Announcement of World Bank Group Lending Exceeds Three Thousand Million Dollars in Fiscal 1972: Papua New Guinea Obtains Aid for Ports and Telecommunications on September 18, 1972

INTERNATIONAL BANK FOR RECONS'IiRUCTION AND DEVELOPMENT . :~·.,) (~1.-in 1 ·I,., l!!!£!J '<'~ INTERNATIONAL DEVELOPMENT ASSOCIATION · '-lkl -=t-z./Yl!l(J 1818 H STREET, N.W. WASHINGTON D.C.20433 · TELEPHONE: EXECUTIVE 3-6360 For Release AM Newspapers Monday, September·1a, 1972 WORLD B.ANK GROUP LENDING EXCEEDS $3,000 MILLION IN FISCAL 1972 ~UA NEW GUINillOBTA!NS AID FOR PORTS AND TELECOMMUNICATIONS The World Bank Group's lending and investment operations in developing countries reached a record annual figure of more than $3,000 million in the fiscal year ending June 30, 1972. The yearv s lending included 72 loans in 40 countries totali.ng $1,966 mil- lion. The World Bank's affiliate, the International Development Association (IDA). apprmr·:c~d credits of $1,000 million for 74 projects in 38 cotmtries. The Internati~)nal Finance Corporation (IFC) made 23 investments of $116 million in 17 countries • The combined Annual Report by the Executive Directors of the Bank and IDA. released today, indicates that the Bank Group continued to increase the scope and depth cf its development assistance in all forms, most notably t~ the poorer countries in its membership. East Asia and Pacific Area Approv;~d Bank loans and IDA credits to nine countries in the East Asia and Pa.cific area totaled $316.3 million in fiscal 1972. Besides Papua New Guinea, which obtained a loan and a credit totaling $19.2 million, the countries assisted were: Bank Loans IDA Credits (In Millions of US Dollars) Fj_ji 2.2 Indonesia 105.5 Korea 33.0 25.5 • Malaysia 31.5 New Zealand 8.0 Philippines 29.5 10.0 Singapore 9.5 Thailand 42.l! /more • - 2 - The power., agriculture and education sectors accounted for the bul!c of Bank Group lending to countries in the area. Bank Group fwds were also approved for projects in the transportation, industry, population planning and telecommunications sectors, and for technical assistance. Papua New Guinea The Report notes that each developing country has its own 1.mique set of problems. !11 Papua New Guinea, for example, the need is to strengtheu the economy in prep'aration for the territory's independence and, tmtil now, the primary need for Ba'.ilk Group financial assistance has been related to infra- structux:e. In fiscal 1972, a..11. IDA credit and a Bank loan were made for this purpose, the latter with Australia's ~uarantee. The loan, of $10 million, is helping to improve teleconnmmications. The project being assisted includes the in..~tallation of 13 9 500 lines of local automatic exchange equipment; a local exchange cable network and equipment to connect an a-1:Jitional 6,100 direct exchange lines; multiplex equipment on long-distance routes to provide about 650 additional circuits; UHF /VHF ra.ci.o systems and equipment to connect 11 base stations; telex exchanges with a total of 600 lines and 500 teleprinters; and tec-lmical and operational bu:f.!d- ings. The IDA credit, of $9.2 million is he!.ping.,\o improve three._ main seapot·ts \.r and build a new one. The project consists of land' reclamation, a storage shed and stacking area at Port Moresby; construction of a deep-water berth that can handle container traffic at Lae; construction of coaster berth facilities at Kieta; construction of a small new port at Alotau; provis~on of cargo-handling e.quipment and engineering, training and management consultant serviceo. Trends in. Assistance 'l'he Report sha-w11s that the base of the Bank Group's assistance is being broadened, to include new fields such as urbanization, population planning, nut:rition, education and rural development. In the East Asia and Pacific area, the Bank Grc,.ip hopes to direct its assistance increasingly to such aspects of economic and social growth as ". education and agriculture. At the same time, support for other sectors, such as industry, power and transportation, will continue. /more  - 3 - IDA Replenishment The Bank Gro~i>'s ability to assist the poorest of its members depends heavily upon funds made available to IDA. which gives credits to member ,:o-r:.trias on highly concessionary terms. The resources of IDA are replenished pedodically by contributions from 1he more affluent member countries. Under an internation~l agreement concluded in 1970, contributions of about $800 mil- lion had been expected during the current year. By June 30, 1972, 16 of the Part I (or richer) nations had ratified the agreement. But without ratification by the largest contributor, the United States, the third replenishment of IDA could not come into effect. However, IDA was able to maintain and even increase the flow of credits to the poorest countries in fiscal 1972 beca~a of special action by 15 govemments in making advance contributions totaling $448 million. Australia made an advance con- tribution of $16 million to IDA's third replenishment. - 0 - •