Announcement of IDA Supports Post-Hurricane Agricultural Rehabilitation in Haiti on March 13, 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. 81/49 March l?, 1981 IDA SUPPORTS POST-HURRICANE AGRiCULTURAL REHABILITATION IN HAITI The International Development Association (IDA) is providing finan-. ~al assis- tance to Haiti to help rehabilitate food crops and coffee production in the coun- try's Southern Region. The area was severely damaged by a hurricane last year. IDA, the World Bank's affil fate for concessionary lending, announ~ed today the approval of a credi.t of SDR 2.6 mi 11 ion ($3.2 mi 11 ion) to support the Post- Hurricane Agricultural Rehabi 1 itation Project in the Southern Peninsula in Haiti. Hurricane Allen struck Haiti's Southern Peninsula on August 5 and 6, 1980, with high winds gusting up to 150 kilometers per hour. The damage was most severe in the Southeast (Thiotte and Jacmel areas) and in the Les Cayes area. About 1 .5 million people 1 ive in the affected zone. • The project is expected to help about 10,000 farm families severely affected by the hurricane to maintain, and subsequently improve, their incomes. The project wi 11 help restore food production and help salvage part of the 1981 coffee cr0p and increase production i~ the 1982 and subsequent crops. Coffee yields per hectare are expected to increase from 250 kilograms (kg) to at least 300 kg in the second and subsequent years. The 1980-81 coffee crop has already been affected, with an estimated 27% loss (6,000 metric tons) in national production. The 1981-82 crop year could also be disastrous if major efforts were not made to salvage and fertilize plantations, especially on more productive farms. The country will suffer an export loss of $17 million for 1981, with little improvement in 1982 if immediate action is not taken. The project wi 11 rehabilitate food crops and coffee production through the pro- vision of fertilizer, the extension of cre~it for labor and farm inputs, expansion of coffee nurseries, purchase of hand tools, and the construction of 16 regional farm development centers to improve and reinforce support services in the area. The IDA credit was made to the Republic of Haiti, which wi 11 make the proceeds available to the Ministry of Agriculture, Natural Resources, and Rural Development and to the Bureau de Credit Agricole, a farm credit agency within the Ministry. The IDA credit is for 50 years, including 10 years of grace. It carries no in- terest, 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 basi,s of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit. FORM NO. 1121 (5-76) T ECHN l CAL DATA PROJECT: COUNTRY: TOTAL COST: Post-Hurricane Agricultural Rehabilitation Haiti $5. 2 mi 11 ion • IDA FINANCING: SOR 2.6 million ($3.2 million), standard IDA terms OTHER FINANCING: United States Agency for International Development, $1.6 million; and Government of Haiti, $400,000 IMPLEMENTING ORGANIZATION: Department de 1 'Agriculture, des Ressources Naturelles et du Development Rural (DARNDR) Damien, Haiti PROJECT DESCRIPTION: It includes: (a) credit for labor, fertilizer,and other in- puts to rehabilitate crop production; (b) hand tools to com- plement the tool centers operated by DARNDR; (c) logistical support for the storage and distribution of fertilizer and other inputs; (d) expansion of coffee nurseries; and (e) constructionof16 farm service centers to provide storage facilities. • PROCUREMENT: Fertilizer purchases financed by IDA will be procured by DARNDR through international competitive biddi~s. Purchase of tools and materials for nurseries and construction of service centers will be carried out through local procurement procedures acceptable to IDA involving local bidding or quota- tions from three suppliers. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: n. a. 1982 - 0 - •