Announcement of World Bank Supports Forestry Development Project in Tunisia on May 11, 1993

FOR IMMEDIATE RELEASE World Bank 1818 H Screet. N.W.. Washin5ton. .C. 20433. U.S.A. Telephone: (202477-1234 BANK NEWS RELEASE 93/92 MENA CONTACT: Jean-Marie Yamine (202)473-2318 WORLD BANK SUPPORTS FORESTRY DEVELOPMENT PROJECT IN TUNISIA Washington, D.C., May 11, 1993 -- The World Bank announced the approval of a $69 million loan to the Government of Tunisia to support its Second Forestry Development Project. The project is aimed at promoting the management and sustainable development of Tunisian forests. Project costs, estimated at a total of about $148 million, will also be shared by the government of Tunisia, the African Development Bank (ADB), and the project's beneficiaries. The Tunisian government will provide close to $74 million, with the beneficiaries and the ADB contributing about $4 million and $700,000 respectively. The World Bank's $69 million loan is for 17 years, including 5 years grace, at the Bank's standard variable interest rate. The project encompasses several components ranging from forest management to the establishment of plantations in the National Forest Estate (NFE) and on private farmland, and private sector support through training and technical assistance. The forest management component calls for forest regeneration and thinning, execution of infrastructure such as firebreaks, housing, roads, and observation towers, and preparation of management plans covering 85,000 hectares. About 25,000 ha of new plantations will be established, under the project, in the National Forest Estate. Nearly 5,000 additional hectares of plantations will be established on stream banks and private farmland. A third component of the project calls for the improvement of forest pasture and range through the establishment of new prairies, fodder plantations, and cactus plantations. This is to compensate for the temporary closing of areas subject to new forest plantation and regeneration. Studies on fuel wood and wood processing, among others, are called for in yet another project component, as is the provision of training programs in wood exploitation, treatment and sawing. A final project component is the strengthening of institutions such as the Forestry Department (DGF) and the regional governmental forestry agencies. NOTE: Money figures are expressed in U.S. dollar equivalents