Announcement of the World Bank's Loan to Help China Eradicate Iodine Deficiency Disorders by 2000

FOR IMDIAE RELEASE The World Bank East Asia & Pacific Region 1818 H Street, NW Washington, DC 20433. USA Press Release No. 95/49EAP Contact: Rachel McColgan-Mohamed (202) 458-0358 fax (202) 522-3405 China's Iodine Deficiency Disorders To Be Wiped Out By 2000 Washington, July 6, 1995- The World Bank Group last week approved a US$27 million loan to China to help eradicate Iodine Deficiency Disorders-a major blight on the country's human and economic development-by financing investments in production, iodization, packaging, and distribution of iodized salt. Insufficient intake of iodine, an essential dietary nutrient, causes a variety of physical and mental disabilities, collectively known as iodine deficiency disorders (IDD). Approximately 1.5 billion people worldwide, including Iodine Deiciency Disorders 400 million in China, live in (IDD) and CAina: areas which put them at risk of Some vital staitistics IDD. The Government of China has undertaken a program to eradicate IDD by ; the year 2000, and UNICEF 0000 and UNDP have already help 00 formulate and implement the o oo National IDD Elimination 0 000 Program (NIDDEP). 15,000 neonatal deaths could be averted annually by preventing IDD. There are major deficiencies mn There arem en cies in Estimates suggest China could gain more than 1.1 billion process and distribute iodized productive work-days annually as a result of this project. salt. Inadequate dosage levels The salt industry in China produces 30 million tons per of iodate at the factory-level year for human, animal and industrial consumption, of and loss of iodine from salt which about 8 million tons per year is of edible variety. during transport and storage Over 3,000 enterprises are engaged in mining, result in inadequate levels processing and packaging of salt. passed on to the consumer. Similar deficiencies occur as a Exports of salt from China have been banned since 1994. result of inadequate process technology (predominantly manual) which does not assure uniform iodine content. While national regulations forbid the sale of non-iodized salt in identified IDD areas, much China: Iodine 1 of 3 I Archives/Records Center, H B1-001 ( 1 remains to be done at the institutional level to enforce these. Finally, because of low public awareness of the health risks of iodine deficiency and the benefits of iodized salt, as well as ready access to cheaper non-iodized salt, large sections of the population do not "demand" iodized salt. Population in Iodine Deficiency Disorders (IDD) Endemic Area 90 90 - Almost half a billion people are affected throughout China 80 - 70 - 62 60 - ogggo 48 50 - 46 45.9 40 - 30.. 30- 20 10 -l 0 Beijing Heilongjiang Hunan Jiangsu Xinjiang Sichuan "The health campaign to increase cawareness is a key element of the project, particularly for wionen who risk giving birth to intellectually impaired children. " says World Bank Task Manager, Mr. Krishnamurthy. Project Description The Iodine Deficiency Disorders Control Project is the vehicle for support requested by China to eliminate one of the nation's major preventable causes of mental retardation and deformity in children. Universal iodization of salt is the most sustainable method to prevent IDD. The project directly supports this key intervention through the creation of physical facilities for iodizing and packaging salt and by ensuring appropriate quality of iodized salt. The project aims to achieve universal salt iodization by the end of next year and supports virtual elimination of IDD by the end of the decade. Under the project's first component, China's salt iodization capacity will more than double by establishing raw salt upgrading, iodizing, and packaging facilities in 182 locations across China. China: Iodine 2 of 3 The second project component will provide technical assistance to China's state-owned National Salt Industry Corporation. This company supervises and administers the processing and marketing of the salt industry, including enforcing regulations applicable to salt producers, planning and ensuring execution of production capacities, production volumes, distribution arrangements, and administering research and development facilities. "The Iodine Deficiency Disorders Control Project makes an important contribution to the reduction of this preventable health problem, complementing the World Bank Group's global efforts in addressing malnutrition, " says Mr. Vinay Bhargava, Chief, China Human Resources Division. The World Bank Group will finance 18 percent of the project's total cost of $152.29 million equivalent. The $US27 million loan is made up of $7 million equivalent with 20 years' maturity, including 5 years of grace, at the World Bank's standard variable interest rate, and $20 million equivalent on standard International Development Association (the Bank's concessional lending arm) terms with 35 years' maturity. China: Iodine 3 of 3