Guinea - Structural Adjustment Program Project

1 ~ ~~~~~~~~~~Docmt -of The World Bank FOR OMcIAL USE ONLY RePort Ne. P-4162-GUI _ . 1 REPORT AND RECOXMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 22.9 MILLION AND A PROPOSED AFRICAN FACILITY CREDIT OF SDR 15.6 MILLION TO THE REPUBLIC OF GUINEA FOR A *. STRUCTURAL ADJUSTMENT PROGRAM Januarv 21, 1986 db imbo a ricsd dIslbsdo. md Sy e sed by re-Vients only in the pefotae of gdar dutn s dcant -y ao oDtewie be dbded without Wedi Bank *orikrmz.  3REN! ELY BVMRfE Crmwcy Unit - Cuinean Frn (EC) Us$1 R Et 300 a/ -1,a0o0 US$3.33- eights and.deasures: Metric System AHBREVLA.I:cS A?iD AMSYN6 Af DF - African Development rxd ALUDIA - NatiLal Snterprise for Discributim of Cereals 1 EEDOR - Joint Venture Diamod and Gold Ccmparty (ItC immscmeat) BCi NG - Central Bank BrTA - Banx lnternatizxale pour l'Afrique. Gainfe BtI- - Banque Internacioxle pou 1' neustrie et poar le Ccmrce, Ca4ne, CBG - Comapare des Baies de Guin6e (bandte caweLy) CCXE - rC Cw=amle de Coopration, coazmique (French aid agency) C:EF - FEO;.r and Finacal Coordinating CamiLr ', 02A - Gene=l Commssirm for Adzdntrative Reform O7w - National PdblIc Procuret Cc.ssiai DM' - Pt6lic UtiLity Water COR=W EE - ape E m C EF=K - Prefectoral Agency for Agricltural Produce Nzieting FAPA - Fere Ag4-Pastorale d'Arrodissemt (I)lstric ColectiVe Fadn F!I - Foods d'Aide et de Coophation. (French tecmiil assitane agenmY) ERIMII - A 1imdna snttn Cay HAMW - Ehruey Alxmfxm Cbapa (ny eriakal bauxite compaaies, partners in CBG) - Goveret Import MopDly (abolished April 1984) 14DI - MIistry of Indstrial Detwlppmt MDR - MiEcstry of Ruml Developmen MEF - Iinlstrv of E!r and Finance MN - Mnistry of %ntional Educationl MEPRA - Ministry of Civil Service and AkdnistatiVe Reform MPCI - Minstry of Planning and International Cooperation - Ministry of Planning andl Natural Resources (before Dezr 22. 1985) - mfxtr of Natural ResPnes, Energy and the EFvirormit (after Decedber 22, 1985) IPAS - vInistry of public usalth, Population and Social Affairs - Office des EaRites de Kindia (State enterpris baL=te mine) OEM - Orgazi=im for E=mAnc Coopeaticn and Fuhiing (Japan) COBH - Natal Hydrocarbons Can:iany (petrole= products import aid distributicn) , P F - State entrpi-se responsible fcr Prodxct Erporms (coffee ard palm Kernes) SSEC - secetariat of State for Cannrc in EF SFA - Special Facility for Sd-Saharn Africa ic SGC - Socit Gtaienne de Camerre (Joirnt venture trading cmpanv) |SGF - Special Jo F ing- MSE - Scirfte Natioale d'Electricit lic P l) SEE - Secretariat of State for Ey SEr - Secretariat of State for Transport V SP-OF - Special Project Preparatian Facility TWDP - United Nations Developnt Program C:1VER: rIscE 'EAR Jaumxy 1 - Deceaber 31 a/ The currenc uit gas dianged frnm the Cuinean syli to the Gunemr franc starting On Jany 6, 1986. The exhange rate of iG 300C=US applies to all extemnal trsactian of the prblic sector and the mining copaies as of Jan. 6. 1986. A narkEt deterclned rate (through weeklv aucticu) wiLl apply to all private transactions before end-Janiary. For purposes of ecuxuc pojectons, a rate of R;35=L7SS1 is employed. The official exge rate at appraisal i arch 1985 ;as SS-24.4 svlis.  FOR OFFICIAL USE ONLY GUINEA STRUCTURAL ADJUSTMENT CREDIT CREDIT SUMMARY Borrower: Republic of Guinea. Credit Amounts IDA: SDR 22.9 million (US$25.0 million equivalent), African Facility SDR 15.6 million (US$17.0 million equivalent) Terms: Standard Cofinanciers: SJF: Federal Republic of Germany: D23 million (US$9.4 million equivalent) SJF: Japan: Yen 5,600 million (US$27.8 million equivalent) Switzerland: SF10 million (US$4.8 million equivalent) France: FF200 million (US$26.7 million equivalent) Additional financing will be requested from USA. Including the IMF Stand-by Arrangement of US$36.3 million equivalent, the confirmed financing package totals US$147.0 million. Pmoject The prposed IDA Credit and Special Aficka Facility Cedit vould provide D Icpt- S$42 ifilllcm to suport the Governmt's eoixzic reovery pogrnm arl allN eaiul activity to e*pand '.tile mrrent and future refom measures are mplemnzted. Ihe adjustment progranm foazssm on ecwndc lfxerliatizn | _es amd reefom of public dhfstratimn and public ntrprises. The policy packa inlnudes full decontrol of agricltural prlces, ipfcatiton of tariffs and custms procedLres, streanmlining of n-fkit[ifs for in stnnt an cauneral activities, elecialy for