Announcement of World Bank to Boost Potash Industry in Jordan on March 12, 1987

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 87/44 Contact: Fawzi H. Rihane (202) 477-5325 WORLD BANK TO BOOST POTASH INDUSTRY IN JORDAN WASHINGTON, March 12 - The World Bank is assisting Jordan with a loan of $12 million to improve existing potash production facilities and to initiate a research and development program for assessing the ultimate potential of these facilities. The project will lay the groundwork for introducing progressive technologies into the industry. The project is comprised of an investment and a technical assistance component. The investment component involves modifications in the decomposition section of the refinery and other corrective measures which will facilitate production and alleviate current restraints in the refining process. Overall operational flexibility in the refinery will be increased. The technical assistance component is part of the Arab Potash Company's (APC) research and development program which will assess the long-term prospects of its operations, and view its prospects for technological improvement, cost reduction, and business growth. The project also addresses specific staffing and training needs in the industry and takes into account the existing marketing arrangements and patterns. The project will include a financial rehabilitation plan, currently under implementation, which aims at compensating the effects of past losses, strengthening the capital structure of the APC, and improving the company's liquidity position. Other financing for the project includes APC, $5.18 million and the Islamic Development Bank, $8 million. The World Bank loan is for 17 years, including four years of grace, with a variable interest rate, currently 7.92 percent, linked to the cost of the Bank's borrowings. It also carries an annnual commitment charge of 0.75 percent on the undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.