Announcement of Niger to Receive Sixteen Million Seven Hundred Thousand Dollars IDA Credit for a Second Rural Development Project in Maradi Province on May 22, 1980

' FOR IMMEDIATE RELEASE .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE N0.80/77 May 22, 1980 NIGER TO RECEIVE $16.7 MILLION IDA CREDIT FOR A SECOND RURAL DEVELOPMENT PROJECT IN MARADI PROVINCE The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a credit of $16.7 million to the Republic of Niger for a second rural development scheme in Maradi Province. The $47.5 mill ion project will support the government's policies of increasing rainfed agricultural production and extending irrigation in order to improve farm incomes and the general welfare of the rural population. • The project, a follow-up and extension of the ongoing Mar~di Rural Development Project, aims at increasing the production of cereuis, cowpeas, and groundnuts. An irrigation scheme will be developed to increase the production of cotton and vegetables. Over 65,000 farmers are expected to benefit from these improvements. Additionally, the project will provide credit for inputs--fertilizers, insecticides, fungicides--and farm equipment, and will fund a seed multi pl ica- tion program designed to increase the supply of improved seeds. The five-year project will also extend the functional literacy program and the health component, which were started in the first Maradi project. The IDA credit will support the financing of technical assistance for staff training and the establishment of a monitoring and evaluation unit. The Government of Niger will contribute $11 .8 million towards the project. The International Fund for Agricultural Development and the Caisse Centrale de Coop~ration Economique will provide loans of $12 million and $7 million respec- tively for the project. The IDA credit is for 50 years, including 10 years of grace. It will carry no interest but will bear a service charge of 3/4 of 1% per annum to cover administrativ~ costs . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO_ 1121 (5-76) T ECH N I CAL D A T A PROJECT: COUNTRY: Second Maradi Rural Development Republic of Niger • TOTAL COST: $47. 5 mi 11 ion IDA FINANCING: $16.7 million, standard IDA terms OTHER FINANCING: The International Fund for Agricultural Development, $12 million; Caisse Centrale de Cooperation Economique, $7 million; Government of Niger, $11.8 million. IMPLEMENTING ORGANIZATION: Ministry of Rural Development Niamey, Niger PROJECT DESCRIPTION: The main objectives of the project are: a) expansion of improved agricultural practices in rainfed farming areas to increase production of cereals, cowpeas and groundnuts; b) a training program involving the 11 Training and Visit System" for extension staff, and training for coop- • erative staff, young farmers,and blacksmiths; c) agricultural credit for the purchase incremental inputs and farm equipment; d) development of 740 hectares (ha) of irrigation; e) construction and equipment of an irrigation center, construction of a new Rural Promotion Center,and additional buildings for the extension of 19 Rural Promotion Centers and the training centers; f) applied agricultural research; g) a seed multi- plication program; h) development of functional literacy and health programs, and maintenance activities for the wood plantation and livestock program; i) technical essist~nce to the Project Management Unit; and j) a project Monitoring and Evaluation Unit. PROCUREMENT: Procurement of equipment, farm implements, inputs and tube well drillings amounting to approximately $14.3 million will be through international competitive bidding in accordance with IDA guidelines in the case of contracts over $100 1 000, and through competitive bidding in accordance with local procedures acceptable to IDA for contracts less than $30,000, competitive shopping will be employed (approximately $0.7 million). Wells will be drilled and pumps acquired under existing contracts let under the Special Action Credit and through international competitive bidding procedures (approximately $2.4 mi11ion). The electric power line will be constructed by the national utility company under a negotiated contract satisfactory to the Association ($0.7 mill ion). For civil works ($0.5 million for buildings}, contracts will be through local competitive bidding. CONSULTANTS: The services of internationally recruited staff, including technical assistance for the irrigation component, will be • obtained following procedures acceptable to IDA. ECONOMIC RATE OF RETURN: 28% ESTIMATED COMPLETION DATE: 1985 - 0 -