Announcement of IDA Approves Twenty Million US Dollars Credit for Rural Development in Benin on December 23, 1982

dWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE ~ro. 83/34 Contact: Pam Brennan December 23, 1982 (202) 477-5344 IDA APPROVES $20 MILLION CREDIT FOR RURAL DEVELOPMENT IN BENIN About one half of the 76,000 farm families living in Zou Province of central Benin will benefit from a rural development project supported by an SDR 18. 7 million ($20 million) credit from the International Dev·elopment Association (IDA). IDA is the World Bank affiliate for concessionary lending • 1 . The $62.7 million project will provide new seeds, fertilizer, and insecticides, as we.l-1 as equipment to increase production and improve extension services. By mid-1988, cotton production is expected to double to 11,000 tons per year and food crops (maize, yams, and cassava) will increame from 85,000 to 100,000 tons. Farm families with current net incomes of about $600 per year could expect to earn annual net incomes of about $938. Centre d'Action Regionale pour le Developpement Rural (CARDER), the agency responsible for regional production efforts, will be strengthened through reorganization, technical assistance, staff training, and the provision of equipment. CARDER agencies have suffered from a. lack of funds and a shortage of adequately trained management and field staff. The distri- bution of fertilizer and cotton insecticides by the Societe Nationale pour la Promotion Agricole will also be assisted. Under the Caisse Nationale de Credit Agricole, a subsidiary loan agreement to provide seasonal credit for inputs and medium-term credit for animal-drawn equipment will be established. A $6 million grant from the Fonds d'Aide et de Cooperation and a $10 million loan from the Caisse Centrale de Cooperation Economique, both of France, will support the project. The project is the fifth IDA operation for agriculture in Benin, bringing total sectoral lending to $37.9 million. A cotton project in the Zou .and Borgou Provinces, begun in 1973, resulted in strengthening of the cooperative movement which served as a basis for further development. A 1977 technical assistance project strengthened the Societe Nationale pour la Production Agricole to prepare projects, including the present one. The Borgou Rural Development Project, begun in March 1982, was designed with a multi-crop approach and is progressing satts£actorily. The IDA credit to Benin is for 50 years, including a grace period of 10 years; it is interest-free, but has a servic~ charge (0.5% on the undisbursed balances of the credit Rnd 0.75% on the disbursed balances). ' NOTE: IDA credits are denom.inaced in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA c.redi t · r:-ef lee ts the exchang~~ rates existing at the time. of negotiat:!.or:. 0f the credit.