Zambia - Southern Province Agricultural Development Project

Document of The World Bank F COPY FOR OFFICIAL USE ONLY Report No. P-3113a-ZA REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF ZAMBIA FOR THE SOUTHERN PROVINCE AGRICULTURAL DEVELOPMENT PROJECT November 16, 1981 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Zambian Kwacha (K) US$1.25 = K 1.00 US$1.00 = K 0.80 GLOSSARY OF ABBREVIATIONS AFC - Agricultural Finance Company CFC - Cattle Finance Company CSB - Cold Storage Board DPB - Dairy Produce Board LINTCO - Lint Company of Zambia MAWD - Ministry of Agriculture and Water Development NAMB - National Agricultural Marketing Board PAO - Provincial Agricultural Officer PCUs - Provincial Cooperative Unions PEMO - Provincial Extension Management Officer PPS - Provincial Permanent Secretary RDC - Rural Development Corporation SEC - Supervisory and Evaluation Committee SPCMU - Southern Province Cooperative Marketing Union Limited ZADB - Zambia Agricultural Development Bank GOVERNMENT FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY ZAMBIA SOUTHERN PROVINCE AGRICULTURAL DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY BORROWER Republic of Zambia BENEFICIARIES : Southern Province Cooperative Marketing Union, Limited (SPCMU) and Zambia Agricultural Devel- opment Bank (ZADB) AMOUNT SDR 15.9 million (US$18.0 million equivalent) TERMS : Standard RELENDING : To SPCMU: US$8.2 million for infrastructure, procurement of incremental inputs, vehicles and staff, for 20 years, including five years of grace, with interest at not less than 11 percent per annum (SPCMU to provide increment- al seasonal input requirements to smallholders on credit with interest at 11 percent per an- num); and US$0.2 million as a grant for tech- nical assistance for credit administration. To ZADB: US$0.6 million for incremental smallholder credit on terms to be determined when ZADB becomes operational. PROJECT DESCRIPTION: The proposed project aims at increasing crop and livestock production and raising farm in- come levels in the Southern Province by in- creasing the use of modern inputs by small- holders and improving marketing facilities. It provides for credit to smallholders, im- provement of input and storage and extension services, including veterinary services and tsetse control, and technical assistance for strengthening SPCMU-s credit administration capability. At full development, the project would lead to increased production of maize, cotton, ground- nuts, sunflower seed, soybeans and beef. The realization of expected benefits would depend on the effectiveness of the implementing agen- cies and the pace at which farmers adopt im- proved husbandry practices. This document has a restricted distribution and may be used by recipients only in the performance of their omcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  ESTIMATED COST: Local Foreign Total ~US -000