CIRCULATING COPY

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CIRCULATING COPYTO BE RETURNED TO REPORTS DESK Report No. P-1671-LBR

REPORT AND RECOMMENDATION

OF THE

PRESIDENT

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED CREDIT

TO THE

REPUBLIC OF LIBERIA

FOR A

LOFA COUNTY AGRICULTURAL DEVELOPMENT PROJECT

July 9, 1975

This report was prepared for offical use only by the Bank Group. It may not be published,quoted or cited without Bank Group authorization. The Bank Group does not acceptresponsibility for the accuracy or completeness of the report.

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CURRENCY 1QUIVALENT

The official monetary unit is the Liberiandollar, with a par value equal to that ofthe U. S. dollar. The U.S. dollar is legaltender in Liberia.

FISCAL YEAR

January 1 - December 31

ABBREVIATIONS

USAID - United States Agency for InternationalDevelopment

LBDI - Liberian Bank for Development and Investment

INTERNATIONAL DEVELOPMENT ASSOCIATION

REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE

EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE

REPUBLIC OF LIBERIA FOR A LOFA COUNTYAGRICULTURAL DEVELOPMENT PROJECT

1. I submit the following report and recommendation on a proposed

development credit to the Republic of Liberia for the equivalent of US$o.0

million on standard IDA terms to help finance an Agricultural Development

Project in Lofa County. The United States Agency for International

Development (USAID) is making a parallel loan of US$5.0 million; the loan

would have a term of 40 years, including 10 years of grace, with 2 percent

interest during the grace period and 3 percent during the following 30

years.

PART I - THE ECONOMY

2. An economic mission visited Liberia in March 1973. Its report

"Liberia: Growth with Development - A Basic Economic Report" (No. 426a-LBR

dated March 1, 1975) has been distributed to the Executive Directors. Country

data sheets are contained in Annex I.

3. During the 1950s and 1960s Liberia experienced an unprecedented

rate of economic expansion, averaging close to 7 percent in real terms. This

rapid expansion has enabled the Government, for the first time in the country's

150-year history, to undertake significant investments in essential economic

and social infrastructure.

4. The growth has been essentially based on foreign enclaves -- iron

ore mines, rubber plantations and forestry concessions -- with few linkages

between the concessions and the rest of the economy. As a result, the benefits

of growth have been unevenly distributed. Annual repatriation by foreigners

of profits and savings equals about 20 percent of gross domestic product;

about 4 percent of the Liberians have per capita income levels above US$3,000,

while the vast majority are near subsistence level with incomes below US$100.

To help redress this imbalance the Government proposes to increase its earnings

from the enclaves and use the resources to diversify the economy with increased

participation of Liberians.

5. To help achieve these objectives, the Government is preparing a

national development plan for the period 1976-1979. In this exercise, it is

assisted by a planning team financed jointly by the Bank, UNDP, USAID and the

Government (President's Memorandum R74-61 of March 25, 1974). Further improve-

ment of public administration, the availability of foreig_n c*pItal and

technical assistance will, in large part, determine the size of the public

development program. The Government has initiated a major effort to improve

its administration and increase its capacity to plan and implement investment

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programs. The United States, the Federal Republic of Germany and theBarik Group have been, and. are expected to remain, the principal sources ofexternal capital. UNDP and USAID are expected to be the main donors oftechnical assistance grants.

Recent Trends (1970-1974)

6. With the transition from the 28-year rule of President Tubman tothe new admiriistration of President Tolbert in 1971, the Government initiateda number of necessary fiscal reforms, including tighter expenditure controland renegotiation of concession agreements. This action has resulted in asignificant improvement of the Government's fiscal performance. Nonetheless,the economy, particularly the non-enclave sectors, has been under severestrain since 1970. Initially this was caused by uncertainty in the privatesector following the change in administration, and was accentuated by thefact that rubber -- which, in addition to being an enclave industry, is.alsothe principal export crop of Liberian farmers -- experienced a price deterio-ration cluring 1970-1971 and again in 1974.

7. The economic setback in the non-enclave economy has persisted untilthe first months of 1975 because of the continued contraction, in real terms,of the public sector and a significant, almost completely imported, inflation.Three key items illustrate this inflation. First, rice: the domestic retailprice for a 100 lb bag in March,1973 was about US$10; at the end of 1974 itwas US$25. Rice is the staple food of Liberians and dominates the cost ofliving index. Second, the impact on internal transportation of higher petroleum.prices; this has produced an increase of about 40 percent in the price fortransporting goods and people. In addition, the. cost of power has also goneup. Third, the price of imported machinery and equipment has increased signifi-cantly in the past two years. This, in turn, has seriously affected overallinvestmant costs, particularly in agriculture and road building.

8. On the export side, each of the three major exports -- ru-bber,timber an(d iron ore -- has been affected differently in the past two years.Rubber prices rose during 1973 and peaked in early 1974, dropping sharplythereafter as the recession in industrial countries set in. In the timberindustry, demand has continued unabated for choice primary species, but hasfallen off significantly for secondary ones. In the iron ore sector, thegeneral shortage of raw materials experienced in 1974 and the relativeaccessibility of Liberian ores have enabled the concessions to negotiatecompensation for higher energy costs and a further increase in the contractprices for 1975 (30 percent higher for ore, 50 percent for pellets). At thesame time, serious interest is being expressed by foreign groups in thedevelopment of three more iron ore deposits in Liberia. In the most optimisticscenario, all three will be in production by the mid-1980s, doubling thenational output from the present annual 24 million metric tons to close to50 million. Concession agreements for two of these new iron ore mines arealmost completed. While this would certainly be a welcome development, itdoes not lessen the need to pursue a development strategy of diversification.OpenLing of new iron ore mines will only delay the inevitable decline of thissector by a decade or so.

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9. Owing in part to a successful program of fiscal reform implementedby the Government, the fiscal picture for Liberia looks reasonably good forthe next five or six years. Manpower constraints are likely to be the maindevelopment bottleneck in the immediate future.

Balance of Payments and Creditworthiness

10. Since Liberia uses US dollars as the medium of exchange, balanceof payments analyses are at best tenuous. In the 1964-1972 period exportsgrew at 10 percent and imports by 5.9 percent annually. Thereafter, from1972-1974, following international inflation, imports rose by 29 percentannually, exceeding the export growth of 22 percent a year. Oil irnportsincreased from US$12 million in 1972 to US$56 million in 1974. Nevertheless,Liberia achieved a trade surplus of US$96 million in 1974 which was more thansufficient to offset a deficit on current invisibles.

