Announcement of Eleven Million US Dollars Loan to Nicaragua for a Second Port Expansion Project in Corinto on February 1, 1973

'. d) INTERNATIONAL BANK FOR .RECONStRUCTIO~N AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360. Bank Press Release No. 73/7 Subjecti $11.0 million loan to Nicaragua February 1, 1973 for a second port expansion project in Corii,to ('( . The World Bank has approved a loan of $11.0 Y:t_l):.ion equivalent for the e~nsion and improvement of facilities at the port of Corinto, oi{::the Pacific coast of Nicaragua. The port loan has been under consideration since before the December 23, 1972 earth- quake that destroyed the country's capital city of Managua • 'Ihe Nicaraguan Government re- confirmed later its desire to proceed with the ,project. The destructive earthquake .~aused great human suffering and loss of life. It seriously affected a large pa.rt of Managua rs infrastructure and most of its service industry, and de- stroyed some 10% of the country's industrial installations. It has been estimated, however, that agriculture and tran~port facilities were left virtually intact. The ~~orld Bank Group has joined other international and bilateral organizations and the Nicaraguan Government to determine the best means to coordinate assistance for reconstruction and all~viation of the earthquake impact on the country's economy. Shortly a·fteir·: the disaster, Bank Group missions identified areas where immediate assistance was required. '!be Bartle Group ~rther expects to p,e in a position to consider, at an early date, a reconstruction credit, The loan approved now, al though not directly linked to the recons true ti on efforts, will assist in helping Nicaragua to maintain and expand its levels of agricultural exports and provide additional employment. Seaborne trade, especially with the United States, Europe ? and Japan, is of great ~portance to the cQuntry 1s economic growth. The port of Corinto is the only Nicaraguan port with deepwater berthing facilities in its naturally protected an- chorage • .-? Traffic through the port, mainly exports of cotton, coffee and sugar, and imports of <);,heat, fertilizers and manufactured goods, ~d increased steadily since modern facilities, including two reinforced concrete berths, were built under a previous Bank loan granted in 1956. Corinto's traffic is expected to increase froiq. some 660,000 tons in 1972 to about 1,000,000 tons in 1976. The new loan~l[-1-11 support a project designed to serve present and projected traffic de- mands until 1985. 'ffa.in works include the coµstruction of a new 790-foot wharf to replace an existing, obsolete timber-deck pier; the construction of service and administration b~ildtngs, storage areas and utilities; installation' of container handling equipment; channel dredging and navigational aids; works to protect road a,rtd railway accesses from St'i$ erosion; and training of personnel for maintenance of sea defense works and ma.nageent, and maintenance of container handling equipnent. The project is expected to be co~leted in 1976 at a total cost of $14.16 ntlllion equivalent, of which the Bank loan of $11.0 million will finance the foreign exchange re- .d quirements. Procurement of goods and services to be f'inanced by the loan will be under international c.ompetitive bidding. The Corinto Port Authority (CPA), will be the b~rrower responsible for the impl~nta.tion of the new project. The loan to C.PA, with th.e.. guarantee. of the Republic of Nicaragu.a., 11 be. for a term J w:l.. of 24 years, including four years of g~ce, with annual interest at 7~. 0 Two United States financial institutions are participating in the Bank loan for a total amount'of $200,000: Bank of America, New York, and Marine Midland Bank - New York • .  • ~e.hruary l, 1973 TECHNICAL DATA PROJECT: Ports COUNTRY: Nicaragua TOTAL COST: $14.16 million· equivalent. BANK FINANCING: $11. 0 millio;,., 24 years :i r:our years of g-r~.ce, 7\% per annum. OTHER FINANCING: Internal resource$. ·' IMPLEME11TING ORGANIZAT~ON: Corinto Port .Authority (fPA), Apartado .Postal 2727, Managua~ Ntlarag~;.a~ · PROJECT DESCRIPrION:. IncreaS,e and impro~,e port capacity an<i C,PA' s administrative facilities, provi~e traintng and technical ass;stance .for port management. • PROCUREME~'"T: Construction of a marginal what·f :i about 790 feet, .with alongside water depth of 40 feet .at me$n lc;>w water, spring tide, for ;container and general cargo traffic to replace aii ex~s\:ing t:imbe.·i:-:-deck pj.er; ~onst·:ru~. ~.!~n of a new administiation ·building with about· 13,100 square feet. o.f usati:ir:t~~ .. , \, floor area, and a stevedo~e building, and. relocation of ~n e_xisting worksti~i:1, warehouse and gasoline .filling s:tation; · construction of suppor.ting utilities and service areas, inc.luding about 1,210,000'squate. faet of open,stor4ge aiea, parking, drainage, ·~e11cing, · liah~ing, watei and electric service~ ,and·,pipe-. lines for connec,tiop to veJsels, paving behind the existing wha.rfs N9s ! 1 and 2 of about 320,000 ·equ~re fe~t·; · acquisition and use of a crane and a. straddle · carrier for handlin, cdnt•iners up ~e> 40 feet long;_ ~redgl~ of the 4pproach channel to provide a depthof 35 feet at mean low.water, spriq (ide,.acqui- sition of navigational 4ids for the· approach chan~el;. cons~ruction· 'of' about 1,850 yards of coas:~al defense works along the saashore of the .island of Corinto near Paso ·c.aballos 'to prote¢t road and rail ac~ess to ~he p.ort, .and training for port peno~el. Construction and equipment.cc;,:ntr4cts to be awarded o.n· basis 'of 'interna~ional competitive 1;,idding. AWafd· of $250, QOO for consultants' servi~~s and for coastal protection'.work ha,. already been made., CONSUL'tANrS.:. Frederic R. Har:rj.~ ,(USA and Wetherlands) ; Cisn~ro. y Conrado (Nicaragua) and Sa~tos ·an,d HJ.Ue111an (Ni~arag~a) • ES'lll'A'tED COMPLE'tlON ~'J;E: · 1976 - 0 -. • ' ' l: