Announcement of World Bank Loan to Improve Grain Distribution in Tunisia on October 8, 1981

, . . , · FOR IMMEDIA Tf RELF ASE · 1818°H Street; t;J.W., Washington, D.C. 20433, U.SA • Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/16 October 8, l 981 WORLD BANK LOAN TO IMPROVE GRAIN DISTRIBUTION IN TUNISIA The World Bank has approved a $42 million loan to Tunisia to e,Y,pand and modernize the grain stbrage and distribution system. The $93. 9 mi 11 ion project wi ,11 rehab i, 1 i tate 20,000 tons of port s i 1o capacity and 58,000 tons of storage silo capacity, and it will construct 40,000 tons of new port silo capacity and 60,000 tons of new storage silo capacity. The project will also cover the rehabilitation and construction of silo rail sidings, the purchase of 50 bulk rail hopper cars, implementation of related port works, and the provision of technical assistance. These investments are expected to largely complete the conversion from ·J·ag to bulk of Tunisia's distribution system for imported grain. This expansion and modernization program will remove a major distri- bution bottleneck and help ensure Tunisia's ability to meet the rising demand for industrially milled grain on a more economic and secure basis. Technical assistance and 'training will be provided to the government's grain agency, the Office of Cereals, to improve silo maintenance, transport planning, and financial management, and help prepare a second-stage storage projecL The World Bank loan of $42 million to the ~epublic of Tunisia is for a term of 17 years, including four years of grace, with interest at 10.6% per year. NOTE: Money figures are expressed in U.s.·· dollar equivalents.  .·~. ,, T_··E CH N I >C A.L D. A T A Gratn Distrfbut ion and Storage COUNTRY: Tunisia TOTAL COST: $93.9 million BANK F·iNANCTNG: $42 mi 11 ioJ1, repayable over 17 years, including a 4-yi~ar grace period, with interest at 10.6% per year OTHER FINANCING: Govlrnment of Tunisia, $51.9 mi l1 ion iMPLEMEN.TING ORGANIZATION: Office des Cereales (Office of Cereals) (OC) 30 Rue Alain Savary Tunis , Tunis i a" PROJECT DESCRIPTION:·. It consists of: a) rehabilitation, adaptation .for imports, ~nd expansion to 30,000-ton capacity of the e~isting 20,000- ton port si1o at Bizerte, and construction of a 30,000-ton port silo at Ghannouch (near Gabes); b) construction of three sto~age silos at Sfax (20,000 tons)., Beja,and Gafsa (10,000 tons each), and expansion from 8,000 ton~> to 28,000 tons of the storage silo at····-. - Kalaa Seghira (near Sousse); c) construction of three dolphins and dredging at Bizer.te; · . d) rehabilitation of the Manouba (near Tunis) storage silo (50,0Ct:) tons); e) construction and rehabilitatidn of si1o rail sidings; f) acquisition of about 50 bulk rail hopper cars; and g) technica_l assistance, and training. PROCU.REHENT: Contracts for construction and rehab i 1J tat ion of s i 1os wi 11 be \;\ awarded after international competitive bidding ,,(ICB) by OC among firms and groups of firms that have ,already been" prequalified, in accordance with Bank guidelines. Miscellaneous equipment and supplies not exceeding $100,000, up to an aggreg~rte a.mount of $500,000,wi 11 be procured by OC according to local procedure~. iThe purcha~~ of about 50 rail hopper cars and siding rails and equipment will be carried out by the national railway company (SNCFT), under a contractual agreement with OC, using ICB procedures. The construction/rehabilitation of silo rail sidings wi11 be by local ,,competitive bidding for civil works and earth-moving contracts costing less than $0.5 million.' Laying of rails on the sidings will be done by SNCFT on force account. OC will also enter into a cont ractua 1 ag:reement with the TunJ sJ an Nati ona 1 Port Authority for the . provision of three dolphi~s and dredging works at the Bizerte silo quay using local iompetitive bidding procedures. · CONSULTANTS: About 24 man-months for a study of OC's financial system, about 12 man-months for a feasibility study for a second phase project, and about 30 man-months for ·technl:;zal assistance to improve transport scheduling and planning. ECONOMIC RATE OF RETURN: 16% ESTIMATED COMPLETION DATE: 198~ - 0 ~.