11. External public debt outstanding and disbursed was estimated atUS$155 million in December 1974. The debt service ratio was 5.3 percent in1974, as compared to 7.1 percent in 1972. The ratio is projected to fallfurther in the next few years as final portions of heavy debt incurred in theearly 1960s are paid off. The Government has contracted little new debt inrecent years and most of it at concessionary terms. The proportion of out-standing debt owed to the Bank/IDA is currently about 15 percent of the total.Even with an expanded public borrowing program and assuming the most adverseexternal conditions, Liberia's debt service ratio through the 1 980s is estimatedto remain below 5 percent of exports. The country should, therefore, beregarded as creditworthy for some additional Bank lending:

PART II - BANK GROUP OPERATIONS IN LIBERIA

12. The Bank Group has made 10loans for projects in Liberia totalingUS$32.7 million; 3 IDA credits totaling US$11 million and one technicalassistance grant of US$200,000 for development planning (paragraph 5). IFChas made one equity investment: US$250,000 in the share capital of theLiberian Bank for Development and Investment (LBDI). The Bank loans havebeen for roads, port expansion, power and LBDI; the most recent operationwas a loan of US$1.8 million approved on July 8, 1975, to help finance atechnical assistance program in the power sector. IDA credits have been foreducation and agriculture. Annex II cantains a summary statement of Bankloans, IDA credits and IFC investments as at May 31, 1975, and notes on theexecution of ongoing projects.

13. The objectives of Bank Group operations are: (a) to increase theabsorptive capacity of the economy and enable Liberians to take greaterinitiatives in developing their own resources for the benefit of their ownpeople; (b) to support policies and programs leading to a broader sharing ofthe friits of economic progress; (c) to help the Government in broadeningthe economic base; and (d) to assist the Government in mobilizing developmentresources for sound projects from other external agencies.

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14. The proposed Lofa County Agricultural Development Project, which is beingco-financed by USAID, is an important step towards these objectives. Inaddition, a road project has been appraised and is expected to be submittedto the Executive Directors in the next few months. A second educationproject, a rubber rehabilitation project benefiting small indigenousplantations and an agricultural development project for Bong County are inpreparation. The Government is examining the possibility of convening aconference of donors for a coordinated program to assist the rural sector ofLiberia.

PART III - THE AGRICULTURAL SECTOR

15. The structure of Liberian agriculture is characterized by (a) foreignconcessions, (b) Liberian-owned commercial farms, and (c) small traditionalfarms that comprise more than 90 percent of agricultural holdings. Foreignconcessions are limited principally to large rubber plantations and loggingoperations. The Liberian-owned commercial farms primarily produce rubber, butthey are increasingly expanding into poultry, livestock, coffee, cocoa, oilpalm and rice. The traditional sector is largely outside the monetized economy,located in areas with minimal infrastructure.

16. The average income of the traditional smallholder is about $70 percapita, compared with a national average of about $250. Traditional agricul-ture is based on staple crops, such as rice, and occasional cash crops suchas cocoa, coffee and oil palm. The value of total agricultural output rosefrom an estimated US$68 million in 1964 to US$95 million in 1972 -- an annualincrease of almost 5 percent in real terms. However, most of this growthwas in rubber, forestry and fisheries; traditional agriculture grew by amodest 2.4 percent a year in real terms between 1964 and 1972.

17. Production of food marketed for cash by farmers is estimated tohave grown at 3 percent per annum in recent years. This rate fell short ofdemand, which was rising 7 to 9 percent a year because of population growth(3 percent per annum) and the increase in disposable incomes in the modernsector. As a result, Liberia's dependence on food imports has increas2d, therice deficit alone increasing from 2,600 tons a year in the 1949-1953 periodto about 45,000 tons in recent years. Liberia also imports meat, sugar andwheat flour.

18. The Government has, in recent years, shown genuine concern forsmallholders and has been assisting them in increasing rice and tree cropproduction for the market. Initially, the Government undertook semi-mechanized land clearance and settlement in the interior. This producedlimited results,and the Government is now designing several integratedagricultural development projects for improving the health, education andproduction capability of smallholders. Two such projects -- in Upper Lofaand Bong counties (see map) -- have been prepared by consultants financedunder the first agricultural credit (Credit no. 306-LBR of May 1972). TheUSAID is helping to improve rural health facilities in these areas,and theproduction program, as in the project under consideration, is closelylinked to health support under a complimentary USAID financed project.

Similarly the educational needs of the rural population are proposed to bemet under the IDA-assisted education projects (Credit no. 305-LBR of May 1972and another in preparation), CARE and local self-help programs. Transportationsupport is being provided under crop extraction and trunk road programsfinanced by the Bank Group, the UNDP, USAID and Germany. Thus, the LofaCounty Agricultural Development Project is an integral part of a comprehensiverural development program being launched by the Government in consultationwith several aid donors. It is intended to mark the beginning of significantinvolvement of the people of the interior in the national development effort.

19. Simultaneously with this effort, the Government is also studyingmeasures for promoting commercial plantation agriculture on the Ivorianpattern. The Government is conscious of the need to diversify the economy toadjust to a declining minerals sector within the next few decades (paragraph8) and wishes to promote a plantation program with the help of external aidagencies. However, this is still in a design stage,and it is too early toevaluate its likely impact on Liberian agriculture.

PART IV - THE PROJECT

20. The Government commissioned the services of consultants (Agrar undHydrotechnik of Germany) to prepare the project in Lofa County and requestedIDA and USAID for financial assistance. The project was appraised in January,1975, and a report entitled "Appraisal of Lofa County Agricultural DevelopmentProject" (No. 744-LBR dated June 27, 1975) is being circulated separately tothe Executive Directors. A Credit and project summary is presented in AnnexIII. Negotiations took place in Washington on June 3 and 4, 1975. The Liberiannegotiating team was led by Mr. Louis Russ, Deputy Minister of Agriculture.

Project Objectives

21. The project has two major objectives: (a) to raise the income andimprove the quality of life of some 8,000 of the poorest farm families inLiberia (each with average holdings of less than 4 hectares) through improvedcultivation practices, better transportation, provision of reliable watersupplies and disease control, and (b) to help establish sound, reliableinstitutional and technical support agencies for implementing this and futureprojects for smallholders. The risks involved in such a project are not incon-siderable. The project site is in a relatively remote section of the country.The intended beneficiaries typically work by traditional methods, barelyparticipate in the market economy, live in poor social conditions and subsiston a modicum of food production from their farms. The risks are worth taking,however, since the Government of Liberia is now firmly committed to small-holder development and seems willing to consider bold, innovative measures tohelp achieve that objective. A similar project across the border from LofaCounty in Sierra Leone, financed by the Association (Credit 323-SL of June 30,1973) and involving peoples of similar tribal and economic backgrounds, hasbeen successful. The Lofa undertaking is the result of careful planning andis regarded by the Government as a model for future projects.

