Announcement of IDA Assists Forestry Project in India on April 21, 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. 80/46 Apr i 1 2 1 , 19 80 IDA ASSISTS FORESTRY PROJECT IN INDIA The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of a credit of $37 million to help finance a community forestry project in India's Gujarat State. The project is designed to increase supplies of fuelwood and other forestry products, offer paid employment to the poorest segment of the population, and help to stabilize the environment. Forests cover about 10% of Gujarat's land area of 196,000 square kilometers. In 1974-77, forests annually produced an average of 150,000 cubic meters of timber, 300,000 tons of fuelwood, 73,000 tons of bamboo, and 22,000 tons of fodder grass, in addition to a wide variety of minor forest products. The forests also support a number of industries and work in the forest areas provides an important source of paid employment for • marginal farmers and landless laborers. Shortages of primary forest products, especially fuelwood, building poles and fodder, are severe. In 1969 Gujarat launched a community forestry program to increase the supply of fuelwood and other forest products. The project being assisted by the IDA credit is part of this program. At full development, annual output of fuelwood resulting from the project is expected to meet the needs of about 2.5 million people. Over the five-year project implementation period, 105,000 hectares of idle or under- utilized land are to be brought into productive use. In total, the equivalent of 26,000 people will be fully employed for five years. The IDA credit to India is for 50 years, including a grace period of 10 years. It is interest free, except for a service charge of 3/4 of 1% per annum to meet IDA 1 s administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T ECHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Gujarat Community Forestry India $76 million • IDA FINANCING: $37 million, standard IDA terms OTHER FINANCING: Governments of India and Gujarat IMPLEMENTING ORGANIZATION: Secretary to the Government of Gujarat Agriculture, Forests and Cooperative Department Sachivalaya, Gandhimagan Gujarat, India Cable address: AGRISEC Gandhimagan, Gujarat, India PROJECT DESCRIPTION: During the five-year implementation period the project wi 11: (a) expand and strengthen the Community Forestry Wing (CFW) of the Gujarat Forest Department through the provision of technica~ and support staff, construction of staff housing and other buildings, development of train- • ing programs and research activities, and provision of vehicles and equipment; (b) es- tablish about 105,000 ha of forest plantations; (c) expand state nurseries to provide planting stock for project and farm forestry; and (d) promote fuelwood conservation measures. PROCUREMENT: Most of the project works will be scattered over a wide area and carried out over different periods of time. These will not be suitable for international competitive bidding. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 17% 1986 - 0 - •