Announcement of Fifty Million US Dollars Loan for a Phosphate Fertilizer Project in Morocco on June 3, 1974

1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE. 3-8380 Bank Press Release 71..i. ·'L.o Subject: $50 million loan for a phosphate June 3, 1974 fertilizer project in Morocco. The Worl, Bank has approved a loan of $50 million to assbt Morocco iu financing the construction of a plant to produce for export intermediate phosphate fertilizers. The $155 million project is being jointly financed with Kreditanstalt fur Wiederaufbau of Germany. The project consia.ts of the erection of a plant near the port of Safi (on the Atlantic Coast) to produce an average and export 371,250 tons of phosphoi·ic acid per year, and 225, 780 tons per year of mono-ammonium phosphate, both of which are key intermi;:1;.li.ates :i.n the manufacturing of high grade phosphate fertilizers whic::,:t ;,ire in great and increasing • demand in world market • The project 1s sponsored by the Office Cherifien des Phosphates (OCP) and will be implemented by Maroc Phosphore. It is a key link in the Government's and OCP's strategy to participate in the rapidly emerging world trade in intermediate products used in manufacturing high grade fertilizers. The project will help to increase employment levels in the Youssoufia mines which are using labor-intensive techniques and to develop manufacturing activities in the Safi area in line with the Moroccan policy for industrial decentralization. The loan will have a term of 14 years, including 4 years of grace, with interest of 7-1/4 per cent per annum • • Note: Money figures are expressed in US dollar equivalents.  • June 3, 1974 TECHNICAL DATA == :- -: ,... -= re == - == == == PROJECT: Phosphoric Acid and Mono-ammonium Phosphate Project COUNTRY: Kingdom of Morocco TOTAL COST: $148.6 million BANK FINANCING: $50 million, for a term c>f 14 years, including 4 years of grace, with interest of 7-1/4% per annum. OTHER FINANCING: Kreditan&1talt fur Wiedera.ufbau of Germany, $26. 8 million Moroccan Banque Nation.al1! pour le Developpement Economique (BNDE), $8 million IMPLEMENTING ORGANIZATION: Maroc Phosphore PROJECT DESCRIPTION: - the erection of a plant, near the port of Safi, to produce for export 371,250 tons per year of phosphoric acid and • 225,780 tons per ·~rea.'t" of mono-ammonium phosphate. - f ac:'.lities at the plant and at the port of Safi for the supply of utiliti1~s, the transportation and storage of raw materials and finished products. PROCUREMENT: The project is being exe[:uted on a lump sum turnkey basis. Five consortia were selected 'by OCP on the basis of their technical· offers to present price proposals. The lowest evaluated bid was submitted by the consortium headed by Friedrich Uhde GmbH (Uhde) of the Federal Republic of Germany. The contracts include a lump sum price to be paid according to .an agreed schedule corresponding to expected cash outlays and work'<ione by the Contractor. Advance pavements in convertible foreign exchange by the Borrower will be financed retroactively by the lenders. The share of the Bank will be US $3.1 million. CONSULTANTS, TECHNICAL ASSISTANCE: The project was prepared by Office Cheri.fien des Phosphates and Haldor Topsoe of Denmark as technical advisor. ESTIMATED COMPLETION DATE: August 1976 -0- •