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Project Content

22. Specifically, the project will include the following elements:

provision of seasonal and development credit to assist project farmers

develop and improve production of 5,600 hectares of upland rice, 1,900

hectares of swamp rice, 2,800 hectares of coffee and 2,300 hectares of

cocoa; construction of 100 viLlage wells; provision of a schistosormiasis

surveillance unit; construction and operation of staff and farmer training

centers; recruitment and training of Liberians for extension, cooperative

credit and project management; introduction of an agricultural credit system

through new institutional arrangements such as creationi of a special revolving

fund and the establishment of a branch of the Liberian Bank for Development

and Investment at the project center in Voinjama (see map)!

23. During negotiations, assurances were obtained from the Government

that it would construct up to 100 km of new feeder roads in the project area,

rehabilitate up to 500 km of existing feeder roads, and maintain the main

primary road through the project area as an all-weather road (Section

5.04 of Draft Credit Agreement). It is proposed that -this road component

be financed under the Third Highway project, which will be submitted shortly

to the Executive Directors (paragraph 14). However, if for some reason

tins assistance is not forthcoming, the Government itself has agreed to

provide $1.5 million for the road work. As stated earlier,the project is

part of a wider area development program in Lofa County. Other features of

the program include: (i) Lofa County rural health project, a comprehensive

health improvement program assisted by USAID and costing US$5 million over

the years 1975-1979; (ii) educational reform and extension under

the Government's "Connunity Schools Program", for which assistance is

proposed under the next IDA education project; and (iii) a rural water supply

and sewerage program assisted by Germany, UNDP and WHO. The institutional

aspects of this project (paragraphs 26 and 27) are des:Lgned to coordinate

development activities in the region and to harmonize production programs

with welfare activities so that effective continuity will be maintained in

the post-project period.

Project Cost and Financing

24. Total cost of the project is estimated at US$17.0 million, net of all

identifiable taxes and duties, during the five-year development period, 1976-1980.

The foreign exchange component would amount to US$7.8 rmillion (46 percent of

total project cost) and would be financed partly by IDA (US$4.8 million) and

partly by USAID (US$3 million). The balance of the IDA credit (US$1.2 million)

and USAID loan (US$2 million) would finance local costs. Despite the measures

taken to improve the fiscal situation, the Government is not in a position to

fully finance the local costs of its stepped-up development program and the

IDA and USAID loan proposals reflect the fact that some financing of local

costs by external lenders is required, particularly for high priority projects

in sectors such as agriculture where the foreign component of project costs

tends to be relatively low. A total of US$6.0 million (or 35 percent of the

project cost) would be financed by the Government of Liberia. Formal authoriz-

ation and effectiveness of the IJSAID loan is expected shortly and will be a

condition of effectiveness of the credit (Section 7.01 (a) of the Credit

Agreement). The following tables summarize project costs and their financing.

-7-

A. Estimated Project Cost by Categories

(Thousand US Dollars)Local Foreign Total

Infrastructure 847.3 849.2 1,696.5Farm Inputs 2,348.6 1,360.0 3,708.6Farmer Support Services 3,263.5 3,076.8 6,340.3Technical Assistance 60.0 190.0 250.0Contingencies 2,730.6 2,274.0 52004.6

Total 9,250.0 7,750.0 17,000.0

(% Share) (54) (46) (100)

B. Summary of Proposed Financing

(Thousand US Dollars)Govt. of

TlA USAID Liberia Total

Infrastructure 876.5 338.5 481.5 1,696.5Farm Inputs - 2,076.8 1,631.8 3,708.6Farmer Support Services 3,354.5 1,119.2 1,866.6 6,340.3Technical Assistance 210.0 40.0 - 250.0Contingencies 1,559.0 1,425.5 2.020.1 5,004.6

Total 6,000.0 5,000.0 6,000.0 17,000.0

25. The USAID loan would mainly finance the credit component for farminputs (fertilizer, pesticide, seeds, farm tools and equipment, and hiredlabor for swamp development) and related technical assistance, administrationand construction costs. It would also finance the schistosomiasis surveillanceunit and dormitory facilities for training. IDA will finance the extensionservice, well drilling program and other project items. Details are inAnnex III.

26. A project management unit would be established with headquartersat Voinjama. It would be headed by a project manager responsible, through aproject steering committee, to the Minister of Agriculture or his designee.The unit would consist of six divisions: administration and personnel;finance; -training; cooperatives and credit; land development; and agriculture.The project would be staffed by qualified local staff wherever possible, butbecause of shortages of experienced Liberians, certain key positions mayinitially have to be filled with expatriates. The expatriates will be givena timetable within which Liberian counterparts are to be trained to take overthe responsibilities. To facilitate operations of the project managementunit, a project bank account will be established by the Government with aninitial deposit of US$100,000. Opening of this account will be a conditionfor effectiveness (Section 7.01 (c) of the Credit Agreement).

27. A project steering committee and a prolect advisory committee wouldbe set up respectively to help ensure coordination: a among governmentdepartments and (b) among tribal heads and other leaders in the project area.The latter committee would consist of the Lofa County superintendent, paramountchiefs and heads of cooperatives in the area. The former committee wouldinclude the Ministers (or their Deputies) of Agriculture (Chairman), Finance,Planning, Local Government and Rural Development and would ensure interministerialcoordination in execution of the project. In addition, the Government will,in the context of a current study being carried out by the Minis,.ry of Agricul-ture, examine the possibility of establishing a rural development authorityto assume overall responsibility for execution of the project and to plan andmanage future rural developraent projects in the country. During negotiationsGovernment agreed that institutional matters involving the Ministry and theproposed rural development authority would be discussed with IDA within sixmonths of submission of the consultants' report (Section 5.02 of Credit Agreement).

Agricultural Credit and Marketing

28. The project would help strengthen four existing cooperatives inthe area, and rely on them for delivery of farm inputs and credit, and forproviding improved marketing facilities to project farmers. A revolvingfund for farm credit would be set up and administered by the Liberian Bankfor Development and Investment (LBDI) under an agreement between the Govern-ment and LBDI. A branch of LBDI would be established in the project areafor channelling credit funds through the farmer cooperatives. LBDI wouldlend to the farmer cooperatives, which, in turn, would advance developmentloans and seasonal credits to farmers. A credit advisory committee consistingof local chiefs, representative farmers, project and extension staff wouldscreen loan applications prior to PMl4 approval. LBDI would also introduce,for the first time, full banking facilities in the project area.

29. The total amount of credit per farmer, including incrementalseasonal credit, is not expected to exceed $1,000 and would enable smallfarmers to expand into permanent crops, swamp rice, coffee and cocoa, therebyreducing their dependence on the traditional shifting cultivation system.Development loans (3-12 years repayment, depending on the crop being developed,at 10 percent interest per annum) would be provided for swamp rice, coffeeand cocoa, to cover land development costs, hired labor (swamp rice only),farm tools and equipment, seedlings, fertilizer during establishment ofcoffee and cocoa, and agricultu,ral chemicals. Seasonal credit (at a flatservice charge of 10 percent l) would be provided for upland and swamp rice,coffee and cocoa for seed, fertilizer, agricultural chemicals and sprayers.The project revolving credit fund would be built up through repayments ofseasonal credits and development loans. At the end of the project develop-ment period in 1980, the fund would amount to an estimated $3.8 million(excluding interest income). In the credit scheme, a 3 percent margin (about8 percent on seasonal funds) would be provided to the farmer cooperatives tocover administration and bad debts. LBDI would receive a 2 percent commissionon disbursed credit.

