Announcement of Thirteen Million Dollars for Western Highlands Rural Development Project in Cameroon on March 30, 1978

· FOR.IMMEDIATE RE'LtASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/52 MARCH 30, 1978 $13 MILLION FOR WESTERN HIGHLANDS RURAL DEVELOPMENT PROJECT IN CAMEROON The International Development Association (IDA), an affiliate of the World Bank, has approved a $13 mill ion credit for the Western Highlands Rura·1 Develop- ment Project in Cameroon. The project consists of: strengthening and equipping a newly created Directorate of Production Services within the Cooperative Union of Arabica Coffee Growers (UCCAO); establishing a training center to train extension agents; improving field storage facilities by upgrading 25 existing and con- structing 10 new rural service centers; establishing a revolving credit fund; constructing about 220 water points to provide 18,000 rural families. Moreover, the project will help in: constructing simple waterworks to enable the culti- • vation of about 400 hectares (ha) of currently unused bottomlands; increasing the mechanical coffee grading capacity of UCCAO from 7,000 tons to 14,000 tons per year and introducing machines capable of improving coffee quality and finally in establishing a project monitoring unit and strengthening the Plan- ning Unit in the Ministry of Agriculture. The Western Highlands Rural Development Project wil 1 increase the produc- tion of food crops and coffee. Production of coffee, the main cash crop in the region, is estimated to be 3,000 tons more than the previous peak attained in 1973. The project will contribute about a net of $3 million yearly in foreign exchange earnings through export expansion in coffee and import sub- stitution in rice and maize. Cash income for some 200,000 rural inhabitants will increase by some 54% to a range of $395-$702 per farm family, depending on soil quality, within the four-year project period. Ultimately, the project will benefit 600,000 inhabitants of the project area. The $13 mill ion IDA credit to the United Republic of the Cameroon wil 1 be for a 50-year term, including 10 years of grace. It will be interest free but will carry a service charge of 3/4 of 1% to cover IDA's administrative expenses. ~ NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E CHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Western Highlands Rural Development Cameroon $25 million • IDA FINANCING: $13 mil 1 ion, standard IDA terms OTHER FINANCING: Government of Cameroon, $4.4 million; Cooperative Union of Arabi ca Coffee Growers, $7.4 mil lion IMPLEMENTING ORGANIZATION: Cooper-3tive Union of Arabica Coffee Growers (UCCAO), Bafous~am, Cameroon PROJECT DESCRIPTION: The Western Highlands Rural Development Project consists of: strengthening and equipping a newly created Directorate of Production Services within UCCAO (Cooperative Union of Arabica Coffee Growers); estab- 1 ishing a training center to train extension agents; improving field storage facilities by upgrading 25 existing and constructing 10 new rural service centers; establishing • a revolving credit fund; constructing simple waterworks to enable the cultivation of about 400 hectares of currently unused botto~lands; increasing the me ~anical coffee grading capacity of UCCAO from 7,000 tons to 14,000 tons per year and introducing machines capable of improving coffee quality; establishing a project monitoring unit and strengthening and Planning Unit in the Ministry of Agriculture. PROCUREMENT: Except for contracts under $100,000, procurement of goods and services financed by the IDA credit will be under inter- national competitive bidding procedures. IDA financing of such items is expected to amount to $3.2 mill ion. Goods manufactured in Cameroon will be allowed a preference of 15% of c.i .f. price on imported goods, or the level of applicable import duties, whichever is lower. Items under $100,000 but costing $20,000 or more wil 1 be pro- cured on the basis of locally advertised competitive bidding procedures acceptable to IDA. ECONOMIC RATE OF RETURN: 20% EST I MATED COMP LET ION DATE: 1982 - 0 - •