Announcement of Two Million US Dollars to Ghana for a Livestock Development Project on June 20, 1974

• L.~TERNAT!ON~i\.L DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 74/39 Subject: $2.0 million to Ghana for a June 20, 1974 livestock development project Ghana's plans to achieve self-sufficiency in agricultural production v:"ill be assisted by a credit of $2.0 million from the International Development Association (IDA), an affiliate of the World Bank. The $4.5 million pilot project has been designed to increase the production of breeding stock and cattle for slaughter. It will help to create a modern livestock industry utilizing the country's good potential for beef production. At present agriculture accounts for about 70% of foreign exchange earnings and employs 60% of the labor force, but animal husbandry contributes a compara- tively small output. The present project, which is the Bank Group's first for livestock development in Ghana, will encourage production in both commercial • ranches and small to medium farms . The projec-::., which will be carried out by the newly formed Ghana livestock Company (GLC), includes the following components: development of two ranches and one mixed cattle and maize farm, including land clearing, fencing, water facili- ties, improved pasture and the purchase of breeding cattle; improvement of about 50 private herds of various sizes through technical advice and the financing of breeding stock, fencing materials, land clearing and pasture improvement; training of ranch managers; and the identification of further ranch sites and preparation of a second-stage project. It is estimated that at full development the annual output of the ranches and private herds will be 950 breeding heifers, 600 male yearlings, 1,000 tons of carcass meat and 2,000 tons of maize. The IDA credit is being made to the Republic of Ghana for 50 years, with 10 years of grace. It is interest free except for 3/4 of 1% per annum to cover IDA's administrative expenses. About $1.9 million of the proceeds of the credit will be onlent to GLC at 8% for a term of 16 years including 6 years of grace. Specific provis.ion has been made under the project for the loans to private farmers. • - 0 - Note: HJney figures are expressed in U.S. dollar equivalents.  TECHNICAL DATA PROJECT: COUNTRY: TOTAL COST: Livestock development Republic of Ghana $4. 5 million • IDA FINANCING: $2.0 million, 50 years, 10 years of grace, interest free except for a service charge of 3/4 of 1% to cover IDA' s administ r;:iti ve e:,cpen ses = OTHER FINANCING: Government of Ghana, $520,000; participating banks, $938,000; GLC's retained income, $911,000; farmers' contribution, $157,000. IMPLEMENTING ORGANIZATION: The Ghana Livestock Company Ltd., (GLC) c/o Ministry of Agriculture, Accra 9 Ghana,has been formed to carry out the prodttct. PROJECT DESCRIPTION: Deve·lopment of three breeding/fattening ranches by rehabilitating and expanding two existing ranches and a maize farm, which would be taken over from Government. This includes: land clearing, fencing, watering facilities, improved pastures and the purchase of breeding cattle. Improvement of some 50 privately-~~ned herds, ranging f'i:-om 10 to 400 head each in the areas surrounding the ranches. The owners would be provided with technical advice and finance for improved breeding. stock, and where necessary for spray races, fencing materials, land clearing and pasture improvement. Overseas training for Ghanaian ranch managers. Identification of further ranch sites and the preparation of a second stage project. PROCUREMENT: International competitive bidding, in accordance with IDA guideline~, will be used for all procurement contracts over $50,000. Locally advertised competitive bidding procedures would be used for contracts of less than $50,000 to an aggregate maximum of $350,000. Domestically manufactured goods will be allowed up to 15 percent preference in evaluating bids. C.Ompetitive bidding will not be practi- cable for the procurement of cattle, as the breeds suitable for Ghanaian conditions can only be obtained locally through the traditional trading system or through negotiated Government-to-Government contracts, from neighboring West African countries. Other goods to be procured by partici- pating farmers would also be exempt from competitive bidding. CONSULTANTS: Provision is made under the project for recruitment of Ghanaians to senior management posts in GLC, but some expatriates may be required. COMPLETION DATE: 1280 •