Announcement of Ten Million Dollars Credit to Tanzania for Dairy Development on July 3, 1975

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA News Release No. 75/50 July 3, 1975 $10 MILLION CREDIT TO TANZANIA FOR DAIRY DEVELOPMENT Tanzania's program for dairy development will be assisted by a '$10 mil- lion credit by the International Development Association (IDA), an affiliate of the World Bank. The IDA project will more than double annual output of milk on commercial dairy fanns by 1987, substituting for the present high level of imported dairy products. It will also. support Tanzania's efforts to establish village dairy units to provide milk for the rural population. The project will include rehabilitation and expansion of commercial dairy • farming on nine parastatal farms in five regions, using some 6,000 cows. Farm- ing models developed may be extended by the Government to other connnercial fanns in the future. Milk collection, processing and distribution will be improved. In addition, a pilot program will develop dairy units in 50 ujamaa villages with a total population of 50,000 to provide a basis for widespread expansion of village dairy farming. Each village will increase the value of its production by about $5,000 a year. A breeding unit to be established in the West Lake Region will provide 1,800 dairy heifers a year. This will enable Tanzania to build up herds on parastatal farms and villages included in the project, and provide a source of upgraded dairy cows for future projects, particularly those benefitting village producers. Substantial technical assistance will be provided throughout the project to train managers and farmers and develop administration. Research will also be carried out into animal diseases. The IDA credit is for 50 years, including 10 years of grace and is interest- • free with a 3/4 of 1% service charge to meet IDA's administrative expenses . Note: Money figures are expressed in US dollar equivalents. - 0 -  T E CHNI CAL D A T A PROJECT: COUNTRY: TOTAL COST: Dat'ry development Tanzania $15. 3 m:U.lion • IDA FINANCING: $10 million, standard IDA terms. OTHER FINANCING: Government and paras tat al funds totaling $5. 2 mil~lon. IMPLEMENTING ORGANIZATION: Ministry of Agriculture, Dar es Salaam, Tanzania. PROJECT DESCRIPTION: The project comprises rehabilitation and expansion. of conrnercial dairy farming on nine parastatal fanns~ im- provement of milk collection, processing, and distribution facilities; development of the traditional dairy sector in 50 ujamaa villages; breeding of improved dairy • heifers; technical services and applied investigational work for animal disease control; and future project preparation. PROCUREMENT: International competitive bidding for equipment and furniture for contracts in excess of $50,000. Govern- ment procurement procedures on contracts less than $50,000 subject to a total limit of $500,000. Civil works likely to be tendered locally. CONSULTANTS: Internationally-recruited specialists will assist parasta.tal organizations. ECONOMIC RATE OF RETURN: About 22% ESTIMATED COMPLETION DATE: 1987. •