Announcement of Three Million Six Hundred Thousand US Dollars Loan for Port Improvement in Liberia on June 18, 1969

> FQR IMMEDIAyE RELEASE • INTERNATIONAL BANK FOR E~CON 'TRlJC"TION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 69/43 Subject: $3.6 million loan for port June 18, 1969 improvement in Liberia The World Bank haa approved a loan equivalent to $3.6 million for improvements at the port of Monrovia to enable it to acccmmodate ships of up to 90,000 deadweight tons. The main purpose is to reduce transportation costs of shipping iron ore, ::1hich accounts for 70% of Liberia's exports. This will improve the competitive posf.tion of Liberian ore in world markets. In 1967 Monrovia, Liberia's main port, handled 82% of the country's general cargo traffic, 76% of its petroleum products and 55% of its iron ore. In volume, • iron ore traffic was by far the most important, accounting for 9,400,000 tons out 01 a total of 10,140,000 tons. At present ports of destination for Liberian ore can receive ships of 60,000 to 90,000 DWT, while Monrovia can only handle ships with. a maximum of 45,000 DWT. Since transportation costs are a significant part of the delivery price of iron ore, and the larger ships have reduced these costs considerably, it is essential that Liberia improve :f.:~cilities at Monrovia to handle this type of carrier. The project being assisted by the Bank loan provides for the dredging of harbor approaches and an area withiti the port to a depth of 45 feet at mean low water to acconmodate bulk ore carriers and tankers up to 9~,000 DWT. It also irH.:.ludes the purchase of two large tugs, a pilot launch, navigational aids for th~ chann~l, management assistance to the newly established National Port Authority, the services of ~ngineers for the port work and of consultants to make feasibility • studies for the development of road approaches to the port. /more  Bank P .. R. No. 69/,l-3 - Libez·ia-Port • - 2 - The National Port Authority, which will operate all ports in Liberia, is r~sponsible for the execution of the project. A survey of port t~riffs will be undertaken with a view to introducing cost-based tariffs. In the meantime, the schedule of port dues for ore carriers has been revised to generate sufficient funds to cover the costs of providing safe anchorage, the dredging and new facili- ties. The dredgi.ng work, which was begun earlier this year, is scheduled for com- pletion in October 1969. The total cost of the project is estimated at the equiva- 1t:!nt of $4.2 m:illion. The Bank loan of $3.6 million will finance the foreign ex-, change requirements. The loan will be made to the Republic of Liberia for a term of 15 years, • i.nclutling a 2~-year grace period, with interest at 6-1/2%. The Government will relend $3.4 million of the proceeds to the National Port Authority and will use Lhe balance for the feasibility studies of the approach roads= - 0 .., •