Announcement of Guinea to Borrow Nineteen Million US Dollars for Revitalizing Industry on April 29, 1982

. . .:· FOR ·1MME.BIA IF RELEASE . •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-'1234 I DA NEWS RELEASE NO. 82/60 Contact: Pushpa Schwartz Apri 1 29, 1982 (202) 477-5306 GUINEA TO BORROW $19 MILLION FOR REVITALIZING INDUSTRY Guinea will use a credit of SDR 16.6 million ($19 million) to revitalize its industrial sector, the International Development Association (IDA) announced today. The World Bank's affiliate for concessionary lending will make funds avail- able to support the government 1 s industrial strategy through strengthening the private sector, improving the performance of selected state industrial enterprises, and strengthening the capability of government organizations concerned to develop policy for the industrial sector and for preparing projects suitable for financing. Small and medium~scale enterprises in the private industrial sector will be provided with term credit, equipment, and technical assistance. Four state enterprises will be rehabilitated through the prov1s1on of equipment, civil works, raw materials, and technical assistance. These state enterprises are: the quinine plantation and factory at Seredou; the SIPAR plantation at Labe, where highly valued essential oils and essences are produced for the perfume industry; the SONACAG granite quarry near Conakry; and the SONACAG tile factory. Three man-years of technical assistance will be provided to assist the government in analyzing data and formulation of industrial policy for the public and private sectors. Funds will also be supplied for sectDr studies, and pre-feasibility and preparation work. The project will also finance two already identified studies to establish whether the SONACAG Ornamental Stone Quarry and the Slate Quarry could be developed profitably. The $45.4 million project will be carried out by the Ministry of Industry, which will administer the state ~nterprise component, and the Ministry of Small and Medium Enterprise for private sector promotion. Financial intermediation will be through the Credit National pour le Commerce, 1 1 lndustrie et l'Habitat. Co-financing for the project will be provided by: the OPEC Fund, $11 million; European Economic Community, $5.5 million; and Canadian International Development Agency, $1.2 million. The IDA credit brings lending to Guinea from World Bank resources to a total c,f $157.4 millio. 1. It is for 50 years, including 10 years of grace; it carries no interest but bears a small annual service charge (0.5% on the undisbursed balances of the credit, and 0.75% on the disbursed balances.) • NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit.