Announcement of China to Develop Phosphate Industry in Hubei Province on May 25, 1989

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 89/74 Contact: Leandro V. Coronel (202) 477-3641 CHINA TO DEVELOP PHOSPHATE INDUSTRY IN HUBEI PROVINCE WASHINGTON, May 25, 1989 -- China will increase production of high- grade phosphate fertilizer in Hubei Province and boost agricultural output throughout the country through a project supported by a $137 million loan from the World Bank. Phosphate is a necessary nutrient of high-grade chemical fertilizer, which China requires and imports in large quantities. In recent years, a process to produce phosphate from domestic rocks has enabled China to plan the development of this industry. The project includes establishing a triple-superphosphate plant and an aluminum floride plant in Dayukou and a monoammonium phosphate plant in Huangmailing. Technical experts will support project implementation and maintenance of mine workshops and provide training in plant hazard and safety analysis of chemical plants. The companies that will implement the project, the Huangmailing Phosphate Chemical Company and Jinxiang Phosphate Chemical Company, will market the high-grade fertilizer at free-market prices. The central government will contribute $240.7 million and the Hubei government, $105.6 million, to the $510.5 million project. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.65 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent of the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.