Ecuador - Esmeraldas Rural Development (Quininde, Malimpia Nueva Jerusalem) Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-3102-EC REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF ECUADOR FOR THE ESMERALDAS RURAL DEVELOPMENT PROJECT June 30, 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 The official exchange rate is $1 = SI. 25. There is, however, a free market rate which has been fluctuating around US$1 - SI. 30 during the past few months. The currency equivalents given below are based on the official exchange rate. Currency Unit Sucre (S/.) Calendar 1980 June 1, 1981 US$1 = SI. 25 SI. 25 S/. 1 = US$0.04 US$0.04 SI. 1,000 US$40.00 US$40.00 FISCAL YEAR January 1 to December 31 ABBREVIATIONS BNF - Banco Nacional de Fomento (National Development Bank) CPE - Consejo Provincial de Esmeraldas (Esmeraldas Provincial Council) DINACE - Direccion de Construcciones Escolares (Directorate of School Construction) FONADRI - Fondo Nacional de Desarrollo Rural Integral (Integrated Rural Development Fund) IDB - Inter-American Development Bank IEOS - Instituto Ecuatoriano de Obras Sanitarias (Ecuadorian Institute of Sanitary Works) IERAC - Instituto Ecuatoriano de Reforma Agraria y Colonizacion (Ecuadorian Institute of Agrarian Reform and Colonization) INIAP - Instituto Nacional de Investigaciones Agropecuarias (National Agricultural Research Institute) MAG - Ministerio de Agricultura y Ganaderia (Ministry of Agriculture and Livestock) MOP - Ministerio de Obras Publicas (Ministry of Public Works) OAS - Organization of American States SEDRI - Secretaria de Desarrollo Rural Integral (Integrated Rural Development Secretariat) USAID - United States Agency for International Development  FOR OFFICIAL USE ONLY RtEPUBLIC OF ECUADOR ESMERALDAS RURAL DEVELOPMENT PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of Ecuador Amount: US$17.0 million Terms: Payable in 17 years, including 4 years of grace, at 9.6 percent interest per annum. Relending Terms The proceeds of the proposed loan for the agricultural credit component would be on-lent in Sucres to the National Development Bank (BNF) on the same terms as the Bank loan, while the Government's contribution to the credit component would be in the form of a 17-year interest-free loan. Project Description: This projoct aiJ. at improving the productivity, income and general living conditions of 5,100 poor rural families (about 28,000 persons) living in Esmeraldas Province in northwestern Ecuador. Project components include (i) extension, credit and other agricultural support services; (ii) provision of land titles; (iii) construction and improvement of rural roads and bridges; (iv) construction of administrative, community and marketing centers; (v) provision of potable water, primary health care services and school facilities; and (vi) preparation of a future second rural development project in Esmeraldas Province. Special Risks: The main risk which this project faces is institu- tional. Ecuador's agricultural public sector has traditionally been weak and uncoordinated, resulting in frequent delays in project execution. However, the Government has now established a Secretariat for Integrated Rural Development in order to provide the coordination that is needed for this type of multi-sector project. This new agency is expected to facilitate the project's execution. Additionally, close supervision and technical assistance have been included in the proposed project to help minimize such risks. This documenLbu a sfAtriagd dAiiuuin l may bo used by recipi only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Costs: Local Foreign Total