Announcement of Papua New Guinea to Develop Isolated Northwestern Province on November 1, 1984

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 85/12 Contact: Pushpa N. Schwartz November 1, 1984 (202) 477-3651 PAPUA NEW GUINEA TO DEVELOP ISOLATED NORTHWESTERN PROVINCE Papua New Guinea is launching a project to develop one of its poorest provinces, West Sepik, located in the northwest. The project includes the development of agriculture, infrastructure, and health and nutrition services. The educational system and public institutions in the province will also be strengthened. The World Bank is providing a loan of $9.7 million to help finance the project. Agricultural extension staff will be trained in developing subsistence farming systems by promoting simple technological changes and initiating adaptive research on lowland subsistence farming. At full development, it is expected that about 7,000 families will have been reached by the extension service and garden and cash crops areas increased by some 700 hectares. Family incomes will be raised by improving and expanding production of vegetables, rubber, coffee, and cocoa. Additional nurseries will be established and marketing facilites will be built or expanded. Transportation facilities will be upgraded. About 125 kilometers of provincial and district roads will be rehabilitated. Agricultural support services will be improved. A livestock station will be upgraded and the distribution of basic agricultural tools and supplies will be expanded to reach remote areas. Investment studies will be made for future projects. Food farms will be established in the province's six high schools to improve student diets and to reduce food expenses. In about 38 community schools, agriculture and nutrition programs will be introduced. Teachers, students, and parents will receive instruction on good nutrition and gardening practices. The quality of primary health care in the province will also be improved. Some 11 community schools will be expanded with additional classrooms and boarding facilities. A training center for teachers and two vocational centers for carpenters will be established. The teacher training center will be established in the Lumi district, which is a particularly poor area. A Village Development Center will be built for meetings, training sessions, and other educational activities. NOTE: Money figures are expressed in U.S. dollar equivalents. -2- The administration of the West Sepik will be improved by expanding the staff of the newly created Planning and Coordination Division. A Staff Development Unit will be established to train and develop staff. A national government fund for the study of the development prospects of the country's less-developed areas will be supported by the project. This fund is used to assist these areas to prepare development plans. The project will be carried out over a period of six years at a cost of $16.6 million. Besides the loan from The World Bank, financing will come from the Government of Papua New Guinea. The World Bank loan is for 20 years including five years' grace, with a variable interest rate, currently 9.89 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances and a front-end fee of 0.25 percent on the amount of the loan.