Somalia - Power Rehabilitation and Energy Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-4600-SO MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 9.7 MILLION TO THE DEMOCRATIC REPUBLIC OF SOMALIA FOR A POWER REHABITITATION AND ENERGY PROJECT September 29, 1987 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.  CURRENCY EQUIVALENTS US$1.00 = Sosh 120 (as of January 1987) GLOSSARY Ad) ABBREVIATIONS ADB - African Development Bank EIB - European Investment Bank ENEE - Ente Nazionale Energia Elettrica MNP - Ministry of National Planning NWP - National Woodstove Project FISCAL YEAR January 1 - December 31  FOR OFFJCLAL ES ONLY SOMALIA POWER REHABILITATION AND ENERGY PROJECT CREDIT AND PROJECT SUMMARY Borrower: The Democratic Republic of Somalia Beneficiaries: ENEE, MNP, NWP Amount: SDR 9.7 million (US$12.5 million) Terms: Standard, with 40 years maturity Onlending Terms: ENEE: US$ 10.3 million at interest of 7.76% (current IBRD rate) p.a., 20 years including five years' grace. ENEE to bear the foreign exchange risk. US$1.3 million against payment of matching amount in local currency. MNP: US$ 0.8 million on a grant basis NWP: US$ 0.1 million on a grant basis Financing Plan: (US$ million) Government 0.4 ENEE 6.9 ADB 9.5 EIB 14.7 IDA 12.5 Italy 50.0 Total 94.0 Economic Rate of Return: 25% Staff Appraisal Report: Report No. 6834-SO Map: IBRD 20526 This document has a restricted distribution and may be used by recipients only in the peri-t raw) of their official duties. Its contents may not otherwise be disclosed without World Bank auw.horizat  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE DEMOCRATIC REPUBLIC OF SOMALIA FOR A POWER REHABILITATION AND ENERGY PROJECT 1. The following report on a proposed developLent credit to Somalia for SiR 9.7 million (US$12.5 million equivalent) is submitted for approval. The proposed credit would be on 40 year IDA terms. US$ 10.3 million would be onlent to the Ente Nazionale Energia Elettrica (ENEE) at 7.76% for a term of 20 years, including a 5 year grace period and would help finance technical assistance and the purchase of equipment, capital spares, and vehicles. ENEE would carry the foreign exchange risk. US$1.3 million for operating spares would be made available to ENEE against payment of a matching amount in local currency. The balance of US$0.9 million would be for technical assistance and logistical back-up resources to the Ministry of National Planning (MNP) and the National Woodstove Project (NWP). ADB would provide cofinancing of US$9.5 million equivalent and EIB of US$14.7 million. A grant of US$50.0 million equivalent is being provided by the Government of Italy as parallel financing for the prGject. At a meeting of the colenders in June 1987 cofinancing and coordination arrangements for the project were finalized. 2. !!S