GENERAL DEVELOPMENT

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The Fourth Development Project for Southern Italy will further support the 12-year plan for economic development. The Bank already made three loans towards this program. The Government of Italy submitted a number of projects in three categories: industry, irrigation, and electric power. They are all designed to meet the established needs of the Southern Italy economy. A final selection was made consisting of 10 industrial projects, one irrigation project and three power projects. The Flumendosa irrigation project is one integral part of the Cassa program in Sardinia and is the only large single opportunity to increase agricultural production on the island. The three power projects, two on the mainland and one in Sicily, will all be needed to meet the growing demand for electricity which is evidence of the success of the Cassa program to foster the economic development of southern Italy. The various industrial plants, of which seven are on the mainland, two in Sicily and one in Qardinia, will complement the projects of the Cassa program. The impact of the project on the economy of the region will be very significant. The increase in farm production will provide additional business to traders, processors, transporters of agricultural commodities, as well as to those who supply the farmers with goods and services. The project will also have a favorable influence on employment, the number of man-days in agriculture alone will increase dramatically.