Announcement of IDA to Provide Three Million Dollars for Rural Development Project in Bolivia on June 18, 1979

~ ' FOR IMMEDIATE RELEASE f\ - .,. •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/97 June 18 , 1979 IDA TO PROVIDE $3 MILLION FOR RURAL DEVELOPMENT PROJECT IN BOLIVIA The International Development Association (IDA), the World Bank's soft-loan affiliate, has approved a $3 million credit to support a rural development project in the provinces of Omasuyos and Los Andes, located near Lake Titicaca in wesiern Bolivia. The project will continue previous Bank efforts to foster rural development in the Altiplano, where it will focus on increasing agricultural productivity among small farmers. Under the project, credit wi 11 be extended to about 2,500 small farmers for investment in livestock, corrals, sheds, silos, pumps, and wells, and for the purchase of tools and equipment. Incremental working capital will be made available to 6,000 farmers for the purchase of improved seeds and agricultural chemicals, and to support productive activities such as fisheries. An additional 600 farmers are expected to participate in a forestry program • which will provide fuel and construction wood • Communications and the flow of goods and services in and out of the project area will be facilitated by improvements to and maintenance for about 50 kilometers of feeder roads. Potable water supply and waste disposal facilities will be extended, servicing some 6,000 families. A technical delivery system will be developed to transfer simple, low-cost technology to farmers and farmer groups. This system includes the establishment of a training center for project staff and farmers and a model farm to demonstrate improved and appropriate technologies. The project will also provide for administrative costs of the Altiplano Rural Development Institute, which has been created to implement this project and the current lngavi Rural Development Project. The value of incremental project production is estimated at $7 million. Increased production will help double the per capita incomes of some 6,000 bene- ficiary families from below the current level of about $100 to $200. Rural employment will be increased through more intensive cultivation, and forestry and road maintenance programs. Water supply and waste faci litt~s will improve local health. The Altiplano Rural Development Institute is expected to serve even- tual 1y as a development agency for the whole Altiplano. Co-financing for this $9.3 million project is being provided by the International Fund for Agricultural Development in the amount of $4 million. • The Government of Bolivia is providing $2.2 million, and project beneficiaries are contributing an·additional $100,000. The IDA credit is for 50 years, including 10 years of grace. The credit carries no interest, but bears a service charge of 3/4 of 1% per annum to cover administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T EC HN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Omasuyos-Los Andes Rura1 Development Republic of Bolivia $9. 3 mi 11 ion • IDA FINANCING: $3 million, standard IDA terms OTHER FINANCING: International Fund for Agricultural Development, $4 million Project Beneficiaries, $100,000 Government of Bolivia, $2.2 million IMPLEMENTING ORGANIZATION: Altiplano Rural Development Institute Casilla 8561 La Paz, Bo 1 iv I a CAB LE: . PRO IN GAV I PROJECT DESCRIPTION: It consists of: a) the prov1s1on of credit for farm investment and working capital requirements in agriculture, 1 ivestock, and forestry production; b) the improvement and maintenance of 50 kilometers of feeder roads; c) the provision of potable water supply and waste disposal facilities·· and d) technical and administrative support, including salaries for project unit staff, overhead costs, housing, equipment and machinery, and vehicles; the establishment of a technical assistance delivery system, including a training center for project staff and farmers, a model farm for the demonstration of improved and appropriate technologies, and an input supply program. PROCURE~ENT: Contracts for the purchase of equipment and vehicles will total $718,550. Contracts in excess of $100,000 will be procured through international competitive bidding according to IDA procedures. Purchases of less than $100,000 will be carried out through local competittive bidding, according to local procedures acceptable to IDA. Procurement of farm inputs will be carried out by farmers through normal commercial channels. Road works ($363,000) will be undertaken on force account by the National Road Service. Civil works ($733,300) for project facilities will be carried out through local competitive bidding procedures acceptable to IDA. CONSULTANTS: Consultant services (6 man-months) will be provided for cheese and dairy production. ECONOMIC RATE OF RETURN: 36% ESTIMATED COMPLETION DATE: 1983 - 0 - •