Component Description and Activities

Component Costs and Financing

The amount of IFAD loan allocated for the reformulated tea component has been maintained at exactly the same level as the amount determined in the Loan Agreement and in the Appraisal Report while the total cost of the reformulated tea component and the breakdown of this cost among financiers have been totally modified. Expenses already incurred for Nshili and for Mushubi have been kept in the COSTAB so that the effective budget of the reformulated tea component amounts to the difference between the initial budget and the expenses already incurred.

The total component costs are estimated at USD 15.22 million, including price and physical contingencies. About 10% of that total cost (i.e. USD 1.45 million) represents foreign exchange costs. Duties and taxes make up 6.65% (USD 1.02 million) of the total component costs. The component will be financed by IFAD (USD 5.81 million - 38.2 %), the Co-investors (USD 5.70 million - 37.4 %), the beneficiaries (USD 1.04 million - 6.8 %), the Government (USD 2.56 million - 16.8 %) and a commercial bank (USD 0.1 million - 0.7 %).

The tables ‘Components by Financiers’ and ‘Expenditures Accounts by Components’ for both the initial tea component and the reformulated tea component are shown in Appendix 3 on Cost Structure, Financing and Economic Analysis.