Announcement of Rural Development Project in Colombia to Receive Fifty-Three Million Dollars Loan on June 10, 1982

<>' .. - - - I,. • t, ' .. :, -" ( 4 21._1 0 t't FOR IMMEDIA Tl. RELFASf • • - • ' I' • .;.m··.Q··· .. ·.·· .. ···. ·.-.·. . ·.· . . . ,"·,··, . {J ' \1\/orfd Bank 1818 H Street, N.W., Washington, D.C.20433, u:s.A.•TelepH:q,ne: (202} 4_77-1234 BANK NEWS RELEASE NO. 82/118., Contact: (,',. Ciro Gamarra "June 10, 1982 (202) 477-8034 RURAL DEVELOPMENT PROJECT ,IN COLOMBIA · TO '"~CE I VE $53 MI LL ION LOAN Some 35,000 smallholder farmers are expected to benefi.t from a rural development project in Colombia, to t>e implemented'-'with assistance from.·a World Bank loan ;;of $53 ~illion~ T~is is the se~ond rural tjevelopment project i~Colombia to b~ supp6rted by the bank. ~ ,\I Besig,t% providing as~istance for increasing t'he agricultural productivity, , employm~nt, and incomes pf farm fami 1 ies in the central and southern, reg ions of the cciuhtfy~ the $173.2 million project will also finance the expansion of water supply, e)ectricity, health, and edUCijtional fad 1ities. \\ To achieve the.se aims, the project will begin developmentc~orks in 55 municipali- ties and wil 1 consolidate work begun in 154 other municipalities under the first rural d'evelopment project in ,the country to receive World Bank-assistance.· The first project, which was supported by a $52 million loan approved in 1976, has helped to increase crop yield for pa~tioipating farmers bi at least 30%. Under the second ruraJ development project, loans tq farmers will finance seasonal cr6p production and livestock maintenance, medium-and long-term investments in crops, livestock, machinery, tree planting, "and fish ponds, and home improvement and electrification. Credit wil 1 also be ava'ilable to farmers' associations for marketing and for small-scale food processing industries. The annual .incremental production of food crops and 1ivestock products to be generated by the project is estimated at $75 million. This incremental production wJ 11 _,help slow down imports of certain products (maize, dairy products, and cocoa) . and increase the amount of rice, sugar, and beef ava i 1ab 1e fo'r ex.port. :i, Overall coordination of the project wi11 be carried out by the Departamento Naciona1 de )laneacion. Planning and execution will be ~ccomplished, as in the first proj~ct, through a dozen 'executing agencies to be supported,by a series of committees at different levels which are to include local staff of the executing agencies and representatives of the communities. The project wi 11 also in'Clude the construction or improvement of 540 kilometers of rural roads, provision of electricity to 4,800 households, the upgrading of educational facilities and health care units, and the provision of drinking water to benefit 126 rural communities. The World Bank loan is for 17 years, including four years of grace, with interest :'.at 11.6% a year; the loan also carries an annual commitment charge of 0.75% on ; . ~ undisbursed balances, and includes a fron~-end fee of 1.5% on the amount of the loan. NOTE: Money figures art expressed in U.S. dollar equivalents.