1/ Equivalent to 15 percent per annum for average seasonalcredits with a maturity of eight months.

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Training

30. The project would provide a combination of short courses, inter-spersed with practical field instruction, for staff at all levels. A newtraining center would be established. Cooperative staff training in credit,input supply, marketing and management and organization would be undertakenby the project management unit. Farmer training would be provided thr xgh acombination of short residential farm family courses at the farmer trainingcenter, demonstration farms and farm visits. Emphasis would be placed onthe demonstration effect of the more progressive farmers.

Procurement and Disbursements

31. Procurement of vehicles, plant and equipment valued at more thanUS$25,000, and estimated to total US$0.9 million, would be financed by IDAthrough international competitive bidding. Domestically manufactured goodswould be allowed a 15 percent preference or the applicable duty, whichever islower, when comparing domestic bids with those of foreign manufacturers.Items valued between US$5,000 and US$25,000 would be procured on the basisof competitive bidding advertised locally and in accordance with proceduresacceptable to the Association. Contracts for items costing less than US$5,000would be procured through customary local procedures satisfactory to theAssociation.

32. Proceeds of the Credit would be disbursed over five years -- 1976to 1980 -- to cover 35 percent of total project costs. The IDA credit wouldbe disbursed against: (a) 100 percent of foreign or 80 percent of localexpenditure for vehicles and equipment not financed by USAID, for certain inter-nationally recruited staff and consultants services and for LBDI assistance;(b) 90 percent of expenditure for civil works and construction materials;(c) 90 percent of local expenditure for administation and operating costs.Retroactive financing of up to US$100,000 is proposed to cover the costs ofearly recruitment of the project manager, training and development controllerand agricultural manager prior to credit signature.

Project Benefits

33. The economic rate of return is estimated at 26 percent. At projectmaturity in 1987, incremental annual production would amount to 7,300 tons ofmilled rice, 2,500 tons of coffee and 1,600 tons of cocoa with a total foreignexchange benefit of US$9.3 million. About 8,000 farm families, with averageholdings of less than 4 hectares per family, would directly benefit. Theaverage net farm family income is estimated to increase from the present $313to $913 at project maturity. Apart from these direct benefits to participatingfarmers, the project would have important secondary benefits, largely unquanti-fiable, for the community as a whole from improved roads, banking, educationand health facilities, including improved drinking water supplies. The projectwould also strengthen the Agriculture Ministry's technical capabilities, itscooperative/credit extension, agricultural research, and project managementfor future development activities.

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PART V - LEGAL INSTRUMENTS AND AUTHORITY

34. The draft Development Credit Agreement between Liberia and theAssociation, the Recommendation of the Committee provided for in Article V,Section 1 (d) of the Articles of Agreement of the Association and the textsof the resolution approving the proposed credit are being distributedseparately to the Executive Directors.

35. -he conditions of effectiveness described in p&ragrnphs 2' an 29r.of this report are reflected in Section 7.01 (a) and (c) of the CreditAgreement. An additional condition of effectiveness would be the appointmentof the Project Manager and the managers of the Training and Agriculture Divisions(Section 7.01 (b) of the Credit Agreement).

36. I am satisfied that the proposed Development Credit would complywith the Articles of Agreement of the Association.

PART VI - RECOMMENDATION

37. I recommend that the Executive Directors approve the proposedDevelopment Credit.

Robert S. McNamaraPresident

Attachments

July 9, 1975

ANNEX IPage 1 of 3 Pages

ODUNTRY DATA - LIBERIA

ARE POPULhATIONINIT11-1,369q iel -T72-a'fII55 (mid-1972)

Per kbZSoT...able land

SOCIAL INDICATIORS

Reference CountriesLiberia (mac El Salvador Ja-ica.

i3w m-o ~~~1970 1970 1970 .

ON? PMR CAPITA U5$ (ATLAS RASIS) /I- 250/Iu 3(5 390/ 810/u.

DEMOGRAPHIC0fl-MrEflth ret.(p.,rthosard) .. S/bc 4 7/do 9/bf 35 /iCrude death rats (per thoummod) .. 21 775 i 7Ttf i77Infant mortality rate (par thousand live births) .. 159 Joc . $ 0/Life expeci.asy at birth (years) 37j 37t 7/e 53

Gosas reprudotim rata. Z2 2.o /d 3.2 3 9 /dr 2.5PoPalatios growth rate 7J .7 3.1 77 2.6 /h 3:2 7t~- 1.6 lhPopulation growth rate - urban .... 977 47- C 7)7

-19 3 7

7 16/hA 615-6b IIf)9 .9 51 71 99 65 end o-er 4.z- 10 17

Age dependency ratios/h 0fil 37)Economic dependency ratio A1 1.1 1.2 - iii !I 9 7 17

irban popelutiio as percentaof total . 2P /, 32 / 39 /b, 37 /kFamily piercing: No. of acoaptor..cumulative (thou.,.) __ __

No. of users (% of married -nqen) *..2 /a

E(PDYKENTTotal lbor force (thous.an ds) 90I /c S 3,56 r ,00 I Joc 750/

Percentage employed in agriculture 8l * 2 55 77 7 7-b 33T7Percntage unemployed 20 .. II 13-i9 77e

INCOME DISTRIBtUTIONPercent of national1 inomes recived by highest 5% .. 60 .. 20 JPercent ofntiona Throes. received by highest 20% ... .52 77Percent ofnattonal ioo- rsoeived by least 20% . . .a77Perocir of _tiuna1 incme rn...i-ed by lowest 40% .. 13 .. 13 77

MISTRIBUTION OF LAND OWNEERSHIP% cand by top 10% of ownrs ... 7$% c-and by sa1lent 10% of cnr ..

