competitive bidding in accordance with World Bank/ IDA guidelines. Contracts for vehicles and tractor~ estimated to cost less than $100,000, will be procured in accordance with the Government of Tanzania's local competi- tive bidding procedures which are acceptable to IDA. Orders for tools, office equip- ment, pump sets, and barbed wire fencing ($0.66 mill ion) will be bulked as far as possi- ble, and procured according to local competitive bidding procedures, as wil 1 also the contracts for the construction of offices, stores; and garages ($128,000) at each of the varietal trial sites. CONSULTANTS: A coconut agronomist and a plantation manager will be needed to plan and implement the varietal trials, as well as the maintenance and rehabilitation trials, to interpret results, and to train Tanzanian staff. Short-term consultants will also be needed from time to time to provide guidance or second opinions on specific technical aspects of the project (e.g., soi i fertility, plant nutrition, plant diseases). The project implementation services of the German Agency for Technical Cooperation will be needed an~ in addition consultants will be • needed to prepare a feasibility study for the next phase of coconut de~elopment . ECONOMIC RATE OF RETURN; n.a. ESTIMATED COMPLETION DATE: 1986 -0-