Announcement of Technical Assistance for Power Project in Sierra Leone to Receive World Bank Support on June 21, 1982

. . FOi~ lN\M'EDIATE RELEASE I! I • • ' eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. •Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 82/ 90 Contact: Pushpa Schwartz June 21, 1982 (202) 477-5306 TECHNICAL ASSISTANCE FOR POWER PROJECT IN SIERRA LEONE TO RECEIVE WORLD BANK SUPPORT Sierra Leone plans to obtain expertise and materials to rehabilitate its power supply and distribution systems and conclude engineering of a hydroelectric project with an SOR 4~5 million ($5 million) credit from the International Development Association (IDA), the World Bank's affiliate for concessionary lending. The $11 million project will provide funds for essential spare parts and materials to maintain existing diesel generators and distribution systems. The water cooling system at the King Tom diesel generation station will be improved to maximize its power output. The project will also support the country's first major effort to tap its hydroelectric potP.ntial. Engineering work for the Bumbuna project will be completed so that its cost can be established to evaluate its economic merits. If carrried out, the Bumbuna project should result in substantial savings of imported crude oll needed for thermal generation. The country's oil bill accounts for about one third of its export earnings. The technical assistance includes consultant servi'- .2s to assess the economic impact of the Bumbuna project on the Freetown oil refinery. An Engineering Review Board consisting of four hydroelectric power experts will be established to advise the government in all techntcal aspects of the Bumbuna project. The National Power Authority, a newly created organization which will carry out the project, will be strengthened by institutional improvements. The organization will be provided with technical assistance and its staff will receive training overseas. The IDA credit is for 50 years, including 10 years of grace. It carries no interest but bears a small annual service charge of 0.5% on the undisbursed balances of the credit, and 0.75% on the disbursed balances. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. iollar equivalent of the D SDR amount of the IDA credit reflects the exchange rates existing at the time of ' negotiation of the credit. 11 fR' % ·t