Announcement of World Bank Project to Promote Agricultural Development in Barbados on February 27, 1987

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. 87/40 Contact: Ciro Gamarra (202) 477-5320 WORLD BANK PROJECT TO PROMOTE AGRICULTURAL DEVELOPMENT IN BARBADOS WASHINGTON, February 27 -- The World Bank will lend $4 million to Barbados to help finance a project designed to improve the diversity and viability of the agricultural sector. The project will include an agricultural sector study; strengthening of research in the sector; extension and marketing services; and provision of credit for agro-industries to develop non-sugar crops. In addition, the project will assist the government in formulating, defining, artd implementing agricultural development in Barbados. Research will be conducted involving the technical and economic feasibiility of producing non-sugar crops, and in obtaining an appropriate balance between the sugar and non-sugar subsectors which will increase the production of and income from non-sugar crops. The project will continue the work of a previous technical assistance project and will include work on vegetable production, mechanized farming, and irrigation. It will also increase the emphasis on farm economics and budgeting, cotton production and marketing; and initiate work on the commercial aspect of flower production. Over the medium- to long-term, the project aims at strengthening the economy, and will lead to improvements in farmers' incomes, together with gains in Barbados' balance of trade. Other financing for the $5.8 million project will be provided by the government ($500,000), financial intermediaries, ($300,000), and contributions by subborrowers ($1 million). The World Bank loan is for 15 years, including three years of grace, with a variable interest rate, currently 7.92 percent, linked to the cost of the Bank's borrowings. It also carries an annnual commitment charge of 0.75 percent on the undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.