Ecuador - Puerto Ila Chone Rural Development Project

Document of The World Bank FOR OFFICIAL USE ONLY FILE Cur Report No. P-3036-EC REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF ECUADOR FOR THE PUERTO ILA-CHONE RURAL DEVELOPMENT PROJECT April 23, 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 = Sucre (S/.) Calendar 1980 April 1, 1981 US$1 S I/. 25 S/. 25 SI. 1 = US$0.04 US$0.04 S/. 1,000 US$40.00 US$40.00 FISCAL YEAR January 1 to December 31 ABBREVIATIONS BNF - Banco Nacional de Fomento (National Development Bank) DINACE - Direccion de Construcciones Escolares (Directorate of School Construction) FONADRI - Fondo Nacional de Desarrollo Rural Integral (Integrated Rural Development Fund) IDB - Interamerican 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) SEDRI - Secretaria de Desarrollo Rural Integral (Integrated Rural Development Secretariat) USAID - United States Agency for International Development  FOR OFFICIAL USE ONLY REPUBLIC OF ECUADOR PUERTO ILA-CHONE RURAL DEVELOPMENT PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of Ecuador Amount: US$20.0 million Terms: Payable in 17 years, including 4 years of grace, at about 9.6 percent interest per annum. Relending Terms The proceeds of the proposed loan for the credit for Agricultural component would be on-lent in Sucres to the National Credit Components: Development Bank (BNF) on the same terms as the Bank loan, while the Government's contribution to the credit component would be in the form of a 17-year interest-free loan. Project Description: This project aims at improving the productivity, income and general living conditions of 10,000 poor rural families (about 65,000 persons) living in the western foothills of Ecuador's Andes. Project components include (i) extension, credit and other agricultural support services; (ii) regularization of land tenure; (iii) construction and improvement of rural roads; and (iv) provision of potable water, primary health care services and school facilities. Special Risks: The main risk which this project faces is an institu- tional one. Ecuador's agricultural public sector has traditionally been weak and uncoordinated, resulting in frequent delays in project execution. Close supervision and technical assistance have been included in the proposed project to help compen- sate such risks. Additionally, the Government has established a Secretariat for Integrated Rural Development in order to provide the coordination that is needed for this type of multi-sector project. This new agency is expected to facilitate this project's execution. This document has arestricted distribution and may be used by recipients only in the performance of ther official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Costs: Local Foreign Total --------US$ million-------- (a) Extension Service 3.9 1.4 5.3 (b) Credit 9.1 3.9 13.0 (c) Land Tenure Regularization 0.9 0.2 1.1 (d) Feeder Roads 6.3 4.8 11.1 (e) Health Services 1.3 0.3 1.6 (f) Water and Sanitation 0.7 0.6 1.3 (g) School Construction 1.3 0.9 2.2 (h) Project Administration 0.6 0.1 0.7 Baseline Costs 24.1 12.2 36.3 Contingencies: Physical 2.9 1.4 4.3 Price 11.1 5.4 16.5 Total Project Costs 38.1 19.0 57.1 Financing Plan: Local Foreign Total ----- --TUS$million