Announcement of IDA to Support Technical Assistance Project in Central African Republic on May 28, 1981

· fOR IMMEDIATE RELEASE · .world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IOA NEWS RELEASE NO. 81/90 MAY 28, 1981 IDA TO SUPPORT TECHNICAL ASSISTANCE PROJECT IN CENTRAL AFRICAN REPUBLIC The International Development Association (IDA) has approved a credit of SOR 3.3 million ($4million) to the Central Afr"ican Republic for a technical' assist- ance project. IDA is the World Bank's affiliate for concessionary lending. Funds from the JDA credit will finance the preparation of a road rehabil ita- tion program and an integrated rural ~e~elopment project in the cotton zcine; studies of the important diamond and forestry sectors; the services of resident technical advisers for preparing and carrying out development projects and for monitoring external debt; an organizational review of the civil service, with recommendations for improvements; training of local staff; and other project preparation activities. The road rehabilitation program will be suitable for financing by a number • .of external donors, several of whom have also expressed interest in supporting ~ comprehensive agricultural development program in the cotton zone. Cotton production, once an important foreign exchange earner for the Central African Republic, has declined seriously in recent years. The sector studies are expected to lead to investments which will help generate additional government revenues from the country's diamond and timber resources. In addition, the project will provide a basis for improved management in the public sector, particularly in key ministries which have important roles to play in the rehabilitation of the economy. The IDA credit is on standard IDA terms of 50 years, with 10 years of grace, and is interest-free, except for a service charge of 3/4 of 1% per annum to cover fDA's administrative costs. The credit will be committed when funds are available. NOTE: IDA credits are denominated in SDRs ($pecial Drawing Rights), which are val•.ied on the basis of a ' 1basket" of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing at the t}me of negotiation of the cr~dit . •