Announcement of World Bank Now Assists Full Range of Tanzania’s Agricultural Development with New Loans for Fisheries and Forestry on July 2, 1976

•World Bank 1818 H Street, N.W., Washington. D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BAf~K NEWS RELEASE NO. 77 /2 IDA NEWS RELEASE NO. 77/2 JULY 2, 1976 WORLD bANK NOW ASSISTS FULL RANGE OF_TANZA11IA 1 S AGRICULTURAL DEVELOPMENT WITH NEW LOANS FOR FISHERIES ANO FORESTRY The World Bank today announced three ioans for Tanzania totaling $46 mill ion that will assist major government programs to develop fishing and forestry, as well as help finance the construction of a dam on the Great Ruaha River as part of an expansion of the Kidatu hydroelectric project. The loans for fishing and forestry are the Bank's first for these purposes in Tanzania. The Bank, with its concessionary-loan affiliate, • the International Development Association (IDA), is now assisting the full range of agricultural development in Tanzania, including food and commodity-crop production, 1 ivestock and dairy farming, integrated rura1 development and rural education and training. The World Bank's lending program directly support Tanzania's aim of developing its agriculture by means of ujamaa (self-help) villages. The three loans announced today are for: Fisheries Development Project (IDA credit of $9.0 mill ion) will represent the first stage of a long-term program to develop fisheries in Tanzania. It will support the establishment of commercial fishing by providing three fishing centers along the coast and one on Lake Tanganyika at Kigoma. It will also set up a pilot program on Lake Tanganyika to encourage the use of improved techniques by traditional fishermen. The program will ~ eventually embrace some 20 ujamaa villages on the lake shore. Villagers NOTE: Money figures are expressed in U.S. dollar equivalents. I ...• .  It • . • • . ~ - 2 - will receive credit from the Tanzanian Rural Development Bank (TRD6) to buy small, powered boats and equipment, and fishing techniques and boat maintenance. will be trained Barges wi 11 be in provided if • required for transportation of catches to the road and railheads at Kigoma. Research under the project will include a study of the effects of chemicnl pollutton. The project is expected to increase supply of fish to the market by 21,000 tons, worth about $5.0 milliona This would result in improved nutrition through low-cost protein for poor families. Incomes of the fishing communities are expected to increase sub~tantially. Forestry Development Project (World Bank loan of $7.0 mfll Jon) wil 1 form an important part of the Government's afforestation program through development of plantations to supply industry. The project will result in the new pianting and maintenance of about 16,000 hectares (ha.) of pine and eucalyptus in the Sao Hfll area of Tanzania's lringa the maintenance of 11,000 ha. of exfstfng plantations, and development of Region,. • i.nfrastructure and forest services. The project is the first phase of a program to establish about 60,000 ha. of sawlog and pulpwood plantations in the area. The project will provide raw material for Tanzania's first pulp and paper mill to be built in the area at Mufindl, and for a new sawmill. At full production ir; 21 years, the annual value of production of the pulp and paper mill is expected to be $123 million. Kidatu Hydroelectric Project - Second Stage (World Bank loan of $30 mill ion) will enable the Tanzania Electric Supply Company 1 imited (TANESCO) to meet the rapidly growing demand for power through its interconnected system, which provides service to the Dar es Salaam, Horogoro, Tanga, Arush .- and Moshi areas, where most of the country's economic activity and 60% of its population are concentrated. / .....  - 3 - • The $91 ~i111o~ project will mainly involve the construction of a concrete dam, about 45 meters high, which will form a reservoir adequate for yearly regulation of river water at Mtera; the extension of two 50 MW units of the existing Kidatu hydroelectric generating station on the Great Ruaha River; and the construction of a 90 MVA transformer substation at Morogoro. The project is expected to be co-financed by the Swedish International Development Authority (SIDA) and the Kreditanstalt fUr Wiederafbau (KfW) of the Federal Republic of Germany. The IDA credit for fisheries is for 50 years, including 10 years' grace, and is interest-free, with a service charge of )/4 of one per cent for administrative charges. The World Bank loart for forestry is for 25 years, including five years' grace, at 8.85% interest a year. The loan ~ for hydroelectricity is on Third Window terms: for 25 years, including seven years' grace, with interest at 4.85% B year. An additional 4% will be paid to the Bank by the Interest Subsidy Fund, representing the difference between the Bank's standard Interest (currently 