Announcement of IDA Credit to Benefit Rural Development in Benin on May 4, 1981

"FOR IMMEDIATE REL~ASE ~world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE N0.81/70 May 4, 1981 IDA CREDIT TO BENEFIT RURAL DEVELOPMENT IN BENIN The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a credit of SDR 15.7 mill ion ($20 mill ion) to Benin to finance a rural development project. The project, located in Borgou Province in the northeastern section of the country, will support the expansion of cotton and foodcrop production through the streng- thening and support of technical institutions, rural extension services, farmers' cooper- atives, training and social services. The project is expected to increase the productivity and incomes of small farmers by consolidating the farmers' cooperative movement and by introducing farmers to an ef- ficient credit system, improved seeds, and additional ox-drawn cultivation equipment. Also included are the rehabilitation of some 500 hectares of bottomlands and the recon- struction or construction of 130 village wells by labor-intensive methods. • The Centre d'Action Regionale pour le Developpement Rural in the Borgou Province (CARDER) wi 11 implement the project. CARDER will also benefit from reorganization, tech- nical assistance and staff training, which are expected to enhance the effectiveness of its field operations with farmers and its social service activities. Some 39,000 farm fami1 ies, about 50% of the Borgou Province population,are ex- pected to be reached by the project at full development. The increased production of feed cotton, maize, sorghum, groundnuts, and cowpeas will yield about $11 .3 mill ion in additional annual real income to participating farmers. Foodcrop research and improved cultivation practices will also provide long-term benefits to the area. Co-financing amounting to $14 mil 1 ion is provided by the International Fund for Ag r i cu 1tura 1 Deve 1opment . The IDA credit is for 50 years, including 10 years of grace. It will bear no interest, but will carry a service charge of 3/4 of 1% per annum to cover the Associa- tion's administrative expenses. The credit will be committed when funds are available. 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 th~ SDR amount of the IDA credit reflects the exchange • rates existing at the time of negotiation of the credit . FORNI NO. 1121 ('5-76) T E C H N I CA L DA T A PROJECT: Borgou Province Rural Development COUNTRY: Benin TOTAL COST: $41 mill ion IDA FINANCING: SDR 15.7 mill ion ($20 million), standard IDA terms OTHER FINANCING: International Fund for Agricultural Development (IFAD), $14 million; Government of Benin, $7 million IMPLEMENTING ORGANIZATION: CARDER-Borgou (Centre d 1 Action Regionale pour le Developpement Rural ) Ministry of Rural Development and: Cooperative Action(MDRAC) Boite Postale 34 Porto Novo, BENIN PROJECT DESCRIPTION: The project will expand the area's agricultural production through strengthening and support of institutions and of technical infrastructure, integrated with improved extension, cooperatives, training, and social services. PROCUREMENT: Contracts of $100,000 or more will be awarded through international competitive bidding in accordance with World tit Bank/I DA guidelines. Goods and services so procured will total about $9 million and include vehicles, seed processing equipment, fertilizer, and pesticides. Purchases will be grouped whenever possible. Contracts for goods and services below $100,000, but more than $50,000, for small types and limited numbers of equipment, vehicles, and supplies, will b.e procured through local competitive bidding procedures acceptable to IDA, while those of less than $50,000 wi 11 be on the basis of quotations from not fewer than three suppliers. Contracts for construction of buildings and dams will, because of their dis- persed nature, be awarded through locally advertised competitive bidding procedures ac- ceptable to IDA. Contracts for short-term studies and training courses abroad will be obtained in accordance with procedures acceptable to IDA. CONSULTANTS: About 34 man-years of technical assistance will be required for CARDER-Borgou: a technical deputy project manager; a financial controller, whose duties will be internal audit and technical assistance to local staff; a chief ~ccountant; a seeds production specialist; an input supply, credit, and marketing specialist; and a training specialist; for Societe Nationale pour la Production Agricole (SONAGRI), a financial controller, and a chief accountant; for MDRAC, an agroeconomist in project monitoring and evaluation, and for research, a cotton research specialist, and a foodcrop research specialist. All of these experts, in positions of two to four years, will be expected to train their Beninese counterparts. Short-term consultancies for SONAGRI, the animal traction extension unit, and agricul- tural research, totaling about three man-years, will also be needed. ECONOMIC RATE OF RETURN: 21% ESTIMATED COMPLETION DATE: 1986 - 0 - •