Announcement of Foundry Industry in Tunisia Gets World Bank Support on June 6, 1983

• # - FOR IMMEDIATE RELfASE •world Bank 1818 H Street, N.W., Washington, O.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 83/102 Contact: Fawzi Rihane June 6, 1983 (202) 477-3651 FOUNDRY INDUSTRY IN TUNISIA GETS WORLD BANK SUPPORT One of the most important industrial enterprises in Tunisia, the Foundry and Mechanical Company (SOFOMECA), will borrow $16.8 million from the International Bank for Reconstruction and Development (IBRD). The loan will help finance a $54.1 million project aimed at supporting the government's objective of developing and efficiently operating the foundry industry. The project will form an important backward link to promote integration in the country's engineering industry. To meet the growing local demand for foundry products and lay a basis for exports, the project will help increase output of Tunisian castings by more than 100%. • The company will rehabilitate production facilities at its existing iron and stee1 foundries by streamlining plant layout, installing modern equipment, and modifying the molding, material handling, and sand preparation sections. The iron capacity will be increased from 3,400 tons per year(tpy)to 5,200 tpy, and the steel capacity from 1,800 to 2,300 tpy. In addition, a fully equipped 7,000-tpy foundry for mechanical castings, and a sand treatment plant, will be constructed. Co-financing in the form of equity is expected from: Tuniso-Saudi Investment and Development Corporation (STUSID), $2.4 million; Tuniso-Kuwaiti Development Bank (BTKD), $1.6 million; Tuniso-Emirates Investment Bank (BTEI), $1.6 million; Arab Mining Company (ARMICO), $4.2 million; Arab Industrial Investment Company (AIIC), $4.2 million; and Islamic Development Bank (IDB)~ $3.7 million. In addition, STUSID, BTKD, and BTEI are expected to provide $14.9 million in long-term loans. The IBRD loan is for 15 yc~rs, including three and one-half years of grace,at an annual interest rate linked to the co.st of Bank borrowings., The loan also carries an annual commitment charge of n.75% on un<lisbursed balances, and a front-end fee of 0.25% on the amount~ the loan. NOTE: Money figures are expressed in U.S. dollar equivalents • •