8.85%) and the charge to Tanzania. - 0 - •  .. ' FOAM NO. 1121 (5-78) T E C HNl CAL • DAT A PROJECT: Fisheries Development COUNTRY: Tanzan fa TOTAL COST: $ 12 • 3 mi 11 i on I DA FI NANC ING : $9 mi11ion, standard IDA terms OTHER FINANCING: Tanzanian Government; joint venture companies and ujamaa cooperatives. IMPLEMENTING ORGANIZATION: Ministry of Natural Resources and Tourism. P.O. Box 2462 Dar· es Sa1aam Tanzania PROJECT DESCRIPTION: The project is first stage of a long-term program to develop fisheri~s production in Tanzania. It would support the establishment and development of colllTlercial fisheries at three marine and one centre at Kigoma on Lake Tanganyika; the development of a pilot vi11age ~ fisheries program and the provision of fish transport faci 1 itles on Lake Tangan·tika, studies on marketing and pollution. future project preparation and the provision of related technical services. PROCU.REMENT: International competitive bidding for machinery, including marine engines. tugs. equipment and vehicles. CONSULTANTS: Project includes funds for 40 man-years of technical assistance at $48,500 per man-year. None of the required personnel have yet. been recruited. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 27% June 30, 19dl • - 0 - ,:o~l>;I NJ;>. 1121 (5-76) T ECHN I CAL DA T A • PROJECT: COUNTRY: TOTAL COST: Forestry Development Tanzania $8 .1 mi 11 ion BANK FINANCING: $7 million, 25 years including five years' grace, at 8.85% interest a year. OTHER FINANCING: Tanzanian Government IMPLEMENTING ORGANIZATION: Ministry of Natural Resources and Tourism (Forest Division) P.O. Box 426 Oar es Sa1aam, Tanzania PROJECT DESCRIPTION: The project will, over five years, provide for the planting and maintenance of about 16,000 hectares (ha.) of forests, for the maintenance of about 11,000 ha. of existing plantations, and for the development of infrastructure and forest services within, the project area. The project wi 11 provide • for the afforestation of a total of 15,75~ ha. of pulpwood plantations, surveying of the area to be planted, the establishment of . srseries, ground preparation, weeding, silvi- cultural treatment and disease control. In addition, some 330 ha. within the designated sawlog area will be replanted during the project; 8,800 ha. of existing pulpwood planta- tions and of about 2,500 ha. of sawlog plantations maintained; some 164 kilometers (km.) of primary and secondary roads and 393 km. of tracks constructed; staff housing and 20 administrative and social buildings established; and financing for research, training and studies provided. PROCUREMENT: Of equipment and vehicles in orders exceeding $80,000 by international competitive bidding. CONSULTANTS: Project Includes funds for the employment of two inter- nationally recruited experts (one for plantations and the other for road and mechanical engineering) each for duration of project (five years). Estimated cost Is $44,000 per man-year and neither of these positions has been filled . • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 13.5% (of pulp and paper program). December 31, 1981. - 0 -  ..... .. ' FORM NO. 1121 (5-76) • T EC HN I CAL DA T A PROJECT: Kidatu Hydroelectric - second stage COUNTRY: Tanzania TOTAL COST: $91 mil 1 ion BANK FINANCING: $30 million, on standard third window terms, with 4.85% interest per annum. OTHER FINANCING: Swedish International Development Authority (SIDA); the Kreditanstalt fur Wiederbau (KfW) of the Federal Republic of Germany. IMPLEMENTING ORGANIZATION: The Tanzania Electric Supply Company (TANESCO) P.O. Box 9024 Dar es Salaam Tanzania PROJECT DESCRIPTION: The project consists of: (a) a concrete dam about 45 meters high which would form a reservoir adequate for yearly r-!"gulation of river water at Mtera; (b) an extension of the exi~ting Kidatu • hydroelectric generating station by two 50-MW untis; (c) a 90 MVA transformer at Morogoro; (d) consulting services; and (e) training for TANESCO's mid-management and professional staff. PROCUREMENT: All supply and construction contracts financed by the Bank loan and SIDA grant would be awarded on the basis of international compet1t1ve bidding in accordance with the Bank's guidel lnes. Local manufacturers would be allowed a preference of 15% or the existing rate of duty (whichever is lower) and local civ11 works contracts would be allowed a 7!% preference. Contracts financed by the proposed KfW loan are also expected to be awarded on the basis of international compltive bidding. Retroactive financing for services of consultants and experts to a limit of $1 .1 mill ton is proposed. CONSULTANTS: The Swedish Consulting Group (SWECO) has been appointed as the engineering consultant for the design, preparation of bidding documents, .bid evaluation and supervision of all the works included in the Project. RATE OF RETURN: iSTIMATEO COMPLETION DATE: 23% ~980 • - 0 -