HEALTH AND NUTRITIONPopulation per physlrlac 12,000 /s 10,900/ 17,950 /t 9,030 2,630Poplation per nursing parson . 4 ,140 7t 1,070 77 960 1,720 /aPopulatine per hoepital bed 730 5 30 77 7601 520 790

Per "opita ralorie supply as 8 of reqoiremete 86 88 92 82 103Per capita protein supply, ntotl (grams per dayT-L 36 36 96 'I 56

Of ahich, acima1 and Poelee 10 Jr10 Jr I29 JrDeath rate 1-4 yearsn/7 29 / 217 lb: 7/b

EDUPCAT IONAdjuted /8 primary school enrollment ratio 38- 73A /a89 90 8(5IAdJusted 79 so-ondary school -nrolim-t ratio 2 12 5 id 93Teasrs of .eoliog provided, first and asend level 12 12 15 21312Voca.tional -orll-tn e. % of sac. school esrollment 12 5 23 31Jr 9A/0Adult 1litera cy rote % 9 /g.0b 32 /Is . 55 77.d 89 Wa

HOUSINOAverege No. of persons pe rcon (urban) 1./al .. 2. Jo aPercent of occpied units without piped wsatr 7. , OY7tdorese9 to electricity (as % of total population) . .17 39 7SbI7Perosot of fural population counected tn electricity 7 7T

CONSUMP-TIONLAT6- siorsper 1000 populatian 77 99 /b 05 I. 99 Jb 370 'Passenger core per l00 population 74~b 1 00. E,laEletric Powe cosuaptice (kwh p.. 119 /ai 36Ia 2d/ 1,3 /e

Newsprint ocosmuption p.o. kg par year .. 09 Ji/a .5f

Notes: Figure refer either to the latent periods or to occtfevrorsental temperature, body meights, andlthe latent years. Latent periods refer in principle to dlstributi-n by age are ea" of nati onal popolatloos.the yearn 1956-60 or 1966-70; the 1uteet years in prin- &6 Protein stedarde (req1 oir-eeta) for all coun.tries am estab-ciple to 1960 and 1970. Iishad by USDA Eac.... i RemeaCh Service provide for a ininaaI The Per Cepita DNP estimate is at -aket pricen for aflcoanee of 80 v-e,ns of total protein per day, and 20 grnam of

yrar sthr than 1960,. calculted by the ba ne overnico aninal antd poise protein, of which 10 gv-an should be enaiL1techicque as the 1972 World Each Atls.. protein. Theme standards are oceewbt 1see than those of 75

a2 Avrerge number of daughters per sea of reproductive v-ensa of tuta1 protein end 23 gv-an of animal protein as an.ge. avrgag for the world, proposed by PAD in the Third World Food

Z2 Popuiation groth rates -r for the decodes ending in Su-vY.1960 and 1970. /7 lone studies have suggested that crude death races of children

A Ratio af population under 15 end 65 and over to papufle- ages I through 9 nay be used as a first approximation index ofLion of ages 15-69 for age dependency ratio end to labor malnutrition.fares af ages 15-69 fur econeic dependency ratio. /8 Perm-toge enrolld of norreependlag population of school age

/j FAO refernc stadards rep-eent physiological re- ac defined for each onatry.quireceot far normal activity end health, taking

0c 072; /h 19711 /o Estimate base.d on the pooulation growth surey which co-e-cd io Yay 19•'9; Jd 156i-7t;

77- intimater If Registered onlY; 1~ 962; /h 1960-72; /i Town sub popolatioc of 5,00C and over; /J Adi&ioi-tr-tir- centers of runicipalitiec; /1A Kiogoten retrpoplitac aea and selected -oin trays: /1 Data ar baced 00 the

reuIto of the population growth curvey which covers five percent of the total popolation; I/ Ratio of popalotico under1$ and t5 and ac- to total labor force; In Localities having more than 2,000 inhabitanto; /o InclIudingj co-kerycopellrd from Hoodurao; /p Eocloden foretry; Iq Unemployed and partially eeploycd; /r T769; /s 964;

/t N-uee o- the regiuter, rot all wor king io the -ootrly; /u Per-noel io gnverrsent oericen only; /7 1969-66;T. 19cm-oh; Jo Dnclading pre-prinary ed-ction; /y Iscluden ocerage stdeeto; /A Rot includIng teacher t-roliog;7)7a 19o8; /ah-1$ yearn and over; /ac As percent of total school age Popolation; 7ad Definition ankown; /ae 19Sf,

city of Nerrtaony; /af Iota 7 ;

Ter to liring quart-rn; /L Inluciden police and ther goreronst uncurity vehiclec;/ah 1901.1

a Jamaica h.. boo selected as an objectine csntry Since ito GNP der capita isneocaly few' uses that of Lulbera; iticeooi stutre depeodo heavily cc the mining rector; both co...triec are encouragl::g fr-igo inucieetn..t; and

Liseia ct employmnt policy objecti-os tc L reach the curre.nt 1e-1 of Jneoaaic' manpower training.

JulY 9, 1975

ANNEX I

ECONOMIC IJEVIOPMNST DATA Page 7 of 3 Pages

(Amounts in msillions of U1.S. dollars)

Ac t ual Projeced 1995 - 1970 I- 1 91 17 1979-

NATiONAl. ACCOIOIIP 115 9 (_1) 1M 19791 L9~ 979 1.970 1975 1979 19- 193 17

3-Year ~Averea19 - 196( Prices & xchaCRte Average Annual Grow.th Rates As Percent of CDY

Gro,;rro,~sicProduct 29 ?. 2 36 7.6 4 2 .3 _43.2 _ 4. . . 61 h6 9

fas rom Terms of Trade (+) 1 1p ~ -. 32.2 .?9: -tt 5.5 3. 3 .8 96. 10~6 7

Gross Domestic IncoMe 306.3 358.6 9,17.2 920.9 980.6 560.0 6.2 2.1 5.9 100.0 100). 0 100.0

Import (tool. NFC) 123.0 129.0 193.6 135.2 176.7 220.6 2.7 - 0.9 10.3 40.2 36.9 399-

Extorts (imnort ca acts - 19I5.9 -1.2Q0±L- -ZQL. -1SL24a -1-L6 ~-23.&,? 6.5 -3.2 3.9 -_1L~ 9 -SJL±s -39s

Resource Gap- 22.5 -1 hi. - 63.4 - 59.5 - zO.0 - 15.7 21.2 - 9.9 -23.9 - 97.5 - 9.6 -L92.2

Cees-spLion Expenditures 22 3.2 293.1 281.0 292.6 317.3 393.8 3.0 2.9 3. - 7.3 - 1.2 - 2.8

loc-stmcent " (inloo,stocks) (0.6~ 59.1 65.8 68.8 193.9 200.6 0.7 0.3 23.9 72.9 69.0 Lu1i.

L-, esic Savings 83.1 115.5 129.2 128.3 163.3 216.3 7.1 0.1 11I.0 19.8 15.8 35.8,

Nationa Savings 23.1 51.5 68.9 73'.0- 111.3 156.0 19.o 5.0 163.9 92.7 84.6 97.2

M,EUIhANSD1SF TPADFE Aninual Data at Currecot Prices As, Percent of Total

faplial gords 22. 5 36.5 68.8 35.1h 1 75.1i 269.0 32.3 35.6 90.3

Tntsrsrediar.e goods (esTlfoels) 6i '. I 12.8 23 .0 25.5 31.1 6.08 . 5.0

Theta and related n.atertals 115.5

of which: Petroleum 3.3 8.6 19.7 56.9, 115.5 129.9 6.0 7-5 1-9.9

Cossumntsioro goods 55.5 61.8 97L2 1_39 6 19 52.7 50.2 35.3,

Total March. Ieports (eif) 1 079. 119.c7 193.5 289.. 511 .3 667.6 0. 0. 0.

