Announcement of IDA Provides Fifteen Million Five Hundred Thousand Dollars to Support Agricultural Extension Services in Sri Lanka on June 14, 1979

FOR IMMEDIATE. R~LEASE '---i." _. 1WorldBank 1818 H Street, N.W,, Washington, D.C. 20433, U.S.A.• Telephone: {202) 477 ~1234 IDA NEWS RELEASE NO. 79/95 June 14, 1979 IDA PROVIDES $15.5 MILLION TO SUPPORT AGRICULTURAL EXTENSION SERVICES IN SRI LANKA The International Development Association (IDA), the World Bank's soft-loan affiliate, has approved a $15.5 mill ion credit for an agricultural extension and adaptive research project in Sri Lanka. The $22.4 mill ion project provides for a significant increase in the number of extension officers who will help establish a unified agricul- tural extension service throughout the country. The project extension officers will assist farmers with all crops except tea and rubber. Animal husbandry extension services will also be provided. Twenty-four adaptive research centers will be established to verify promising research findings on all aspects of paddy and field crop production. These centers will be located so as to serve most of the agro- ecological regions in Sri Lanka. I The Department of Agriculture's training facilities will be improved, and five additional regional centers for in-service training of extension workers wi 11 be constructed. The number of staff will be in- creased, and their quality improved. Farm management and building con- struction capacity will be enhanced through the expansion and improvement of the Department of Agriculture's Economic and Civil Engineering Units. Through this project, crop production on about $4.8 mi 11 ion acres of stable and chena (shifting cultivation) farmland will be increased, as will the it1comes of 1..4 million farm families. Extension workers will aid farmers primarily in raising the production levels of rice, coconuts and undercrops, vegetables and fruit, and a wide range of upland crops. The Sri Lankan government is providing $6.9 million for the project. The IDA credit is for 50 years, including a 10 year grace period. The credit carries no interest, but bears a service charge of 3/4 of 1% per annum to cover administrative costs. NOTE: MoQey figures are expressed in U.S. dollar equivalents. I FORM NO. 1121 (5-76) T ECHN I CA L DAT A PROJECT: Agricultural Extension and Adaptive Research COUNTRY: Democratic Socialist Republic of Sri Lanka I TOTAL COST: $22. 4 mi 1 i ion IDA FINANCING: $15.5 mill ion, standard IDA terms OTHER FINANCING: Government of Sri Lanka IMPLEMENTING ORGANIZATION: Department of Agriculture Ministry of Agricultural Development and Research Peradeniya, Kandy Sri Lanka. PROJECT DESCRIPTION: It consists of: (a) establishing a unified training and visit extension system for farmers of all crops except tea and rubber, and for animal husbandry throughout the country; (b) establish- ing an adaptive research network on the basis of agro-ecological regions; (c) improving and expanding agricultural training institutions; (d) improving the Economic and Civil Engineering Units of the Department of Agriculture; (e) constructing offices, 1 iving quarters, laboratories, and workshops; (f) providing vehicles and equipment for farms, laboratories, workshops, extension, and. training; (g) providing funds for salaries and' add·itional staff; (h) providing incremental operating and maintenance costs for proj- ect works, buildings, vehicles, and equipment; and (i) providing overseas training and technical assistance for project implementation. PROCUREMENT: Equipment vehicles, and spare parts will be procured through international competitive bidding (ICB). A preference of 15% on the price of imported goods or the imports duty, whichever is lower, will be extended to domestic manufacturers. Bicycles and motorcycles ($600,000) will be purchased by government staff in accordance with local procedures satisfactory to the Association. Small off-the-shelf items costing under $10,000, items urgently needed for project implementation, and items requiring standardization will be pro- cured through local procedures. Such non-lCB purchases will be limited to a total of $1.2 mill ion. Construction of buildings ($5.4 million) will be awarded to local con- tractors through loc~l competitive bidding. The Civil Engineering Unit of the Depart- ment of Agriculture will supervise construction work. CONSULTANTS: Consultant services will be provided for general extension, animal husbandry, water management, and plant protection. Specialists include those in the fields of coconut/undercrops, coarse grain, grain legumes, root/tuber crops, and vegetables. ECONOMIC RATE OF RETURN: 50% ESTIMATED COMPLETION DATE: 1985 I - 0 -