Niger - Industrial and Artisan Sector Employment Creation Project

FILE COpy Doumenmt of The World Bank FOR OMFCIAL USE ONLY Rqprt No. P-2217-NIR REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUITVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF NIGER FOR AN INDUSTRIAL AND ARTISAN SECTOR EMPLOYMENT CREATION PROJECT May 10, 1978 This documet has resftitd dituibu. mud may be usd by recipients only in the perfornce ef their oflclal dut. Its eotents may not otherwie be disclsed withut World Bank authborizaion.  CURRENCY EQUIVALENTS US$1 = CFAF 245 The Communaute Financiere d'Afrique Franc (CFAF) is fixed with respect to the French Franc (1FF = CFAF 50). In this report the following conversion has been used: US$1 = CFAF 245 CFAF 1 million = US$4,082 ABBREVIATIONS ADB African Development Bank BCEAO Banque Centrale des Etats de l'Afrique de l'Ouest BDRN Banque de Developpement de la Republique du Niger BIAO Banque Internationale de l'Afrique de l'Ouest BFCE Banque Francaise du Commerce Exterieur CCCE Caisse Centrale de Cooperation Economique CNCA Caisse Nationale de Credit Agricole COFIFA Compagnie Financiere France Afrique CPCT Caisse de Prets aux Collectivites Territoriales CEAO Communaute Economique de l'Afrique de l'Ouest DEG Deutsche Entwicklungsgesellschaft ECOWAS Economic Community of West African States ENA Ecole Nationale d'Administration KfW Kreditanstalt fur Wiederaufbau OPEN Office de Promotion de l'Entreprise Nigerienne SONICA Societe Nigerienne de Credit Automobile STB Societe Tunisienne de Banque UMOA Union Monetaire Ouest Africaine UNDP United Nations Development Agency USAID United States Agency for International Development Fiscal Year October 1 - September 30  FOR OFFICIAL USE ONLY Republic of Niger Industrial and Artisan Sector Employment Creation Project Credit and Project Summary Borrower: Republic of Niger Beneficiary: Banque de Developpement de la Republique du Niger (BDRN) Artisan Center of the National Museum of Niger Office de Promotion de l'Entreprise Nigerienne (OPEN) Ecole Nationale d'Administration (ENA) Amount: US$5 million Terms: Standard IDA terms Relending US$3.60 million of the proceeds of the credit will be relent Terms: to the BDRN for a term of fifteen years including three years of grace at the prevailing World Bank interest rate to be repaid under a fixed amortization schedule. Of this amount US$265,000 would be for technical assistance, $85,000 for staff training and US$3.25 million for a line of credit. The remaining US$1.4 million of the proceeds of the credit will be allocated to the Artisan Center of the National Museum, the Office de Promotion de l'Enterprise Nigerienne and the Ecole Nationale d'Administration. Project The promotion of labor intensive employment in Niger's Description: industrial and artisan sectors is the primary objective of this project which also seeks to strengthen the sector's institutional infrastructure. A line of credit to BDRN financed by this credit will assist relatively labor- intensive small- and medium-scale enterprises. Technical assistance and training programs for BDRN, including the development of a Bank Management Training Program at ENA to serve all six Nigerien financial institutions, will help upgrade BDRN's Development Department. The project would also provide financial and technical assistance, with UNDP, for OPEN, a new agency which will provide tech- nical assistance and training for local entrepreneurs. Financial and technical assistance is also provided under the project to the Artisans Center of the National Museum to improve the productivity and employment of artisans affiliated with the Center and to develop the export market for their products; through this component the project will assist some of the poorest segments of the urban population. It is estimated that 500 jobs will be created in the modern and utilitarian artisan sectors and 370 jobs in the artistic artisan sub-sector. The project faces no special risks, although realization of the employment creation goals will depend on BDRN's success in reducing the capital intensity This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - of its investments and OPEN's success in project promotion and preparation. The technical assistance to be financed under the project is intended to assist these institutions in this effort. Estimated Cost: Total project costs are estimated at US$8.1 million, including US$0.15 million for taxes to be paid by BDRN, entrepreneurs and other local sources. The proposed IDA credit of US$5.0 million would cover 63 percent of total costs net of taxes. Details of cost estimates including taxes are summarized in the following table: Local Foreign Total