Announcement of Madagascar to Improve Agricultural Institutions with IDA Credit for Technical Assistance on May 20, 1982

. ~ FOR iMMEDIATE RELEASE . /. I • World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 82/75 Contact: Pushpa Schwartz May 20, 1982 (202) 477-5306 MADAGASCAR TO IMPROVE AGRICULTURAL INSTITUTIONS WITH IDA CREDIT FOR TECHNICAL ASSISTANCE Mad1gascar will improve its agricultural institutions with technical assistance supplied through an SDR S.2 million {$597 million) credit from the International Development Association (IDA), the World Bank's affiliate for concessionary lending. Improvements in agricultural planning to be made under the $6.7 million project will lay the basis for increased agricultural production, a vital need in Madagascar where ag1·icultural exports account for 80% of export earnings. At present, the expanslion of production has fallen below the population growth rate and the country, once a net exporter of rice, can no longer satisfy domestic needs. Under the project, technical assistance, staff training, and logistical support will be provided to the Department of Studies and Programming of the Ministry of Agricultural Production and Agrarian Reform to reinforce its planning • capabilities and to prepare a three-year lnvestment plan covering the period 1984-86 • To help solve the stagnation in rice production, a single ric~ coordinating unit under the Minh.try of Agricultural Production and Agrarian R,~form wi 11 be created to take over responsibilities currently shared by several ministries. The unit wi 11 have a phinning and fol low-up function focusing on problems of general environment, product:ion, marketing, and pricing. Technical assistance will be provided for project preparation. Priority will be given to projects which maximize the return on existing investments and improve the management of current operations. Further project assistance includes financial and management audits and management improvemeint programs for selected parastatals with responsibility for rice production, studies on rice marketing, and input distribution systems. Under the project, support will be given to the agricultural research institute,and manage- ment improvement programs wi11 be provided for the Ministry of Agricultural Production and Agrarian Reform an~ the Rural Development Service of Antananarivo. The IDA credit is for SO years, including 10 years of grace; it carries no interest but bears a small service charge of 0.5% on the undisbursed balances of the credit, and 0.75% on the disbursed balances. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are • valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit. i:::r, t r r r