FORESTRY

closed

The project is part of the borrower's forest development program which is designed to establish 30,000 acres of eucalypt and 75,000 acres of pine plantations in three main blocks located within the copper mining region of Zambia. The project commences January 1, 1969 and consists of an eight-year portion of the program including the planting of 2,500 acres of eucalypt and 2,500 acres of pine each year, and the maintenance of the plantations. The project would contribute to a diversification of Zambia's primary production, result in substantial foreign exchange savings, and is expected to stimulate the establishment of secondary wood-using industries. The rate of return to the economy is estimated at 13 percent. The financial rate of return would be about 10 percent.