Announcement of Jordan to Expand Phosphate Production on January 21, 1988

_· fOR IMMEDIATE RELEASE World Bank , o, d H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 88/37 Contact: Fawzi Rihane (202) 473 2675 JORDAN TO EXPAND PHOSPHATE PRODUCTION WASHINGTON, January 21, 1988-- Jordan will develop a new phosphate mine at Shidiya, 120 kilometers north of the port of Aqaba, with the help of a $31 million World Bank loan. The project is a step in the development of the large unexploited Shidiya deposit and will enable Jordan to increase its exports of phosphate rock. It will provide open-pit mine equipment; millsite equipment, including screening plant with product storage and handling facilities; and social and industrial infrastructure. The project also aims at resolving the existing phosphate dust pollution problem at Aqaba port. Phosphate is Jordan's most important natural resource and major source of foreign exchange. The project will help increase foreign exchange earnings and rationalize and streamline the phosphate industry. A technical assistance component will assist in orienting research towards optimal design and return of future development stages at Shidiya. The Jordan Phosphate Mines Company will finance the remaining $58 million of the project cost through export credits. The World Bank loan is for 17 years, including four years of grace, with a variable interest rate, currently 7.72 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment change of 0.75 percent on undisbursed balances. Note: Money figures are expressed in US dollars equivalents.