Announcement of India Borrows Two Hundred Million Dollars for Refinery Conversion on April 8, 1982

. FOR IMMEDIATE RELEASE v 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/7 l Contact: Hugh Blackman Apr i 1 8 , 1982 (202) 477-3879 INDIA BORROWS $200 MILLION FOR REFINERY CONVERSION Four refineries in India will expand their capacity with the assistance of a $200 mU 1 ion loc.:n "from the World Bank. They wi 11 al so use the loan to instal 1 secondari processing facilities to convert fu~l oil into higher value products. The Refineries Rationalization Project, which is estimated to cost $l,086 million, will also make additions to petroleum tankage and distribution facilities and finance facilities to reduce energy requirements and control pollution. The Bank loan wi 11 benefit Bharat Petrole~m Corporation Ltd. (BPCL), Hindustan Petroleum Corporation Ltd. (HPCL), Madras Refiheries Ltd. (MRL), Cochin Refineries Ltd. (CRL), and several other refinery companies in the country. Assistance for expansion of capacity and installation of secondary processing facilities will be given to CRL's refinery at Cochin, MRL's~refinery at Madras, the Visakh refinery of HPCL, and the Bombay refin~ry of BPCL. The facilities for improving energy efficiency and pollution control wilt be provided at several refineries in the country. An Indian firm, Engineers India Ltd., will have overall responsibility for coordinating project implementatron. The World Bank has previously made two loans to India in this sector, totaling $550 million, for the development of the offshore Bombay High oil fields. The faci1 ities provided under the first loan are now in operation. The second loan for $400 million was made in December 1980 to assist in the financing of later phases of the Bombay High development program of'the Oil and Natural Gas Commission. Project implementation is proceeding satisfactorily. The World Bank loan is for 20 years, including five years of grace, with in- terest at 11.6%~per unnum. NOTE: Money figures are expressed in U.S. dollar equivalents • •  ';.., ·q ' i E C H" N I C A L ll A T A. ., Refintfries Rationalization COUNTRY:,, ' ;-', India TOTAL COST: ~ $1 ~086 mi lJ i Oh f) i) ?BANK Ft NANCI NG: $200 million for20 years includJng five years of grace, at 11.6% interest per annum OTHER FINANCING: Equity, $379.7 million; Government. of India, $506 million IMPLEMENTING ORGANIZATION: Engineers India Ltd. PTI Building, 4th FT oor, Room 302 Parliament Street New Delhi, 110001 India TELEX NO: 953 313203 PROJECT DESCRfPTION: Its main components include: a) installation at four re- fineries of additional capacity and secondary processing facilities to convert fuel oil into higher value products; 6) additions to petroleum tankage and distribution faci 1 ities; c) faci 1ities to reduce energy requirements; and d) • pollution control facilities. PROCUREMENT: Equipment financed under the loan will be procured by inter- national competitive bidding (ICB) in accordance with .Bank guidelines, except for equipment proprietary to the process design, items whose timely supply is critical to efficient project execution, and small items estimated to cost Jes~ thar, $200,000 each. These wi 11 be procured after 1imited -international tendering from qualified suppliers from at least three Bank member countries, provided that the aggregate value of such contracts does not exceed $30 mi 11 ion.. ~or the purposes of bid evaluation under ICB, qualified loca.1 suppliers wi 11 receive a margin of preference of 15% or the applicable duty, whichever is lower. CONSULTANTS: Universal Oil Products Company (USA) Engineers India· Ltcf. (India) ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: Over 80% 1986 - 0 - •