Announcement of Papua New Guinea to Carry Out Provincial Development with World Bank Assistance on April 8, 1982

FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W .., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/75 Contact: Sundaram Sankaran ~IDA~NEWS RELEASE NO. 82/53 (202) 477-3962 Apr i 1 8 , 1982 PAPUA NEW GUINEA TO CARRY OUT PROVINCIAL DEVELOPMENT WITH WORLD BANK ASSISTANCE Papua New Guinea plans to improve living conditions in Enga Province with the he 1p of $8 mi 11 ion in funds from the World Bank. The World Bank itself wili provide a loan of $6 million, and its affiliate for concessionary lending, the International Development Association (IDA), is to give a credit of SDR 1 .7 mill ion ($2 million). The $16 million project is the first phase of a proposed eight-year plan for the region, which is one of the poorest and least developed in the country. Agricultural development efforts under the project will focus on increasing • production of both subsistence and cash crops through the introduction, of im~r~v~d agricultural practices to farmers, increasing the local supply of fuelwood by supporting the development of forestry resources, and improving livestock activities by estab- lishing a breeding center for sheep, goats, and buffaloes. Under the project, roads will be upgraded, and health and community services will be improved. In additior., assistance will be provided for increasing the efficiency of the provincial government. World Bank lending to Papua New Guinea has now reached $210.2 million. The World Bank loan for the Enga Province project is for a period of 17 years, including a grace period of four years,with an interest of 11.6% per annum. The IDA credit is for 50 years, including 10 ye~rs of grace; it is interest-free, but carries a service charge of 3/4 of 1% per annum. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 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. ) u J  T ECH N I CA L DA T A PROJEt;T: D COUNTRY: TOTAL COST: Eng a Prov i nc i a 1· Deve 1opmen t Papua -New Guinea $1 6 mi 11 i Ort • BANK FINANCING: $6 mill ion for a period of 17 years, including four years of grace, with interest at 11.6% a year IDA FINANCING: SOR 1 .7 mill ion ($2 mill ion) on standard IDA terms OTHER FINANCING: Government of Papua New Guinea, $8 million:. IMPLEMENTING ORGANIZATION: Department of Enga Office of Project Coordination Department of Finance Post Office Ward's Strip Waigani, Port Moresby, Papua New Guinea TELEX: FINANCE NE 22218 fROJECT DESCRIPTION: It consists of: (a) agricultural development, including subsistence and cash crops, forestry resources, and 1 ivestock activities; (b) infrastructure development, including road upgrading, development of hydro- power, and building office blocks ~nd staff headq~arters; (c) __ h~afth services improv~ment; (d) improvement of the education system; (e) strengthening of community development ·• activities; (f) expansion of business \development services; and (g} institutiona? devel ment to increase U,e efficiency of th~ provincial government. PROCU.REMENT: All civil works ($8-~;,k)illion) including roads will be carried out following local competitive bidding procedufes or by the Department of Works and Supply under force account if su!table contractors are not avai1 .ble. Vehicles ($0.3 million) and equipment ($0.7 million) will be procured through local competitive bidding procedures. Procurement documents for contracts over $400,000 will be submitted to the Bank prior to tendering and award. COMSULTANTS: Project implementation wi 11 require a total of 750 man-months of expatriate assistance at a total cost of $2.6 mi11 ion. ECONOMIC RATE OF RETURN: 17% en a 30-year investment program comprising roads and agricultural development ESTIMATED COMPLETION DATE: 1985 - 0 - • ((