Uganda - Phosphate Engineering Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Repot No. P-3147-UG REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF UGANDA FOR A PHOSPHATE ENGINEERING PROJECT March 17, 1982 This document ha a resticted distribtisa mm may be used by reciplents only In the pgfom ace of their official duties. Its contents may not otherwise be disosed without World Bank anthorin.  CURRENCY EQUIVALENTS Currency Unit = Uganda Shilling (USh) US$ 1.00 = USh 80.0 US$ 1.00 = SDR 0.8711 USh 1.00 = US$ 0.013 SDR 1.00 = US$ 1.15 GLOSSARY OF ABBREVIATIONS N - Nitrogen CDC - Commonwealth Development Corporation '-205 - Phosphate DAP - Diammonium phosphate (18% N, 46% P205) EIB - European Investment Bank NPK - Complex fertilizer MAP - Mono-ammonium phosphate (11% N, 55% P205) SSP - Single superphosphate (18% P205) TICAF - Tororo Industrial Chemicals and Fertilizers Limited tpy - Tons per year TSP - Triple superphosphate (46% P205) UDC - Uganda Development Corporation FISCAL YEAR Government July 1 - June 30 TICAF January 1 - December 31  FOR OFFICIAL USE ONLY UGANDA PHOSPHATE ENGINEERING PROJECT CREDIT AND PROJECT SUMMARY BORROWER: Republic of Uganda BENEFICIARY: Tororo Industrial Chemicals and Fertilizers Limited (TICAF) ONLENDING TERMS: The credit proceeds would be made available by the Government to TICAF as an equity contribution. AMOUNT: SDR 3.5 million (US$4.0 million) equivalent. TERMS: Standard. PROJECT DESCRIPTION: The proposed project would assist the Government: (a) through a detailed engineering study, executed in two phases, (i) to assess its geological potential in phosphate mining, its prospects in marketing phosphates in the East African Region and in the Asian Subcontinent, and the technical, financial and economic possibility of investing in the phosphate fertilizer sector; (ii) to explore the possibilities of equity participation by foreign phosphate fertilizer companies in a resulting full-scale investment in the phosphate sector; and (b) through technical advisory consultants (i) to strengthen TICAF's administrative capacity; and (ii) to help TICAF to supervise the engineering consultants' work. RISKS: The principal risk would be that security conditions in the country could again deteriorate. However, the Government is committed to restore law and order. The risk to the engineering study is minimal. The main risk facing a full-scale project would be marketing and transportation problems and the institutional weakness of the organizations involved. The study to be financed under the project would provide the analysis needed to review the transportation and marketing problems. Together with the technical assistance provided to TICAF under the project and to UDC under the ongoing Technical Assistance Credit (No. 1077-UG), it is felt that the risks would be satisfactorily addressed. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  ESTIMATED COSTS: Foreign Local Total