Tunisia - Northwest Agricultural Production Project

Document of The World Bank FOR OFFICIAL USE ONLY ,v ,&K 23-o I-S Report No. P-3954- . REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO uS$I5.0 MILLION TO THE REPUBLIC OF TUNISIA FOR A NORTHWEST AGRICULTURAL PRODUCTION PROJECT February 20, 1985 Thi docmaent bm a restricted distrbutim and may be used by recipients only in the performance -f their oficial duties. Its contents mdy not otherwise be disclosed without World Bank triznion.  CURRENCY EQUIVALENTS Currency Unit = Tunisian Dinar (D) The exchange rate of the Tunisian Dinar is floating. The rate which is used in the Staff Appraisal Report approximates the current rate. It is: 1 US $ = DO.73 1 D = US $1.37 FISCAL YEAR January 1 - December 31 ACRONYMS AND ABBREVIATIONS BNT = National Bank of Tunisia CCDA = Central Agricultural Development Commission CC'GC = Central Cooperative for Field Crops CRDA = Regional Agricultural Development Commission COCEBLE = Ceatral Cooperative for Wheat CTV = Local Extension Center DGPC = Highway Department FAO/CP = World Bank/Food and Agriculture Organization Cooperative Program MOA = Ministry of Agriculture OC = National Cereal Board OEP National Livestock and Range Agency T&V = Training and Visit System UTCP = Production Cooperative  FOR OMCAL USE ONLY REPUBLIC OF TUNISIA NORTHWEST AGRICULTURAL PRODUCTION PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of Tunisia Beneficiary: National Bank of Tunisia (BNT) Amount: US$15.0 million equivalent Terms: 17 years, including 4 years of grace, at the standard variable interest rate Onlending: The Government would onlend US$8.0 million of the Bank loan to BNT on terms and conditions satisfactory to the Bank. These terms and conditions would be determined on the basis of an action plan, satisfactory to the Bank, covering national credit issues, to be adopted by the Government by June 30, 1985. Disbursement of these funds would be subject to adoption of this action plan. Project Description: The proposed project would help alleviate the constraints to increased production of cereals and livestock products in Northwest Tunisia by strengthening extension and research in the area, and improving supportive infrastructure. The project would have an import substitution impact and increase farm incomes. The project would consist of provision of extension, research and livestock services, farm machinery testing, rural roads upgrading, project management, training, technical assistance, studies and credic for on-farm investments, seasonal inputs and input resale centers. The project would raise the incomes of about 4,500 farmers and 24 production cooperatives. The risk that farmers might adopt the new project technology more slowly than expected is minimized by projection of realistic adoption rates and by ensuring the adequacy of incentives and the availability of inputs on credit. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents nay not otherwise be disclosed without World Bank authorization.  -ii- Estimated Project Costs a/; Local Foreign Total -US$ Million Extension 1.7 1.2 2.8 Research 0.3 0.3 0.7 Livestock Services 1.1 0.7 1.8 Farm Machinery Testing 0.2 0.2 0.4 Rural Roads 2.4 1.9 4.3 Project Management 0.2 0.0 0.2 Training, Technical Assistance, Studies 0.5 1.3 1.7 On-farm Investments 5.5 5.2 10.7 Seasonal Inputs 2.1 1.1 3.1 Input Resale Centers 0.7 0.3 1.0 Base Cost 14.6 12.3 26.9 Physical Contingencies 1.5 1.3 2.7 Price Contingencies 5.0 3.3 8.3 Total Project Cost 21.1 b/ 16.8 37.9 b/ Financing Plan: Local Foreign Total USS MKllion --- World Bank - 15.0 15.0 Belgium - 0.2 0.2 BNT 5.4 1.6 7.0 Beneficiaries 3.2 - 3.2 Government 12.5 - 12.5 Total 21.1 b/ 16.8 37.9 b/ Estimated Disbursements: Bank FY 1986 1987 1988 1989 1990 1991