Announcement of One Hundred Five Million Dollars World Bank Loan for a Grain Storage Project in Argentina on February 23, 1978

. · FOR IMMEDIATE RELEASE . eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/46 FEBRUARY 23, 1978 $105 MILLION WORLD BANK LOAN FOR A GRAIN STORAGE PROJECT IN ARGENTINA A World Bank loan of $105 million will help Argentina to fin- ance a project to improve its grain marketing and to stimulate grain production and exports. The project will support Argentina's efforts to play a more important role as one of the world's leading exporters of grain. The grain storage project will have a total cost estimated at • $280 million. The project is expected to strengthen Argentina's balance of payments position~ resulting in economic benefits to the country of over $70 million annually at full development. The project consists of the construction of 20 silos with an average capacity of 100,000 metric tons; improvement of rail reception facilities at major ports; modification of 2,000 boxcars for effective grain transport; and a study of the feasibility of deepening the access channel at the port of Bahia Blanca. It also includes technical assist-· ance to the Government's Grain Board. The $105 million loan to the Argentine Republic will have a term of 15 years, including three years of grace, with interest at 7.45% per annum . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T EC HN I CAL D A T A • PROJECT: Gra i n Storage COUNTRY: Argentina TOTAL COST: $280 mi 11 ion BANK FINANCING: $105 mill ion for 15 years, including three years of grace, with interest at 7.45% per annum. OTHER FINANCING: Grain Boa rd $124. 3 mi 11 ion Private banks $36.5million Ferrocarriles Argentinos $ 13 • 2 mi 11 i on Government of Argentina $ 1 . 0 mi 11 i on IMPLEMENTING ORGANIZATION: Junta Nacional de Granos (Grain Board), Paseo Colon 367, Buenos Aires, Argentina. For the Pilot Channel Dredging component, Government of Argentina through Secretaria de Estado de lntereses Maritimos, Ministerio de Economia, Avenida Julio A. Roca 734/42, Buenos Aires, Argentina. Grain Board's telex: 121793-AR and 122151-AR. PROJECT DESCRIPTION: The project consists of: a) construction of 20 large-scale si las equipped with grain conditioning facilities and with an average capacity of about 100,000 m tons; b) construction of railway spurs and minor interline 1 inkages and minor improvements at ports to facilitate railway transportation; c) modification of 2,000 boxcars to handle grain efficiently; d) training of Grain Board staff for inspection and supervision of primary silos and for operating project silos; • e) improvement of the Grain Board's computerized inventory control system; and f) pilot channel dredging for studying the feasibility of deepening of the outer channel at the port of Bahia Blanca. PROCUREMENT: Civil works and mechanical/electrical equipment wi 11 be procured under single contracts. Local manufacturers wi 11 obtain the 15% margin of preference, or the applicable import duties, whichever is less, for each of the three equipment categories: mechanical equipment, electrical equipment and auxiliary power station. Silo contracts wil 1 be in groups from one up to five to permit medium as well as large contractors to bid. Total value of the 20 silos contracts will be $243 mil lion. International competitive bidding according to Bank's guidelines will be followed for contracts exceeding $1 mil lion each. Silo contracts exceeding $50,000 but less than $1 mil 1 ion,and modification of boxcars and for the computer and related equipment wil 1 be subject to local competitive bidding procedures satisfactory to the Bank. Al 1 other railway works will be through force account. All other works and goods costing $50,000 or less wi 11 be acquired through shopping in the domestic market. CONSULTANTS: All consultant services will be procured in accordance with procedures acceptable to the Bank; it is expected that for the silo component foreign consultants will form partnerships with local consulting firms, The nomination of key personnel of the consultants for the silo component, including head of design and contract specialists, chief civil engineer, at least one si Jo civil engineer, and mechanical and electrical engineers, will be subject to the approval of the Grain Board. In addition to engineering consultants, the Project Executing Unit will be tech- nically supported by three or four general consultants. • ECONOMIC RATE OF RETURN: 20% ESTIMATED COMPLETION DATE: 1982 - 0 -