Announcement of IDA Approves Sixteen Million Dollars Credit to Cameroon for Second Livestock Project on April 24, 1980

. FOR IMMEDIATE RELEASE \World Bank 1818 H Street, N.W., Washington 1 D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/52 Apr i 1 24 , 19 80 IDA APPROVES $16 MILLION CREDIT TO CAMEROON FOR SECOND LIVESTOCK PROJECT The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a $16 million credit for a second livestock project in Cameroon. The $36 million dollar project is designed to assist the second phase of a long-term livestock development program - the Meat Plan - aimed at improving Cameroon's meat production and the economic well-being of its livestock producers. • The (DA-supported project will provide credit to livestock producers and reclaim for productive use grassland areas now infested by tsetse fly. It will raise the level of rural incomes by increasing the productivity in major livestock subsectors - poultry production, pig breeding and fattening, and cattle breeding and fattening. The project will strengthen the field services of the government institutions responsible for its implemEatation - Societe de Developpement et d'Exploitation des Productions Animales, Fonds National de Developpement Rural, and Ministere de 1 'Ehi ".age et des Industries Animal es. This institu- tion building component will qelp to ensure the effective execution of this project and also enhance the ~apacity of the three institutions to develop further the livestock sector. The Government of the Federal Republic of Germany will provide $9 million and the Government of Cameroon, $8.7 million towards the cost of the project. The IDA credit is for 50 years, including 10 years of grace. It • will be interest free but will carry a service charge of 3/4 of 1% to cover administrative expenses. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-7&) T E CHN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Second Livestock Development United Republic of Cameroon $36 million • IDA FINANCING: $16 million, standard terms OTHER FINANCING: Federal Republic of Germany (FRG), $9 million; Government of Cameroon, $8.7 million; beneficiaries, $2.3 million as equity participation. IMPLEMENTING ORGANIZATION: Fonds National de Developpement Rural (FONADER) B. P. 1548 Yaounde Ripublique Unie du Cameroun Telex: 8365 KN Societe de Developpement et d'Exploitation des Productions Anirnales (SODEPA) B.P. 1410 • Yaounde R~publique Unie du Cameroun Telex: 8270 KN Ministere de l'Elevage et des Industries Animales (MINEL) Yaounde Republique Unie du Carneroun Telex: MINDIC 8203 KN PROJECT DESCRIPTION: The project will: (i) provide investment and working capital credit through Fonds National de Developpement Rural (FONADER) for producers in the northwestern and southern coastal zone for pig breeding and fattening, broiler production, eggs and cockerel production, and.cattle production on small mixed farms; for private cattle breeding and fattening ranches in the tsetse cleared areas of the Adamaoua Plateau, Dumbo and Ndokayo and small ranches in the North-West Province, and for small-scale agriculturalists in production lines consistent with land use plans for the northeast part of the tsetse cleared zone; (ii) complete the eradication of tsetse flies in the target area under the first project-800,000 hectares (ha)-by clearing 276,000 ha; and implement a second stage tsetse fly eradication program cove,ing about 163,000 ha, in order to return 1.3 million ha of grassland to traditionar producers at program completion; (iii) strengthen veterinary field services of the Ministere de l'Elevage et des Industries Anirnales (MINEL) in the Adamaoua Plateau to ensure adequate disease prevention and control; (iv) strengthen Societe de Developpement et d'Exploitation des Productions Animales (SODEPA) by extending technical assistance contracts for staff to supervise the completion of slaughterhouse construction and to manage them, and for a financial controller to improve SODEPA's financial control capacity; by providing for a ranch management specialist and by provision of civil works, equipment and vehicles for SODEPA's slaughterhouses and ranches; (v) improve the program of formal and in-servi. training program for SODEPA agents in slaughterhouse management and operation; FONADE agents in credit supervision and monitoring; and MINEL staff assigned to the Special Mission in tsetse eradication, survey and perimeter maintenance; (vi) establish a Project Coordination Unit (PCU)--headed by a Project Coordinator--within MINEL with overall responsibilities for project activities; and (vii) provide funds for the preparation of a possible follow-up project, in the event of a satisfactory evaluation of the proposed second project in its third project year.  -2- ~ROCUREMENT: Contracts for $100,000 or more totalling about $4 mi 1 lion, principally for the purchase of vehicles and equipment for MINEL and SODEPA, wl 11 be awarded on the basis of interna- tional competitive bidding iA accordance with· IDA guidelines, except for the purchase of equipment to complete the Douala slaughterhouse. Such equipment, va1ued at about $0.4 mil 1 ion, wil 1 be purchased from the original supplier to maintain standardi- zation. Insecticides worth $2.6 million for the 1980/81 and 1981/82 spraying campaign will be procured from the same suppliers who provided them for· the first project, but suppliers of potential substitute insecticides will be invited to submit proposals to have new products tested for possible use. The balance of insecticide requirements worth about $1.3 million wil 1 be procured through limited international tenderinq which will allow for new products--found suitable after field testing--to be considered. Contracts for goods valued between $30,000 and $100,000, totalling approximately $3.5 mill ion, will be procured on the basis of local competitive bidding procedures acceptable to IDA, while individual contracts of less than $30,000r for a total of about $0.5 mi 1 lion, wi 11 be procured on the basis of at least three quotations. Orders will be grouped whenever practicable in order to derive maximum benefit from bulk procurement. Goods financed through FONADER credits for livestock and farm develop- men~ will be procured through regular com~ercial channels ($11.4 million). Contracts for remodeling and construction of buildings totalling about $4 mill ion wil 1 be too small and dispersed tp attract international bidders and consequently will be awarded following local competitive bidding procedures acceptable to IDA. Items included in operating costs (~2 million), to be financed by Government, do not lend themselves to bidding procedures. The helicopter services for spraying and the technical assistance or tsetse eradication, both involving costs of about $5.3 million, will be financed • y FRG which will apply its own rules on procurement. Domestically manufactured goods will be allowed a preference of 15% of the c.i.f. price or the level of appli- cable duty, whichever is less, comparing domestic bids with those of foreign manufac- turers. CONSULTANTS: 35 man-years of technical assistance for 10 specialists during the life of the project. ECONOMIC RATE OF RETURN: 16% ESTIMATED COMPLETION DATE: 1985 -0- • •