Announcement of Thirty-Eight Million Dollars for a Bearings Project in Romania on May 31, 1977

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393·6360 BANK NEWS RELEASE NO. 77/115 MAY 31 , 1977 $38 MILLION FOR A BEARINGS PROJECT IN ROMAN!A The World Bank today announced the approval of a $38 mi 1 lion loan to help finance a bearings project in Romania. The project will have an estimated total cost of $93. 1 (including interest during construction) and will increase the production capacity of an existing bearings factory at Brasov from 20 million to 33.5 million bearings per year. The project wi 11 save foreign exchange of about $35 mi 11 ion per annum after its completion and is expected to create about 500 additional jobs, generating additional income to the state budget of about Lei 350 million after foreign debt service. • The Brasov Bearings Project will also make Romania more self-sufficient in bearings and introduce at the Brasov Enterprise latest production technology. The loan wi 11 have a term of 13 years, including three years of interest at 8.2 percent per annum. gracei with Note: Money figures are expressed in US dollar equivalents • • FORM NO. 1121 (5-76} T E C HN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: Brasov Bearings Romania $87.~ million (S93. 1 million including interest during construction) • BANK FINAtJCING: $38 million for a term of 13 years, including three years of grace, with interest at 8.2 percent per annum. OTHER FINANCING: Government of Romania and other Romanian sources: $55.1 million. IMPLEMENTING ORGANIZATION: Brasov Enterprise, Rulmentaul Brasov, Str. 13, Decembre Nr.96, Brasov, Romania. PROJECT DESCRIPTION: The project will comprise engineering, construction and related services for (a) a new fully automated production 1 ine for an annual capacity of 5.5 mi 11 ion bearings; (h) modernized and expanded low volu~e production facilities with an annual caoacity of 2~ million; and (c) modernized • and expanded production facilities for forgin~s, rings, balls: rollers, retainers,and other services and equipment required to support a bearing plant operation for the above two components at a level of 33.5 million bearings per year. PROCUREMENT: Equipment financed by the Bank will be procured under inter- national competitive bidding in accordance with Bank guide- lines. Specific items of machinery and equipment, spares and related services in an amount of about $31.5 mil lion wi 11 be imported from the Bank member countries and Switzerland. Other goods and services totalling about $6.5 million also required for the project will be procured with Romanian suppliers participating in the international competitive bidding. CONSULTANTS: ECONOMIC RATE OF RETURN: 15.6 percent ESTIMATED COMPLETION DATE: Dec. 1981 - 0 - •