Announcement of China to Receive World Bank Support for Land Reclamation on April 21, 1983

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. 83/65 Contact: Sundaram Sankaran IDA NEWS RELEASE NO. 83/64 ( 202) 477-3653 Ap ri 1 2 1, 19 83 CHINA TO RECEIVE WORLD BANK SUPPORT FOR LAND RECLAMATION China's efforts to reduce its foodgrain deficit will be assisted with funds from the World Bank. A loan of $35,,3 million from the International Bank for Reconstruction and Development (IBRD) and a credit of SDR 41.3 million ($45 million) from the International Development Association (IDA) will help finance a land reclamation project in northeastern China. The project will be carried out in Heilongjiang province, which is considered to be the granary of China. As a result of the project, the annual production of wheat, maize, and soybean will increase by 440,000 tons. The increased production will come from some 200,000 hectares of unused land. Surface drains and access roads will be constructed on 75 farming units which range in size from 1,000 to 10,000 hectares. ~ Advanced farm machinery, including 500 tractors and 200 self-propelled combines, will be introduced to improve farming techniques. The $271 million project will also support the government's objectives of modernizing farm mechanization by providing farm managers, operators, and technicians. Because the long winters in Heilongjiang permit cultivation of only one grain crop, mechanization is needed to perm.it cropping in a very short time. Eight new seed-processing plants to serve the project area plus an additional 200,000 ha will improve seed development and production. It is expected that at full development in 1991, about 15,000 full-time jobs will be created. The People's Republic of China will contribute $74.3 million toward the project. The Heilongjiang General Bureau and the participating state farms will supply $49.1 million and $67.3 million, respectively, toward p.roj ect cos ts. The first IDA-assisted agricultural project, which benefitted from a credit of $60 million approved in June 1982, is providing drainage and irrigation for nine counties in the North China Plain. The IBRD loan is for 20 years, including five years of grace, at an interest rate linked to the cost of Bank borrowings. The loan also carries an annual commitment charge of 0.75% on undisbursed balances and a front-end fee of 0.75% on the amount of the loan. The IDA credit is for 50 years, including • 10 years of grace; it carries no interest but has a small annual service charge (0.5% on the undisbursed balances of the credit and 0.75% on the disbursed balances). NOTE: Money figures are expressed in U.S. dollar equivalents.