Announcement of World Bank Approves Loan for Drainage and On-Farm Development Project in Turkey on March 24, 1986

. FOR IMMEDIATE RELEASE 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 86/60 nin:RNATJON~iA~livi~~pMENT Contact: Fawzi Rihane March 24, 1986 r.Ec0Nsrnuc 119,~ N o. c. 20431 (202) 477-5325 WASH!N~ 1 0 ' WORLD BANK APPROVES LOAN FOR DRAINAGE AND ON-FARM DEVELOPMENT PROJECT IN TURKEY Turkey will launch the first phase of a program designed to improve drainage at irrigation project sites where major works have been done, or are currently underway. The World Bank is assisting the project with a loan of $255 million. About 97,000 farmers are expected to gain from the project. Farm employment is expected to rise, and annual foreign exchange earnings and savings are expected to amount to about $177 million. The $480.5 million project supports the strategy for developing irrigation agreed upon in an Agriculture Sector Adjustment Loan approved recently. This calls for increased priority for investments in drainage and farm development. Old surface drains will be rehabilitated and, where necessary, new ones will be built. Subsurface drains will be constructed to drain clay soils. Land damaged by salinity will be reclaimed. Feeder roads and other maintenance facilities will be built. Piezometers--instruments for measuring changes in the ground water table--and other water level monitoring devices will be installed. Buildings and equipment for research in drainage and land reclamation will be provided as well as technical assistance and training. Besides the World Bank loan, additional funding will come from the Government of Turkey ($225.5 million). The World Bank loan is for 17 years, including four years of grace, with a variable interest rate, currently 8.5 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.