Sri Lanka - Fourth Tree Crops Project

Docmnt of The World Bank FOR OFFICUL USE ONLY C P. AU-CC- Rcport No. P-3972- REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 56.5 MILLION TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A FOURTH TREE CROPS PROJECT March 4, L985 This document bhs a estrcted dkstibotm and may be med by recipients only In the performnee of their offiial dutes Itrs contents rmy mo oewwiso be disdosed witho Wold Bank authorintio-.  . CURRENCY EQUIVALENTS Currency Unit = Sri Lanka Rupee US$1.00 SL Rs 25.17 SL Re 1.00 = US$0.04 ABBREVIATIONS AND ACRONYMS ADB - Asian Development Bank BOC - Bank of Ceylon JEDB - Janatha Estates Development Board MPI - Ministry of Plantation Industries KTIP - Medium-Term Investment Program ODA - Overseas Development Administration OPEC - Organization of Petroleum Exporting Countries SPC - Sri Lanka State Plantations Corporation FISCAL YEAR January 1 - December 31  FOR OFFICIL USE ONLY SRI LANKA FOURTH TREE CROPS PROJECT Credit and Project Sunmnary Borrower: The Democratic Socialist Republic of Sri Lanka Beneficiaries: Janatha Estates Development Board Sri Lanka State Plantations Corporation Amount: SDR 56.5 million (US$55.0 million equivalent) Terms: Standard Relending Terms: The Government would relend the credit at an interest rate of 11 percent to the Bank of Ceylon (BOC), which would onlend to the corporations at an interest rate of 13 percent per annum. Repayment of subloans by both BOC and the corporations would be over ten years, including a one-year grace period. The Government would bear the foreign exchange risk. Project The project aims at increasing the production of tea, Description: rubber, and coconuts by improving the productivity of all publicly-held estates, rehabilitating factories, providing field and nursery equipment, and improving transportation. The project would strengthen management and financial control of the corporations, stabilize lands through soil conservation, and improve the health and social welfare of estate workers and their families. The project would also improve institutional capacity by providing training, technical assistance, and facilities for planning and monitoring operations. The project contains no unusual risk. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  -ii- Estimated Cost: a/ Local Foreign Total ----- US$ million--- Field Works 66.7 15.0 81.7 Field and Nursery Equipment 3.1 i.9 5.0 Vehicles 2.5 7.4 9.9 Factory Rehabilitation 13.3 8.5 21.8 Mini-Hydro Units 4.2 4.1 8.3 Housing 9.2 2.9 12.1 Social Welfare 7.8 2.9 10.7 Institution Building 6.6 5.2 11.8 Base Cost 113.4 47.9 161.3 Physical Contingencies 6.3 2.1 8.4 Price Contingencies 32.5 9.6 42.1 Total Cost 152.2 59.6 211.8 Financing Plan: Local Foreign Total ----US$ million--- IDA 28.1 26.9 55.0 ADB 21.2 23.8 45.0 ODA - 5.5 5.5 Netherlands 6.0 2.0 8.0 Norway 4.1 1.4 5.5 Bank of Ceylon 10.0 - 10.0 Corporations 82.8 - 82.8 Total 152.2 59.6 211.8 Estimated Disbursements: IDA FY FY86 FY87 FY88 FY89 FY90