Announcement of IDA Credits of Two Million Two Hundred Thousand Dollars for a Rural Development Fund Project and Two Million Eight Hundred Thousand Dollars for a Road Project in Upper Volta on June 12, 1972

• • INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 72/34 Subject: I~A credits of $2.2 million for June 12, 1972 a rural development fund project and $2.8 million for a road project in Upper Volta The Intemational Development Association (IDA), an affiliate of the World Bank, has approved two credits to the Republic of Upper Volta, one for the equivalent of $2.2 million for the establishment and operation of a Rural Development Fund, and the other for the equivalent of $2.8 million for the construction of two secondary roads. Upper Volta is located north of Ghana and the Ivory Coast in West Africa It has few resources and its agricultural and livestock sectors -- the livelihood of 90% of the population -- are hampered by poor soil, scarce • water and low farming technology • The Government of Upper Volta has designed a development strategy which will make the best of limited assets in order to strengthen the foreign exchange earning capacity of the country and to improve the efficiency of productive activities oriented to the domestic market. Rural development has first priority. It implies a balanced development of food crops and cash crops» the integration of cattle raising into agri- culture, and it will require improvements in the transportation system, relief from endemic disease~ a more relevant rural education, and a better regional distribution of the population. The Rural Development Fund Project, which was prepared by the National Development Bank with assistance from France, is conceived as the first phase of a larger program aimed at alleviation of constraints on agricultural production and strengthening of rural economic activities. The program will extend to most parts of the country Pnd will ultimately benefit about 450_,ooo people. The proj'ect is designed to channel exte..mal funds to local communities • and provide financing for a variety of activities to rais.1~ the income and well- being of the rural population. The first three-year program is expected to /more IDA P.R. No. 72/34 -- Upper Volta -- rural development and roads •• - 2 - include about 500 wells for domestic water supply, 700 warehouses for storsge of farm inputs, about 190 small land and water development projects, about 43 miles of feeder road, and makes provision for a nunber of economically feasible sub-projects, e.g., blacksmith training, veterinary equipment. The project also provides for a study of the impact of the project on Government revenues and of participants' abilities to repay investment costs. In addition, the Govenunent will have a study made of the sanitation and public health effects of the project. The cost of the project is estimated at over $3 million. The French Government will contribute about $380,000 through the Fonds d'Aide et Cooperation and the Caisse Centrale de Cooperation Economique. The IDA er.edit will provide $2.2 million and the Government will provide the balance. The project will be carried out t.mder the responsibility of the National Development Bank within which a new division has been specifically created for th~ Development Fund operations; its senior staff wil1. include a project • manager, a specialist in small rural development projects, and an evaluation officer. Tte ~oad Project will complement the West Volta Cotton Project to which IDA contributed a $6.2 million credit in December 1970. Two roads in this area will be upgraded under the project which will be the second stage of road improvements linked with the cotton project. The project provides for construction of two gravel-surfaced roads totaling about 62 miles for the transport nf cotton to ginneries and the railway. There is also provision under the project for consult an ts' services, including supervision of construction of the project roads, and feasibility and engineering studies of a further 250 miles of high priority roads. The total cost of the project is estimated at about $3.5 million, and the IDA credit of $2.8 million will cover the cost net of taxes. The Government will provide the additional funds required for maintenance. The project also provides $500,000 for the feasibility and engineering studies. Implementation of the project will be the responsibility of the Directorate of Public Works. The borrower for both projects of the Republic of Upper Volta and the IDA credits are for 50 years including a 10-year grace period. expenses. They are interest free except for a 3/4 of 1% service charge to meet IDA's administrative • - 0 - fl ; ,• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON D, C. 20433 TELEPHONE: EXECUTIVE 3-6360 June 12, 1972 TECHNICAL DATA PROJECT: Rural Development Fund COUNTRY: Republic of Upper Volta TOTAL COST: $3.04 million IDA FINANCING: $2.2 million equivalent, 50 years, 10 years of grace 1 interest free except for 3/4 of 1% service charge to meet IDA's administrative expenses. OTHER FINANCING: FAC $311,000; CCCE $70,000; and Govenunent $462,000. • IMPLEMENTING ORGANIZATION: The Project Manager, Rural Development Fund, National Development Bank, Ouagadougou, Upper Volta. PROJECT DESCRIPTION: Construction of some 1,400 scattered small projects to raise rural standards of living and improve the income and well~being of r~ral camnunities; about 500 wells for domestic water supply; about 700 warehouses for storing farm inputs; some 190 small land and water develop- ment projects, involving drainage and water control in swampy depressions and areas below existing dams, and soil erosion control; about 5 feeder road projects totaling about 165 miles and other sub-projects to be identified; studies of the health effects Qf the projects and studies of the impact of the project on government revenues, and of participants' ability to repay investment costs. PROCUREMENT: Vehicles, drills, compreasors, pumps, concrete mixers, brick presses, cement, ltmlber and sheet metal roofing will cost about $1.0 mil- lion. For all purchases or contracts below $4,000 there will be no competitive bidding. For all contracts above $50,000, the government would consult with IDA before bids are called and contracts awarded. CONSULTANTS: To be selected. ESTIMATED COMPLETION DATE: December 1975 • • - 0 - · • INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H t~·i'FlEET. N.W. WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Jun1::; 12, 1972 TECHNICAL DATA PROJECI: Roads Republic of Upper Volta TOTAL OOST: $3.47 million IDA FINANCING: $2.8 million, 50 years, 10 years of grace, interest free except for 3/4 of 1% service charge to meet IDA's acmiinistrative expenses. OTHER FINANCING: Government: $666,000 • • IMPLEMENTING ORGAl.~IZATION: Upper Volta. The Directorate of Public Works, OuagadQugou, PROJECT DESCRIPTION: Construction of two gravel surfaced roads totaling 62 miles to transport cotton to ginneries and the railway; consultant serv"'ices, including even~~A&lly supervision of the construction of the project roads, and feasi'Jility and engineering studies of a further 250 miles of priority roads. PROCUREMEHT: International competitive bidding for road construction works, to be awarded in a single contract. CONSULTANTS: Consultants will be retained where required for supervisi~ of the project and for feasibility studies and detailed engineering. ESTIMATED COMPLETION DATE: December 1974. - 0 - •