Announcement of Eighteen Million Dollars Credit to Turkey for Irrigation on January 20, 1972

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE; EXECUTIVE 3-6360 IDA Press Release No. 72/4 Subject: $18.0 million credit to Turkey January 20, 1972 for irrigation The International Development Association, of the World Bank Group, has ap- proved an $18.0 million credit to Turkey to help rehabilitate and complete existing irrigation works in three areas, to make more effective use of completed, but under- utilized, major irrigation works. The project concentrates on the Silifke and Koprucay areas on the south Mediterranean coast and on the Tokat area on the Anatolia plateau in north-central Turkey. It is expected to increase the net value of farm output in these areas to $17.1 million equivalent annually compared with estimated production of $9.1 million without the works to be carried out under the project and will add some $4.4 million equivalent a year to foreign exchange earnings. Some 11,500 fann families in these areas will benefit directly from the project. It is expected that the increase in employment opportunities will be met by family • labor except at Koprucay where seasonal hired labor will be required. Additional employment is expected to be created in agricultural product processing -- cotton gins, canning industries and sugar factories. Turkey has made substantial investments in major dams and irrigation works over a number of years. However, the full benefitr3 to these projects has not bt~en realized because maintenance and improvements, on-fann development and supporting services have lagged. The IDA~supported project prepared with the assistance of the FAO/IBRD Cooperative Programme, represents a major effort to correct the situation. It will cost a total of $36.6 million equivalent and provide adequate water supplies for about 123,000 acres, compared with the approximately 64,000 acres now being only partially served. Project components include rehabilitation and improvement of existing irriga- tion and drainage systems; construction of additional systems to serve new lands; on-fann development; road improvements; provision of farmer credits; upgrading ex- tension services; importation of related operating and maintenance equipment and vehicles; consultant services; and training abroad for Turkish staff. The IDA credit is for 50 years, including a 10-year grace periodv It is interest free but carries a 3/4 of 1% service charge to cover IDA's administrattve expenses • • - 0 -  • January 20, 1972 TECHNICAL DATA PBOJECT: Irrigation rehabilitation and completion COUNTRY: Turkey TOTAL COST: $36.6 million equivalent IDA FINANCING: $18.0 million credit, 50 years, 10 years of grace,·no interest but 3/4 of 1% service charge. OTHER FINANCING: Turkish Government IMPLEMENTING ORGANIZATIONS: OSI - State Hydraulic Works, Ankara, Turkey: irrigation and drainage works. Topr.aksu - Soil Conservation Agency, Ankara, Turkey: on-farm development works. Extension Services, • Ministry of Agriculture, Ankara, Turkey: extension services. Agricultural Bank of Turkey, Ankara, Turkey: agricultural credit. PROCUREMENT: Increase utilization of major in-place irrigation works through irrigation and drainage systems rehabilitation, improvement and extension; village road,·on-farm improvements; provision of operating and maintenance equipment and vehicles; provision of consultant services; training of Turkish staff abroad. International competitive bidding on equipment, materials, vehicles financed by IDA credit, with 15% preference for local manufacturers; certain civil works of specialized nature or requiring special timing not subject to international competitive bidding. CONSULTANTS: To be selected. ESTIMATED COMPLETION DATE: 19 77, - 0 - •