Tanzania - Geita Cotton Project

3lp3 I0 BE REl'UrNED To REPORTS DESK DOCUMENT OF INTERNATIONAL DEVELQPMENT ASSOCIATION Not For Public Use Report No. P-1335-TA REPORT AND RECOMMENDATION OF THE PRESIDENT, TO:THE EXECUTIVE, DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE UNITED REPUBLIC OF TANZANIA FOR A COTTON DEVELOPMENT PROJECT December 20, 1973 This report was prepared for ofticial use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY EQUIVALENTS USED IN THIS REPORT From independence in 1961 until March 1973, the exchange rate between the Tanzania Shilling and the US dol'ar was retained at $1 = TSh 7.143. This is the exchange rate used throughout the report. Since June 30, 1973, the Tanzania Shilling has been set at a central rate of $1 = TSh 6.9, and the country has availed itself of the margins of up to 2-1/4 percent. Tanzania Shs 1.0 U US$ 0.114 Tanzania Shs 1 million US$ 140,000 US$ 1.00 = Tanzania Shs 7.1h MEASURES 1 mile = 1.6093 km 1 acre 0.4047 hectares FISCAL YEAR July 1st - June 30th  REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EIECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE UNITED REPUBLIC OF TANZANIA FOR A COTTON DEVELOPMENT PRJECT 1. I submit the following report and recommendation on a proposed development credit to the United Republic of Taxlzania for the eauivalent of US$ 17.5 million on standard IDA terms to help finance a Cotton Development Project. Some $5.0 million of the credit would be relent to the Tanzanian Rural Development Bank for 25 years, including a five-year grace period with interest at 4 percent per annum. TRDB would onlend these funds to cooperative societies at 8-.