Nicaragua - Port of Corinto Project

RESTRICT E D FIE Report No. P-110 This document was prepared for internal use in the Bank. In making it available to others, the Bank assumes no responsibility to them for the accuracy or completeness of the information contained herein. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATIONS OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON THE PROPOSED LOAN TO AUTORIDAD PORTUARIA DE CORINTO FOR A PORT DEVELOPMENT PROJECT IN NICARAGUA May 15, 1956  IdTEFNATJONALL BANK FMi R7CONSTRUCTION ANT) D ELOPEEN REPCFlT AhiD DECOMLiENDATTI1S CF T_iL -2 ', TO 0 37EGUTIVE LDTb:CTORC3 !t J <'T AT3T4. LUWOiI.Aj 'i9 M-TTz D)E 1. I submit the folloiring report and recom.endations on a proposed loan of $3.2 mrllion or its equivalent in other currencies to Autoridad Portuaria de Corinto, iicaragua, (heroinafter sometimqes referred to as the Port Authority) to finance a port rehabilitation and improvement project i PI.T I - HI3OS;ICEI. 2, in August l195, the Governmcnt of Nicaragua asked the Bank to con- sider a loan of about 3.6 million to finance the rehabilitation and im- provement of the port of Corinto according to a prelimainary design iwhich had been prepared by a finni of engineering consultants. 3. A Bank mission visited Nicaragua in September-October 1955 to study the project. As a result of suggostions made by the mission, the Govern- ment, with the approval of the engineering consultants, modified the pro- ject so as to reduce its estinmiated cost. 4e In January 1956, in accordance with a suggestion from thae Bank, a law r,as passed creating a Port Authority of Corinto to takce over the owner- ship and operation of thie port from tlhe Pacific Railroad of Nicaragua. 5. In a letter dated Ma.:rch 16, 1