Announcement of IDA Approves Seventeen Million Fifty Thousand US Dollars Credit for an Agricultural Extension and Research Project in Nepal on February 5, 1981

FOR ·IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/43 _ February 5, 1981 IDA APPROVES SDR 13.8 MILLION ($17.5 MILLION) CREDIT FOR AN AGRICULTURAL EXTENSION AND RESEARCH PROJECT IN NEPAL The international Development Association (IDA) has approved a credit of SDR 13.8 mill ion ($17.5 million) to the Government of Nepal for an agricu?tural extension and research project in Nepal. IDA is the soft- loan affiliate of the World Bank. The project, which has a total estimated cost of $20.85 mil lion, wil 1 reorganize and strengthen the agricultural extension service, and upgrade and develop adaptive research in eight administrative districts • of the Nepal Terai. This is expected to result in early and sustained improvement in agricultural production, particularly of foodgrains. The IDA credit wil 1 finance the provision of additional staff, equipment, machinery, and other inputs for the extension services a~d four regional research stations. Technical assistance wil 1 be provided through consultants and in- service and overseas training of project staff. A monitoring and evalua- ·tion system will also be established. The Government of Nepal and the United Nations Development Programme will contribute $2.7 million and $650,000, respectively, towards the cost of the project. The IDA credit is for 50 years, including 10 years of grace. It carries no interest but wi 11 bear a service charge of 3/4 of 1% a year to cover administrative expenses. 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 rates existing at the time of negotiation of the credit. - 0 - FORM NO. 1121 (5-76) T EC HN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Agricultural Extension and Research Kingdom of Nepal $20. 85 mi 11 i Ori • IDA FINANCING: SDR 13. 8 mi l 1 ion ( $17. 5 mi 11 ion), s ta nda rd I DA terms OTHER FINANCING: Government of the Kingdom of Nepal, $2.7 mil 1 ion; United Nations Development Programme, $650,000 IMPLEMENTING ORGANIZATION: Ministry of Food and Agriculture Kathmandu, Nepal PROJECT DESCRIPTION: The project wil 1 improve agricultural production, particularly foodgrains, in eight of the 20 administrative districts of the Nepal Terai. The project wil 1 comprise: (a) reorganization and strengthening of agricultural extension services; {b) strengthening and reorientation of applied and adap- tive research; (c) strengthening the coordination between research and extension servic~ (d) establishment of regular monitoring and evaluation procedures; (e) local and averse~ training of staff, studies, and provision of consultants; (f) establishment of regional training centers, and offices and housing for field staff; (g) facilities, equipment, and vehicles to support extension and training programs; and (h) provision of fertilizer. PROCUREMENT: Equipment and vehicles involving contracts above $50,000 and all procurement of fertilizer will be on the basis of interna- tional competitive bidding in accordance with World Bank/lDA guide] ines. Orders of less than $50,000 wil 1 be purchased through local procedures satisfactory to the Association. Civil works ($3.8 mil lion) will be small and scattered throughout the project area, wi 11 not attract foreign contractors and wil !,therefore, be let on the basis of local proce- dures satisfactory to the Association. CONSULTANTS: The following consultant services will be obtained in accor- dance with procedures acceptable to the Association: (a) 6 man-months, Agricultural Research; (b) 12 man-months, Farm Development; (c) 15 man-months, Extension Management; {d) 9 man-months, Extension Communications; (e) 6 man-months, Manage- ment Advice to Agricultural Inputs Corporation; and (f) 5 man-months, Management Advice to Agricultural Development Bank of Nepal. ECONOMIC RATE OF RETURN: 50% ESTIMATED COMPLETION DATE: 1986 - 0 - •