Burundi - Kirimiro Rural Development Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-3079-BU REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF BURUNDI FOR A KIRIMIRO RURAL DEVELOPMENT PROJECT May 28, 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 - Burundi Franc (FBu) US$1.00 - FBu9O FBul - US$0.011 ABBREVIATIONS BCC - Burundi Coffee Company ILO - International Labor Organization ISABU - Institut des Sciences Agronomiques du Burundi (Burundi Institute of Agricultural Sciences) OCIBU - Office des Cultures Industrielles du Burundi (Burundi Industrial Crop Development Office) RDC - Regional Development Company FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY BURUNDI KIRIMIRO RURAL DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Burundi Amount: SDR 16.2 million (US$19.3 million) Terms: Standard IDA Terms Beneficiary: Kirimiro Regional Development Company (RD") Relending Terms: Grant Project Description: (i) Objectives: (a) assist smallholders to improve the productivity of coffee and foodcrop cultivation; (ii) improve the quality of exported coffee; (iii) improve rural living conditions by building or maintaining water sources, improving the road network and developing wood resources to be used for fuel and building; and (iv) strengthen the RDC's management capability through training and technical assistance . (ii) Components: (a) a program to provide extension services and agricultural inputs; (b) construction and equipping of 6 coffee washing stations and of 12 handpulping centers and improvement of the operation and maintenance of all handpulping centers; (c) afforestation and erosion control measures; (d) improvement of the road and water supply network; (e) pilot activities; (f) studies, research, training and Project monitoring: and (g) technical assistance. (iii) Benefits: 28,000 farm families would receive assistance for coffee and foodcrop development. The annual incremental cash income per farmer is exDected to average ahout TTSt 3n. The foodcrop component would result in better nutrition for the families benefitting from it. The water supply and social services activities would improve rural living standards. The reafforestation and erosion component would assist in controlling soil degradation and providing wood for fuel and building. This document has a restricted distribution and may be used by recipients only in the performance of their ofiMcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  (ii) (iv) Risks: (a) possible weaknesses of extension services with the risk that the technical package might be adopted by the farmers at a slower rate than expected; (b) possible delays in implementation resulting from problems in selec- ting internationally recruited staff and/or from slow delive- ry of materials; and (c) possibility that institutional and technical innovations might lapse following the investment period. The Project has been designed to minimize these risks, in particular through institution building, flexible annual work programs and a training component to strengthen extension services. Estimated Costs 1l Local Foreign Total