Announcement of Upper Volta Receives Six Million Five Hundred Thousand Dollars IDA Credit for Niena Dionkele Rice Project on May 1, 1980

FOR IMMEDIATE RELEASE eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, USA.• Telephone: (202} 477-1234 IDA NEWS RELEASE NO. 80/57 May 1 , 1980 UPPER VOLTA RECEIVES $6.5 MILLION IDA CREDIT FOR NIENA DIONKELE RICE PROJECT The International Development Association (IDA), the soft-loan affiliate of the World Bank, has approved a $6.5 million credit to the Republic of Upper Volta for a rice development project at Niena Dionkele. The project, a pilot phase ·of a possible three-phase program, derives from.the government's perception of the potential for improving the balance of crop production, particularly rice, through development of lowland swamp areas. The development of such areas will permit a review of opportunities to resettle people from the Massi plateau where population pressures have resulted in soil deterioration. The $7.2 million project will comprise two separate but inter- related components--production and rice industry support. Under the • production component~ 400 hectares of the North Dougo swamp will be developed for single crop rainfed rice production. It will include pro- vision for management staff, a trained extension service, and the promo- tion of better farming on swampland and uplands through improved husbandry credit, farm inputs, oxen, and equipment. In addi~ion, a cooperative society will be e~tablished and also two Farm Service Centers, which will provide support services to the pro- ject farmers. A demonstration unit will be set up to carry out trials on improved farming techniques. The credit will also fund the establishment of a research substation and a farmer training program. The rice industry will be assisted through the prov1s1on of the services of technical experts to the Ministry of Rural Developme~t and to the Kou Valley Rice Mill. A monitoring and evaluation unit will be esta- blished in the Ministry and studies will be·made of further developments in the project area. The project is expected to lead to further phases which, at full development, will help to increase the income and living standards of 800 farm families and generate additional employment opportunities in the area. The Government of Upper Volta will contribute $700,000 towards the cost of the project. • The IDA credit is for 50 years, including·lO years of grace. It will bear no interest but will carry a service charge of 3/4 of 1% to cover administrative expenses. NOTE: Money figures are expressed in U.S. dollar equivalents. FOAM NO. 1121 (5-76) TECHNI C A L D A T A PROJECT: COUNTRY: TOTAL COST: Niena Dionkele Rice Development Upper Volta $7.2 mi 11 ion • IDA FINANCING: $6.S mi 11 ion , standard IDA terms OTHER FINANCING: Government of Upper Volta, $70Q,OOO IMPLEMENTING ORGANIZATION: Ministry of Rural Development Onagadsugo, Upper Volta Telex: 5222 UV PROJECT DESCRIPTION: It will consist of (a) a production component to improve a representative portion of swampland by developing 400 hec- tares (ha) of the North Dougo swamp for single crop rainfed rice production and 2,160 of upland crop; providing management staff, a trained extension service, and promoting •.. better farming through improved husbandry, credit, farm inputs, oxen, and equipment; con- structing and operating two farm service centers an.cl promoting a Niena Dionkele Coopera- tive Society; establishing a field trials unit with demonstration, seed production, and training functions; establishing and operating a research substation to undertake re- search in project-related matters; and (b) support for the rice industry by strengthening the Ministry of Rural Development with technical assistance, including a monitoring and and evaluation uni.t; studying further development of the project area and of the national rice industry; and strengthening the management of the Kou Valley rice mill and provi~ion of possible physical improvements. PROCUREMENT: Procurement of civil works for drainage, land clearing, and deep plowing, houses, and offices (total ing_$1.9 mil- lion) will be by competitive bidding in accordance with local procedures, which are accep- table to the Association or, with the agreement of the Association, by force account. Vehicles and equipment (totaling $0.5 million), including equipment required for civil works undertaken by force account but excluding farm d~aft equipment, wil.1 be procured through i"nternational competitive bidding in accordance with the Association guidelines · for contracts over $100,000; through competitive bidding in accordance with local proce- dures which are acceptable to the Association for contracts between $30,000 and $100,000; and by competitive shopplng for contracts less than $30,000. Farm draft equipment for sale on credit or cash (totaling $200,000) will be procured by competitive bldding in accordance with local procedures. Farm .inputs including fert11izer and urea (totaling $100,000) will be procured from the Textile Fiber Cqmpany or by competitive bidding in accordance with local procedures in the case of contracts less than $30,000 and $100,000 or by com- petitive bidding shopping for contracts less than $30,000. Domestically manufactured • goods will be allowed a preference of 15% of the c.i .f. price or the level of applicable import duty j.f 1ower. . .. I  - 2 - • CONSULTANTS: (1) Five internationally recruited consultants for 15 man- years will be required. These are a rice industry advisor, a senior evaluation officer~ a rice ITTill manager, a Cooperatives specialist, and a deputy project manager; {2) Four senior Voltaic staff for 11 man-years. Inter-· nationally recruited staff and consultants will be obtained following procedures accepable to the Association. ECONOMIC RATE OF RETURN: 9% ESTIMATED COMPLETION DATE: 1985 - 0 - • •