Announcement of World Bank Supports Expansion of Glass Fiber Production in Romania on June 9, 1977

9/VorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/122 June 9, 1977 WORLD BANK SUPPORTS EXPANSION OF GLASS FIBER PRODUCTION IN ROMANIA A project aimed at the expansion of glass fiber production in Romania will be supported by a $18.3 million-loan whose approval the World Bank announced today. The Bucharest Glass Fiber Project will have an estimated total cost of $43.6 millio. The project will consist of the construction of a spinning plant with a capacity of 6,000 tons per year (tpy) of continuous glass fiber in the form of • roving and yarn; and of a weaving and finishing plant with a capacity of 6 million m2 of fabrics 1 10 million linear meters of tapes, and 3.3 million linear meters of braided tubes. The facilities wi 11 be located in Militari, an industrial area in the outskirts of Bucharest. The project will provide for necessary expansion in Romania's glass fiber production capacity to supply anticipated expanded demand of important local indus~ tries, introducing also new technology in the production of glass fibers. At full capacity the project will yield annual foreign exchange savings of about $12 millio~. The loan to the Investment Bank of Romania, with the guarantee of the Socialist Republic of Romania, wi 11 have a term of 15 years, including three years of grace, with interest at 8.2 percent per annum. NOTE: Money figures are expressed in US dollar equivalents • • FOAM 1'10. 1121 (5-76) T E C HN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Bucharest Glass Fiber Romania $43.6 million • BANK Fl NANCI NG: $18.3 mil lion repayable in 15 years, including three years of grace, at an interest rate of 8.2 percent per. annum. OTHER 'FINANCING: Government of Romania: $25.3 million IMPLEMEN71NG ORGANIZATION: Glass Ffber Yarn and Fabric Enterprise, belonging to the Central for Glass and Fine Ceramics. Ministry for Lignt Industry, 13., Ion Ghica Street, Bucharest, Romania. PKOJECT DESCRIPTION: The project consists of the construction of a new plant in the outskirts of Bucharest: i) to produce 6,000 tons per year (tpy) of con t i n uo us II EII g 1."35 s f i be r i n the fo rm of r ov i ng and ya rn ( Sect i on I ) , an d ii) a weaving and finishing plant to convert 1,270 tpy into woven roving, fabrics, tapes and braided tubes (Section 11) .. • PROCUREMENT: Bank financed goods and services are being procured fol lowing international competitive bidding in accordance with Bank guidelines. Most of the items for which Bank financing is proposed have been included in a lump sum turn-key contract for the supply of know-how, machinery and equipment, as well as training, erection supervision and start-up assistance for Section I of the pro- ject. In order to ensure maximum competition, the Romanian authorities, in accordance with Bank procurement guidelines, invited bids from all known qualified suppliers. Bids were received at the end of 1976; the bid evaluation was reviewed and accepted by the Bank and the contract was signed in April 1977. Additional equipment in a total amount of $1.5 million, also·proposed for Bank financing, wi 11 be purchased under single contracts fol- lowing international competitive bidding, except for items under $100,000 which wil 1 be purchased after soliciting bids from potential suppliers from at least three member countries of the Bank and Switzerland. Other imported equipment for Section I I, which is not proposed for Bank financing, wi 11 be purchased in accordance with Romanian procurement procedures using suppliers I credits. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: l 6 • 5 p e r ce n t. 1979 - 0 - •