Announcement of World Bank Lends Forty Million Five Hundred Thousand Dollars for Irrigation in Romania on January 16, 1978

~---·-----------· r: ~ ~ •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Teiephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/36 JANUARY 16, 1978 WORLD BANK LENDS $40.5 MILLION FOR IRRIGATION IN ROMANIA The World Bank today announced a loan ·of $40.5 million to help finance an irrigation project in Romania. The Bank loan is expected to increase and stabilize agricultural .produc- tion on approximately 115,340 hectares in Teleorman County, about. 100 kilometers west of Bucharest and to increase labor productivity. Irrigation water for the major portion of the $153.S million Viisoara Irrigation Project will be taken from the Danube, lifted by fixed pumping stations and distributed through a sy~tem of concrete-lined canals for sprinkler and furrow irrigation. • The project is expected to increase the gross value of agricultural production from $24.9 million to $53.5 million a year (an increase of 115 percent) to be achieved through greater cropping intensity and improved crop yields. Major crops in the project area are exp~cted to be maize, wheat. alfalfa, and soybean. The increase in agricultural output will help earn or save foreign· exchange. The project wilt also bring about an increased and stable supply of raw materia1s for agro-industries and double labor productivity. The project will help raise real wages and the standard of living of the people through its impact on the growth of the country's economy. The loan will be made to the Bank for Agriculture and Food Industry with the guarantee of the Government of Romania. The project will be implemented by the Ministry of Agriculture and Food industry and the National Wat~r Council. The $40.5 million loan is for a term of 15 years fncluding three years of grace, wlth interest at 7.9 percent per annum • • - NOTE: Money figures are expressed in U.S. dollar equivalents. FQ;:;M i.,10.1121 ., · ;~ --76) T E C HN I CAL DA T A PROJECT: Viisoara Irrigation Project COUNTRY: Socialist Republic of Romania TOTAL COST: $153.3 million BANK FINANCING: $40.5 million, repayable in 15 years, including a three-year grace period, with interest at 7.9 percent .per annum. OTHER FINANCING: Government of Romania, $83 million; Bank for Agriculture and Food Industry, $21 million; Cooperatives, $9 million. IMPLEMENTING ORGANIZATION: 1. Ministry of Agriculture and Food Industry, Bulevardul Republicii, 24 Bucharest, Romania. 2. National Water Council, Bulevardul Repub_licii, 24 Bucharest, Romania. PROJECT DESCRIPTION: The project includes: (a) two floating pumping stations, one with a capacity of 69.5 m3/sec and the other of 5.3 m3/sec and four fixed pumping stations; • (b) a system of concrete-lined main and distribution canals; (c) about 46 fixed pumping stations and about 180 semi-mobile pumping stations to supply water to buried pipe distribution networks; (d) portable furrow and sprinkler irrigation equipment, operation and maintenance equipment, farm tractors and other farm machinery; (e) surface drainage networks to serve about 77,540 ha, tile drainage networks to ~erve about 5,000 ha, construction of eigh~ new and remodelling of five existing drainage pumping stations; (f) about 467 km of 20 kV power lines and transformer substations; (g) river training works to protect about 2,000 ha from floods, soil erosion control works on 10,800 ha, land leveling of about 30,350 ha, deep plowing of about 63,400 ha and deep ripping of about 2,160 ha; and (h) construction of about 50 groundwater monitoring we11s and facilities for operation and maintenance staff. · PROCUREMENT: Equipment and materials costing $40.5 million wi11 be procured following internationa1 competitive bidding ~:, accordance with the Bank Guidelines. Inquiries on procurement should be directed to ROMAGRIMEX, the Rom~nian foreign trade company responsible (ROMAGRIMEX, lntreprinderea de stat pentrau comert exterior str. Alex. Sahia 16, Bucharest, Romania). ECONOMIC RATE OF RETURN: 14 percent ESTIMATED COMPLETION DATE: 1983 - 0 - •