Announcement of World Bank Approves Forty Million Dollars for Chemical Complex Project in Romania on November 30, 1978

,, "' . "FOR IMMl:DIAT.E RELEASE ... . \... .•World Bank 1818 H Street, N.w.,·washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/27 November 30? 1978 WORLD BANK APPROVES $40 MILLION FOR CHEMICAL COMPLEX PROJECT IN.ROMANIA The expansion and modernization of the Craiova Chemical Complex in southwestern Romania will be assisted by a $40 million loan, the World Bank announced today. The $156.6 million project has as its main element, the installation of an acetylene production unit based on methane feedstock with an annual capacity of 30,000 metric tons. The unit will provide acetylene intermediate to new or expanded downstream units and deliver off-gases for use elsewhere in the complex. The project also comprises expansion of the capacities of existing vinyl acetate and polyvinyl acetate units and the building of new acetic acid, acetic anhydride, ethyl acetate, and methanol units. A new plant for the separation of carbon monoxide will also be constructed. As a result of the expansion and modernization, about 360 million cubic meters of methane gas will be diverted from fuel to chemical feed- stock uses, thus increasing the amount of gas processed in Romania into higher value chemicals by about 12%. This will enable Roma.nia to both earn and save scarce foreign exchange. End use prodt J manufactured under tlie project include plastics, paints, varnishes, and man-made fibres. The Romanian chemical industry will benefit from the transfer of tech- nology by foreign suppliers for the acetic acid and acetic anhydride plant as well as for the carbon monoxide separation unit. Employment will be provided for about 1,100 people. The World Bank loan to the Investment Bank of Romania, to be guaranteed by the Socialist Republic of Romania, is for 14 years including a grace period of 3 1/2 years with interest at 7.35% per annum. Co-financing is being provided by the Federal Republic of Germany through a supplier's credit • • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Craiova Chemical Romania $156.6 million • BANK FINANCING: $40 million for 14 years'> including 3 1/2 years of grace, at an interest rate of 7.35% per annum. OTHER FINANCING: Federal Republic of Germany, $12.9 million supp~iers credit. IMPLEMENTING ORGANIZATION: Craiova Chemical Complex, Craiova, Romania. PROJECT DESCRIPTION: It includes: a) installation of a 30,000-metric-ton per year acetylene unit using methane feedstock; b) expansion of capacity of vinyl acetate and polyvinyl acetate units; c) construction of acetic acid, acetic anhydride, ethyl acetate, and methanol units; and d) construction of a new plant for separation of carbon monoxide. • PROCUREMENT: Equipment and materials will be procured according to the Bank's guidelines. International competitive bidding (ICB) will be used for procuring imported equipment, materials, and relevant know-how and services, estimated at $12 million. Romanian suppliers will be accorded preference of 15% or the applicable customs duty (whichever is lower) for $16 million of equipment and sub-assemblies which are also subject to !CB and for which qualified Romanian suppliers exist. The remaining imported items may be purchased through prudent international shopping. CONSULTANTS: The Industrial Central for Chemical Fertilizers (CIICH) will provide all the technical assistance required to the enterprise, except for technical assistance for the acetic acid plant, which will be provided by BASF Company of the Federal Republic of Germany. Civil works and construction will be carried out by construction trusts from the Ministry of Industrial Construction, under the supervision of the Central's Design Institute (IITPIC), and international • procurement will be handled by ROMCHIM (the foreign trade enterprise of the Ministry of Chemical Industries). ECONOMIC RATE OF RETURN: 16% ESTIMATED COMPLETION DATE: 1983 - 0 -