Announcement of Madagascar Receives Second IDA Credit for Livestock and Rural Development on February 25, 1982

• f • • • :. FO~ IMMEDIATE RELEASE · . • World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 82/38 Contact: Pushpa Schwartz February 25, 1982 (202) 477-5306 MADAGASCAR RECEIVES SECOND IDA CREDIT FOR LIVESTOCK AND RURAL DEVELOPMENT Beef cattle production and rural living conditions in Madagascar will be improved with the assistance of the International Development Association (IDA). The World Bank affiliate has approved a second credit, of SDR 12.8 million ($15 million), for a village livestock and rural development project in Mahajanga province in Western Madagascar. With about 1.1 million people, Mahajanga is one of the countr1 1 s principal livestock producing regions. It has over 3 million head of cattle, about one third the national herd. Although some cash cropping is practiced, most families cultivate small plots of rice and cassava for subsistence. Livestock production is the most important activity in the southern part of the region. Under a first project, a veterinary and extension service was set up to serve about 500 villages in the province~ Vaccinators are selected and trained to serve • in their home areas~ This system will now be extended throughout the province to serve about 1,350 villages. A pilot animal production scheme, covering 40 villages, will also be introduced. In addition, surface water storage points will be constructed in 35 villages and up to 80 wells will be dug to provide permanent sources of drinking water for the human population. To provide access from the primary road system, up to 100 kilometers of all-weather roads will be constructed and road maintenance improved. Because the country lacks stocks of veterinary products, imports of veterinary supplies costing up to $3.5 million will be financed by the IDA credit. The govern- ment will gradually increase its foreign-exchange allocations for these imports, covering all needs after three years. Technical assistance will be provided to the Livestock Development Agency for Western Madagascar, which has the major responsibility for the project. The IDA credit of SOR 12.8 ma11ion to Madagascar is repayab1e over 50 Y.ears including 10 years of grace; it is interest-free but carries a service charge of 3/4 of 1% a year to help cover administrative costs. The International Fund for Agricultural Development will provide $8 million on terms similar to IOA. 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 SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit. FORM NO. 1121 (5-76) T ECHNI CAL DA T A PROJECT: COUNTRY: TOTAL COST: Second Village Livestock and Rural Development Madagascar $25.83 mi11ion • IDA FINANCING: SDR 12.8 million ($15 million), on standard IDA terms OTHER FINANCING: International Fund for Agricu1tur~l Development, $8 million; Governme~t of Madagascar, $2.83 million IMPLEMENTING ORGANIZATION: Livestock Development Agency for Western Madagascar (FAFIFAMA) Ferme d'Etat-FAFIFAMA Bd. Marcoz E~P. 371, Majunga, Madagascar TELEX: 62718 FAFIFAMA M6 PROJECT DESCRIPTION: In Mahajanga province, t_he project wi 11 . ~q. continue and extend: i) the basic animal health program; ii) a pilot animal production program togeth 7r with related development of rural roads and water supply; and iii) management and material suppor~ to FAFIFAMA; and in the. livestock sub-sector, the project provides for imrorts of.veterinary.products and of ment and materials for veterinary services; technical assistance to. improve the or~anaz tlon of the. sub-sector and its institutions, applied research, studies, documentation, and training. PROCUREMENT: Contracts for the supply of vehicles, equipment, and veterinary products exceeding $120,000 will be awarded after international competitive bidding in accordance with IDA guide1ines. Such contracts are expected to total about $6.7 1:-·!llioh.Ccintracts for civil works estimated at $0.8 million will be advertised 1oca11y. Road and water supply works,construction,and maintenance estimated at ~5-3 million wi11 be carried out on force account by FAFIFAMA's public works department. Con- tracts for materials and equipment costing less than $120,000 but more than $40,000 (totaling $2.3 million) will fo11ow 1ocal competitive bidding procedures, whi1e items cost- ing less than $40,000 will be procured through local shopping. CONSULTANTS: Specialized staff, such as a sociologist/economist and hydro- geo1ogist, will support FAFIFAMA: and 60 man-months of inter- nationally recruited consultant services wi11 be provided for the technical assistance component. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 34% 1987 - 0 - •