Announcement of 18.5 Million Dollars Credit to Tanzania for Second Livestock Project on April 26, 1973

• INTERNATIONAL DEVELOPl\fENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 73/25 Subject: $18.5 million credit to Tanzania April 26, 19 73 for second livestock project Tanzania will implement a broadly based, integrated livestock development program to improve beef production, marketing and processing with the assistance of an $18. 5 million credit from the International Development Association (IDA), The $24.7 million equivalent project is expected to increase annual marketed output by about 21,000 tons and increase Tanzania's export earnings by approxi- mately $6 million equivalent. It will substaatially raise farmer incomes_, create some 2,500 jobs and provide more productive s,!lf-employm.ent opportunities for aome 700 families _n cooperative ranching. Production will be increased through the development of 11 National Agricultural • Company ranches, four nistrlct Development Corporation ranches and up to 22 coopera- tive village ranches totaling about 1. 5 million acres o Marketing improvements include the development of three large, some 10 aediwa- size and 20 small cattle markets and the improvement of about 104 existing small markets. In addition, approximately 1,425 miles of new stock routes will be deve- loped and 1,365 miles of existing routes improved.. Four new holding. groU11ds will be established and 23 existing grounds improved .. Meat processing will be expanded and upgraded with the construction of two new plants and the enlargement and modernization of an existing plant. Technical assistance is also being provided for proje.ct management, personnel training, planning future programs and a cattle disease laboratory. This is the second livestock project in Tanzania to be assisted by IDA~ The earlier project, for which IDA provided $1.3 million in 1968, demonstrated the feasi- bility of establishing an efficient beef industry in Tanzania and provide• the baais for the new project. The credit is for 50 years, including a 10-year grace period, and is interest free except for a 3/4 of 1% service charge to cover IDA 1 s administrative expenau . • - 0 -  • Apr.Ll 26, 1973 TECHNICAL DATA PIWJECT: Second Livestock Development OOUNTRY: United Republic of Tanzania TOTAL COST;; $24. 7 million equivalent IDA FINANCING: $18.5 million credit, 50 years, 10 years of grace, interest free except for 3/ 4 of 1% service charge to meet IDA' s administrative expenses. O'l'IIER FINANCING: Tanzanian Go\'{2rnmcnt, $5.9 million equivalent; project participants, $300~000. IMPLEMF.NTING ORGANIZATION; Im:pletreriting organizations are the National .Agricultural Company (Dar es Salaam, Tanza::d.a), various District Develo:)ment Corporations and Ujsmaa cooperatives responsible for developing ranches; Tr.!.~·,zania Meat Processing • Ccmpa.~y responsible for construction of two meat p1~cessing factories and improve· ment of an existing factory; Tanzania Livestock Marketing Company responsible for development of markets, stock routes. PROJECI DESCRIPTION: Improvement of Tanzania's beef ranching, processing, marketing sector through the development cf about 37 ranches; development, improvement of about 137 large, medium and small-scale cattle markets and of 2,800 miles of stock routes and 27 holding grounds; modernization of meat processing plant at Dar es Salaam, construction of plants at Mbeya and Shinyanga; technical services, training, assistance for project preparation. PBOCUBEMENT: Intemational competitive bidding for two new meat processing plants (tumkey basis) and for equipping existing plant; ranch tractors and machinery; land clearing heavy equipment and machinery. Local competitive bidding for civil works improvements to existing meat processing plant. All livestock to be pro- cured in East Africa. Small contracts for miscellaneous items to be awarded locally. Preference margin of 15% for local manufacturers. CONSULTANTS: Consultants to adv.is~ on the improvement of the existing meat plant are being appointed. ESTIMATED COMPLETION DATE: 1978 - 0 - •