Announcement of Seven Million Dollars for Rural Development in Cameroon on July 1, 1977

( . l , ...... •World Bank 1818 H Street, N.W., Washing-tor:, D.C. 20433, U.S.A. • Telephone: (202) 3~3-b36o IDA NEWS RELEASE NO. 77/74 JULY 1, 1977 $7 Million for Rural Development in Cameroon The International Development Association (IDA), an affiliate of the Wor1d Bank, has approved a $7 million credit for a rura1 development fund project in Cameroon. The Rural Development Fund project is designed to help develop and stregthen Cameroonian institutions and staff invo1ved with rural development. The project will include the establishment of a structure for chanelling and monitoring the effective use of funds for small-scale and repeatable rural. development projects • which will have the dual purpose of improving productive activities and infrastructure • About 20,000 rural people will benefit as a result of the bottomland development, market gardening and stall fattening. About 120,000 rural families will have a better qua) ity of life as a result of improved water quality through village water supply investments. In addition, the bur· of carrying water over long distances, a particular problem for rural women in Cameroon, will be reduced. The $7 million IDA credit to Cameroon is for 50 years, including a 10- year grace period. It is free of interest, except for a service charge of 3/4 of 1% to meet IDA's administrative costs. • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CAL DAT A '. PROJECT: COUNTRY: TOTAL COST: Rural Development Fund Project Cameroon $9. 66 mi 11 ion • IDA FINANCING: $7.00 million (Standard IDA terms) OTHER FINANCING: Government $2.66 million Fond National du Developpement Rural {through) IMPLEMENTING ORGANIZATION: Fonds Special d!Action Rurales (FSAR) B. P. 1548 Yaoude Republique Unie de Cameroun PROJECT DESCRIPTION: The project includes: a)improving about 300 ha of bottomland near Moulvouday for rice cultivation; b) developing irrigated ~arke~ gardening (onions and vegetables) in a 250-ha area near Maroua by providing loans and technical assistance to about 60 subsistence farmers; c) developing commercial stall fattening of steers by providing credit facilities and technical assistance to about • 2,000 families in the Mandara mountains area; d) constructing 10 small dams in the Mandara mountains for human and animal water Supply; e) increasing and improving village water supply on the Diamare Plain by: (i) rehabilitating about 600 existing open wells, and capping 60 of them; (ii) drilling about 430 boreholes; and (iii) equipping about 490 water points with hand- or pedal-operated pumps; providing funds for as-yet- unidenti- fied subprojects; and f) providing for technical assistance, on-the-job training of local personnel, project monitoring, carrying out a survey of waterborne diseases in the project area, preparation of further sub-projects and a fol low-up Rural Development Fund project, and supporting services. PROCUREMENT: Except for items specified below, procurement will be through international competitive bidding (ICB) following Bank group guidelines. The cost of civil works, vehicles and equipment to be procured through ICB will total about US$3.6 million. To the extent feasible, purchases of vehicles, equip- ment and materials will be grouped for purposes of bidding so as to permit bulk procure- ment. Locally manufactured goods will be allowed a preference of 15 percent or ·~e level of applicable import duty, whichever is lower, when comparing domestic with foreign bids. Contracts for US$100,000 equivalent or less, which shall together not exceed US$1.1 million will not be large enough to attract international bids and will be awarded under local competitive bidding procedures acceptable to IDA. Ten small dams will be constructed over a four-year period in remote areas. Given the low cost per dam (about US$45,000), such construction works will not be attractive to contractors and will therefore be carried out on force account by the Rural Engineering Service. CONSULTANTS: Total expatriate staff and consulting services will amount to about 225 man-months at a total cost of US$~.4 million (excl.a ding contingencies) and an average cost of US$5,900 per man-month (including benefits a ~ allowances) for expatriate staff, and US$8,300 per man-month (including travel expenses) for ~hart-term consultants. The services of expatriate staff and consultants wi 11 be obtained in accordance .with Bank group guidelines for consulting services. . { .' - 2 - • ECONOMIC RATE OF RETURN: 18% (Only on productive sub-projects which together involve ESTIMATED COMPLETION DATE: 1981 nearly 1/3 of tota1 proj~ct cost). • •