Announcement of Nine Million Five Hundred Thousand Dollar Loan to Colombia on October 13, 1983

FOR IMMEDIATE RELEASE vNorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. *Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 84/15 Contact: Ciro Gamarra October 13, 1983 (202) 477-5320 COLOMBIA TO USE $9.5 MILLION WORLD BANK LOAN FOR COAL EXPLORATION Colombia will evaluate the exploration potential of coal reserves in six of the country's most promising coal-bearing areas with a $9.5 million loan from the International Bank for Reconstruction and Development (IBRD). These coal reserves are located in northern Colombia, close to the largest domestic users and well placed for the export market. New coal mines will help the country meet part of its energy requirements and diversify its exports. The project will identify thermal coal deposits and the technical viability of developing them. If the preliminary explorations show commercial potential, detailed exploration and preparation of technical studies will follow. The project will help determine options for the country's investments in coal and other energy sources. The total cost of the project is estimated to be $19.7 million. Carbones de Colombia (CARBOCOL), the national corporation established in 1976 to develop Colombian coal, is the implementing organization. Technical assistance will also be provided to help CARBOCOL establish an overseas sales network; to set up coal marketing arrangements; and to conduct sales negotiations. The IBRD loan, the 100th to be made to Colombia, will bring total World Bank lending to the country to over $3,600 million. The loan is for 17 years, including four years' grace, at an annual interest rate linked to the cost of Bank borrowings. It also carries an annual commitment charge of 0.75% on undisbursed balances and a front-end fee of 0.25% on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.