Announcement of IDA Approves Twelve Million Five Hundred Thousand Dollars Credit for Petroleum Exploration in Madagascar on May 8, 1980

.. FOR IMMEDIATE RE~EASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477--1234 IDA NEWS RELEASE NO. 80/63 May 8, 1980 IDA APPROVES $12.5 MILLION CREDIT FOR PETROLEUM EXPLORATION IN MADAGASCAR The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a credit of $12.5 million for a petroleum exploration promotion project in Madagascar. The $14.6 million project will support the government's efforts to develop a domestic supply of hydrocarbons and will improve planning of the energy sector. The project provides for a total of 107 man-months of consultant services for the Office Militaire National pour les Industries Strategiques, (B.P. 1 bis, 21, Lalana Razanakombana, Antananarivo, Madagascar; Telex: 22370), which will be the implementing agency. The range of consulting services--ex- ploration, legal, geological/geophysical, and heavy oil specialists--provided • for in this component will strengthen the institutional framework of the petroleum authority. Finally, the project includes a component aimed at enabling the _government to undertake energy planning on a continuous basis. The Government of Madagascar will contribute $2.1 million towards the costs of the project. The IDA credit is for 50 years, including 10 years of grace. It will bear no interest but will carry a service charge of 3/4 of 1% per annum to cover administrative expenses. NOTE: Money figures are expressed in U.S. dollar equivalents • •