Announcement of Thirteen Million Fifty Thousand US Dollars for Forestry in the Malagasy Republic on December 19, 1974

INTERNA1:'ION'AL BANI{ FOR RECONSTRUCTION AND DEVELOPMENT • 18 18 H INTERNATIONAL DEVELOPMRNT ASSOCIATION STREET, N W WASHINGTON D.C.20433 TELEPHONE EXECUTIVE 3-6360 Bank News· Release No. 74/97 December 19, 1974 IDA News Release No. 74/69 $13.5 MILLION FOR FORESTRY IN THE MALAGASY REPUBLIC The World Bank and the International Development Association (IDA) today approved a loan and a credit of $6.75 million each for R forestry project in the Malagasy Republic. The project, located in the Mangoro Valley, includes afforestation of 35,000 hectares of pine plantations, fire control, technical assistance in research and training, construction and maintenance of 1,750 km of plan- tation roads and 60 km of service roads. The Food and Agriculture Organi- zation of the United Nations (FAO) joined the Bank in preparing the project under the BANK/FAO cooperative program. • The Bank/IDA operation is in support of the G~vfrnment afforestation program in the Mangoro Valley, which aims at the pro-iuction of wood resources for a pulp mill to be huilt by 1982 near the city of Morarnanga. The last two years have been characterized by pulp shortages with signif- icantly increased pulp prices. Recent ~nalysis indicates that the pulp shortage will worsen during the next decade. The project will provide regular employment for about 1,600 workers. Farmers in the project area will benefit from expanded health and education facilities, upgrading of rural works and pasture improvement. The project also will improve the ecology of the Mangoro Valley by reducing erosion and improving soil fertility and water retention. The Bank loan is for 25 years, including a 10-year grace period with interest at 8 percent per annum. The IDA credit is for 50 years, including 10 years of grace, interest free except for a service charge of 3/4 of 1% to cover administrative expenses. Note: Money figures are expressed in US dollar equivalents . •  T E C HNI CAL DAT A PROJECT: COUNTRY: TOTAL COST: Forestry Project Malagasy Republic $17. 2 million • BANK/IDA FINANCING: $13.5 million. Bank, 25 years, 10 years of ~race, 8% interest. IDA, 50 years, including 10 years of grace, interest free, except for 3/4 of 1% service charge. OTHER FINANCING: $3.7 million will be financed by the Government. IMPLEMENTING ORGANIZATION: F'ANALA}V\NGA, a corporation (Societe d'Economie Mixte) to be established by th.e Government, Tananarive, ~la la gasy Republic . PROJECT DESCRIPTION: The project includes a) afforestation of 35,000 ha. of pine plantations; b) fire control and maintenance of these plantations; c) construction of 60 km • of service roads and 1,750 km of plantation roads; d) construction of project headquarters and three divisional headquarters; e) technical assistance and preparation of future projects; f) pasture improvement. PROCUREMENT: Contracts for service roads and staff houses c1nd for vehicles, equipment and fertilizers exceeding $30,000 will be awarded after international competitive biddi:ig. ESTIMATED COMPLETION DATE: 1980 •