Announcement of Three Million Nine Hundred Thousand US Dollars Loan in Sierra Leone on July 31, 1968

1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 68/40 Subject: $3.9 million loan in July 31, 1968 Sierra Leone Electric generating capacity in Sierra Leone will be increased by about a third to a total of 42,300 kilowatts with the assistance of a World Bank loan of $3.9 million. Electric power systems will be expanded in the capital city of Freetown, where industrial and connnercial demand is expected to increas.e at an annual rate of 14% during the next five years, and in two of the largest provincial towns, Kenema and Koidu, which have grown sufficiently in size and importance to warrant improved power systems. • At Freetown, a 6,600-kilowatt diesel electric generating unit will be in- stalled at the King Tom power station which was built with the help of a World Bank loan of $3.8 million in 1964 with a capacity of 13,200 kilowatts; this unit will complete the station. The Freetown distribution system will also be improved and expanded. Five 1,000-kilowatt diesel electric generators will be installed in the provincial towns, three in Kenema and two in Koidu and their distribution systems will be expanded. The loan· will be made to the Sierra Leone Electric~.JY Corporation and will be guaranteed by Sierra Leone. It will be for a term of 20 years, in- cluding a 3-1/2-year grace period, and bear interest of 6-1/4%. The First Pennsylvania Banking and Trust Company, Philadelphia, is participat::..~tg i11 the loan to ~he extent of $50,000. • The Sierra Leone Electricity Corporation was established in 1964 with responsibility for all public power generation and distribution throughout the country. Since its inception, the Corporation has operated the electricity /more  !/ f/ • /i 1!;-~tl;k No. 68/40 - Sierra Leone-power - 2 - I I system e'f.ticiently and has made considerable progress in developing its organi- 1 zation, $taff, mana,iement and accounting.. The Corp,..> ration supplies electricity service in Freetown and in 18 provincial towns. Most of the Corporation's power capacity (23,700 kilowatts) is concentrated in Freetown which is the main center of t\conomic activity and, with a population of 200,000, is by far the largest town. The demand for power in·Freetown is expected to increase at a higher rate than its recent level due mainly to new industries, iricluding a shoe factory, tire plant, flour mill and hotel which have recently been completed and an oil refinery, deep water quay and quarry now under construction. Capacity in the provinces is about 7,000 kilowatts and most of the plants operate as isolated facilities employing old generating sets with minimal distribution facilities. Power consumption has been held back by lack of service. The new installations ~ at Kenema and Koidu will provide for present needs and encourage the expansion of light industry. ,I Power sales in the country as a whole have been g:rowing at an annual rate 9f 12% during the last four years an4 the Bank project is part of the Corpora- tion's development program for the five years 1968-71 which will cost the equtva- lent of $7.5 million. The Corporation intends to finance 48% of the program from its cash ge1.1eration and 52% from the Bank loan. The loan will cover the foreign exchange requirements, including equipment and the services ~f con- sultants who will·assist the Electricity Corporation in executing the projei::t. - 0 - •