Announcement of Eight Million US Dollars Credit for Integrated Rural Development Project in Mali on June 10, 1974

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 74/30 Subject: $8.0 million credit for integrated June 10, 197 4 rural development project in Mali- The International Development Association (IDA), an affiliate of the World Bank, has approved an $8.0 million credit to the Republic of Mali to help finance an integrated rµral development project. The project repr~sents a second phase of a Government undertaking called "Operation Arachide" (OA) initiated in 1967. It includes supplying farm inputs and equipment to participating farmers; improving 1,500 kilometers of tracks in the project area; expanding the functional literacy program; implementing a program of ag~icultural research; improving medical and veterinary services; • and establishing a project evaluation unit. Some 107,000 families, involving about one milliun ~~ople, will participate in the project -- compared to 52,000 f~milies and 490,000 people served in 1972/73. Total incremental cash income accruing to participating families from groundnuts and cereals, assuming all are sold, will amount to $5 million a year; the per capita incomes of farm families should thereby increase three- fold. The project '.s high economic rate of return of 91% is due to the importance of previous and ongoing investments which are sunk costs to the project as well as to the high degree of technical proficiency of farmers resulting from previous extension work. The French Fonds d 0 Aide et de Cooperation (FAC) will make a grant of $2.5 million in support of the project. The IDA credit will be for 50 years, • iucludiu.~--·Ii3-yea~-of grace, 'interest-free, except for a service charge of 3/4 of 1% on the amount of the credit outstanding. Note: Money figures are expressed in US dollar equivalents.  TECHNICAL DATA June 10, 1974 • --------' ---- l?ROJECT: Integrated Rural Development Project COUNTRY: The Republic of Mali TOTAL COST: $18.9 million IDA FINANCING: $8.0 million credit, for 50 years, including 10 years of grace, interest-free, service charge of 3/4 of 1% to cover IDA's administrative expenses, OTHER FINANCING: The French Fonds d'Aide et de Cooperation (FAC), grant $2.5 million Government contributions, $4.3 million Farmers'. contributions, $4.1 million IMPLEMENTING ORGANIZATION: Operation Arachide et Cultures Vivrieres (OACV) PROJECT DESCRIPTION: Intensifying and extending into new areas th~ present • "Operation Arachide"; supplying farm inputs and/or equipment to participating farmers and selected blacksmiths; improving 1,500 km of tracks in the project area; expanding the ongoing functional literacy program; implementing a program of agricultural research; improving medical facilities and veterinary services in the project area; and establishing a project evaluation unit. PROCUREMENT; - $1.5 million worth of vehicles and graders: international competitive bidding, - $0.4 million of equipment and furniture: locally advertized competitive bidding; - $1.9 million, construction of project offices, houses, stores and garages: local tenders; - $3.5 million, farm inputs (fertilizers and agrocides): to be procured by the Societe de Credit Agricole et d'Equipement Rural (SCAER) subject to consultation with IDA; $1.3 million of seeds: locally procured and distributed under Operation Arachide et Cultures Vivrieres (OCAV). CONSULTANTS, TECHNICAL ASSISTANCE: Estimated cost of $2.5 million. The Bureau pour le Developpement de la Production Agricole (BDPA) will supply the experts required by (OACV) costing $2 million. The Groupement d'Etudes et de Recherches pour le Developpement.de l'Agronomie Tropicale (GERDAT) will supply the experts, $150,000; internationally recruited staff costing $150,000 under procedures acceptable to IDA for evaluation of literacy programs, accountancy,. and the study of cereal prices and marketing. ESTIMATED COMPLETION DATE: March 1978