Announcement of IDA Supports Livestock Development in Central African Empire on April 2, 1979

'. FOR IMMEDIATE RELEASE .World Bank ·1 s18 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/59 APR I L 2 , 1979 IDA SUPPORTS LIVESTOCK DEVELOPMENT IN CENTRAL AFRICAN EMPIRE The International Development Association (IDA), the soft-loan affiliate of the World Bank, has approved a $2.5-million credit for a live- stock development project in the western region of the Central African ·Empire. IDA will also act as administrator for an EEC Special Action Account credit of $0.5 million for the project, in accordance with an agree- ment between IDA and the EEC. The project is the initial phase of a program to develop the full potential of the country's livestock industry which is almost completely in the hands of the M'Bororo herdsmen. The M'Bororo people, numbering about 8,000 families, are originally nomadic and are the poorest subgroup of the population. The project supports the government's attempts to bring them into the economic mainstream. About 50,000 family members are expected to directly benefit from the project through an increase in average per capita • income and through improved nutritional levels. The value of the increase in the herd will be about $240 annually per family member. The $11.4 million project will staff, organize, and equip the country's Livestock Service to enable it to carry out an adequate animal health program for 700,000 head of cattle. The project also includes train- ing for the staff of the Livestock Service and upgrading of the National Livestock Technical College. A pilot project in the Topia Region is expected to contribute to the design of range management practices and forms of asso- ciation acceptable to traditional herdsmen. The project will also provide consultant services for studies and surveys of animal health problems, pasture resources, and the economics of traditional cattle raising. The International Fund for Agricultural Development (IFAD) and the African Development Fund (ADF) are expected to contribute $2.5 million and $3.3 million respectively to the project. The IDA credit and the EEC Special Action Account credit will be for 50 years, including 10 years of grace. They will carry no interest but will bear a service charge of 3/4 of 1% per annum to cover administrative cos ts . ._. NOTE: Money figures are expressed in U.S. dollar equivalents. FOAM NO. 1121 (5-76) T ECH N I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Livestock Development Central African Empire $11.4 million (net of taxes) • IDA FINANCING: $2.5 million, supplemented by $0.5 million from EEC Special Action Account for 50 years, on standard IDA terms OTHER FINANCING: $2.5 million from International Fund for Agricultural Development (IFAD); $3.3 million from the African Development Fund (ADF); and $2.6 million from Government of Central African Empire and project benefi- ciaries IMPLEMENTING ORGANIZATION: Livestock Service, Ministry of Agriculture and Livestock, Bangui, Central African Empire PROJECT DESCRIPTION~ The project will be the initial phase of a program to develop the full potential of the li~estock industry which is almost completely in the hands of one of the poorest segments of the population -- the M'Bororo herdsmen. The project will: a) staff, organize, and equip the Livestock Service to enable 1t to carry out an adequate animal health program for 700,000 head of cattle in the western half of the country; b) train staff of the Livestock Service through short-term courses, upgrade the National Livestock Technical College, and offer specialized courses for senior staff; c) undertake a pilot project in the Topia Region to introduce and test simple pas- ture management techniques based on pre-cooperative herdsmen's associations; and d) pro•~ 44 man months of consultant services for studies and surveys of animal health problems, pasture resources and the economics of traditional cattle raising in order to develop a long-term strategy for the sector, including preparation of a follow-up project. PROCUREMENT: Procurement for civil works, vehicles, and equipment totaling about $2.4 million will be done through international com- petitive bidding (ICB) following Bank guidelines. Local contractors will be allowed a 7.5% preference for civil works. Locally manufactured goods will be allowed a preference of 15% of the c. i.f. price, or the level of applicable import duty, whichever is lower, when com- paring domestic with foreign bids. Contracts for goods and works estimated to cost $100,000 or less, which would not cumulatively exceed $0.6 million and will not be large enough to attract international bids, will be awarded on the basis of local competitive bidding and in accordance with procedures acceptable to IDA and IFAD. CONSULTANTS: The projec.t will include about 44 man-months of consultant services to carry out a series of key studies and surveys on the livestock subsector. These include: a) a study of the incidence of tse-tse and try- panosomiasls and the elaboration of a tse-tse eradication program as well as a prophylactic program for trypanosomiasis; b) a pastoral resources survey by Landsat; c) a review of the cattle production and marketing system; and d) preparation of a development strategy for the livestock sector and preparation of a follow-up project. • ECONOMIC RATE OF RETURN: 22%, on 82% of project costs for which benefits have been quantified ESTIMATED COMPLETION DATE: 1984 - 0 -