Announcement of World Bank Supports Dominican Republic’s Cocoa and Coffee Rehabilitation on June 25, 1981

FOR IMMEDIATE RELEASE .world Bank 1WI 8 H Street, N.W., Washington, D.C 20433, U.S.A.• Telephone: (202) 477-1234 [~NK NEWS RELEASE NO. 81/ 124 June 25, 1981 WORLD BANK SUPPORTS DOMINICAN REPUBLIC 1 S COCOA AND COFFEE REHABILITATION D01·,,i.iican Republic's cocoa and coffee production, extensively damaged by hurricanes in 1979, will be rehabilitated with the assistance of a World Bank loan of $24 mill ion. The cocoa and coffee development project assisted by the Bank is aimed at increasing production and exports of these commodities, benefiting mainly small-scale producers. The $40 mi11 ion project will seek to improve productivity and incomes of small-scale cocoa and coffee producers by providing them with technical assist- ance through the Ministry of Agriculture and credit through the Agricultural Bank to finance on-farm development plans. The project covers the main cocoa and coffee growing regions of the coun- try most affected by hurricanes and tornadoes. It is estimated that 5,600 hectares (ha) of cocoa plantations were severely damaged and 30,000 ha partially affected in 1979- Current coffee yields in the project area dropped from an • average of 300 kilograms (kg) per hectare (ha) to 9r k9 per ha followin~ the hurricanes . The project includes the rehabilitation and replanting of about 16,000 ha of cocoa and coffee plantations distributed among some 9,800 farms. Estab- 1 ishment of about 22 cocoa nurseries and 52 cof'-ee nurseries will be done by the Ministry of Agriculture. Another 520 coffee nurseries will be established by private industry. The direct beneficiaries of the project will be about 9,800 small-scale farmers with an average farm size of 2.3 ha for cocoa and one ha for coffee. Practically all beneficiaries will fall within the relative poverty group for the Dominican Republic, with an average per capita income of less than one- third the national average. At full development, the project wili require annually an additional 3,300 full-time jobs. The $24 million World Bank loan to the Dominican Republic is for 17 years, including 4 years of grace, with interest at 9.6% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E C HN I C A L 0 ATA PROJECT: COUNTRY: TOTAL COST: Cocoa and Coffee Development Dominican Republic $40 million • BANK FINANCING: $24 million for a term of 17 years, including 4 years of grace, with interest at 9~6% per annum OTHER FINANCING: Government of the Dominican Republic, $12.4 mill ion; beneficiaries, $3.6 million IMPLEMENTING ORGANIZATION: Secretar(a de Estado de Agricultura Centro de las Heroes Santo Domingo Cable Address: Secretar(a de Republica Dominicana Estado de Agricultura Centro de las Heroes Santo Domingo Rep~blica Dominicana PROJECT DESCRIPTION: It includes: (a) rehabilitation of about 4,600 hectares {ha) of cocoa plantings distributed among 2,000 farmers; (b) replanting of about 6,400 ha of cocoa plantings among 2,800 farms; replanting of about 5,000 ha of coffee distributed among 5,000 farms; (d) provision of 1,000 cocoa fermentation boxes and 300 sun-drying facilities to cocoa farmers and of about 4,000 depulping machines to coffee farmers; (e) establishment of 22 cocoa nurseries and 52 coffee nurseries by the Ministry of Agriculture and about 520 private coffee nurseries; (f) reinforcement of the support services of the Ministry of Agriculture and the Banco Agrfcola; and (g) monitoring and evaluation of project activities. • PROCUREMENT: International competitive bidding will be required for the procurement of vehicles and equipment directly im- ported by the Ministry of Agriculture and the Banco Agr(cola, amounting in the aggregate to about $500,000 whenever the size of individual contracts exceeded $100.000. Similar type of contracts of $100,000 or less will be awarded in accordance with the borrower's internal procurement procedures, which include local competitive bidding and are acceptable to the Bank. CONSULTANTS: About 60 man-months of consultant services and overseas training will be required under the project to improve the technical capability of the staff and to assist in solving production and market~ ing problems. ECONOMIC RATE OF RETURN: 61% ESTIMATED COMPLETION DATE: 1985 - 0 - •