Romania - Bacau Fertilizer Project : Loan 1020 - Press Release - Conformed

FOR IMMEDIATE RELEASE OA WORLD BANK NTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 74/61 Subject: $60 million first loan to Romania July 1, 1974 for fertilizer project The World Bank has approved its first loan to Romania, which joined the Bank in December 1972. The $60 million loan will be for the construction of a fertilizer plant at Tecuci, in the province of Galati. The $200 million project forms part of Romania's large-scale program to expand fertilizer production. As well as satisfying important domestic needs for both nitrogen and phosphate fertilizers, the program will also allow an increase in exports of much-needed nitrogenous fertilizer to the world market. The net foreign exchange benefits of the project to the country will be about $36 million a year. The project consists of a urea/diammonium phosphate (DAP) fertilizer plant with a production capacity of about 420,000 tons per year (TPY) of urea and 208,000 TPY of DAP, equivalent to 225,000 TPY of nitrogen and 100,000 TPY of phosphate in terms of nutrients. There will also be intermediate facilities for production of 300,000 TPY of ammonia, 400,000 TPY of sulphuric acid, and 110,000 TPY of phosphoric acid; and ancillary facilities for fertilizer production, handling and storage. The project will make optimum. use of domestic natural gas resources -- the ideal feedstock for producing nitrogenous fertilizers. Fer-ilizer production in Romania grew from 416,000 tons of nutrients in 1966 to 1.2 million tons in 1972, and rapid expansion is planned for most of the 1970s to achieve a production of 3.4 million tons in 1980. The World Bank loan will be for a term of 15 years with 4? years of grace and carry an interest rate of 74% per annum. Note: Money figures are expressed in US dollar equivalents. 0 VIONAL , WORLD BANK INTERNATIONAL BANK FOR *ECONSTRUCTION AND DEVELOPMENT A,o 1818 H STREET, N.W.. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 July 1, 1974 TECHNICAL DATA PROJECT: Tecuci Fertilizer Project COUNTRY: Socialist Republic of Romania TOTAL COST: $200.8 million BANK FINANCING: $60.0 million, 15 years, with 4 years of grace at 7 % per annum. OTHER FINANCING: The Government of Romania. IMPLEMENTING ORGANIZATIONS: Main responsibility with Tecuci Enterprises, part of the Fertilizer Central Craiova, the parent organization for all feLtilizer production units in Romania. IPROCHIM (the Ministry of Chemical Industry's engineering Institute) and IPUC (Engineering Institute for Chemical Units) will act as engineering contractors. using foreign and local process licenses. PROJECT DESCRIPTION: Construction of ,a fertilizer plant with capacity of 420,000 TPY of urea and 208,000 TPY of DAP with a total nutrient equivalent of 225,000 TPY of N and 100,000 TPY of P205, and including intermediate facilities for production of 300,000 TPY of ammonia, 400,000 TPY of sulturic acid, and 110,000 TPY of phosphoric acid. Ancillary facilities necessary for fertilizer production, handling and storage. Construction of facilities for gypsum processing, air separation and aluminum fluoride recovery. PROCUREMENT: Procurement of items financed by the Bank loan will be in accordance with Bank guidelines. Except for some essential equip- ment purchases, not expected to exceed $6 million, from process licenses and other vendors which have already supplied equipment for identical plants in Romania, procurement will be by international competitive bidding. ESTIMATED COMPLETION DATE: 1978. -0-