Announcement of Romania Receives Seventy-One Million Dollars World Bank Loan for Livestock Project on July 14, 1977

eWorldBank '1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/6 JULY 14, 1977 ROMANIA RECEIVES $71 MILLON WORLD BANK LOAN FOR LIVESTOCK PROJECT Romania will receive a World Bank loan of $71 million for a pork production and processing project. It is the first Bank loan to Romania that will be used exclusively to help finance livestock development. The loan will go to the Bank for Agriculture and Food Industry (SAFI), with the guarantee of the Socialist Republic of Romania. BAFI will make available additional credit in order to increase the supply of pork available for domestic consumption or for export, and to in- crease production efficiency in the pork industry. Agricultural credit subprojects to be financed under the ioan will include investments to be undertaken in 1977 and 1978 for facilities and initial livestock for about 60 pig breeding and fattening complexes with a· • total capacity of 1,500,000 animals, and for about 40 pig breeding farms with a total annual production capacity of about 100,000 young sows to be used as breeding stock. The project includes pig farm modernization and pig improvement and selection programs, also construction of modern livestock slaughtering and meat processing facilities. There will also be a modernization program for existing slaughter houses and meat processing plants. The $71 million loan is for 15 years, including a three-year grace period, with interest at 8.2% per annum. - 0 - NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T ECHN I CAL DAT A PROJECT: COUNTRY: -TOTAL COST: PIG PRODUCTION AND PROCESSING ROMANIA $322. 5 mi 11 ion · • BANK FINANCING: $71 million for a term of 15 years, including three years of grace, with interest at 8.2 percent per annum. OTHER FINANCING: Bank for Agriculture and Food Industry (BAFI), $.212.5 million, sub-borrowers $38.9 million IMPLEMENTING ORGANIZATION: Bank for Agriculture and Food Industry, Strada Smiradan 3, Bucharest, Romania PROJECT DESCRIPTION: Agricultural credit subprojects to be financed under the loan will include investments to be undertaken in 1977 and 1978 for: Facilities and initial 1ivestock for about 60 pig breeding/ fattening complexes with an aggregate capacity of 1,500,000 animals, and for breeding farms with an aggregate annual production capacity of about 100,000 young sows to be used ~ ns breeding stock; a pig farm modernization program designed to i'ncrease and renovate the production capacity of existing facilities; a pig improvement and selection program extending and developing further the national breeding program involving breeds of high genetic quality; construction of modern live- stock slaughtering and meat processing facilities and specialized sausage processing plants; and a modernization program for existing slaughter houses and meat processing plan~s. PROCUREMENT: Items estimated to cost $71 million (includinq $4.6 Million contingencies) will be procured ~Y Romanian Foreign Trade Com- pany for Agricultu~e (Romanrimex) under internat~onal comnetitive bidding in accordance with Bank guidelines. These items include steel reinforcing rods ($12 million), electric cable ($14 million), structural steel ($9 million), asbestos sheets ($4 million), steel pipe ($2 million), and slaughterhouse and meat processing equipment ($30 million). Romanian manufacturers wtll be a 11 owed a 15 percent preference margin, or the aoplicable customs duty, whkhever is lowe_r. ECONOMIC RATE OF RETLIRN: 17 percent • ESTIMATED i.Jecembe r 31 , 1981 COMPLETION DATE: