Announcement of Eighteen Million Dollars Credit for Tanzania Supports National Maize Project in Nine Hundred and Fifty Villages on December 24, 1975

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 75/78 December 24, J9 75 • $18 MILLION CREDIT FOR TANZANIA SUPPORTS NATIONAL MAIZE PROJECT IN 950 VI~LAGES About 950 Tanzanian villages will take part in a Ntitional Maize Project that will be assisted by an $18 million credit from the International Development Association (IDA), an affiliate of the World Bank. It will support the Government's policy of achieving rapid increases in maize produc- tion after drought-affected harvests in 1973 and '74 and costly imports of grain. It will improve and expand Tanzania's national maize program, which began in 1973, and help the Government to prepare a long-term national agricultural program. The project is expected to increase maize production by about 20,000 tons in the first year, with an overall increase of 195,000 tons per year by 1982. This should enable Tanzania to become self-sufficient in its staple grain, and achieve annual foreign exchange savings of about $10 million. Any surplus maize resulting from the project would contribute towards the establishment of a national maize reserve of about 90,000 tons. • The project will provide maize seed, fertilizers, insecticides and herbicides to villagers in 13 regions that include almost all high-potential maize-growing areas in Tanzania. Farmers will be encouraged to increase their maize production in stages, ferti ..- lizers being introduced after progress in planting and weeding techniques and pest control. At full development each village will have a resident extension worker and maize demonstration plots (one of the plots to be managed by the village school), and will be visited by mobile film units. Extension services will be strengthened through improved transport and the training of agricultural staff. The International Maize and Wheat Improve- ment Center in Mexico will help to arrange training courses. Villagers will be given the means to build stores in more than 500 villages for farm inputs and harvested maize. Regional storage and transport facilities will also be provided. The project includes a maize research program, one of the aims of which is to develop crop rotations involving legumes to reduce the need for imported nitrogenous fertilizer. A piiot scheme is planned to improve the use of ox-drawn equipment in vilLages where oxen are most common. Government subsidies of farm inputs will be reviewed every year. Annual incomes of about 380,000 participating families are expected to increase by about 20 percent, or $42~ The $18 million IDA credit is for 50 years, including 10 years' grace, and is interest- free with a service charge of 3/4 of 1% for administrative expenses. The $38 million project will also be assisted by a loan of $5 million from the new Arab Bank for Economic Development in Africa • • Note: Money figures are expressed in U.S. dollar equivalents. Form No. 1121 (9-75) PROJECT: T E CHNI CAL DAT A National Maize Project • COUNTRY: Tanzania • TOTAL COST: $38 million IDA FINANCING: $18 million OTHER FINANCING: Government of Tanzania $11 million Arab Bank for Economic Development in Africa $ 5 million IMPLEMENTING ORGANIZATIONS: Project Servicing Unit within the Ministry of Agriculture; and regional administrations. PROJECT DESCRIPTION: Provision of maize production inputs to approximately 950 • participating villages; strengthening of extension servj_ces through training and provision of transport and extension aids; improvement of distribu- tion of maize inputs and maize marketing through the provision of storage and transpor- ·tation; improvement of maize research; assistance for further project preparation; and provision of related technical services. PROCUREMENT: International competitive bidding for incremental fertilizers, insecticides, herbicides, vehicles, platform scales, safes, aircraft, and civil works contracts for regional and National Hilling Corporation storage facilities. Local manufacturers will be allowed a preference of 15 percent or the existing rate of duty, whichever is lower. Local civil works contractors will be allowed a 7-1/2 percent preference. CONSULTANTS: Project includes funds to prepare detailed investment pro- posals for establishing a national grain reserve, expanding and modernizing storage and milling fac~ '.ities of the National Milling Corporation, and developing a national agricultural program. No consultants have yet been employed . ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 3 7% 1982 • -0-