Burundi - Nickel Exploration - Engineering Project

Document of The World Bank FOR OFFICIAL USE ONLY FILE COPY Repot No. P-3062-BU REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF BURUNDI FOR A NICKEL EXPLORATION/ENGINEERING PROJECT May 8, 1981 This documtent has a restricted distribution and may be used by recipients only in the performance of | their offical dutis. Its contents may not otherwise be disclosed without World Bank authorizaton.  CURRENCY EQUIVALENTS Currency Unit - Burundi Franc (FBu) US$ 1.00 - FBu 90 FBu - US$0.011 WEIGHTS AND MEASURES Metric System ABBREVIATIONS MUSONGATI PROJECT - Large Scale Musongati Nickel Development Project which could be the outcome of the proposed explora- tion/engineering credit. ONATOUR - National Peat Bureau. REGIDESO - Water and Electric Power Distribution Authority. UOP - Universal Oil Products FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY BURUNDI NICKEL EXPLORATION/ENGINEERING PROJECT CREDIT AND PROJECT SUMMARY Borrower Republic of Burundi Amount : SDR 3.3 million (US$4.0 million equivalent) Terms : Standard Project Objective and Description: The objective of the proposed Exploration/Engineering Project is to develop and analyze the basic data needed to reformulate the large-scale Musongati Nickel Develop- ment Project with the view to establishing a financially, technically and economically sound project. It would include (i) nickel exploration (ii) trial peat production (iii) engineering studies (high grade mineability, hydro- electric site, sulfur sources, and process selection) (iv) overall review of the Musongati Project viability and (v) management assistance. Justification and Risk The proposed Credit is considered as the minimum invest- ment required to bring the Musongati Project to a point where both the Government and potential investors can make informed decisions regarding the Project's viability, including whether or not to proceed with a full feasibility study. The riskof undertaking unnecessary studies has been minimized by phasing the nickel exploration, peat and engineering work. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  (ii) Estimated Cost: Foreign Local Total (net of import taxes and duties) -----(US$million equivalent)------- Management Assistance 0.32 0.01 0.33 Nickel Exploration 1.61 0.24 1.85 Engineering Studies 0.75 0.03 0.78 Trial Peat Production 2.67 0.20 2.87 TOTAL BASE COST 5.35 0.48 5.83 Physical Contingency 0.64 0.05 0.69 Price Contingency 0.71 0.04 0.75 TOTAL COST 6.70 0.57 7.27 _______ ___ - - ~~~~~~~~~~~~~~% of Financing Plan Foreign Local Total total Government _ 0.6 0.6 8 IDA 4.0 - 4.0 55 Finland 1.8 - 1.8 25 Denmark 0.9 - 0.9 12 6.7 0.6 7.3 100 Total Estimated Disbursements: IDA Fiscal Year 1982 1983 1984