't' INTERNATIONAL BANK FOR .RECONSTRUCTION AND DEVELOPMENT 1818 H STREET. N.W .• WASH ING.TON 0. C. 20433 TELEPHONE: EXECUTIVE 3.e3eo Bank Press Release No. 73/14 Subject: $50.0 million loan to Spain for Uarch 29, 1973 a second port expansion project The World Bank has approved a loan to Spain for the equivalent of $50._Q million to assist a second port expansion and modernization project. The loan will help implement Spain's 1972-75 Port Development Plan which will require investments estimated at about $310 million. The proje~t will cost nearly $97 million, of which $53 million will be in foreign exchange. The Bank previously lent $40 million in 1965 for the develop- men..t of Spanish ports. This was for the expansion and modemization of four of the country's major ports, including Huelva, which became Spain's first autonomous port through the project. Spain, including the Balearic and Canary islands, has 30 major commercial • portu which handle all imports and about 90% of exports. ThE:re are in addition some 200 minor commercial and fishing porta. Total port traffic in Spain has grown during the last decade at an annual rate of about 9%, increasing from about 65 million tons in 1962 to 140 million tons in 1971. The Government's Port Development Plan seeks to expand existing facilities, renew equipment and modernize procedures to make traffic handling more efficient and less co,~tly. The project to be assisted by the new Bank loan will support further development of two of the ports expanded under tbe first loan, Huelva and La Luz y Las ,Palmas, the latter on Gran Canaria island. It will also help modernize equipment in other main ports to meet traffic demands up te> 1980. Reinforcement and consolidation of the financial and institutional reforms begup \Dlder the earlier Ba.nk-ass~sted project will ,continue. The project will also assist better allocntion of specialized zones in the project ports to permit adequate planning for future expansion. Both Huelva and La L~/ ~2 Las Palmas are located in lef¥·a developed regions ··~, '- '\.' of Spain and their expansioii>i~ expected to benefit these regions economically. • The project is not expected to adversely affect the ecology of the are~ con- cerned and its implementation "'ill conform with the urban development plans of both Huelva and La Luz y Las Palmas. /more Bank P.R. No. 73/14 -- Spain -- port expansion - 2 - Works to be carried out under the project at Huelva include the ~on- struction of an 8-illile long dike to prevent siltation in the accesa channel; construction of a 2, 700-foot wharf of five berths to handle phosphate and other minerals and for general cargo; deepening of the access channel; ad acquisition of mode~ equipment and other faciliti••. The new Hud.va dike will help create a beach 6 miles long which would promote tourism in the area. The project at La Luz y Las Palma& includes the exteuaion of ita eutern main break.water by almost 2,100 f-eet and construction of two aacoodary break- waters each eout 2,300 feet long to create a new basin; comtruction of two petroleum piers to handle supertankers; completion of a 1,500-foot 1001 container berth and qf a general cargo wharf about 900 feet long; an4 ecillary works. Some 58 new ,_quay cranes will be purchased under the loan to repl•~• exist- • l. ing equipment at nine other main ports. This second po·rt development loan to Spain is for • tena of 17 1.ean, including four years of grace, at~% interest per ann\111. The.Directorate General of Ports and Marine Signals of the Ministry of Public Wol:k.a will be responsible for the execution of the project. Seven Japanese, Swias and CaJ\&dian financial imtitutiona are participat- ing in the Bank loan for a total amount of approxiaately $2~.2 a.Jllion equivalent. They are: The Mitsubishi Trust & Banking Corporation, '?QkiJ,,,The -1•• Bank, Limitecl, Osaka; Union Bank ~{ Switzerland, Zurich; The Toyo T~t & ~.8111'ing Co., Ltd., Tokyo; The Tokai Bank, Limited, Nagoya; The Suaitoao lank, Limited, Tokyo; and Canadian Imperial Bank, of ComDerce, Toronto. -o- • \\ • 1818 H STREET, N.W., WASHINGTON D. C. 20433 L.OPIVl NT' TELEPHONE: EXECUTIVE 3-6360 March 29, 1973 TECHNICAL DATA PROJECT: Ports COUNTRY: Spain TOTAL COST: $96.9 million equivalent BANK FINANCING': $50.0 million, 17 years, 4 years of grace, 7"% interest per annum., OTHER FUll~CING: Internal resources. IMPLEME!JTING ORGANIZATION: Dl rer;torate General, Ports and Marlua Signals (DGPMS), ~li.nistry of Public Works, Madrid, Spain. • PROJECT DESCRIPTION: Expm1sion of the ports of Huelva, in Sp3in, and La Luz y Las Palmas, on Gran Canaria island, and assistance to implement the 1972-75 Ports Development Plan. PROCUREMENT: At Huelva Port: mater.I.al, equipment and civil works for con- struction of a dike about 8 miles long, construction of a 2,700-foot long wharf of five berths, acquisition of quay cranes for gener&L cargo and minerals, installation of conveyor belt facilities for phosphates, acquisition of a suction-hopper dredger of about 3.000 m3 capacity, improvement of an access road to the new port facilities, construction of connecting roads and railways to seive the new industrial zone in the port area, deepening of the access channel, and canpletion .of a mineral berth and its mechanical handling equipment. At La Luz y Las Palmas: extension of the eastem main breakwater by about 2,235 feet, construction of two secondary breakwaters each about 2,3CO .feet long, construction of two new petroleum piers for super- tankers, procurement of a container crane, completion of a container ~erth about 1,500 feet long, canpletion of a general cargo wharf about 900 feet long, complementary work including a bunker-oil pipeline duct, water and electricity supply, two transi·t sheds and two 6-ton quay cranes for new general cargo wharf. At nine other main ports: procurement of 58 new quay cranes. Construction, material and equipment contracts to be awarded on the • basis of international competitive bidding • CONSULTANTS: Naval architect consultants to prepare tender documents for the Huelva dredger and supervision of its construction to be selected • . ESTIMATED COMPLE?ION DATE: 1976. - 0 -