Announcement of IDA to Help Improve Coffee and Foodcrop Production in Rwanda on April 2, 1981

~ · FOR IMMEDIATE RELEASE .world Bank 1818 H Street. N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/68 April 2, 1981 IDA TO HELP IMPROVE COFFEE AND FOODCROP PRODUCTION IN RWANDA The International Development Association ( IDA)., wi 11 lend SOR 11.8 mi 11 ion ($15 mill ion) to Rwanda for the improvement of coffee and foodcrop production on the shores of Lake Kivu, in western Rwanda. The project aims to improve coffee and food growing methods on existing plantations in this densely populated region of Rwanda by means of improved ex- tension services, distribution of improved seed varieties, and dissemination of information on soil fertility and erosion, plantation maintenance, and pest control. The branch of the Office des Cultures lndustriel les du Rwanda (OCIR) respon- sible for coffee production will implement the project and will itself receive tech- nical assistance to improve its financial management. OCIR-Cafe 1 s extension services • will also be strengthened with training, follow-up, and logistical support . The project area accounts for 40% of total coffee grown in ~wanda and it is anticipated that some 60,000 farm families in coffee-growing areas and a further 2,500 in highland areas will participate. Long-term benefits to participants in- clude increased income from coffee production as well as soil protection and land- improvement measures. Improvement of 120 existing hand-pulping centers and the establishment of 130 new ones, construction and improvement of several landing points along Lake Kivu, and crop-related research are also called for under this project. Of the total project cost of $16.6 mill ion, the Government of Rwanda is con- tributing $1 mill ion, and Switzerland a grant of $600,000. The IDA credit is for 50 years including 10 years of grace. It wi 11 carry no interest, but will bear a service charge of 3/4 of 1% per annum to cover the Association's administrative expenses. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit • • FOAM NO. 1121 (5-76) T E CHN I CA L D A T A •• PROJECT: Lake Kivu Coffee Improvement and Foodcrop COUNTRY: R1t-1anda TOTAL COST: $ 16. 6 m i 11 ion I DA FINANCING: SOR 11.8 million ($15 million), standard IDA terms OTHER FINANCING: Swiss Government, $600,000 Government of Rwanda, $1 mill ion IMPLEMENTING ORGArllZATION: Office des Cul L,.1res lncJ;1~tr i~J le:) Jt. ~.,anda-Can~ (OCIR-Cafe) BP 104 Kigali, Rwanda Cab I e : 0 C I R I\ i 9 a i i felcx: 13 OC!P R~ANCfa PROJECT DESCRIPTlJN: The project p,0viJes for: strt:!ngtheni11~ 0f the financial man- agement of LCIR-Cafe; improvement of extension services under the direction of uCIR-Cdfe; promotion of improved methods of pl~ntation mdintenance, coffee nursery organization and pest control,distribution of improved seed varieties, intercropping of banana plantatio.1s to increase food crop production, and a program to improve soi I ferti 1 ity; improvement uf 120 existing hand-pulping centers and establish. ment of 130 new ones; construction of two ne\v landing points on Lake Kivu, of bridges and culverts and improvements to three exi~ting landing points; strengthening of crop- related research, studies, and trials. PROCUREMENT: C i v i I \.\or k ~ co 1) L r a c L $ for con ~ t r uc t i on o f L lie two t r a I n I ng centers, staff housing, stores and lake lcinding points, be- cause of their disper~ed nature, will b~ awarded following local competitive bidding procedures which permit the participation of foreign firms. Hand-pulping machines will be purchased under international competitive bidding according to World Bank/lDA guidelines. CONSULTANTS: Special is~ to be engaged include thr~e extension advisers (60 man-months each), a financia~ adviserJ (36·man-months) and short term consultants for the research component (four man-months per year for five years or 20 man-months). • ECONOMIC RATE OF RETURN: 22% ESTIMATED COMPLETION DATE: 198b - 0 -