Announcement of Sierra Leone Receives IDA Credit for Third Integrated Rural Development Project on January 15, 1981

. . FOR IMMEDIATE. RELEASE eNorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/37 January 15, 1981 SIERRA LEONE RECEIVES IDA CREDIT FOR THIRD INTEGRATED RURAL DEVELOPMENT PROJECT The International Development Association (IDA), the World Bank's soft-loan affiliate, has approved a credit of SDR 9.2 mill ion ($12 million) to Sierra Leone for a third integrated rural development project in the Eastern Region. The project will expand and consolidate, over a five-year period, the assis- tance to small farmers which was begun under the previous two World Bank/lDA-assisted integrated agricultural development projects. Under this project, smallholder crop production, of upland and swamp rice, other food crops, cocoa and coffee, will be promoted by the provision of extension services, farm inputs, and credit facilities. The input and credit services provided by the Farmets Finance Company will be im- proved. • In addition, four farmers 1 service centers will be constructed and equipped; about 300 kilometers of feeder roads and 300 village wells will be built. The Daru Oil Palm Company's nucleus estate will be expanded by 300 hectares and the company's managerial and financial systems wi 11 be strengthened. The Ministry of Agriculture and Forestry will be provided technical assistance to support and plan future agri~ cultural development projects throughout the country. By extending coverage to farmers in the entire Eastern Region, or about 20% of the country's land area, the project is expected to increase food and export crop production further and raise agricultural incomes of about 12,600 farm families, whose annual per capita incomes are below $200. Altogether, 50,000 farm families, or half the rural families in the province, are likely to benefit from improvements in agri- cultural services, roads, and wells. By 1990, annual on-farm employment is expected to increase by about 750,000 man-days. Increased foreign exchange earnings from ex- port crops are expected to total about $8 million a year by 1990 (constant 1980 terms), and increased foodcrop production is expected to result in net foreign ex- change savings of $6 mill ion a year. The Banque Arabe pour le Developpement Economique en Afrique will provide Sierra Leone an $8.5 million loan and the United Nations Development Programme a $1 .9 mil- lion technical assistance grant for this project. The IDA credit is for 50 years, including 10 years of grace. It carries no in- terest·but will bear a 3/4 of 1% service charge a year to cover IDA'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- alent of the SDR amount of the IDA credit reflects the exchange rates exist- ing at the time of negotiation of the credit. FORM NO. 1121 (5-76} T ECHN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Eaztern Integrated Agricultural Development Sierra Leone $25 million • I DA FINANCING: SOR 9.2 mill ion ($12 million), standard IDA terms OTHER FINANCING: Banque Arabe pour le Developpement Economique en Afrique, $8.5 million; Government of Sierra Leone, $2.6 million; United Nations Development Programme, $1 .9 mill ion IMPLEMENTING ORGANIZATION: Ministry of Agriculture and Forestry Freetown, Sierra Leone PROJECT DESCRIPTION: The project wi 11 consolidate and expand, over a five-year period, the assistance to small farmers in the Eastern Region which was begun under the previous two World Bank/lDA-assisted integrated agri- cult~ral development projects. It will provide: agricultural inputs, credit, extension services, feeder roads, and village wells in the project area; and technical assist- ance to the Ministry of Agriculture and Forestry to support and plan future agri- • cultural development projects throughout the country. PROCUREMENT: All goods and services financed under the IDA credit will be procured in accordance with IDA guidelines. Contracts of $50,000 or more for vehicles and equipment (including those for the road construc- t'ion unit) totaling about $1. 7 mi 11 ion, and for ferti 1 izer, totaling about $0. 7 mi 1- 1 ion, wi 11 be procured through international competitive bidding. Purchases will be grouped into packages of at least $50,000 whenever possible. Domestically manufactured goods will be allowed a preference of 15% or the level of applicable import duty, whichever is lower. Contracts of less than $50,000 but more than $10,000 for fuel and transportation, totaling about $1 .9 million, will be procured through local competitive bidding. Contracts for buildings ($1 mill ion) wi 11 not be attractive to foreign con- tractors due to their small sizes and dispersed locations and will, therefore, be awarded by local competitive bidding, in accordance with procedures satisfactory to IDA. Contracts of less than $10,000 for small items such as pesticides, insecticides, tools, and seedlings, totaling about $2.8 mill ion, will be procured through interna- tional competitive shopping. CONSULTANTS: About 26 man-months of short-term consultant services will be required; 6 man-months for a management-training program; 9 man-mohths for a socio-economic survey in connection with a monitoring and evaluation system for the project; 10 man-months for a research program to improve smallholder production of cocoa, coffee, and oil palm; and l man-month for review of a work plan for road construction. Consultants with qualifications and experience will be engaged • on terms and conditions which are satisfactory to IDA. ECONOMIC RATE OF RETURN: 34% ESTIMATED COMPLETION DATE: 1987 - 0 -