Announcement of Forty Million US Dollars Loan to Iraq for Grain Storage Project on August 3, 1973

73/S; IN EF~N/::\l]Cil\JAL t'3Af\~K FOR • F) h NST'RUC ION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 73/57 Subject: $40.0 million loan to Iraq August 3, 1973 for grain storage project The World Bank has approved a $40.0 million loan to Iraq for a $92 million grain storage project that will reduce marketing and handling costs through improved efficiency and increased storage capacity. The main components of the project are the qonstruction of 14 new silos with a total capacity of 504,000 tons, expansion of four existing silos by a total of 36,000 tons, and improvement of port handling facilities including a 20,000-ton transfer silo at the port of Um Qasr. This additional storage capacity of 560,000 tons will assist in meeting the Iraqi Grain Board's storage requirements projected for 1979/80. The Bank loan will assist in financing the construction and equipping of these silo facilities and consulting services for the design and supervision of construction. The project also includes installation of a mechanized inventory control and a communications system; training key silo management and operational per- sonnel; carrying out a comprehensive grain marketing and pricing study; and • implementation of a better grain grading system. These components of the pro- ject will be financed by Iraq • Iraq needs improved facilities to reduce grain storage losses and handling costs. With the project, each year some 22,000 tons of wheat and barley will be saved and grain transport costs will be reduced about $J.2; milli.on. Improve- 1 ment of grain storage is also part of the Government's plan to stimulate grain production. Greater efficiency, lower s·torage costs and deeper market penetra- tion by the Grain Board are expected. It is anticipated that some 15,000 farmers will benefit t,hrough mcreased incomes as a result of more efficient grain marketing. The additional storage capacity provided under the proJect will also permit sufficient reserves stocks to be maintained to meet emergent _·'.lemands of con- sumers. The Bank loan is for 25 years, including a 6 3/4-year grace period, with annual interest of 7~. Union Bank of Switzerland, Zurich, is participating in the loan. Note: Money figures are expressed in U.S. dollar equivalents • •  • August 3, 1973 TECHNICAL DATA PROJECT: Grain storage COUNTRY : Iraq TOTAL COST: $92.0 million loan, 25 years, 6 3/4 years of grace, interest 7!.,;% per annlDll. OTHER FINANCING: Government of Iraq. IMPLEMENTING ORGANIZATION: Iraqi Grain Board, State Organization for Grain and Enterprises, Baghdad, Iraq. PROJECT DESCRIPTION: Construction, equipping of 11 terminal silos (468,000 tons), 3 gathering silos·(36,000 tons), transfer te!Dlinal silo (20,000 tons) • at port of Um Qasr, and 4 silo expansions (36,000 tons) added capacity; consulting services for design and supervision of construction of silos; installation of mechanized inventory control and communications system; comprehensive study of· grain pricing and marketing; and training for silo management, operating personnel. PROCUREMENT: Silo construction contracts to be awarded, on basis of interna- tional c~petitive bidding; equipment for silo expansions may be negotiated purchase. SiJo works to be grouped geographically with each contract about $10 million. Procurement under $100,000 on basis of local co•petitive bidding; minor items, services. under $5,000 to be procured directly. CONSULTANTS: Feasibility study for project prepared by Iraq Consult (Iraq) and Scicon International (U .K.). Proposals fer the provision of consulting services for design and supervision of, construction have been solicited by the Government. It is likely a local firm working in collaboration with foreign experts will . be<~~~Jected. . ........ '~ ESTIMATED CCMPLETION DATE: 1979. - 0 - •