Announcement of IDA Assists Community Forestry Project in Nepal on April 24, 1980

. FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/50 Apri1 24, 1980 IDA ASSISTS COMMUNITY FORESTRY PROJECT IN NEPAL The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of a credit of $17 million to help finance a community forestry development and training project in Nepal. The United Nations Development Prcgramme and the U.S. Agency for International Development are expected to provide $6.1 million for technical assistance and training. The $24.8 million project is the first phase of a twenty year national forestry program designed to develop community forestry in the Hills and to establish training facilities to meet the needs for qualified forestry and soil and water conservation personnel. The project would help increase supplies of fuelwood and fodder in Hill areas through establish- • ment of new plantations and rehabilitation of degraded forests. Production from plantings under the project will reach a peak in the twentieth year and help meet about one-third of the total fuelwood requirements of the population of the 340 Panchayats under the project, (currently 1.9 million people). Increased supply of better qua1ity fodder will help increase milk and meat production. Development of nurseries, seed collection, tree planting, maintenance and construction work under the project will provide about 2.6 million man-days of employment. The IDA credit to Nepal is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% annum to meet IDA's administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents . • FOAM NO.1121 (5-76) T E C HN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Community Forestry and Training Nepal • $24. 8 rn i 11 ion IDA FINANCING: $17 million, standard IDA terms OTHER FINANCING: United Natiqns Development Programme, $2.8 million; United States Agency for International Development, $3.3 million; Government of Nepal, $1.7 million IMPLEMENTING ORGANIZATION: (1) Community Forestry and Afforestation Division Forest Department, Ministry of Forest Babar Mahal Government of Nepal Kathmandu, Nepal (2) Forest Institute • Tribhuvan University Pulchowk Nepal PROJECT DESCRIPTION: It is the first phase of a 20-year national forestry program aiming to develop community forestry in the Hills and to establish training facilities in Nepal to satisfy needs for qualified forestry and soil and water conservation personnel. PROCUREMENT: Equipment and vehicles ($1 million): Procurement involving contracts above $100,000 will be on the basis of international competitive bidding (ICB); orders of less than $100,000 will be purchased under local tender procedures. Because of the remoteness of the villages and small size of individual schemes, it would be impractical to group most of the civil works contracts ($4.45 million) for ICB, or in some cases, even for local competitive bidding, so they will use force account methods. Civil works.contract for the construction of some of the buildings at the new tralning facilities at Pokhara and Hetaura ($1 million) will be subject to ICB . ECONOMIC RATE OF RETURN: 16% ESTIMATED COMPLETION DATE: 1986 - 0 - •