Announcement of 12.95 Million Dollars Credit to Somalia for the Mogadiscio Port on March 8, 1973

• INTERNATIONAL DEVELOPl\.:fENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 73/10 Subje~t: $12.9S million credit to March 8, 1973 Somalia for the Mogadiscio Port The International Development Association (IDA), an affiliate of the World Baruc, has approved a credit equivalent to $.1.2.9S million for the Somali Democratic Republic to help finance the construction of a deep water port. The project is being jointly financed with the European Development Fund (FED) which is contribu·ting up to the equivalent of $13.9 million by way of a grant. Somalia, which is recognized as one poorest countries of Africa, comprises the coastal plain southeast of the Ethiopian highlands and the mountainous ridge forming the Horn of Africa. Somalia's economic future depends essentially on development of agriculture and on the export of liv.estock and bananas which together account for 90% of the country I s total exports. In addition to these activities, the Government also gives high priority in its current Development Plan to transportation and conmrunications, including the construc- tion of a new port at Mogadiscio, the capital. Previous IDA credits for Somalia totaling about $22 million have helped education and transportation development including construction of two trunk roads in the central and northern regions, and engineering and • accounting services for the Port of Mogadiscio • The present project will provide the capital and its extensive hinterland with a deepwater port to replace the present lighterage facilities, which are un$atisfactory and often cannot be used at all during the monsoon season. The project includes con- struction of a 2,500 foot breakwater, three berths and a dolphin berth for livestock vessels, a marshalling area for livestock, an access road, transit sheds and a ware- house: It also provides for the purchase of cargo-handling equipment, a tug, and harbor and navigational equipnent. The project includes technical assistance, engineeril'l; supervision services, and training in port operations and accounting. The project, which is scheduled for completion by June 1976, will be implemented by the Depart]1'tnt of Civil Engineering of the Ministry of Public Works. The Somalia Port Authority (SPA), which was established in 1962, will be responsible for operations after comple.tion of the construction works. The technical assistance provided by the project will strengthen the management of SPA, which is responsible for administration of all the country's ports. The estimated total cost of the project is $25.0 million and the IDA credit and FED grant will each provide about half of the cost. The IDA credit includes $450,000 to refund the out~tanding balance of the previous IDA credit for the engineering and ac- counting services for SPA, making a total IDA credit of $12.95 million. The borrower is the Somali Democratic R.epublic, and the IDA credit is for 50 years, including a 10-year grace period. It is interest-free except for a 3/4 of 1% service •• charge to cover IDA's administrative expenses • - 0 -  • TEQINICAL DATA PROJECT: Mogadis cio Port COUNTRY: Somali Democratic Republic TOTAL COST: $25. 0 million IDA FINANCING: $12.95 million credit, 50 years, including ten years of grace, interest-free except for 3/4 of 1% service charge to cover IDA's administrative expenses. The IDA credit includes $450,000 to refinance the outstanding balance of the prev!.ous engineering and aiccounting · credit. OTIIER FINANCING: A European Development Fund (FED) grant of up to $13.9 mil- lion will finance the project joint~y with the Association. IMPLEMENTING ORGANIZATION: The Civil Engineering Department of the Ministry • of Public Works, Mogadiscio, Somalia, will be responsil,le for the execution of the civil works. Somali Port Autho~~cy (SPA), Mogadiscio, Somalia, will be responsible for equipment, technical assistance and t~a operation and maintenance of the completed port. PROJECT DESCRIPTIOO: Construction of a new sheltered port at Mogadiscio, comprising a 2,500 foot breakwater, three berths, a dolphin berth for livestock vessels, a marshalling area for livestock, an access road,. transit sheds,warehouses and ancillary buildings, the purchase of cargQ handling equipment, a tug and harbor arad navigational equipment. Service· provided include engineering supervision, technical assistance and train- ing in port operation accounting, tariffs and management. PRlCUREMENT: The civil works contract will be carried out by a contractor selected on the basis of international competitive bidding. Port operating equipment will be procured after international competitive bidding. CX>NSULTANTS: Societe Grenobloise d'Etudes et d'Applications Hydrauliques (SOGREAH), France, has been retained as the engineering consultant to provide continuity with previous services. A management consulting firm will also be employed. ESTIMATED COMPLETION DATE: June 1976. - 0 - •