Announcement of Coal Exploration Project in Argentina Receives World Bank Support on December 11, 1980

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/35 December 11, 1980 COAL EXPLORATION PROJECT IN ARGENTINA RECEIVES WORLD BANK SUPPORT The World Bank has approved a $10 million loan to Argentina to assist in the evaluation of the coal reserves of the country. The project will define coal reserv~s in the most promising areas of the Austral Basin 1 in the province of Santa Cruz, in southern Argentina. The project is aimed at providing the Government of Argentina with a basic coal reserves inventory, thus enabling it to establish investment pri- orities and define policies for the long-term development of the energy sector. Until now, insufficient knowledge of coal reserves prevented coal from be- • ing included in Argentina's long-term energy planning. Measured coal reserves are presently estimated at 180 million tons of coal equivalent (tee). Argen- tina's coal consumption in 1979 reached a level of 1 .6 mil lion tee, equiv- alent to 2.5% of the estimated national energy consumption. With a total cost estimated at $20 million, the project will include a drilling program, seismic studies, and geological reconnaissance in the R(o Turbio area, located at the southern rim of the Austral Basin. Coal pros- pects along the northeastern and northwestern rims of the basin in the areas of Rfo Lista, Lago Cardiel, Man Aike, Rfo Chal ia, Rfo Santa Cruz, and the Bajo San Julian will also be examined. Yacimientos Carbon(feros Fiscales (YCF) would be the executing agency for the project. YCF is the state's coal company responsible for the explora- tion and exploitation of the Rio Turbio coal deposit and for carrying out exploration activities for solid fuels in other regions. The coal exploration project to measure coal reserves will complement efforts in the petroleum sector. In June 1980, the World Bank approved a $27 million loan to support an oil and gas engineering project in Argentina. The $10 million Bank loan to the Argentine Republic has a term of 10 years, including 4 years of grace, with interest at 9.25% per annum. • NOTE: Money figures are expressed in U.S. dollar equivalents . FORM NO. 1121 (5-76) T E C HN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: Coal Exploration Argentina $20 mi 11 hn • BANK FINANCING: $10 million for a term of 10 years, including l+ years of grace, at 9.25% interest per annum OTHER FINANCING: Government of Argentina, $3 mi 11 ion: Yacimientos Carbon(- feros Fiscales (YCF), $7 million IMPLEMENTING ORGANIZATION: Yacimientos Carbon(feros Fiscales (YCF) Av, R. S. Pen~ 1190 Buenos Aires, Argentina Cables: Yacimientos Carbon(feros Fiscales; Buenos Aires PROJECT DESCRIPTION: It consists of: (a) a drilling program, involving approx- imately 60 holes with a total length of 32,000 meters; (b) high resolution seismics, with a total line length of about 600 kilometers (km); (c) geoiogical reconnaissancel including mapping, trenching,and sampling over an area of initially up to 30,000 kmz, which will be reduced as the work advances; and (d) pre-. feasibility studies, including conceptual and basic engineering design for specific projects which may result from the exploration activities. PROCUREMENT: Equipment contracts costing more than $50,000 will be pro- cured throuyh international competitive bidding. Items costing less than $50,000 will be procured by international shopping, whereby YCF will solicit four quotations from at least three countries abroad; procurement under this procedure will, in the ag~regate, not exceed $400,000. Proposals for services contracts will also be sought internationally. It will be preferable tq include in the General Consultant contract the in-hole geophysical logging and the seismic services. If the selected firm, however, could not provide these specialized services, they will be pro- cured as sub-contracts. CONSULTANTS: About 146 man-months of consultant services wi1i be required. The consultant will manage the project activities and assume the responsibility of interpretation and quality of the results. The ·consultant will also carry out the prefeasibility studies. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: Not applicable. 1985 - 0 - •