Announcement of Four Million Three Hundred Thousand Dollars Credit for Agricultural Development in Sierra Leone on June 22, 1972

-INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 72/38 Subject: $4.3 million credit for agricul­ June 22, 1972 tural development in Sierra Leone The International Developmnt Association (IDA), a World Bank affiliate, has elpproved a credit equivalent to $4.3 million to help finance an integrated rural cv velopment project in Sierra Leone. Rice, cocoa and palm oil production by small­ holders are to be devE)loped in the southern and eastern regions. The credit, together with a government contribution equivalent to $1.J million, will provide a $5.6 million agriculture program that will bring about important foreign exchange savings through greater domestic crop production and increased exports. Most of Sierra Leone I s acreage under crop is farmed by about 250 ,OOO families on small farms, many of which operate near subsistence levels. Economic developrnen t has been largely dominated by diamond production, but mere is now an urgent need to broaden the basis of economic growth to include increased agricultural development. The country is potentially rich in agricultural resources. Agriculture encom­ passes about three quarters of the population and presently provides about 20% of Sierra Leone's exports. The project will conform to the government's agricultural development policy of increasing export crops such as oil palm kernels and also in trying to diversify and expand smallholder cropping generally. Feasibility studies are to be undertaken in the north and central areas of the coµntry aimed at planning new agricultural and forestrJ programs for future development. The project, which is to be carried out over a three-year investment period, represents the first phase of a program designed to raise fue income and living stand­ ards of about 2,500 smalTholders in the eastern and southern provinces of the country. The Government's policies will be implemented by a program of integrated rural develop­ ment with parallel strengthening of services and Government agricultural institutions. The project specifically comprises establishmen-i- of a project management unit, the planting of about 500 acres of oil palm to complete the development of an oil palm estate; the p rovision of smallholders' credits for the development of 6,000 acres of swamp, rice, 750 acres of cocoa and 1,830 acres of oil palm. A palm oil mill and rice mills for processing these products will also be provided. An agricultural development project will be prepared in the north and a forestry project will be prepared in the central region of the country and provision is made for the training of farmers in modem techniques. The project will be managed by a project unit responsible to the Ministry of Agriculture and Natural Resources. An Agricultural Development Authority (ADA) is to be established which will own and operate the oil palm estate and mill. ADA is also expected to manage the project credit operations after disbursement is complete. The IDA credit is for 50 years including a 10-year grace period. It is interest free except for a 3/4 of 1% service charge to meet IDA 1 s administrative expenses. - 0 -  • June 22, 1972 TECHNICAL DATA PROJECT: Integrated Agricultural Development COUNTRY: Sierra Leone TOTAL COST: $5 .6 million IDA FINANCING: $4.3 million, 50 years, 10-year grace period, interest free except for 3/4 of 1% service charge to meet IDA's administrative expenses. OTHER FINANCING: Government $1. 3 million. IMPLEMENTING ORGANIZATION: The Ministry of Agriculture and Natural Resources, Freetown, Sierra Leone. (An Agricultural Development Authority will be established under the terms of the project.) PROJECT DESCRIPTION: The project which is to be carried out over a three-year investment period represents the first phase of a program designed to • raise the income and living standards of about 2,500 smallholders in the eastern and southem provinces of the country. The Govemment's develop- ment program will be implemented by the project which features a program of integrated rural development with parallel strengthening of Government services and agricultural institutions. In addition to the overall ob- jective of rural development the project specifically comprises establishment of a project management unit, the planting of about 500 acres of oil palm to complete an oil palm estate, the provision of small- holders' credits: to help bring 6,000 acres of swamp land into rice production, to plant 750 acres of cocoa and 1,830 acres of oil palm. A palm oil mill and rice mills for the processing of these products will be provided. An agricultural development project will be prepared in the north and a forestry project prepared in the central area, and provision is made for the training of farmers in modem techniques. PROCUREMElIT: Spraying machines, vehicles, and fertilizers up to the value of $2.0 million to be procured on the basis of international competitive bidding. • Other goods and services estimated at $500,000 to be procured by local competitive bidding. CONSULT&ITS: To be selected. ESTI:~~..TED COMPLETIOH '!)ATE: 1976. - 0 -