Announcement of IDA Assists Agricultural Project in Sierra Leone on May 4, 1981

.: fOR IMMEDIATE RfilEASE · tWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/72 May 4, 1981 IDA ASSISTS AGRICULTURAL PROJECT IN SIERRA LEONE The International Development Association (IDA), the World Bank's soft-loan affiliate, has approved a credit of SDR 6.9 million ($8.5 million) for an integrat- ed agricultural development project in the Northern Province of Sierra Leone. This is the second phase of a project which was initiated in the North in 1976, and the fourth project to assist agriculture in the country. It was prepared by the Gov- ernment of Sierra Leone and~ the \iorld Bank/Food and Agriculture Organization of the United Nations Cooperative Programme. Under the project, the total cost of which is $27.7 million, the development of upland and swampland rice, groundnuts> and maize, which covered 4,900 square kilo- meters (km2) under the earlier project, will be extended to reach farmers in an ad- • ditional 8,500 km2 area. Fruit tree cultivation and livestock production will be introduced. Over a five-year period, the project wi 11 provide agricultural inputs, credit, extension services, feeder roads, village wells, and technical assistance. The technical assistance wi 11 support internationally recruited staff studies, forestry research, and staff training. A small project monitoring and evaluation will be established at the project headquarters. The increased food production from this project is expected to result in a sizable annual net foreign exchange saving as Sierra Leone is a net food importer. By 1990, the incremental annual output of rice and groundnuts is expected to total $7 million or more (in constant 1980 prices), net of foreign exchange costs of farm inputs. The incremental production of other commodities--maize, cassava, mixed vegetables, other crops, citrus, and livestock--is expected to total $2.4 million or more on the domes- tic market. The planting of fruit trees and the construction of bunds and other measures wi 11 help counter soil erosion on the uplands. Some 13,500 farm families, or 40% of all rural families under the two project phases in the Northern Province, are expected to earn significantly higher incomes under the various crops and livestock improvement and credit programs. At present these families' earnings are below the relative poverty threshold for Sierra Leone. Farm employment is also expected to increase by 1.5 million days by the time of full development of the project. Other benefits from road and well improvements will go to nearly 50% of the rural families living in the project areas covered by the two project phases . • 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 equiv- alent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit.  -2- Co-financing for this project is being provided by the African Development Fund ($8.5 million), the International Fund for Agricultural Development ($6 mil- lion), and the United Nations Development Programme in the form of a $2 million grant for technical assistance. The IDA credit to Sierra Leone is for 50 years. It is interest-free but car- ries a 3/4 of 1% service charge a year to cover IDA's administrative costs. The credit will be committed when funds are available. -0- • • FORM NO. 1121 (5-76) T E C HN I CA L DA TA PROJECT: Northern Integrated Agricultural Development I I COUNTRY: Sierra Leone TOTAL COST: $27.7 million I DA FI NANC I NG : SOR 6.9 million ($8.5 million), standard IDA terms OTHER FINANCING: Government of Sierra Leone, $2.7 million; African Develop- ment Fund, S8.5 mi 11 ion; International Fund for Agricultural Development (IFAD), $6 million loan; and United Nations Development Programr.1e, $2 million grant IMPLEMENTING ORGANIZATION: Project Management Unit Ministry of Agriculture and Forestry Northern !ADP Makeni, Sierra Leone Cable: PEMSU, Freetown, Sierra Leone PROJECT DESCRIPTION: It will, over a five-year period, increase food production· and farm incomes by expanding the assistance to small farm- ers begun under a Phase project in the Northern Province. Development of upland and swampland rice, groundnuts, and maize started under the earlier project, which covered 4,900 square kilometers (km2), will be extended to reach farmers in an additional 8,500 km2 area. Fruit tree cultivation and livestock promotion will be introduced. The proj- • ect will provide for agricultural inputs, credit, extension services, feeder roads. vil- lage· wells, and technical assistance . PROCUREMENT: All goods and services financed under the IDA credit and IFAD loan will be procured in accordance with World Bank/lDA guidelines. Contracts valued at $75,000 or more, for vehicles and equipment ($1 .5 mil- lion) and for fertilizer ($1 .2 million), will be procured through international competi- tive bidding (ICB). Purchases wi 11 be grouped into packages of at least $75,000 whenever possible. Contracts for items estimated at less than $75,000 but more than $10,000 ($1.5 million) will be procured through local competitive bidding procedures acceptable to IDA, or through limited ICB. Contracts of less than $10,000, for small items such as fuel, spare parts, office supplies, tools, transportation of farm inputs, pesticides, and seedlings ($5.2 mil lion), will be procured thro~gh limited local tendering based on at least three quotations. Materials for village wells and workshops wil 1 be procured under the above procedures, and the construction wi 11 be carried out under force account. Contracts for buildings ($0.3 million), due to their small sizes and dispersed locations, will be awarded on the basis of local competitive bidding. Domestically manufactured goods will be allowed a preference of 15% over the c.i .f. price of imported goods or the level of applicable import duty, whichever is lower. CONSULTANTS: The project provides for international recruitment of a proj- ect manager, a senior agronomist for the seed multiplication unit, a senior accountant, chief engineer, and a livestock training officer. Consultants will also be engaged to assist fn carrying out a baseline survey over a one-year period for the purposes of project mon(toring and evaluation. The qualifications, terms, and • conditions of employment of the consultants will be satisfactory to IDAe ECONOMIC RATE OF RETURN: 21% ESTIMATED COMPLETION DATE: 1987 -0-