Announcement of Upper Volta to Receive Sixteen Million US Dollars IDA Credit for Second Bougouriba Agricultural Development Project on February 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. 81/40 February 2, 1981 UPPER VOLTA TO RECEIVE SDR 12.4 MILLION ($16 MILLION) IDA CREDIT FOR SECOND BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT The Gover,1ment of Upper Volta will receive a credit of SOR 12.4 million ($16 million) from the International Development Association (IDA) for a second agricultural development project in the Bougouriba area. IDA is the soft-loan affiliate of the World Bank. The project, with an estimated total cost of $17.5 mi11ion, is designed to consolidate the experience of the first phase project and to increase further the production of foodcrops, cotton, and livestock. The project, which will be implemented over a five-year period, will • continue the support of the Regional Development Organization staff, and provide for training and technical assistance. Introduction of the training and visit extension system will be completed, eventually reaching 22,000 of the 33,000 farm families in the project area. Animal health services will also be strengthened. The IDA credit will finance the establishment of a supply and credit service, family tree planting and erosion control programs, and a small monitoring and evaluation unit. The Government of Upper Volta will provide $1 .5 million towards the cost of the project. The IDA credit is for 50 years, including ten 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: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equiv~lent 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 E C HN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Second Bougouriba Agricultural Development Republic of Upper Volta $17. 5 mi 11 i on • I DA FI NANC I NG : SDR 12.4 million ($16 million), standard IDA terms OTHER FINANCING: Government of Upper Voltat $1.5 million IMPLEMENTING ORGANIZATION: Ministry of Rural Development B.P. 7005 Ouagadougou, Upper Volta Telex: 5249 Cable: MINAGRI OUAGA PROJECT DESCRIPTION: The project will seek to consolidate the experience of the first phase and, without expanding the extension service, will aim at including a greater number of farmers, further increasing agricultural and livestock production in the Bougouriba Region. Attention will be concentrated on the technical management of rainfed agriculture by improved organization of the • training and extension systems, input distribution, and credit. Emphasis will be upon increasing yields of the main foodcrops--millet and sorghum--by simple husbandry techniques; together with recommendations for the cash crops grown by farmers in the various regions. The project also includes small programs designed to encourage more fruit and fuelwood tree planting, and erosion control. PROCUREMENT: Procurement of civil works ($1.6 million) will be by competitive bidding in accordance with local procedures which are acceptable to the Association, or with the agreement of the Association by force account. Farm and livestock inputs ($2.4 million), vehicles ($0.7 million), and equipment ($0.2 million) other than animal traction equipment, will be procured through international competitive bidding (ICB) in accordance with the Association's guidelines for contracts over $100,000; through local competitive bidding acceptable to the Association for contracts betNeen $30,000 and $100,000; and through local competitive shopping for contracts und~r $30,GOO. Domestically manufactured goods under ICB will be allowed a preference of 15% over the c. i.f. price of imports or the level of the applicable import duty, whichever is lower. CONSULTANTS: Technical assistance in the fields of general agriculture, cotton, training, administration, monitoring and evalua- tion,and auditing will be obtained following procedures acceptable to the Association. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 23% 1986 - 0 - •