Announcement of Six Million US Dollars Credit to Togo for a Cocoa-Coffee Development Project on July 25, 1974

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET.NW .. WASHINGTON D. C. 20433 TELEPHONE EXEC'UTIVE' 3-6360 IDA Press Release Noe 74/51 Subject: $6.0 million credit to Togo July 25, 19 74 for a cocoa-coffee development projecL The International Development Association, an affiliate of the World Bank, ha.3 approved a credit of $6. 0 million to the Republic of Togo to help finance rehabilitation, planting and maintenance of 4,400 ha. of cocoa and 4,000ha. of coffee in Togo's Plateaux region. The Fonds d'Aide et de Cooperation (FAC) a French bilateral agency is expected to participate,with $1.7 million on a grant basis,in the financing of the project. The project is primarily d1.ned at increasing cocoa and coffee production. The increase will benefit some 6,500 rural families. Togo's foreign exchange earnings are also expected to increase by about $10 million annually by 1986. During the project implementation, Togolese technicians will be trained in advance agronomy and extension methods and two important agricultural development agencies, the Societe • Nationale pour la Renovation et le Developpement de la Cacaoyere et de la Cafeiere Togolaise (SRCC) and the Caisse Nationale du Credit Agricole (CNCA) will be strength- ened to carry out the project. A Project Credit Unit (PCU) will be established within the CNCA to handle the lending portfolio of the institution. The project consists of planting and maintaining 4,400 ha. of cocoa and 4,000 ha. of coffee; strengthening of the SRCC and the CNCA; carrying out applied cocoa and coffee research; constructing and rehabilitating 50 and 110 km of feeder roads; maintaining these 160 km of new roads and other existing feeder roads in the project area during the project's development period. In addition, the project includes studies to evaluate the project and to prepare, if justified, follow-up operation and to develop appropriate administrative and lending procedures for the CNCA. The total cost of the project is estimated at $10.5 million. The Government is expected to contribute $2.8 million and FAC, a $1.7 million grant. The IDA credit of $6.0 million will cover part of the foreign exchange component and part of the local costs. It is made available to the Republic of Togo for 50 years, including 10 years of grace, without interest, except for a service charge of 3/4 of 1% to cover IDA's administrative expenses. The Government is expected to pass on to SRCC $7.5 million on a grant basis to permit it carry out the promotion of activities, extension services and infrastructure aspects. The $7.5 million includes $3.6 million from the IDA credit and $1.7 million from the FAC grant. In addition to a grant of some $62,000 to cover the CNCA/PCU organization study, the CNCA will receive a $2.9 million loan including $2.3 million from the IDA credit for agricul~ural credits to farmers on terms and conditions similar to those of the local financial market . • Note: Money figures are expressed in US dollar equivalents.  July 2S, 1974 PROJECT: T E CHNI CAL Cocoa-coffee development project. DAT A • COUNTRY: Togo TOTAL COST: $10. 5 million IDA FINANCING: $6.0 million, for 50 years including 10 years of grace without interest, except for a service charge of 3/4 of 1% to cover IDA's administrative expenses. OTHER FINANCING: Fonds d'Aide et de Cooperation, $1.7 million grant (PAC) Togolese Government, $2.8 million IMPLEMENTING ORGANIZATION: - Societe Nationale pour la Renovation et le Developpement de la Cacaoyere et de la Cafeiere Togolaise (SRCC) - Caisse Nationale du Credit Agricole (CNCA) PROJECT DESCRIPTION: a) planting and maintenance of 4,400 ha. of cocoa and 4,000 of coffee; b) strengthening of the SRCC and CNCA, the project executing agencies; c) applied cocoa and coffee research; d) construction and rehabilitation of 50 and 110km of feeder roads, respectively, in the project area. These roads would also be maintained • during the project's development period; and e) studies (i) to evaluate the project and prepare, if justified, a follow-up operation and (ii) to develop appropriate administrative and lending procedures for the CNCA. PROCUREMENT: Contracts in excess of $25,000 for the procurement of ~otor vehicles, road construction equipment and building will be awarded on the basis of international competitive bidding. The Government might want to grant 7.5% preference to domestic contractors for building construction. CONSULTANTS: To be sel~cted COMPLETION DATE: December 31, 1982 •