Announcement of Twenty-Three Million US Dollars Loan for a Phosphate Development Project in Tunisia on July 29, 1974

1818 H STREET. N.W .. WASHlhlGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 74/71 Subject: $23.3 million loan for a phosphate July 29 ,. 1974 development project in Tunisia The World Bank has approved a $23.3 million loan to Compagnie des Phosphates et du Chemin de Fer de Gafsa (GAFSA), with the guarantee of the Republic of Ttmisia, to help finance a phosphate developm, i: project, The project involves developing the Sehib deposit in Southern Tunisia, near Gafsa, to produce 1.6 million tons per annum of marketable phosphate rock through underground mining by the longwal l method. It includes und er­ grol.Dld mining and haulage equipment, a 6-km conveyor from the mine, a washing plant, water and power supply, workshops, offices, open and covered storage • facilit ies, service and repair shops, some mL�or roads and a study of the development of the Gafsa region. The Sehib project aims at modernization and expan sion of the phosphate mining industry in Ttmisia. It will produce for export, and at full production in 1980, the net foreign exchange earnings will be about $40 million. The long­ wall method permits a considerable increase in productivity, The project will provide jobs for 660 persons with improved working conditions, better ventila­ tion and safety measures. The World Bank loan is for 15 years, including 3 years of grace, with interest at 7-1/4% per annum. - 0 - NOTE: M:>ney figures a re expressed in US dollar equivalents  July 29 , 19 74 •• TECIDHCAL DATA PROJECT: Gafsa Phosphate Project COUNTRY: Ttmisia TOTAL COST: $64. 74 million BANK FINANCING: $23.3 million, for 15 years, including 3 years of grace, with interest at 7-1/4% per annum. OTHER FINANCING: Government, $200,000. GAFSA cash generation, $41.24 million IMPLEMENTING ORGANIZATION: Compagnie des Phosphates et du Chemin de Fer de Gafsa (GAFSA), 9 Rue du Royaume d'Arabie Seoudile, Tunis, Tunisia PROJECT DESCRIPTION: Development of new underground mine at Sehib including washing plant, haulage systems, water and power supply, workshops, offices, housing, minor roads, storage facilities, study of development of the Gafsa region. PROCUREMENT: All equipment and machinery (except longwall face equipment and drifting equipment) -- independent of whether or not financed by the Bank -- will be procured through international competitive tender • following Bank guidelines. Domestic suppliers will be given a preference of 15% or the applicable customs duty, whichever is the lower, in bid evaluation. (X)NSULTANTS: Heurtey, Sofremines (France). For detailed engineering; updating of tender documents and bid evaluation; and supervision of canst ruction at Sehib. For regional development study. ESTIMATED COMPLETION DATE : 19 7 7 •