Announcement of IDA Approves Credits to Niger for Forestry and Industrial Development on April 8, 1982

f.OR l~MEDIATE Rll~iSE ' ' •: ,, • World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.~.A. • Telephone: (202) 477~1234 IDA NEWS RELEASE NO. 82/52 Contact: Pushpa Schwartz Apr i 1 8, 1982 (202) 477-5306 IDA APPROVES CREDITS TO NIGER FOR FORESTRY AND INDUSTRIAL DEVELOPMENT The International Development Association (IDA) has approved a credit of SDR 8.8 million ($10.1 million) for a second forestry project and a credit of SDR 14 million ($16 million) for an industrial development project in Niger. Forestry The $16.8 million forestry project is expected to improve supplies of fuelwood, building poles, tree fodder, and other minor forest products for the rural and urban population. The project will assist the rural population in establishing small nurseries for rural tree plantations on an individual or family basis. It will continue to maintain the 760-hectare rainfed tree plantations set up under an earlier project assisted by IOA. The project will also establish 750 hectares of the colllllercially • valuable gum arabic plantations . Also to be maintained are 240 hectares of irrigated tree plantations established under the previous project. The project will also assist farmers in irr!gated areas to establish 200 hectares of tree plantations where no crops can be produced. The project also includes the provision of training and research facilities. Co-financing from two French agencies, Caisse Centrale de Coop~ration Economique ($3.6 million) and Fonds d'AiJe et de Coop,ration ($1.6 million), will be provided to the project. Industrial Development The IDA credit of $16 million will be used to provide a $12 million line of credit to Banque de D~veloppement de la h5publique du Niger for financing productive sma11- and medium-scale investments. The balance will be used to provide technical assistance to the same bank and to two other institutions dealing with the financing, promotion, and tra!ning of Nigerien entrepreneurs. NOTE: IDA credits are d,,nominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the tim~ • of negotiation of the credits  - 2 - With the support of the IDA credit, Banque de o,veloppement de la R6publique • du Niger wi11 be able to make investments outside the agriculture and mining sectors. , Office de Promotion de l'Entreprise Nigerienne will be encouraged to promote Nigerien entrepreneurs. The skills of artisans will be upgraded with the support to the Centre des Metiers d 1 Art du Niger. A small part of the IDA credit will be used to provide capital assistance to the Office de Promotion de l'Entreprise Nigerienne. The entire cost of the industrial development project is estimated at $19.5 million. The project will be carried out by: Banque de D~veloppement de la R~pub1ique du Niger (BORN), B.P. 227, Niamey, Niger - Telex 5213 and 5324 SONIBANK NI; Office de Promotion de 1 'Entreprise Nigerienne (OPEN), B.P. 11.208, Niamey, Niger; and Centre des Metiers d'Art du Niger (CMAN), B.P. 10.929, Niamey, Niger. The IDA credits are for 50 years, including 10 years of grace; they carry no interest but bear a small annual service charge (0.5% on the undisbursed balances of the credit, and 0.75% on the disbursed balances). - 0 - • • .  -·-1 T E C HN I e A L DA T A PROJECT: Second Forestry COUNTRY: Niger TOTAL COST: $16 • 8 mi 11 ion I DA FINANC ING : SOR 8.8 million ($10.1 million), on standard IDA terms; and an annual service charge of 0.5% on the undisbursed balances of the credit, and 0.75% on the disbursed balances OTHER FINANCING: Caisse Centrale de Cooperation Economique (France), $3.6mi11ion; Fonds d 1 Aide et de Coop~ration (France), $1.6mi1Iion; Government of Niger, $1.5 million IMPLEMENTING ORGANIZATION: Forestry Department Niamey, Niger TELEX: 5386 PROJECT DESCRIPTION: It will continue to maintain the 760 hectare (ha) rainfed tree plantation and 240-ha irrigated tree plantations estab.- lished under a previous project; establish 750 ha of gum arabic plantations; assist farmers in irrigated areas to establish 200 ha of tree plantations; and provide training and research facilities. PROCU.REMENT: Procurement of machinery, vehicles~ and equipment will be grouped in packages of over $100,000 where possible and will be awarded on the basis of international competitive bidding in accordance with IDA guide- 1i nes. CONSULTANTS: Five expatriate experts will be employed to ·carry out the project. A total of 23 man-months of consultant services will be required for various studies and audit. ECONOMIC RATE OF RETURN: 14% ESTIMATED COMPLETION DATE: 1986 - 0 - h