Announcement of World Bank to Support Rail Transport Project in Senegal on June 25, 1981

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. 81/121 June 25, 1981 WORLD BANK TO SUPPORT RAIL TRANSPORT PROJECT IN SENEGAL The World Bank has announced the approval of a $19.3 million loan to Senegal for a project to providd rail transport for the materials used by Industries Chimiques du Senegal (ICS) in fertilizer production. The rail transport project, which supports and complements the ICS fer- tilizer project, is designed to provide a safe and economical transport solu- tion for ICS's raw materials and chemical products. The $23.4 million project includes the upgrading and renewal of about six kilometers of siding track of the Regie des Chemins de Fer du Senegal (RCFS), which serve the ICS fertilizer plant at Mbao, about 15 kilometers from Dakar; the construction of terminal track works at Mbao, Darou Khoudoss, and the Port of Dakar; and the purchase of three mainline locomotives, three shunting locomotives, about 50 tank wagons, and about 30 hopper wagons, as well as spare parts for this equipment. The project also provides for the construc- •• tion and equipping of a workshop for locomotive and wagon maintenance at Darou Khoudoss, near ICS's Taiba phosphate mine. The project will be carried out by the Societe d'Exploitation Ferro- viaire des Industries Chimiques du Senegal (SEFICS), a new entity created to handle the exacting transport requirements of phosphoric acid and other bulk chemicals produced by ICS. The creation of SEFICS to handle the delicate ICS traffic, and eventually all short-haul bulk phosphate traffic, will help streamline RCFS operations, and will ensure the required standards of safety and rel iabi 1 ity. The World Bank loan has a term of 18 years, including five years of grace, with interest at 9.6% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents. • FORM NO. 1121 (5-76) T E CH N I CA L DA T A • PROJECi: SEFICS Rail Transport COUNTRY: Senegal TOTAL COST: $23.4 mill ion BANK FINANCING: $19.3 million, for eighteen years, including five years of grace, with interest at 9.6% per annum. (In addi- tion, SEFICS will pay to the Republic of Senegal a guarantee fee of 1% per annum on all proceeds of the Bank loan with the exception of those to finance improvements in RCFS's far.ilities). OTHER FINANCING: Industries Chiminques du Senegal (ICS)-equity in SEFICS, $3 . 1 mi 11 i on RCFS - equity in SEFICS, $300,000 Government of Senegal - capital grant to RCFS, $500,000 Government of Senegal - capitalized guarantee fees, $200,000 IMPLEMENTING ORGANIZATION: Societe d'Exploitation Ferroviaire des Industries Chimiques du Senegal (SEFICS) BP. 3835 66, Boulevard de la Republ ique Dakar TELEX: 3346 ICSDKR SG PROJECT DESCRIPTION: The project includes: (a) the upgrading and renewal of about 6 km of siding track of the Regie des Chemins de Fer du Senegal (RCFS) serving the fertilizer plartof Industries Chimiques du Senegal (ICS) • at MBao; (b) the construction of terminal track works, including track side fittings, at Mbao, Darou Khoudoss, and the Port of Dakar; (c) the procurement, operation, and maintenance of 3 mainline locomotives, 3 shunting locomotives, about 50 tank wagons, and ~out 30 hopper wagons, and the provision of initial spare parts for this equipment~ and (d) the construction and equipping of a workshop at Darou Khoudoss to maintain the iocomctlves and wagons. PROCUREMENT: With the exception of ballast, all items financed by the loan will be procured on the basis of international com- petitive bidding procedures. The ballast for the main siding will be procured locally on the basis of local competitive bidding procedures acceptable to the World Bank. CONSULTANTS: None • ECONOMIC RATE OF RETURN: 13.5% ESTIMATED COMPLETION DATE: 1984 - 0 -