Announcement of Eight Million US Dollars IDA Credit to Upper Volta for an Agricultural Development Project on June 4, 1974

,• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 74/28 Subject: $8.0 million IDA credit to Upper June 4, 1974 Volta for an _agricultural develop- ment project The International Development Association (IDA), an affiliate of the World Bank, has approved a credit of $8.0 million to Upper Volta to help finance a comprehensive agricultural development project in a region comprising about 6 percent of the land area with an estimated 7 percent of the total population. The long-term benefits are expected to extend beyond the immediate project area, and the project will be a model for future rural development projects. The four-year project comprises a variety of features specifically tailored to the needs of Upper Volta, which is described by the United Nations as one of the 25 "Least Developed Countries" in the world. The project will support the Government's efforts in the face of the tremendous constraints in this region of Africa. In addition to the now well-known extremes of drought and the prevalence of endemic diseases, Upper Volta is also subject to limited domestic marketing facilities, generally poor soils, uneven population distribution for the available resources, and insufficient technical know-how in the rural areas. The • economy remains almost entirely dependent on agriculture and livestock. Productivity is low and the droughts of the past have impeded agricultural production: cotton, food crops and livestock. The more severe droughts of the last two years have reduced food production even further. World Bank Group strategy for assisting Upper Volta's growth and development, of which this project is a part, is dictated largely by the extremes of poverty and the urgent needs of the agriculture sector, upon which most of the population depend for their livelihood. The project will increase the income of farmers and help modernize their farms and agricultural techniques. It will also involve a variety of small low-cost projects, including roads and wells, geared to rapid improvements in productivity, and improve- ment in the living conditions of large numbers of small farmers. Development of the agriculture sector has long been impeded by disease and mal- nutrition which are still seriously affecting much of the population. In addition to Onchocerciasis (riverblindness),* malaria, bilharzia and trachoma have long been preva- lent. In 1966, to take into account the diversity of conditions in various parts of the country, the Government created regional development agencies (Organismes Regionaux de Developpement - ORD) -- of which there are now eleven -- with responsibilities for / more * A separate note is attached on the campaign to rid the area of this parasitic dis- ease which affects some two million people. Besides Upper Volta, riverblindness • also affects a large area of the Volta. River Basin including parts of Dahomey, Ghana, Ivory Coast, Mali, Niger and Togo. Note: Money figures are expressed in US dollars equivalent. IDA P.R. No. 74/28 -- Upper Volta -- agricultural development - 2 - rural development activities in their respective areas. Under the terms of the •~ present project, reorganization and reform of the ORDs is provided, together with technical assistance and wider powers for the Directors to execute projects and programs. The present project area is the BougouriLa ORD, located in the southwest and representing 42,000 farms and 750 villages over about 10 percent of the country's cultivated land area. The project represents the first major effort to develop the natural and human resources of the Bougouriba ORD, concentrating on areas free from riverblindness. This multipurpose project has a number of major components including the following: Providing the Bougouriba ORD with the staff, housing, offices, equip- ment, vehicles and funds necessary to implement an effective development program; providing about 16,000 farm families with the extension and other support services needed to increase their production and income; providing participating farmers with seasonal credit for the purchase of insecticides and fertilizer and medium-term credit for farm implements; providing effi- cient veterinary services for the ORD, whose role would primarily be to execute programs of prophylactic vaccinations to reduce the currently high livestock mortality rate; creating a training center with teaching facili- • ties for project staff and farmers; creating a research station to carry out adaptive research and operate a seed multiplication unit; improving domestic water supplies through a well-digging and rehabilitation program covering about 120 wells; carrying out the studies and surveys needed for the improvement of the road network of the project area; improving about 660 kms of s,!condary and tertiary roads; establishing a topographic unit to map out and prepare plans for the development of land settlement by migrants. The project will result in annual increases in the production of cotton, sorghum, maize, groundnuts, rice and meat. Much of the additional production of cotton and meat will be expo~ted and the increased cereal production will help to reduce imports. Among the long-term benefits, it is anticipated that the project will be a vehicle for the reorganization of rural development institutions in the country, including other ORDs. About 16,000 families will directly benefit and another 16,000 will benefit in- directly from the improved water supplies, better access to health facilities and other social services. It has been esti~ated that some 360,000 will be beneficially affected through project activities. The total cost of the project is about $10.2 million, including an estimated foreign exchange component of $5.4 million. The Government will contribute about $1.2 million of taxes, the Banque Nationale de Developpement, about $650,000, and participating farmers about $350,000. The IDA credit of $8.0 million is being made to th~ Republic of Upper Volta for a term of 50 years with ten years of grace. It is