Announcement of IDA Provides Twenty-Three Million Dollars for Social Forestry Project in India on June 7, 1979

\ ,. FOR'.IMMEDIATE RELEASE . • world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/90 June 7, 1979 IDA PROVIDES $23 MILLION FOR SOCIAL FORESTRY PROJECT IN INDIA A program to encourage village people in India's Uttar Pradesh state to plant trees for fuel and raw materials will be assisted with a $23 mi 11 ion credit from the Inter-national Development Association (IDA), the World Bank's affiliate for concessionary lending. The $45 mill ion Uttar Pradesh social forestry project will help lay a sound basis for a social forestry program--the growing of trees outside the forest reserves to meet the needs of rural people--by expand- ing and strengthening the Social Forestry Directorate, developing commu- nity awareness of the importance of forestry, establishing a nursery t.nfra- structure, and initiating plantings on about 52,000 hectares (ha) of land, with varying degrees of participation from the local people. • To meet the daily forest product needs of the rural people by the turn of the century, afforestation at the rate of 80,000 ha annually is needed. The cost of a publicly funded program of this magnitude would be prohibitive without some contribution from local people. The program's long-term goal is the establishment of village plantings through self-help schemes, with the villagers providing the labor and the government contributing extension services and materials. The project is therefore geared to the development of community awareness and participation. The project will make possible an increase of at least 20% in the fuelwood supply.for some 6 mill ion people. Mulberry and arjun trees will be planted on 1,500 ha to provide labor-intensive employment oppor- tu,:,ities in sericulture for local families. Most of th·e tree plantfngs will be along roads, rails and canals close to villages, thus el imfnating the need to walk long distances for fuel. A greater abundance of fodder is expected to result in the annual production of an additional 4 million liters of milk. Forest-based cottage industries will be provided with more raw materials, creating additional employment opportunities within them, and organic wastes which are now used for fuel will be freed for agricul- tura 1 use. The Government of Uttar Pradesh is contributing $21.8 million towards the project. 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 DA T A PROJECT: COUNTRY: TOTAL COST: Uttar Pradesh Social Forestry India $44.8 mi 11 ion • IDA FINANCING: $23 million, standard IDA terms OTHER FINANCING: Government of Uttar Pradesh, $21.8 million IMPLEMENTING ORGANIZATION: Uttar Prad~sh Social Forestry Directorat-e Forest Department Lucknow, India PROJECT DESCRIPTION: It will consist of: (a) expanding and improving the Social Forestry Directorate by providing additional staff, low-cost housing, equipment, transport, and training facilities; (b) establish- ing forest plantations on 52,000 hectares (ha) of which about 48,600 ha of plantings will be along roads,· rails and canals, on village common lands, and in degraded forests and the remaining 4,000 ha will be on farmer-owned land; (c) constructing 90 new nur-· series and rehabilitating 50 existing ones; (d) protecting social forest plantations, especially from livestock; and (e) conducting research, seed testing and storage, and field demonstrations. PROCU.REMENT: Direct plantation works ($21.4 mi 11 ion), to be carried out by the Forest Department with local participation, are unsuitable for competitive bidding. Required material, such as barbed wire, tools and fertilizer, will be procured through local competitive bidding (LCB). Civil works ($2.4 million) for construction of about 1,400 houses, 140 nursery sheds, two training schools and one research building will be let through contracts advertised locally. Some works, not in excess of 30% of the total, may be carried out by force account. Field vehicles ($1.95 million) will be procured through LCB. Miscellaneous equipment ($350,000) will be bulked when possible and procured through LCB. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: About 13% 1984 - 0 - •