TEA DEVELOPMENT

closed

Project costs are estimated at US$7 million, of which US$1.4 million would be for the construction of two tea factories; about US$1.6 million for creating, staffing and equipping MTDA; and about US$4 million for farm development, including tea plantings. Direct investments in the tea factories, MTDA offices, stores, equipment, and tea plantings account for nearly 90 percent of the project costs. The remaining costs would be expatriate salaries and other administration expenses of MTDA. The proposed IDA credit would finance US$5.2 million (three-fourths of total project costs) representing the estimated foreign exchange component of US$2.4 million (34 percent of total costs) and US$2.8 million of local costs. Government would finance the remaining US$1.7 million of local costs (one fourth of total costs).