Announcement of IDA Assists Smallholder Rubber Plantation Project in Sri Lanka on May 8, 1980

, FOR IMMEDIATE ~ELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/64 May 8, 1980 IDA ASSISTS SMALLHOLDER RUBBER PLANTATION PROJECT IN SRI LANKA The International Development Association,(IDA), an affil'iate of the World Bank, today announced the approval of a credit of $16 mill ion to help finance a sma11ho1der rubber rehabilitation project in Sri Lanka. Much of the current rubber acreage in Sri Lanka is either averaged or in need of rehabilitation. The present backlog of replanting is estimated to be about 55,000 hectares of which 41,000 hectares are in the private sector. The $28 million project will assist Sri Lanka in increasing rubber production through the acceleration of a program of replanting averaged and low-yielding rubber on some 18,800 hectares and in strengthening the agencies involved in smallholder rubber production. · • At full development, the project wi11 help increase Sri Lanka's exports and thus improve its balance of payments with additional foreign exchange earnings of about $28 mill ion a year. Exports will also improve the Government's budgetary position and the incomes of 27,000 smallholders. The IDA credit to Sri Lanka is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% to meet IDA's administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E C HN l CAL DAT A PROJECT: COUNTRY: TOTAL COST: Smallholder Rubber Rehabilitation Sri Lanka $28 mi 11 ion • IDA FINANCING: $16 million, standard IDA terms OTHER FINANCING: Government of Sri Lanka IMPLEMENTING ORGANIZATION; Project Coordination Unit Ministry of Plantation Industries Government of Sri Lanka 363 Ga 11 e Road Colombo 3, Sri Lanka Telex: 1232 FORAID PROJECT DESCRIPTION: It will strengthen the agencies involved in smallholder rubber production and provide adequate replanting inputs and incentives. The project also includes improvement in rubber processing standards, • expanded training facilities and technical assistance. PROCUREMENT: Replanting activities will be carried out by individual smallholders. The planting materials will be supplied by two public sector plantation corporations in Sri Lanka. Contracts for vehicles and equipment costing more than $100,000 each will be awarded through international competitive bidding (ICB). All other contracts, including those for civil works, which will be small and dispersed, will be awarded on the basis of local competitive bidding. ECONOMIC RATE OF RETURN: 23% ESTIMATED COMPLETION DATE: 1986 - 0 - •