Announcement of a World Bank Loan to Algeria for an Emergency Desert Locust Control Project on December 28, 1993

DEC 28 '93 10:47PM WE MNACA 2024777978 P.2/2 'U FOR IMMLDIAF REASE World Bank 158 H Street. N,W. WashinBton, D.C. 20433. U.SA.* re!ephcr.e: (202) 477-1234 RANX NRWS RELEASE 94/44 MENA CONTACT JEANZn YAMNE (202) 473-2318 ALGERIA: EMERGINCY DESURT LOCUST CONTROL PROJECT Washington D.C., December 28, 1993 -- The World Bank approved a $30 million loan to Algeria to counter and control locust invasion of its agricultural land. The agricultural sector is critical to the Algerian economy. An estimated 12 million Algerian depend on this sector for their livelihood. Following an ambitious reform program that included the break-up of state farms, annual growth in the agriculture sector reached about 5.5 percent. But, with up to 70 percent of the country's basic food requirements are being imported, a drop in agricultural output as a result of locust outbreak would exert an additional pressure on an alrandy difficult balance of payment situation. With Algeria facing a threat of a major locust invasion, the approved emergency project would provide immediate assistance in support of Algeria's national locust control program. It would also reinforce existing surveillence and warning systems, enabling the country to better prediat future locust activities and movements. Additionally, the project would further strengthen regional cooperation between Algeria and Maghreb and sahel countries. The project's total cost is $51.2 million, of which the government of Algeria would contribute $21.2 million. The Bank's loan of $30 million is for 17 years; including 5 years grace period, at the standard variable interest rate.