Announcement of World Bank Loan to Help Modernize Uruguay’s Montevideo Port on January 24, 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. 80/47 January 24, 1980 WORLD BANK LOAN TO HELP MODERMIZE URUGUAY'S MONTEVIDEO PORT A project to modernize the 75-year old installations of the port of Montevideo in Uruguay will be supported by a World Bank loan of $50 mill ion. The project is expected to improve the efficiency and capacity of existing terminal facilities, reducing operating and maintenance costs. The project is an integral part of the Administraci6n Nacional de Puertos (ANP) 's five-year port development program. ANP is the national organization entrusted with the administration of ports. The program empha- sizes equipment r~newal, upgrading of maintenance, and modernization. The project has an estimated total cost of $58.4 million,'which represents 66% of the 1978-82 development program, costing $88.9 million. • Over 90% of Uruguay's foreign trade depends on maritime transport; most of which is served through the port of Montevideo. The existing port facilities were constructed between 1905 and 1931 and most of port equipment is over 40 years old. The project includes the modification of an existing wharf, and the acqu1s1- tion of cargo handling equipment, two harbor tugboats, and a bucket dredge, Improvement of pavement and sheds for general cargo operations will also be carried out under the project. Technical assistance to improve ANP's program- ming and executing capacity will be provided. The project is expected to provide more reliable transport services to the country's trading partners and to enhance the competitiveness of Uruguay's exports. As a result of the reduction of port operating and maintenance costs, the project wil 1 help to improve Uruguay's position in foreign trade and contrib- ute to the country's economic recovery. · The $50 mill ion World Bank loan to ANP will have the guarantee of the Republica Oriental del Uruguay. The loan has a term of 15 years, including three years of grace, with interest at 7.95% annually. The project is the third Bank operation in the transport sector and the first in the port subsector in Uruguay. ~ NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5--76) T ECHN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Montevideo Port Uruguay $58.4 million • BANK FINANCING: $50 million for-a term of 15 years, including 3 years of grace, at 7.95% interest per annum OTHER FINANCING: Administraci6n Nacional de Puertos (ANP), $8.4 million IMPLEMENTING ORGANIZATION: Administraci6n Nacional de Puertos Rambla 25 de Agosto de 1825 No. 160 Montevideo, Uruguay CABLE: NAVEANP Montevideo, Uruguay TELEX: UY 755 PROJECT DESCRIPTION: • of equipment and It consists of: (a) acquisition modification of an existing wharf for use as a container and bulk cargo terminal; (b) procurement of equipment and improvement of pavement and sheds for general cargo operations; (c) purchase of two harbor tugs; (d) acquisition of a bucket dredge with auxiliary equipment and of a suction-hopper • dredge; and (e) technical assistance to ANP. PROCUREMENT: With the exception of minor civil works which will be advertised locally, all items of equipment and civil works to be financed under the project will be procured through international competitive bidding in accordance with Bank guidelines. CONSULTANTS: Approximately 18 man-years .of professional services for individual advisors and engineering services to ANP, subsurface explorations and planning studies will be required. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETtON DATE: 1982 - 0 - •