Announcement of China Develops Fertilizer Industry and Expands Food Production on June 17, 1988

FOR IMMEOIA TE RELEASE aNorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 88/88 Contact: Richard Kollodge (202) 4 77-4507 CHINA DEVELOPS FERTILIZER INDUSTRY, EXPANDS FOOD PRODUCTION WASHINGTON, June 17, 1988 -- Farmers in China will be producing more food as a result of a project designed to develop the country's phosphate fertilizer industry. The World Bank has approved a $62.7 million loan in support of the project. Even though China is the world's third largest producer of chemical fertilizers, it is still dependent upon fertilizer imports to meet the demand from farmers who are trying to produce more food on fixed plots of land. The $221.8 million project will help China take advantage of a new technology that can efficiently transform rocks found in Guizhou Province into high-grade phosphate-based fertilizers. The project includes measures to develop-a phosphate mine at Wengfu that will produce 2.5 million tons of ore a year. Ore-processing facilities will be constructed at the mine site, and technical assistance will be provided to improve the efficiency of government agencies responsible for investment and production planning for the phosphate sector and coordination of fertilizer plant construction. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.72 percent, linked to the cost of the Bank's borrowings. It also carries an annual conunitment charge of 0.75 percent on the undisbursed balances. Note: Money figures are in U.S. dollar equivalents.