Announcement of IDA Approves Credits to Benin and Togo for Technical Assistance on November 12, 1981

~ • • • •• • I · ·FOR IMMEDIATFRELEASE · .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 82/18 Contact: Hugh Blackman November 12, 1981 (202) 676-1628 IDA APPROVES CREDITS TO BENIN AND TOGO FOR TECHNICAL ASSISTANCE The International Development Association (IDA) will lend SOR 3.5 million ($3.8 million) to Benin and Togo for providing technical assistance. The credits from the concessional lending affiliate of the World Bank will aid joint power development in the two neighboring countries. The IDA credits will provide Benin and Togo with the technical assistance needed to complete preparation of a regional hydroelectric and irrigation project on the Mono River. This river, which partially forms the border between the two countries, offers an attractive site for a power project at Nangbeto. A feasibility study was carried out by the World Bank with funds provided by the United Nations Development Programme. The study defined a project costing about $120 million and concluded that 'further project preparation was warranted. The Nangbeto project is~the responsibility of a bi~natJonal energy development agency, the Communaut~ Electrique de B~nin, Technl~al services for detailed • engineering and bidding document preparation have already been negotiated with Electrowatt/Sogreah, a Swiss-French consulting engineering firm. The IDA credits, in conjunction with funds provided by the French aid agency, Fonds d'Aide et de Cooperation, will finance additional geological and detailed engineering studies, a study of population resettlement, hydraulic model tests, technical evaluation by an engineering review board, and assistance with contractor prequalification and selection. The credits will also help the governments to pre- pare regional and national energy plans, and to strengthen the agencies involved in the energy sector. Benin will borrow SDR 1.7 million ($1.815 million) and Togo will borrow SDR 1.8 million ($1.985 million). Both credits will be for 50 years, with 10 years of grace. They will be interest-free but will bear a service charge of 3/4 of 1% a year to cover IDA's administrative costs. The credits will be committed when funds are available. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 ba~ket 1"iof currencies. The U.S. dollar equi 1 ·alent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit . •