Announcement of Agricultural Research and Extension Project in Peru to Receive World Bank Support on May 24, 1982

FOR IMMEDIATE RELEASE .world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/95 Contact: Ciro Gamarra May 24, 1982 (202) 477-8034 AGRICULTURAL RESEARCH AND EXTENSION PROJECT IN PERU TO RECEIVE . WORLD BANK SUPPORT Poor farmers in Peru with little or no access to extension services will be major beneficiaries of a project to be carried out with the support of a $40.6 million loan from the World Bank. This $83.9 million project wi11 help rebuild the country's agricultural research and extension services. To achieve this, consultant services as well as facilities, vehicles, and equipment will be provided to INIPA, the National Institute for Agricultural and Livestock Research and Extension. This will help strengthen INIPA 1 s national level program, as well as its activities in northern Peru, one of the country's most important agricultural areas which covers 40% of the country's cultivated land (1.4 million hectares) and yields over 45% of the value of its farm production. As the three main agro-ecological zones of the country can be found in the area, techniques and practices that prove effective in the area should be of value throughout the country. Some 445,000 farm fami 1 ies 1ive in the northern f>eru project area which covers the departments of Piura, Tumbes, Lambayeque, Cajamarca, La Libertad, and Ancash. With the help of improved extension work, these farmers could expect a substantial increase in their incomes from the production of food crops such as rice and corn and the cotton and sugar grown for export. To promote agricultural research, the project area will be provided with seven new research stations and construction facilities for 11 stations together with vehicles, machinery, and equipment. INIPA will be provided with consultant services to introduce the Training and Visit System. The system calls for frequent in-service training of extension workers and regular scheduled visits to farmers• fields. For carrying out the extension work, the project area will be provided with administrative,buildings, about 80 facilities for extension workers to use as com- bined office and residence, and some 650 vehicles and equipment in addition to the 75 vehicles for research station use. Consultant services will also be made available to strengthen INIPA's national level administrative, planning, and support services. The World Bank loan is for 17 years, including four years of grace, at 11.6% per annum. It also carries an annual convnitment charge of 0.75% on undisbursed balances, and includes a front-end fee of 1.5% on the amount of the loan. NOTE: Money figures are expressed in UftS. dollar equivalents.