Announcement of World Bank Three Million Seven Hundred Thousand US Dollars Loan for Expansion of Jamaica's Agriculture on December 23, 1970

70/11 INTER~JATIONAL BAf\JK FOR 1 .. • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 70/71 Subject: Wo:dd Bank $3. 7 million loan December 23, 1970 for e:,cpansion of Jamaica's agric u1 t ure The World Bank has approved a $3.7 million loan to the Jamaica Develop- ment Bank (JDB) for an agricultural project. The loan will help raise Jamaica's agricultural output, improve its balance of payme11t:s by an esU.mated $3 million a year, and increase employment for farm workers and agricultural product processors. The project will cost $8.0 million with local sources providing the difference: JDB, $2. 7 million, and farmers, $1.6 million. The financing will be used to 2xpand connnercial farming in Jamaica by bringing approximately 23,200 acres of good land, now largely idle, ender efficient cultivation. Approximately 140 established farmers and ranchers -- most of whom are cultivating about 100 to 200 acres -- are expected to participate in the program. The project will result in about 13,500 acres being added for cattle P''.:oduction, 5,000 acres to coconut growing, 3,000 acres for growing citrus and 1,700 acres for dairying. Project funds will cover the costs of land preparation, planting materials, equipment and machinery, buildings, wate-r supply, fertilizers, fencing and livestock. The plan also includes planting Malayan dwarf coconuts which are resistant to the yellowing disease that is dei~.imating Jamaica tall ~- coconut plantations. /more I, Bank P.R. No. 70/71 - Jamaica - agriculture - 2 The project is one of the principal means being employed by the Jamaican • Government to strengthen the agrtcultural sector. Jamaican agriculture, traditionally based on sugar and bananas, has lagged at a time when the economy as a whole has been expanding under the impact of large investments, especially in bauxite, manufacturing and tourism. This is the World Bank's initial agriculture project in Jamaica and will~ for the first time, provide long-term funds for commercial farmers i.n Jamaica. The World Bank loan is for a term of 16 ye:ars, including a five-year grace period, and bears interest of 7~%. It will be used by JDB in a three-year agricultural credit program. JDB is a multi-purpose financial institution recently established by t.r.e Government. It is owned jointly by the Government and the Bank of Jamaica. • I'~ie JDB is lending for industrial and tourism projects as well as for commercial agriculture. A small amount of the World Bank loan will also be used to provide technical assistance to JDB's Agricultural Credit Section, organized to facilitate its commercial farm lending activities. The Food and Agricultural Organization of the United Nations (1~AO) participated in the identification and preparation of the project through two Bank/FAO Cooperative Program missions to Jamaica. - 0 - •• IL ••.