Announcement of IFC, World Bank Help Finance Three Hundred Million Twelve Thousand US Dollars Fertilizer Complex in Senegal on September 30, 1981

IFC Press Release No. 82/6, Wednesday, September 30, 1981 TFC, World Bank Help Finance 312 Million Fertilizer Complex in Senegal Investment documents were signed in Washington, D.C. today for the largest industrial project ever to be implemented in Senegal--a $312 million fertilizer venture by Industries Chimiques du Senegal (TCS) to produce Phosphoric acid and granulated fertilizer intermediates. The fertilizer complex will upgrade locally mined phosphate rock into intermediate fertilizers for export. The project will contribute significantly to the country's total industrial value added and to net additional exports of $90 million annually. Taking part in the signings were: Fis Excellency Ousmane Seck, Minister of Economy and Finance, Senegal: Mr. Pierre Fabacar Kama, President, ICS: Mr. nusmane Diene, Director General, Pegie des Chemins de Fer du Senegal; Mr. Maurice Poo, Deputy Manager of ICS: Mr. Hans W. Tuttke, Executive Vice President, International Finance Corporation (IFC)- and Mr. A. David Knox, Vice President, Western Africa Region, Torld Bank. The venture is being financed by a large group of Senegalese and inter- national equity investors and lenders, including nine multilateral and bilateral aid institutions, four African governments, the Government of India, and French and Indian companies. Loan financing of $119 million will be provided by international finan- cial aid institutions. The French Caisse Centrale de Cooperation Economique will lend $27.3 million; the European Investment Bank, $26.4 million! IFC, S25 million: the African Development Bank, through the Government of Senegal, $15.9 million: the Arab Bank for Economic Development in Africa, through the Govern- ment of Senegal, 10 million: and the OPEC Fund, through the Government of Senegal, S14 million. - 2 - Additional financing includes a $19.3 million loan from the World Bank and $1 million from the Government of Senegal for rail transport facilities and a $15 million loan from the Furopean Development Fund to the Government of Senegal for a water supply system. Equity financing for the project, amounting to $111 million, will include: a $29.8 million investment by the Government of Senegal and by five Senegalese banks: $20.9 million by the Government of India and a group of major Indian fertil- izer producers; $10.6 million by Entreprise Miniere et Chimique, the project's technical and management partner and a large French government-owned fertilizer producer: $10.5 million each by the Governments of Cameroon, the Ivory Coast and Nigeria; $10.4 million by the Islamic Development Bank: and $7.3 million by the Taiba mine, the major Senegalese producer of phosphate rock. Four more share- holders will make smaller equity investments totalling 8400,000. A buyer's credit completes the financial plan. ICS's phosphoric acid plant will be located next to the Taiba phosphate mine, about 70 miles northeast of Dakar, and will have a capacity of 238,000 metric tons per year. Half of the acid produced will be sold to a group of Indian com- panies and the balance will be transformed into granulated diammonium phosphate (DAP) and triple-superphosphate (TSP) fertilizer intermediates for the West and Central African markets. The 213,000 metric tons per year DAP/TSP facility will be built at the existing Societe Industriel.e d'Engrais au Senegal premises, about 12 miles south- east of Dakar. [Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 HJ Street, N.W., Washington, D.C. 20433, Telephone (202) 676-0394.1