Announcement of Senegal to Use IDA Credit for Phosphate Industry on May 12, 1983

0 ·FOR IMMEDIATE RELEASE , .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE N0.83/76 Contact: Pam Brennan May 12, 1983 (202) 477-3293 SENEGAL TO USE IDA CREDIT FOR PHOSPHATE INDUSTRY The phosphate industry in Senegal will be supported by a credit of S.DR 7.1 million ($7.7 million) from the International Development Association (IDA). IDA is the World Bank's affiliate for concessionary lending. Under the $9.5 million project, the efficiency of operations at Senegal's major phosphate reserve at Taiba, 100 kilometers north of Dakar, will be upgraded and studies will be carried out to determine the feasibility of recovering phosphate rock from the stock of slimes discovered over the years by the Compagnie Senegalaise des Phosphates de Taiba. If the studies show satisfactory results, it is expected • that phosphoric acid can be produced at a lower cost and the life of the mine can be ext·ended to about 20 years • The sale of phosphate rock is an important source of Senegal's foreign exchange accounting for about 10% of the country's export revenues in 1981/82. Studies will also be financed to identify the major areas where phosphate material is presently· 1ost and how this material could be recovered for manufacturing phosphoric acid. In addition, an overall long-term development plan for Senegal's phosphate resources will be prepared. The Industries Chimiques du Senegal and the Compagnie Senegalaise des Phosphates de Taiba will provide $1.3 million and $.06 million, respectively, toward project costs. The IDA credit is for 50 years, including 10 years of grace; it carries no interest but has a small annual service charge (0.5% on the undisbursed balances of the cred;!.t 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. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of the negotiation of the credit. - 0 -