Announcement of IDA to Support Agricultural Credit Project in Papua New Guinea on May 22, 1981

. . . _FOR IMMEDIATE RELEASE . eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 4i 7-1234 IDA NEWS RELEASE NO. 81/89 May 22, 1981 IDA_TO SUPPORT AGRICULTURAL CREDIT PROJECT IN PAPUA NEW GUINEA The International Development Assdciation (IDA) announced today the approval of a credit of SOR 12.3 mill ion ($15 mill ion) to Papua New Guinea for an ~gricultural credit project. The project is designed to improve the standard of 1 iving of about 10,000 farm families, by providing a line of cr~dit for increased tree crop, pork, and poultry production, and support services for field development of the main agricul- tural commodities. The Papua New Guinea Development Bank will use funds from the IDA credit to make sub-loans for the development of such tree crops as coffee, cocoa, oil palm and rubber, as well as for pig and poultry enterprises. The agricultural support services will focus on coconut development, including the creation of additional hybrid seed gardens, demonstration/observation plots, and distribution of hybrid seeds to • estates and smallholdings . . About 5,000 fami 1 ije~ will be involved in the production·of pork and poultry. At full development, poultry production under the project is expected to represent 25% of national production; pork production will supply about 20% of the need in the vicinity of Lae and the capital city of Port Moresby. Most of the project beneficiaries wi 11 be families with incomes at or only slightly above the absolute per capital poverty income level. The agricultural credit project will provide the basis for balanced development and increased economic activity in those areas wher~ most of the rural population 1,ive. The IDA credit to Papua New Guinea is for 50 years, including 10 years of grace, and is interest-free, except for a service charge of 3/4 of 1% per annum, to cover IDA 1 s administrative costs. The credit will be committed when funds are available. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights) which are valued on the ba~;is of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing at the time of the negotiation of the credit . •