Announcement of Uganda to Study Phosphate Mining Potential with World Bank Assistance on April 15, 1982

I\ . . .. 'fOR &Mi\UDIA . - RH I-ASE . .H I• World Bank . , 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 t r ~ IDA NEWS RELEASE NO. 82/54 Contact: Pushpa Schwartz April 15, 1982 (202) 477-5306 UGANDA TO STUDY PHOSPHATE MINING POTENTIAL WITH WORLD BAHK ASS t'STANCE Uganda will determine its potential for phosphate mining and production of phosphate fertilizers witt: an SDR 3.5 million ($4 million) credit from the International Development Association (IDA), the World Bank's affiliate for con- cessionary lending. Recognizing the rehabilitation of the phosphate industry as a priority of its economic recovery program, the government will undertake the $4.5 million phosphate engineering project to study the possibility of a full-scale phosphate fertili~er project based on the exploitation of the Sukulu Hills deposits, which are considered to be of very high quality. ""he project is planned in two phases. "rhe first phase will analyze the • availability of phosphate raw materials, domestic sources of sulfur, which is used in the fertilizer processs marketing prospects, especially in East Africa and on the Asian sub-continent, and transportation and distribution of the fertilizer. Upon completion of this eight-month phase, a preliminary report will help the govern- ment to decide if a full-scale project is justified. If the results of the pre- 1iminary report are positive, the second phase wi 11 continue with the detailed feasibitity study and basic engineering work on a fu11-scale project. The project will also provide technical advisory services to strengthen the Tororo Industrial Chemicals and Ferti 1izers Limite.d (TICAF), executing agency for the project, and to help it supervise the engineering consulting work. Bearden Potter, U.S.A., engineering consultants, hav,~ been chosen to carry out the engineering study, SEMA, of France, will serve as the advisory firm. The TICAF address is: P.O. 8ox 254, Tororo, Uganda. Since World Bank lending to Uganda recommenced in 1980 after a nine-year hiatus, about $72 million has been approved for reconstruction, technical assistance, and water supply engineering. I The IDA credit for the phosphate engineering project is for 50 years, includ- ing 10 years of grace; it carries no interest but bears an annual service charge of 3/4 of 1% for administrative expenses. :. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the ti~ of negotiation of the credit. .t - t t r l2l