Fxportsgrle1

11.re ~~~~~ ~~~33.0 ;II.3 66.7 93.6 130.1 171.6 29 .3 70.6 ". .-

Cmx Oc 96.2 137.1 196.7 262.3 391.3 9,98.0 71.1 60.7 ~

-6.2 51.-8 60.6 3 21 LI-) .21-5 o1.6 18E.7 0

Tn:al Maerch. Ex-norts ((oh) 2F17. % 27Y' 3-72.0o 399. 7 579.7 791.1 =.OT T .O =1Ci

Touri-s ant 1oes.-r Traoe

Mercl&ncdise Trade Indices Average 1967-69 100

E:xporlt Thrice Index 99.9 01 .5 191~l.5 160. 722.-5 391.8

Import F-rise index 96.3 020 13; _)2. 294 316

Exprts Voflumed nd- 10.9 99.5 9~7.8 68.8 85.5 98.5

VAbiNE A1Dff BY SECT21R Ancual Da:tta at 1971- Prices and Exchianige Rates Average Aninual Growth Pates As Percent of Total

Agriculi-e 636 77.7 105.2 111.3 125.0 121. 39 2. &36.2 38.2 0.1

Industry and Mining 99.9 195.3 151.0 153.3 1 99.3 155.9 - 39.6.- 5

lorvicco ~~~~~~~~~70.9 126.9 Li,59) 163.3 1L92.0( 217.0 0 a

t1V__cr cost 271 9 39 .5 911.5 1:27.9 466.3 509.5 100 10.

PLIELIC FINANCE As Percent of IDP

TCen,t-ral Goverrnment)Current Receipts 63 7 3 69 110.31690 203.8 3 --

Current Expenditures 9,6.0 5ss.-1 70.1 83.7 99.8 119.5

MiudAetary Savingas 2.3 6.9 19.8 26.6 691.2 89.3

(t~hee Public Sector -eashlic Sector lrnvastxent 22. 1' 32.5 39.6 9~0.0 ,:7.5

.11' RI'' xpp.iepfr{pm. os'eilms ~~~~Actual 1~exoti. NEst. Proj . DETAIL, 01 At end 19.. P ad h 1

As 1. Ttea1 0 gatar, ;ce:1. l9'1 1972 19 7 3 1976L 1975 P31LIC SIE'CTOF First PlaI-o)Toa

-docets's 16.7 ClP(~~~~~~~~~~~~~~ -TNESTIWIIT PFOCtRAM19. 169 15.11 19.3 16.5 Coa etr

-Ih ~ S .1ia 5l,0.1e 16.0 I6s. I 17.6 16.3 Agricultuire

0.ri-he ctsore Srcs1. 33 .. 10.0- 12.6 9.9 Industry and Mining

Airinc½t.ratiesn and Defence 7.9 38.3 36.8 33.2 37.9, Tasoperta cmuiton

'-ther 11.9J 17.6 15.0 19 I. 9 10.2 Trnptadcosuitis

T't'l spndxo.t 100.0 1 00. 0 '00.0 100.0 100.0 Ote______ _________________________________________________________ Total Expenditures

as ' D' if ATliOFS 1965 - 1970- 1979- FINAANCING:

(_a e,1>ted rexo~ 3-yea,, sveratged data) 1970 1975 1979

A-,,q, T:~~~~~~~~OR ~~3.9 91.1 6.2 PuitlcSsu Sasg

import. FlstAcizy ~~~~~~0.5 -0.2 3.1 P-rogrsce aid counterpartA"rgus mestis Sactogs Rate 0.5 0.0 0.6 FrinT-jc i

N-arcissi Niational mavirngs Rate 0.5 0.2 0.6 Total Finanoing

(17 e,ccnes-.t Wage6 Salary Employment -FPon 11,0 Nj ssi.ql)lABOp fOHCE A111D Tota LE ImA rcure Value Added Per Worker (1971 - Prsicea s& Pro. P atels

ouTPUT PElR WOPKEIi Is Jtillions % of Total Is U.S.ollars

1970 - 17970 1970

1,915r.2Agriculture u6,000 36.8 9,91.2

Industry 39,500 27.6 2,916.2

Servi ce Idi500 3- -

Total 1'23,000 100). 0

cot upplicat,le nicl or negligible

not available - less than half the

smallest unit shown~

ABNER IPage 3 cf 3 pagew

BALANCE OF PAfl4EslS, EXTERNA1 ASSISTANCOE AND DEFTr7amcaot tomilion ofU.S.- dollars at current prices)

Avg. AnnulActual teticrted Pro Jected ro-th Rate1969 1970 197 19J. U.Z 1975 197 j1 190jZ 1 197h -196SUMMARY BOUANCE OFPDAYMENTS

lucportc 0-1. 06S) 199.5 216.9 217.3 332.6 L,02.9 498.1 696.7 592 .7 667.c 760. 8811.E, tr -1(el N95) 188 120 I BIM. 22Lt 316.2 386.6 417.6 <liLS. .27L 716.0.11 ~f5ocMecoflS-M) 75 .7 57.9 63.1 102.9 88.7 0r- ~ 6.8 6.TctorOat (not) -26.7 -29.0 -65 - 5.3 -46.7 - 3.9 - 3.6 3.1 - 2.9 - 3.1 - 4.6-Direct Icc-esmet Income - ,,0 - ,2.6 -68.0 - 83.2 -1164.6 -125.9 -129.9 -156.0 -172.5 -193.7 -21 3.4, i.1brkec-' Rebittancc -8. 2. - 206 - 2 -20.8 - 19.6 20.2 -'0. O-2.), - '0.5Cart Tuuoc ot) 6 ,216:' ..t18I.4 19.3 2.Ilalacc 00 Corret Accont 9 (T )D91..________________________

*." n- .... A Pr, cd-t, Diret I-Thceoc3ec0 1P. 30.6 33.9 '2-5 375 75. 185 1 51. 8,2.9 7 3ii .0OrficDia Capital Grants i.0 I.. 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 20 -

Ntliubruoeto ITS'. 10.7 12.6 13.9 pi.6 28.9 29.2 3C.- 36,6 40C.3 3.3-BenaycelItO - - 0~~~~~~.0 -I11.3 1JL -12.8 1iCA 16,.6 -1,.1 -3.1,... 9.3 7. - .Not DiubacOOTOte . -3 1.0 -r -12. 2 2 7TT 15.6 m rn8.

51-Cs. Cpit~liI)oVOicburccoenla -. a - 1.1. -iT,3 -3T TIF -7. 7-vr -7W -mrr wrr7 TrW

Act ton Etitl.atdC,pital T-ja-ac.-co .0.i - - - - 19(2 1Ž3 ~ 197WCbaogc c Nd Ocoercee .. -32 -1 . i DEBT 6AND DEBT SERVICEPublic Debt Out. & Dioburood 1516.1 155.9 1 ." 169

00, iV((0.10111MM1-0 ineetA ulcDb 1- 5 -5.4 5.2Repol'oetet o Pablic Debt -11.7 12.1, -~. Tlu M i . 'V.-T.T T,e-u ~~~~~~~~Total Public Debt Sercico 16:2 I -16. -0.Pa2iRD460Ia I., , 'O 6.9 -.0 Other Debt Sor-ice Coot)- -iii [.1 0.0 . . Total Debt S.ercie (ent) -1i.2 1.2. -OJ 19Other

Otlr MId tilat-cl - - 0.9 1.7 2.6, Burdec cc Ropot 9-iDrg. 8Gccore-fldtS < 10.1 17.9 Pulc et evIe7. .to,ppli- (cr0 ~t c,ie5, FtlAncia,l T-ictSti.-OS - 0.. 1.0 Tctal Debt Scone 1. 5.1 m[b, d. ~~~~~~~~2.0 - 0.3 2-.5 TDSoDiroot T-cet. IcC. 36. 30.9 33.j'.ou (0 ~~~~ ~ ~~12.3 20. 23 89 Avera.ge T.,= of DubLin Dolt

Actual Debt Outstaidiog ccDec.,31t197W, 1t. 00 9 Price Your D760 2.63.80T07111A1 088? Disbursed Only PcntActrt. ao 8 Prior Tear DO30D '.0 7.,b,ld 16c o113.3ID 2.1 IBRD Debt Out. 6, Diob-rod 10..5 10-.5 20other, iflilat-ral 2.2 e 0 Public 1e6t 00 6.70 1 19 13 '2 1(iocorbocccic ~~~~ ~ ~~~~~~~~~~~~~~~73.0 " s Public Debt Serv.c IK-.

tipplicro '.1~~ ~ ~~~~~~~~~~~~~~~~~~~.3 IDA Debt (bit. & Diob-rod 0., 1. Biac,iSct-aSco0 % Public Debt C06D 0.1 0.9 21(sDs

*'n-ae 8 %Public Debt Scrolce - -.Tctal PubliC MtT lol n1t.

Otbor W1,T DebtoSbort-t-or Debt (0i01. only)

-ci aPptcl-c o staff estImatect,- acailab - il or cmgliglbleout acailuble ecpartely -- loea then halt taobaot i-1luded is, wtatl oc -etuit ehow

ANNEX IIPage 1 of 4 pages

THE STATUS OF BANK GROUP OPERATIONS IN LIBERIA

A. STATEMENT OF BANK LOANS AND IDA CREDITS (as at May 31, 1975)

Loan or Amount (US$ million)

Credit Number Year Borrower Purpose Bank IDA Undisbursed

Four Loans Fullydisbursed 16.4

617 1969 Republic of Lib. Ports 3.6 0.2

778 II 1973 Public Utilities PowerAuthority Supplementaryl/ 2.9 0.4

305 1972 Republic of Lib. Education 7.2 6.3

306 1972 Republic of Lib Agriculture 1.2 0.6

839 1972 Liberian Bank for DevelopmentDevelopment & Finance 1.0 0.1Investment

1055 1974 Liberian Bank for DevelopmentDevelopment & Finance 4.0 3.6Investment

907 1973 Republic of Lib. Roads 3.0 3.0

395 1973 Republic of Lib. Roads 2.6 0.7

Total 30.9 11.0 14.9of which has been repaid 1.6 -

Total now outstanding 29.3 11.0

Amount sold 0.4of which repaid 0.3 0.1

Total held by Bank and IDA 29.2 11.0

Total undisbursed 7.3 7.6 14.9

1/ A technical assistance loan of $1.8 million to the PUA was

approved on July 8, 1975.

ANNEX IIPage 2 of h pages

B. STATEMENT OF IFC INVESTMENTS (as at May 31, 1975)

Amount in US$ million

Year Obligor Type of Business Loan Equity Total

1966 Liberian Bank for Industrial Development Finance 0.250 0.250

Development and Investment Company

Less Sold 0.002 0.002

Now held 0.248 0.248

C. PROJECTS IN EXECUTION

Loan No. 617-IBR Port Development Project; US$3.6 million-

Loan of June 20, 1969; Closing Date:May 31, 1975.

This port project involved dredging the approaches and an area within

the Monrovia port to accommodate bulk ore carriers and tankers; provision of

two tugs and a pilot launch, as well as additional buoying and lighting of the

navigable channels; consultants' services for individual advisers and feasibility

studies for the development of road approaches to the port. Project execution

has been satisfactory. The Bank has agreed to the Government's request that

funds still undisbursed be used to help finance an overall study of port develop-

ment needs in Liberia, which was stipulated in the project. Government signed

a contract in May 1974 for the port development study.

Loan No. 684-IER Power proJects; US$7.7 million Loan of

June 4, 1970 (fully disbursed) and US$7.6

Loan No. 778-LBR million Loan of October 26, 1973; Closingdate: June 30, 1975.

The loans to the Public Utilities Authority (PUA) have helped finance

the expansion of the Mount Coffee hydroelectric plant, the installation of two

gas turbines at the Bushrod (Monrovia) plant; procurement and erection of 42

miles of overhead lines in Monrovia and 54 miles in outlying areas; establish-

ment of a new substation and related facilities. There have been cost overruns

mainly due to international currency fluctuations and the purchase of larger

generators than originally anticipated. A supplemental loan of US$2.9 million

was provided in October, 1973 to cover the cost overruns, and project imple-

mentation is proceeding satisfactorily. On July 8, 1975, the Board approved

a technical assistance loar of $1.8 Tlillion for PTTA.

ANNEX II

Page 3 of 4 pages

Credit No. 306-LBR Agriculture project; US$1.2 millionCredit of Ma , 12 Cosing date:December 31, 1976.

The agriculture credit includes feasibility studies andpreparation of detailed investment proposals for integrated ruraldevelopment projects; a phy-sical survey and detailed study of theLiberian-owned rubber industry; a pilot rubber scheme to provideLiberian rubber farmers with credits to rehabilitate untapped orpoorly tapped rubber; improving rice research; reorganization ofthe Ministry of Agriculture and training for Liberians to prepareinvestment projects. Effectiveness of this credit had to be post-poned because of difficulties in obtaining necessary staff for theproject unit. A project administrator was designated in January,1973 but left after a month because of irreconcilable differenceswith the Ministry of Agriculture. A replacement served for a yearand a half but recently was forced to resign because of illness.The Government has decided to carry on the project using staff fromthe ministry. Consultants will be retained to carry out the reor-ganization study of the Miristry of Agriculture.

