Announcement of IDA Credit to Support Rural Development in Burundi on June 18, 1981

.,. "' . FOR IMMEDIAT ELEASE - Worlrl • - - - . . -· R;:1nk .. .-..,.. "". .... 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 fDA NEWS RELEASE NO. 81/105 June 18, 1981 IDA CREDIT TO SUPPORT RURAL DEVELOPMENT IN BURUNDI The International Development Association (IDA) has approved a credit of SOR 16.2 million ($19.3 million) to Burundi for a rural development project. IDA is the World Bank's affiliate for concessionary lending. The project is designed to improve coffee and foodcrop production in six communes of the densely populated provinces of Gitega and Muramvya in central Burundi. The area, with a total population of 320,000, has a tropical climate moderated by altitude, which allows a wide variety of crops. Agricultural extension services in the project area will be strengthened through on-the-job training of extension workers. The extension program for coffee includes the distribution of fertilizers, pesticides, and seedlings, the establishment of demonstration plots, and the training of farmers in improved methods of coffee cultivation, erosion control, and pesticide application. • The extension services for foodcrops will emphasize improved seeds, the use of fertilizers, techniques of sowing, spacing, and weeding, and the control of diseases and pests. Funds from the IDA credit will finance the construction and equipping of six coffee washing centers and 12 hand pulping centers. These facilities will help improve the quality of processed coffee from the semi-washed to the fully washed category, a grade which attracts higher prices in international markets. A forestry program, also included in the project, involves planting 2,000 hectares of land with trees to provide much-needed fuelwood, as well as poles and timber for building. An erosion control scheme will include planting of anti-erosion hedges, controlled burning, controlled grazing on communal land, and tree planting. The road network will be improved to facilitate the transportation of coffee. The improvements include the construction of about 25 small bridges and about 10 kilometers of new access roads, as well as the maintenance of the most frequented roads. The water supply will also be improved by the construction of about 180 new spring facilities and wells, and by the training of the exten- sion workers charged with their maintenance and supervision. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which • are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rate existing at the time of negotiation of the credit.  - 2 - A number qf pilot activities will be carried out to test the feasibility • of future programs in such areas as livestock services, farmers' cooperatives, foodcrop storage and marketing, development of swampy areas, and social and nutrition centers. The project is expected to help some 28,000 farm families increase their incomes by about 30%, and to achieve a better standard of 1 iving through im- proved water supply, social services, and availability of fuel. The IDA credit is for 50 years, including 10 years of grace, and is in- terest-free, except for a service charge of 3/4 of 1% per annum, to cover IDA's administrative costs. The credit will be committed when funds are available. - 0 - • • FORM NO. 1121 l5-76) T E C HN I CA L D A T A • PROJECT: COUNTRY: TOTAL COST: Kirimiro Rural Development Burundi $21.4 million JOA FlNANCING: SDR 16.2 million ($19.3 million), standard IDA terms OTHER FINANCING: Government of Burundi, $2. 1 million IMPLEMENTING ORGANIZATION: Kirimiro Regional Development Company B.P. 2200. Bujumbura, Burundi PROJECT DESCRIPTION: The project will raise coffee and foodcrop production through: {a) a program of extension services and agri- cultural inputs; (b) construction and equipping of six coffee wash!ng stations and of 12 hand pulping centers and improvement of the operation and ma1ntenanc~ of all • hand pulping centers; (c) afforestation and eros!on cont~o~ ~easures; (d). improve- ment of the road and water supply network; (e) pilot act1v1t1es; (f) studies, re- search, training, and project monitoring; and (g) technical assistance. PROCUREMENT: For the supply of fertilizers and pesticides, individual contracts exceeding $100,000 will be awarded on the basis of international competitiv~ bidding (ICB) in accordance with World Bank guidelines. Contracts over $100 .00 for materials, tools, vehicles and equipment 1 other than washing stations will also be awarded after ICB. Equipment for the washing stations will be purchased from the suppliers of previous s·tations. Con- tracts valued at less than $100,000 will be awarded following the procurement procedures of the Burundian government, after quotations from all suppliers rep- resented in Burundi. Civil works will be carried out by force account. CONSULTANTS: Consultant services required will include: {a) a deputy manager of the Kirimiro Regional Development Company {KRDC) for 66 months, as well as experts to head the KRDC's accounting and finance department {66 months), the rural development department (54 months), the construction department (54 months) and the technical department (54 months). A training and extension specialist is also required for the training of extension staff. • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETiON DATE: 18% 1986 - 0 -