Announcement of Six Million Nine Hundred Thousand Dollars Credit to Mali for Rice Development Project on December 23, 1971

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 71/46 Subject: $6.9 million credit to Mali December 23, 1971 for rice development project The In temational Development Association {IDA) has approved a credit equivalent to $6 .9 million for the Republic of Mali to help finance a project for improved rice irrigation in the Mopti area of the Niger River flood plains. The project is designed to rehabilitate and construct polders covering a rice area of about 77,000 acres and provides for supporting services and a feasibility study for a second stage project in the area • • The Niger River flood plains constitute an important rice producing area in West Africa but over the last ten years Mali's exports have suffered from reduced production and increased urban consumption. The Government, therefore, launched a program for improvement of farmers' cultivation methods and construction of polders over a total area of .. 296,000 acres, about half of which is in the Mopti area. The present proj~·Ct is the first stage of the larger program. The project includes construction of three polders within a rice cultivated area of 32,000 acres, rehabilitation of five polders within another area covering 32,6QO acres; land preparation of 5,000 acres on an existing polder, construction of buildings for the project, estat lishment of a project author! ty and provision of farm machinery and technical assistance. • The project also provides for credit and extensiou sarvices in the areas, and the establishment and operation of an agricultural research station. /more IDA P.R. No. 71/46 -- Mali=- rice - 2 - • The Rural Development Engineering Department under the overall supervision of the Ministry of Production will be responsible for reconstruc- tion and rehabilitation, assisted by consultants to be engaged under the project. A National Rice Commission will also be set up within the Ministry to coordinate and provide policy guidelines for two management units; Operation Rice Mopti for the present project and Operation Rice Segou for a similar project on the Niger River plains. The total cost of the project is estimated at $9.4 million of which the IDA credit will finance about 74%~ The remainder will be covered by the Government through budget appropriations. The French Government, through its development agency, Fonds d' Aide et rle ~operation (FAC) is financing the services of expatriate personnel for • management and extension services in an amovnt estimated at $700,000 over the six year period of the project. It is estimated that FAC snd Bank Group assistance combined will make possible an increase in Mali rice production of about 30%. The borrower is the Republic of Mali and the IDA credit is for 50 years, including a ten-year grace period. It is interest free but there is a 3/4 of 1% service charge to meet IDA's administrative expenses. • - 0 - I • TECHNICAL DATA December 2 3, 19 71 PROJECT: Mopti Rice COUNTRY: Republic of Mali TOTAL COST: $9.42 million IDA FINANCING: $6.9 million OTHER FINANCING: Govemment financing $1. 82 million, FAC (Fonds d' Aide et de Cooperation -- Development Agency of the French Government) $700,000. IMPLEMENTING ORGANIZATION: The Ministry of Production, Koulouba - Bamako, Republic of Mali, (cable address: Minifinances, Bamako) has over- all responsibility; a National Rice Commission will be established to coordinate ORM (Operation Rice Mopti) and ORS (Operation Rice Segou). • PROJECT DESCRIPTION: Construction and rehabilitation of polders covering an area of 77,000 acres, including extension services and agricultural credits; construction of buildings for the project; establishment of a project authority, establishment and operation of an agricultural research station, preparation of a feasibility study for a second rice project in the Mopti area. PROCUREMENT: Construction of buildings, civil works, engineering super- vision, farm machinery, management extension services, agricultural research, and contingencies. All civil works contracts, farm machinery and equipment subject to international competitive bidding. Fertilizers and ox-drawn implements to be sold to participating farmers purchased annually by applications through ORM. CONSULTANTS: To be engaged, they will assist in the handling of polder construction activities and will furnish the services of five experts to ORM. ESTIMATED COMPLETION DATE: 19 76. - 0 - •