Announcement of IDA Supports Forestry Project in Senegal on February 12, 1981

. . · FOR IMMEDIATE RE~EASE ,. . -World Bank 1818 H Street, N.W ., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 February 12, 1981 IDA NEWS RELEASE NO. 81/46 IDA SUPPORTS FORESTRY PROJECT IN SENEGAL A project designed to improve supplies of fuelwood, building poles, and tree fodder· for rural and urban populations in Senegal will be supported by a credit of SOR 7.1 million ($9.3 mill ion) from the International Development Assoc i at j on (l DA), it was announced today. I DA is the Wor 1d Bank I s aff i 1 i ate for concessionary lending. Demand for fuelwood and forest products has been growing in 1 ine with the steady population growth in Dakar and the major towns ln the Groundnut.Basin. Deforestation in these areas has become a serious problem, making it impossible to meet fut~re needs only from the remaining natural forests. The establishment of tree plintations, improved management of natural forest, and the promotion of better uses of wood and substitutes are, therefore, priorities. • The project, which has a total estimated cost of $17.1 mill ion, will support the establishment and maintenance of 2,000 hectares (ha) of rainfed tree plantations in the forest reserves between Kaffrine and Koumpentoum in Sine Saloum. Rural rainf~d tree plantations (3,000 ha) will also be established in Sine Saloum and Eastern Senegal, and 600 ha of pilot state-managed tree plantations in the Kaffrine forest reserve will be maintained. The IDA credit will help to finance applied forestry research and the establishment of a forestry training center in Kahone/Kaolack. The Planning Division of the Forestry Department in Dakar will be strengthened and three studies -- rural forestry, economic, and project preparation -- complementary to the institµtion- building component, will be undertaken. The Caisse Centrale de Cooperation Economique will contribute $3J million towards the cost of the project. Fonds d'Aide et de Cooperation an~ ~ Government of Senegal will each contribute $1 .8 mill ion, and United Naticns Development Programme/Food and Agriculture Organization (FAO) will contribute $800,000. The FAQ joined the World Bank in identifying and preparing the project under the Bank/FAO Cooperative Programme. The IDA credit is for 50 years, including 10 years of grace. It carries no interest but will bear a service charge of 3/4 of 1% per annum to cover the Association's administrative expenses . • NOTE: !DA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" 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. FORM NO. 1121 • (5-76) T ECHN I CA L DAT A PROJECT: Forestry ,' I COUNTRY: Republic of Senegal TOTAL COST: $1 7 . 1 mi 11 ion IDA FINANCING: SOR 7. l million ($9.3 million), standard IDA terms OTHER FINANCING: Ca:sse Centrale de Cooperation Economique $3.4 million; Fonds d'Aide et de CoopEfration, $1.8 mill ion; United Nations Development Programme/Food and Agriculture Organization, $800,000; Government of Senegal, $1 .8 mill ion IMPLEMENTING ORGANIZATION: Forestry Department La Direction Des Eaux et Forets Dakar, Senega 1 PROJECT DESCRIPTION: The project provides for: (i) establishment and maintenance of 2,000 hectares (ha) of state-managed tree plantations • and maintenance of 600 ha of pilot state-managed tree plantations; (ii) establishment of rural rainfed tree plantations of which 1,500 ha will be in family plantations and another 1,500 ha will be in rural community plantations; (iii) improvement in productiv- ify and ·managemint of-about 10,000 ha of existing natu~~1 forests; (iv} fin~ncing an _ ap~lied torestry research program; (v) establishment and operation of a training ce~ter to provide refresher coursesfor forestry agents; (vi) strengthening the Forestry Department by providing a high-level forestry economist and consultants for the Planning Division of the Forestry Department,and establishment at Kaffrine of a Project Operations Unit; and (vii) consulting services for studies. PROCUREMENT: H~avy machinery and tractors ($500,000) will be grou~ed in packages of over $100,000 where possible and will be awarded on the basis of international competitive bidding (ICB) in accordance with IDA guide- lines. Domestically manufactured goods ($400,000) will be allowed a preference of 15% over the c. i .f.price or the applicable level of import duties, whichever is lower. Contracts for these items for less than $100,000 but for more than $25,000 will be procured on the basis of competitive bidding procedures advertised locall~ and contracts for less than $25,000 will be procured by direct shopping on the basis of at least three quotations; these procurement procedures permit foreign participation through local agents. Because of their location and small size, contracts for civil works, (a total ~f $1.6.m111 ion of wh~ch $1 mill ion will be financed by _IDA) are known to be unattrac- tive for international contractors and will, therefore, be awarded on the basis of competitive bidding advertised locally. CONSULTANTS: • The following consultant services will be obtained in accordance with procedures acceptable to IDA: (a) 18 rn.an- mcinths for planning, monitoring, and economic studies; a~d b) ten man-months to support forestry operations. ECONOMIC RATE OF RETURN: 12.8% (for the directly productive components - accounting for 64i of project costs). ESTIMATED COMPLETION DATE: 1985 ... 0 -