Announcement of Barbados to Receive World Bank Loan for Industrial Development on March 24, 1980

FOR IMMEDI E RELEASE ej\/orld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/61 March 24, 1980 BARBADOS TO RECEIVE WORLD BANK LOAN FOR INDUSTRIAL DEVELOPMENT The World Bank has approved a $10 million loan to support an industrial development and export promotion project in Barbados. The project is expected to expand the country's industrial output and exports, help in generating foreign exchange and to increase employment. The project will be the Bank's third lending operation in Barbados and the Bank's first direct involvement in the country's industrial sector. With an estimated total cost of $21.9 mill ion, the project is designed to help the government to execute its industrial development plan during 1980-82, and to establish a sound basis for continuing industrial development. The project will include an investment promotion program and the construction of industrial estates; industrial lending for fixed assets and • permanent working capital; promotion of manufactured exports, training and marketing assistance to domestic exporters; and management and vocational training for industry. About 5,000 new jobs will be created as a result of the project, which will also help increase manufactured exports. It will also have a major institution-building effect, by contributing to the strengthening of the financial basis and operating capabilities of the implementing agencies through technical assistance and training programs. The project will be carried out through the Barbados Development Bank, the Barbados Industrial Development Corporation, the Barbados Institute for Management and Productivity, the Export Promotion Corporation and the National Training Board. Co-financing is expected to be provided by the Caribbean Development Bank (CDB) with a loan of $2.35 mill ion. The $10 million World Bank loan to Barbados has a term of 15 years, including three years of grace, with interest at 8.25% annually. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T ECH N I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Industrial Development and Export Promotion Barbados $21 . 9 mi 11 ion • BANK FINANCING: $10 mill ion for a term of 15 years, including 3 years of grace at 8.25% interest a year OTHER FINANCING: Caribbean Development Bank (COB), $2.35 mill ion; Government of Barbados, $9.55 mill ion IMPLEMENTING ORGANIZATIONS: (a) Minister of Finance and .Planning CABLE: EXTERNALBAR Government Headquarters BARBADOS Bay Street San Michael, Barbados TELEX: WB 222 (b) Barbados Development Bank (BDB) CABLE: BARDEBAN Gari son BARBADOS San Michael, Barbados TELEX: WB 222 (c) Barbados Industrial Development Corporation (BDIC) CABLE: BARDEV. Harbour Industrial Parts BARBAD Bridgetown, Barbados. TELEX: WB 295 PROJECT DESCRIPTION: It consists of: (a) an investment promotion program and the construction of inuustrial estates through the BIDC; (b) industrial lending for fixed assets and permanent working capital through the BDB; (c) promotion of manufactured exports, training and marketing assistance to domestic ex- porters through the EPC; and (d) management and vocational training for industry through BIMAP and the NTB. PROCUREMENT: All tenders for the industrial estates components above an estimated cost of $1 mill ion will require international competitive bidding procedures in accordance with Bank guidelines. On smaller contracts, small bid packages wi 11 be prepared and local competitive offers will be obtained. Con- tract awards will be subject to prior review and approval by the Government Tenders' Com- mittee. The first three contracts, irrespective of size, will be subject to prior review and approval by the Bank. BIDC's Construction Division will bid against private firms but, if selected, contract awards above $350,000 will be subject to prior review and approval by the Bank. Procurement for BOB subloans will be in 1 ine with standard practice for DFC- type projects under which BDB will satisfy itself that the goods and services to be pur- chased are suitable for the investment projects and are reasonably priced. CONSULTANTS: About 105 man-months of foreign consultants services ECONOMIC RATE OF RETURN: for the industrial estates and investment promotion pro- gr.am, the industrial lending program, and the export promotion program will be provided under the project. • 31% for the industrial estates and investment promotion program component. • ESTIMATED COMPLETION DATE: 1984 - 0 -