Tanzania - Kilombero Sugar Project

Report No 466a-TA FILE COPY Appraisal of the CIRCULATING COPY KilomberO Sugar Project TBE RETURNED TO REPORTS DESK T RETURN TO July 30,1974 REPORTS DHIN General Agriculture Division W1THIN Eastern Africa Region ONE W E K'R L Not f or Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for official use only by the Bank Group. Io m not bea r Sponshed Y quoted or cited without Benk Group authorization The Bank Group does not accept rep for the accuracY Or cOmpleteness of the report.  CURRENCY EQUIVALENTS US$1.00 = Tanzania Shilling (Tsh) 7.14 US$1.00 = Dutch Guilders (f) 2.8 US$1.00 = Danish Kroner (DKr) 6.00 1 DKr = Tsh 1.2 1 f = Tsh 2.6 WEIGHTS AND MEASURES Note: Tanzania is gradually moving over to metric units of measurement. In the 5-year transition both metric and imperial units are used. In this report the measures used by Tanzania in drawing up the Kilombero Sugar Project have been retained. Metric measures used are: 1 kilogram (kg) = 2.2 lb 1 metric ton (m ton) = 1 ,000 kg = 2,204.6 lb = 0.98 long ton 1 kilometer (km) = 0.62 mile 1 millimeter (mm) = 0.039 inch 1 liter (1) = 0.204 US gallons ABBREVIATIONS CPM a Critical Path Method EAAFRO = East African Agricultural and Forestry Research Organization GEFCO = General Foods Company HVA = H.V.A. International b.v. (Amsterdam) K I = Existing Kilombero Sugar Company factory and estate K II = Project factory and estate KDDC = Kilosa District Development Corporation KILIMO = Ministry of Agriculture and Cooperatives KSC = Kilombero Sugar Company Ltd. NAFCO = National Agricultural and Food Corporation NSB = National Sugar Board SDC = Sugar Development Corporation TAC = Tanzania Audit Corporation TCD = (Metric) Tons of Cane per Day TPC = Tanganyika Planting Company Ltd. TRDB = Tanzania Rural Development Bank FISCAL YEAR KSC May 1 to April 30 Government July 1 to June 30 MILLING SEASON Approximately June 1 to December 20 (200 days)  TANZANIA KILOMBERO SUGAR PROJECT TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS ...................... i - iii I. INTRODUCTION ........ ..... ........... 1 II. BACKGROUND .... ............ ......... 2 A. Agriculture in the Economy of Tanzania ....... 2 B. The Sugar Industry ..r........u r................ 3 III. THE PROJECT AREA ...... ........................... 5 IV. THE PROJECT ....... ............................... 7 A. General Description . . .. 7 B. Detailed Features .... ....................... 8 C. Project Costs . ............................. 13 D. Financing .................................. .. 15 E. Procurement ......... O-**. .................... 16 F. Disbursement ..t. . . . . . * . . . . . .... 17 G. Accounts and Audit Procedures ... ............. 17 V. ORGANIZATION AND MANAGEMENT ..... ................. 18 VI. PRODUCTION, MARKETING AND FINANCIAL RESULTS ...... 20 VII. ECONOMIC BENEFITS AND JUSTIFICATION .... .......... 23 VIII. AGREEMENTS REACHED AND RECOMM