Announcement of IDA Provides Eleven Million Dollars to Senegal for a Small Rural Operations Project on April 7, 1980

~ : FOR IMMEDIATE RELEASE . eNorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/25 Apri 1 7, 1980 IDA PROVIDES $11 MILLION TO SENEGAL FOR A SMALL RURAL OPERATIONS PROJECT The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved an $11 million credit to Senegal for a project to support the development of a number of small rural operations. Under the project, funds and technical services will be channelled to small groups of rural producers who wi11 contribute labor, and some funds, for a variety of productive activities. Among these will be the development of small farm areas for irr,igated cultivation of rice, vegetables, and bananas, beekeeping, and fishing. Village water supplies will also be improved. The project also provides an allocation of $3 million for additional small operations to be identified and ~repared during implementation. ~ A Project Unit to be created in the new Department of Small Rural Projects of the Ministry of Human Affairs will be responsible for carrying out the operations already appraised, and for preparing additional projects. One of the most important project benefits will be the establishment of an institutional framework to encourage and support local initiatives in preparing and executing small rural investments. The productive activities to bP. financed under the project are expected to riase the incomes of about 42,000 people; in addition, about 100,000 people will benefit from improved village water supplies. Nearly all the project beneficiaries now have incomes at or below the relative poverty level. The total project cost is estimated at $14.1 million. In addition to the IDA credit, project financing will be provided by the French Fonds d'Aide et de Cooperation in the amount of $0.4 million for technical assistance services, and by a Senegalese contribution of $2.7 million. The $11 mill~on IDA credit to Senegal is for 50 years, including 10 years of grace. It is interest free, but will carry a service charge of 3/4 of 1% per annum to cover IDA's 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: Small Rural Operations Senegal $1 4 . 1 mi 11 ion • IDA FINANCING: $11 million, standard IDA terms OTHER FINANCING: Fonds d'Aide et de Cooperation, $0.4 mil lion; Government of Senegal, $2.4 million; Banque Nationale de Developpement du Senegal, $0. 1 million; and $0.2 million in contributions from project beneficiaries. IMPLEMENTING ORGANIZATION: Project Unit Department of Small Rural Projects Ministry of Human Affairs Administrative Building Dakar, Senega 1 PROJECT DESCRIPTION: The project will channel funds and technical services to small groups of rural producers who will undertake to provide labor, and some funds, for the development of severai types of directly productive activities, i.e., development of small perimeters for irrigated cultiva- tion of rice, vegetables, and bananas; beekeeping; and fishing. The project will also provide for village water supplies, an allocation of $3 mill ion for additional • directly productive activities to be identified and prepared during implementation, and for the establishment of a management structure. PROCUREMENT: Contracts for civil works under this project will be small and are not 1 ikely to attract foreign bidders; procurement for civil works (estimated to aggregate $4 mill ion) will be by competitive bidding through local procedures acceptable to IDA. Procurement of vehicles and equipment (estimated cost $3.9 million) will be through international competitive bidding in accordance with Bank/lDA guidelines in the case of contracts over $100,000 (approxi- mately $2. 1 million); competitive bidding following local procedures will be used for contracts between $25,000 and $100,000 (approximately $1 .6 million); for contracts less than $25,000 (approximately $0.2 million), competitive shopping will be employed. Domestically manufactured goods will be allowed a 15% preference over the c.i .f. price of imports or the applicable import duty, whichever is lower.· Other small investments, for example, surveys, initial upkeep of banana perimeters, and tree planting ($0.4 mill ion) will be undertaken by force account by the responsible technical service agencies as specified in their contracts with project management. Well-deepening and construction ($1. 1 million) will also be undertaken by force account, with materials and supplies procured by competitive bidding through local procedures. CONSULTANTS: Services of an internationally recruited agricultural economist, a works manager for village water supplies, and locally recruited consultants for specialized services will be obtained following procedures acceptable to IDA. ECONOMIC RATE OF RETURN: 14% ESTIMATED COMPLETION DATE: 1984 - 0 - •