Malawi - Technical Assistance Loan Project

Document of FILE Copy The World Bank FOR OFFICIAL USE ONLY Report No. P-3025a-MAI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED TECHNICAL ASSISTANCE LOAN TO THE REPUBLIC OF MALAWI June 4, 1981 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Malawi Kwacha (MK) US$1.00 MK 0.812 MK 1.00 US$1.232 SDR 1.00 US$1.275 (As the Malawi Kwacha is officially valued at a fixed rate of MK 1.00 to SDR 0.9487, the US$/MK exchange rate is subject to change. Conversions in this report were made at US$1.00 to MK 0.812, which is close to the recent exchange rate.) ABBREVIATIONS ADMARC - Agricultural Development and Marketing Corporation CCDC - Capital City Development Corporation DSB - Department of Statutory Bodies EPD - Economic Planning Division ESCOM - Electricity Supply Commission ICC - Investment Coordinating Committee MOA - Ministry of Agriculture MDC - Malawi Development Corporation MHC - Malawi Housing Corporation NRDP - National Rural Development Program OPC - Office of the President and Cabinet UNDP - United Nations Development Programme FISCAL YEAR April 1 - March 31  - i - FOR OFFICIAL USE ONLY MALAWI TECHNICAL ASSISTANCE LOAN LOAN SUMMARY Borrower Republic of Malawi Loan Amount: US$1.0 million equivalent Terms : Repayment in 20 years, including 5 years of grace, at 9.6 percent interest per annum. Loan Description: The proposed technical assistance loan supports the related structural adjustment loan which is being sub- mitted separately. It aims at assisting the Government in achieving its goals of attaining self-sufficiency in meat and dairy products, in developing its agro-based industries in improving the efficiency and effective- ness of the Malawi Development Corporation and in carry- ing out its structural adjustment program. Specifically, the proposed two-year project, would finance around 70 months of consultant services: (a) to study the development prospects and price incentives in the live- stock, meat and dairy industries; (b) to review the Malawi Development Corporation's present and projected and financial position, its management structure, and its operating guidelines; (c) to help strengthen MDC's export marketing capabilities; and (d) for other, currently unidentified studies, needed to carry out the structural adjustment program. Overall responsibility for project monitoring and execution rests with the Ministry of Finance. The proposed project would be implemented by the Ministry of Agriculture and the Malawi Development Corporation. As a result of the project, Malawi plans to expand its investments in livestock and to signifi- cantly improve the financial and economic performance of one of its most important parastatals, the Malawi Develop- ment Corporation. Both studies, if successfully carried out, would assist the Government in its program of economic recovery. There are no major risks since the Government is committed to implementing the structural adjustment program as quickly as possible. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost: ---------------