Announcement of Central Tunisia to Benefit from World Bank Loan for Irrigation on January 27, 1983

FOR IMMEDJJ(TE . RELEASE ~ ~ •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 83/41 Contact: Ciro Gamarra January 27, 1983 (202) 477-5320 CENTRAL TUNISIA TO BENEFIT FROM WORLD BANK LOAN FOR IRRIGATION About 12,000 farm families living in Central Tunisia will benefit from an irrigation project supported by a $16.5 million loan from the International Bank for Reconstruction and Development (IBRD). Under the $43.8 million Central Tunisia Irrigation Project, agricultural production, farm incomes, and employment will increase. Central Tunisia, one of the least developed parts of the country, receives low and irregular rainfall. About 1,600 of the project area's 5,900 shallow wells and 37 of the 51 public irrigation perimeters will be rehabilitated. The project will focus on better use of existing resources and will only create new public irrigation perimeters where resources are under- exploited. • An innovative approach of progressively involving the farmers in operation and maintenance of the irrigation systems will be used. Agreements to be signed between the implementing agencies and farmers will offer greater security in the provision of water, and thus give the £,armers incentive to intensify crop production. Agricultural yields, presently below potential, will increase for fruit trees, vegetables, cereals, and forage. Differential water rates will also encourage increased winter cropping. The extension and research services of the Central Tunisia Development Agency (ODTC) and the Kairouan Irrigation Development Agency (OMIVAK) will be reorganized and strengthened through financing of equipment and staffing. Livestock development programs will also be established in two pilot zones and veterinary centers will be provided. Previous World Bank Group lending for agriculture in Tunisia since 1967 amounted to $256.9 million under 12 projects. The present loan represents the fifth for irrigation. The loan is for 17 years, including four years of grace, at an interest rate 11.nked to the cost of Bank borrowing. The loan also carries an annual commitm~nt charge of 0.75% on undisbursed balances and a front-end fee of 1.5% on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents • •