AGRICULTURAL ESTATES

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The Second Agricultural Estates Project will assist two groups of estates to finance a program of rehabilitation and development. This program will cover one group of estates producing rubber (PNP IV) and another group of estates producing palm oil and palm oil kernels (PNP VI). The program consists of (1) planting and replanting of substantial areas with rubber and oil palm, (2) bringing to maturity areas now planted with immature rubber and oil palm, (3) rehabilitating areas now planted with rubber and oil palm by the application of fertilizer. Also included in the program is the rehabilitation and development of facilities for the processing of rubber and palm products and the provision of vehicles, agricultural equipment, and machinery for land clearing and the upkeep of the estates. A small portion of the credit, $600,000, will take the form of a grant by the government to RISPA, the government agency in charge of research into rubber, palm oil and tea crops in North Sumatra. An amount of $200,000 will permit the government to employ consultants acceptable to the Association to submit proposals for the reorganization of RISPA and prepare a long-term research and development program.