Announcement of World Bank to Support Second Rural Development Project in Ecuador on May 14, 1981

. ·" .. .,, ... -- FOR IMMED~ATE ~Ei:~ASE" ' " . • World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/91 May 14, 1981 WORLD BANK TO SUPPORT SECOND RURAL DEVELOPMENT PROJECT IN ECUADOR A $20 mi11ion loan will help finance a second rural development project in Ecuador, the World Bank announced today. The project aims to increase rural incomes, expand agricultural production, and improve f:',e general living conditions of the rural poor in the western foothills of the Andes, along the Puerto lla-Doblones highway. Some 10,000 rural families (about 65,000 people) will benefit from improved roads, health services, schools, agricultural extension servicesr and credit to finance on-farm investments, home improvements, and working capita·~. The project will support the agricultural development of the area by promoting soil conservation and forestation practices, the rehabilitation of coffee and cocoa plantations, and the development of other perennial and annual crops. Measures to improve pasture lands and cattle management, hog-raising methods, and farmers' orga- nizations are also included. Through seminars and courses, farmers will receive instruction on community development, farm management, record keeping, and other • relevant topics. The construction or upgrading of 215 kilometers of feeder roads will facilitate the movement of people and agricultural products in and out of the project area. A land titling program will be carried out in an effort to clarify and organize the land tenure situation in the project area. Farmers who are without clear title will be encouraged and helped to ccmplete procedures to obtain their title. A primary health care program ts also called for under the project. It will em- .,has :e the training of medical staff, ·trnfning and deployment of rural health pro- ,noters, and the i nvo 1vement of the ent fre community, anq espec i a 1ly rura 1 women, in primary health and nutritional education. The health component also includes the construction of medical facilities and water and sanitation systems, including shal- low wells and sewage units for villages and scattered rural households. It is ex- pecte~ that these measures will substanti~lly reduce the incidence of disease. Finally, the educational system of the area will be improved by rehabilitating and constructing schoolrooms, living quarters for teachers, and water supply and hygiene facilities for about 60 rural elementary schools. The project is expected to bring about substantial improvements in the income levels and living conditions of small- and medium-scale farmers. The agricultural development program will generate about 1.6 mill,on additional man-days of labor, leading to full employment among farmers, and to reduced seasonal unemployment among landless workers. The project will also afford valuable experience for carrying out • similar rural development projects in other parts of the country . The $20 million loan to the Republic of Ecuador has a term of 17 years, including four years of grace, with interes~ at 9.6% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHNI CAL D A T A PROJECT: COUNTRY: TOTAL COST: Puerto 11e-Chone Rural Development Ecuador $57. 1 mi 11 ion • BANK FINANCING: $20 million, for 17 years, including 4 years of grace; with interest at 9.6% per annum OTHER FINANCING: Government of Ecuador, $33.8 million Project beneficiaries, $3.3 million IMPLEMENTING ORGANIZATION: Secretarfa de Desarrollo Rural Integral c/o Presidencia de la Rep~blica Quito, Ecuador PROJECT DESCRIPTION: The project wi 11 improve the productivity, incomes, and gen~ era] living conditions of 10,000 poor rural families (about 65,000 persons) living in the western foothills of the Andes through: (a) provision of extension, credit, and other agricultural support services; (b) regularization of land tenure; (c) construction and improvement of rural roads; and (d) provision of potable. water, primary health care services, and school facilities. PROCUREMENT: Civil works for feeder roads, buildings for extension services, swine breeding center and forestry nursery, health subcenters, water and sewerage systems, and schools will be procured under local competitive bidding procedures. All operation and maintenance eq~ipment, and other goods costing $150,000 or more will be procured under international competitive bidding procedures. Goods cost- ing less than $150,000 but more than $50,000 wi1"1 be procured through local competitive bidding procedures, and those costing less than $50,000 through local negotiated purchases. CONSULTANTS: A total of 48 man-months of consultant services will be re- quired for the agricultural extension component of the project and for organizing the project executing unit. ECONOMIC RATE OF RETURN: 18% EST IMATED COMP LET I ON DATE: 1988 - 0 - •