Loan No. 839-LBR Development Finance CoZ2a ; US$1million Loan of June 26, 1972;

Closing date:Loan No. 1055-LBR December 31, 1976 and US$4 million

Loan of December 3. 1974; Closingdate June 30. 1979.

The first loan contributed to foreign exchange costs ofindustrial projects financed by LBDI in 1972 and 1973. This loan isfully committed. The second loan would help LBDI meet its finan-cial requirements through calendar year 1976.

Credit No. 907-LBR Highway Project; US$3.0 million Loanof June 13. 1973: Closing date:December 31. 1977;

Loan No. 395-LBR and US$2.6 million Credit of June 13,1973; Closing date: December 31. 1977.

Implementation of the maintenance program, which startedabout six months behind schedule, is progressing slowly. Furtherdelays.were caused by a US$4.0 million cost overrun on the US-financedmaintenance equipment, and a delay in its delivery. USAID has agreedto provide supplementary financing. Contracts for all engineeringstudies have been signed, and work progress is satisfactory. Theconstruction contract for the Monrovia Bypass has been awarded andwork has begun.

ANNEX II

Page h of 4 pages

Credit No. 305-LBR Education project; US$7.2 million

Credit of Mav 17, 1972; Closingdate; March 1, 1978

The education credit is helping to finance construction of,

and provide equipment for, two new multilateral high schools in the

north and the east, each offering a wide curriculum in agriculture,

mechanics and academic subjects; construction of and equipment for a

new college of agriculture and forestry; expansion of a rural teacher

training institute and construction of an adjacent demonstration

school, technical assistance and fellowships for manpower and education

planning, technical teacher training, secondary education and project

implementation. Some delay was encountered initially in obtaining

requisite expatriate staff for the project unit and the original

effectiveness date had to be postponed. This problem has been over-

come and project implementation is proceeding satisfactorily.

ANNEX III

Page 1 of 2 pages

LIBERIA - LOFA COUNTY AGRICULTURALDEVELOPMENT PROJECT

Borrower: Republic of Liberia

Amount: US$6.0 million

Terms: Standard

Project Description: The project would be carried out overa five-year investment period, 1976-80and would (a) assist 8,000 small farmersto improve and/or develop 5,600 hectaresof upland rice, 1,900 hectares of rain-fed and irrigated swamp rice, 2,800hectares of coffee and 2,300 hectares ofcocoa; (b) strengthen agriculturalsupport services; (c) establish farminput delivery systems through existingcooperatives; (d) strengthen institutional

framework for agriculture development; and

(e) improve existing infrastructure.

Estimated Cost: (US$1000)

Category Local Foreign Total

Infrastructure costs 8h7.3 8h9.2 1,696.5

Farm input 2,348.6 1,360.0 3,708.6

Farmer support services 3,263.5 3,076.8 6,340.3

Technical assistance 60.0 190.0 250.0

Contingencies:Physical 321.0 274.0 595.0

Price 2,209.6 2,000.0 4,409.6

Total 9.250.0 75017000.0

(% share) 54 6 100

Financing PlanUS$ '000

IDA 6,000.

USAID 5,000.0

GOL 6.000.0

Total 17,000.0

ANNEX III

Page 2 of 2 pages

Estimated Disbursements: Annual Cumulative

FY 76 0.5 0.5

FY 77 1.6 2.1

FY 78 1.3 3.4

FY 79 1.1 4.5

FY 80 0.8 5.3FY 81 0.7 6.0

Procurement Arrangements: Procurement of vehicles and equipment

valued at more than US$25,000 and es-

timated to total US$0.9 million would

be awarded through internationalcompetitive bidding (ICB). Domesticallymanufactured goods would be allowed a

15 percent preference or tariff, which-

ever is lower, in bid comparison. Items

costing between US$5,000 and US$25,000would be procured through locally

advertised competitive bidding procedures

acceptable to IDA. Reimbursement of

internationally recruited staff and con-

sultants costs (US$1.5 million) would be

made against IDA approved contracts.Reimbursement of road maintenance costs,

vehicle operating expenses, housing and

other accomodation rents, and other

operational costs (total value Us$1.8

million) would be against certified docu-

mentation of IDA approved local procurement

procedures.

Technical Assistance: About 20 man months of consultants services

would be financed under the credit to advise

the coffee and cocoa crop developmentprogram; and advise the schistosomiasissurveillance program.

Rate of Returnt The estimated economic rate of return is

26 percent.

Appralsal Reports Report No* 744-LBR of June 27, 1975.

Ma Mpnl! _o IBRT 11517U R

a. AIIO,,jjC ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ZAIRE

C O T/ G U I N E A |

GOLA FOREjT tIMCO

MINERIVER f REL.E ~~~~~~~~~~~~~~OR ~ ~ ~ ~ IN

0 '--PEIf FO { BEILELS WS ,

W MANO RIvER ann FOE uellie

GRAND CAPE ke

MOUN n oCXt COUNTY \ O SuakokN

d I\ . Hendl B O N G = Gbrnga N Sagleipieene -Hendi B 0OM Ni G0 N

bec!~~~~OrI ~MIN C O NTa<~~~~~~~~ C 0 UIN N TB Y W CX

TSE R'\.C-61 D Fo COORESI 1V O R Yo C O A S T' "; ' ;'; \ Q ) f / iy y ,,-,, | ~~~~~~~~~Tapeta

MONROVI

LOF COUNTY AGRICULTURAL DEVELOPMENT

, < g \ !Y ~~~~~~~~~~~~~~~~~Zwedru -6- B~~~~~~~~~~~~~~~~uch non 9 6--

<) / 9^HoEASSA \4~~~~~G RN A )GEDEH

L I B E R I A Riv v /S ,PB FORE51> s

LOFA COUNTY AGRICULTURAL DEVELOPMENTa /Xtonws PROJECT \8

PROJECT AREAS A t/antl'c

0 PROJECT HEADQUARTERS / i

CAES CENTRAL AGRICULTURAL EXPERIMENT STATION OC e af n Greenvill

-5' - PRIMARY ROAD BITUMINOUS 5--

-, LATERITE ROADS

' | | | '*RAILROADS , 3 75 too

--- COUNTY BOUNDARIES MARYLAND, ~~ ~ ~~~~~~~~~~~~~ .fD 1 20, 3,0 40 50 _ 0CONY Pbo ,______________ _____________ O U N T Y Pilbo

-*-, INTERNATIONAL BOUNDARIES MILES

10 9 . Hl il Isf,,dd rv/le Wgd i4t vrSX:te iO a . H or_ ~~~~~~~~~~~~~~~~~~~~J UN E J9 75