interest free except for a service charge of 3/4 of 11. per annum to cover IDA's admin- istrative expenses. - 0 - •  IDA P.R. No. 74/28 -- Upper Volta -- Ag. Development •• _upp~:R VOLTA .BOUGOURIBA AGRICULTURAL DEVEI.:OPMENT PROJECT Onchocers_ias i.s Qi! verblindness) Bougouriba ORD lies between the Black Volta and the Bougouriba Rj.vers. Both these rivers are infested with the blackfly vector of the disease, but the actual project area occupies only 40% of the land area lying between the two infested rivers, and is some distance from them. Consequently the dis- ease is not a serious problem in the conununities which will be affected by the project. However, the majority of Upper Volta is considered as infesti~d. It is therefore included in the region where the disease is to be eradicated under the internationally financed campaign announced in September 1973. The $120 million campaign was announced simultaneously by the UND:?, FAO, WHO and the World Bank in New York, Rome, Geneva and Washington. It gave a detailed plan of action to be presented to the seven African govern- ments concerned: Dahomey, Ghana, Ivory Coast, Mali, Niger, Togo and Upper Volta. It is considered to be the mo&t detailed and far-reaching plan ever prepared to control a disease, and help pave the way to increased economic development in one of the poorest regions of the world. The program area -- 700,000 km 2 -- covers parts of the seven countries inhabited by over 10 million people. Of these, approximately 2 million have • the disease and at least 70 thousand are blind or have serious impairment ot sight • The disease is caused by a worm t~anrimitted by a fly. Invading the human body with the bite of the fly, the worms (Onchocerca volvulus) grow and multi- ply, producing millions of embryos which are diffused throughout the human body, notably to the eyes where they cause severe lesions that may culminate in blind- ness. The disease may also effect other organs of the body and cause general weakness. Because of the long life of thu adult worm, the proposed program covers a period of 20 years. As the program of eradication proceeds, it will be possible to re-populate the fertile river valleys cf the region. The indications are that the people now leading a meagre existence en the uplands would gladly cooperate in this venture once the threat of the disease was removed. To reap the full benefit of the new possibilities, it will be essential in many places to impro~e roads and drinking water supply, to create health services and schools, and above all to provide assistance to the people in making the best use of the land. Zones. suitable for development projects have already been studied. But the key to economic progress is the control of the riverblindness. On May 22, 1974, the World Health Organization,which is the executing agency, announced the formal launching of the 20-year program. The program was submitted to the current session of the main decision-making body of the World Health Assembly. It was described as the greatest public health campaign ever under- taken. · • - 0 -  • ', ~ • INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, NW., WASHINGTON 25, D. C. TELEPHONE. EXECUTIVE 3-6360 June 4, 19 74 TECHNICAL DATA Ag't"'; l".'•1ltural Development Project OOUNTRY: Republic of Upper Volta TOTAL COST: $9.0 million (excluding import duties and $1.2 million in local taxes) IDA F_INANCING: $8.0 million, for a term of 50 years, including 10 years of grace, interest free except for a service charge of 3/4 of 1% to cover IDA's administrative costs. OTHER FINANCING: Government of Upper Volta, $1.2 million of taxes. Banque Nationale de Developpement, $650,000. Participating farmers about $350,000. • IMPLEMENTING ORGANIZATION: The Bougouriba ORD (Organismes Regionaux de Developpement), c/o Ministry of Planning, Rural Development, Environment and Tourism, Ouagadougou, Upper Volta, will be responsible for execution of the project. The Government has already appointed the Director of the Bougouriba ORD as project manager. PROJECT DESCRIPTION: Providing technical assistance to the Ministry of Planning, Rural Development, Environment and Tourism; providing the Bougouriba ORD with the staff, housing, offices, equipment, vehicles and funds necessary to implement an effective development program; providing about 16,000 farm families with the extension and other support services needed to increase their production and income; providing participating farmers with seasonal credit for the purchase of insecticides and fertilizer and medium-term credit for farm implements; providing efficient veterinary services for the ORD, whose role would primarily be to e:i:ecute programs of prophylactic vaccinations to reduce the currently high livestock mortality rate; creating a training center with teaching facilitie.s for project staff end farmers; creating a research station to carry out adaptive research and operate a seed multiplication unit; improving domestic water supplies through a well digging and rehabilitation program covering about 120 wells; carrying out the studies and surveys needed for the improvement of the road network 0f the project area; improving about 660 kms of secondary and tertiary roads; establishing a topographic unit to map out and prepare plans for the development of land settlement by migrants. PROCQREMENT: Procurement will be in accordance with IDA guidelines for vehicles, ,___ equipment and farm implements. Construction of houses and stores totalling $890,000 . • will be advertised locally, although foreign contractors could also Lid. Farm inputs ($800,000) will be procured through established local procurement procedures. /more  - 2 - • CONSULTANTS: The Government may have to recruit, from. abroad, some of the senior staff required for the management of the project. In addition, consultants will be engaged (i) to assist in designing the teaching progr4ms for the training center• (ii) to provide technical assistance to the Ministry of Planning, Rural Development, Environment and Tourism, and (iii) to carry out the road studies. •~ ' ESTIMATED COMPLET!Q!i._Q!I!,: 1978 - 0 - • •