Announcement of World Bank Lends Fourteen Million Dollars for Port Development in Mexico on March 30, 1981

FOR IMMEDIATE RELEASE .world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. e Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81;66 March 30, 1981 WORLD BANK LENDS $i4 MILLION FOR PORT DEVELOPMENT IN MEXICO The World Bank will support Mexico's efforts to prepare a port development program for four coastal areas of the country. A $14 mill ion Bank loan will be made for the preinvestment stage of the program, helping to finance consulting services for the planning, study, and design of four large industrial ports. With an estimated total cost of $24 mill ion, the port development preparation project supported by the World Bank wi I l provide the basis for future financing of the construction of two new ports on the Gulf Coast, at Altamira and Laguna de Ostibn; and the expansion of existing facilities at Lazaro Cardenas and Salina Cruz, on the Pacific Coast. Development of these ports wil I support the government's objectives of decen- tralizing economic activity and growth to areas outside the central plateau and pro- • viding domestic industries with direct access to international maritime transport . The government has estimated that more than $2.5 bill ion will be required for invest- ments in infrastructure in the four port areas between 1980 and 1985. The capacity of Mexican ports has generally been adequate until recently for general cargo and non-petroleum bulk commodities; however, more than 2 mill ion tons of the country's imports and exports are being handled annually through United States ports, with extensive overland movement. Furthermore, difficulties in handling grain imports and container traffic have recently been experienced in some Mexican ports because of very rapid traffic increase. The $14 mill ion World Bank loan was granted to Banco Nacional Pesquero y Portuario, S.A. (BANPESCA), as financial agent for the government with the guarantee of United Mexican States. BANPESCA will transfer the proceeds of the loan to the agencies re- taining consulting services. The loan has a term of 15 years, including 3 years of grace, with interest at 9.6% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents . •