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           Bank News Release No. 75/31                                           May   7, 1975


               WORLD BANK LENDS FINLAND $20 MILLION FOR WATER POLLUTION CONTROL

                     The World Bank has approved a loan of $20 million to Finland
           to assist the nation's water pollution control program. The project was
           formulated on the basis of a widespread demand in Finland to reduce all
           kinds of pollution. The loan will go to the Mortgage Bank of Finland Oy
           (MBF), which in turn will help to finance pollution control investments
           by industry.

                     The loan will contribute to the full implementation of Finlaad's
           national program in water pollution control,which started in 1974, by pro-
           viding foreign exchange for pollution control investments undertaken by
           industry during 1975-77. The Bank will also contribute to the design of
           research and the implementation of studies in order to make the national
           program more effective.



•                    About two-thirds of the investments to be financed by the Bank
           loan are expected to be in the pulp and paper industry, the single largest
           polluter in Finland.

                     The most important benefit resulting from the project will be
           the considerable improvement in the environment. There is expected to be
           a 50% reduction of industrial wastes discharged by 1980.

                     Bank collaboration in the research component of the project
           should result in refinements in the design of the national program and in
           the conceptual appr_oach to pollution control in the long run.

                     The $20 million loan to Finland will be for a period of 15 years,
           including two years of grace, with interest at 8~% per annum.




           Note:   Money figures are expressed in US dollar equivalents •




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                   T ECHNI CAL       DAT A




PROJECT:

COUNTRY:
                              Water Pollution Control

                              Finland
                                                                               •
TOTAL COST:                    $15 7 million

BANK FINANCING:               $20 million for 15 years, including 2 years
                              of grace, with interest at 8~% per annum


OTHER FINANCING:              Mortgage Bank of Finland Oy, Post Office
                              Bank and the Government of Finland, $101 mil-
                              lion; industry, $36 million

IMPLEMENTING ORGANIZATIONS:   Mortgage Bank of Finland Oy and National
                              Board of Waters, Helsinki


PROJECT DESCRIPTION:           The project was formulated on the basis of a
                               widespread demand to reduce industrial water
pollution even at the expense of some economic growth.. The Bank's involve-
ment will contribute to implementation of the national program, which started
in 1974, by providing part of the needed foreign exchange and by contributing
to institution building and further refinement of the program through research . •
The project consists of Bank assistance in (i) financing sub-loans made by the
Mortgage Bank of Finland Oy (MBF) for pollution control investments undertaken
by industry during 1975-77,and (ii) designing research and carrying out studies
in order to make the national program more effective. About two-thirds of the
number of projects to be financed by the proceeds of the Bank loan are expected
to be in the pulp and paper industry, the single largest polluter in Finland.
The most immediate requirement in the research component of the project will
be to establish the most efficient means for monitoring and collecting data on
water quality.


PROCUREMENT:                   International competitive bidding will not be
                               suitable because the Bank loan will be dis-
bursed to a number of sub-borrowers for a large variety of items, often pro-
prietary in nature, purchased from many suppliers over a four and one-half
year period. The borrower would check to see that sound procurement
practices are followed by sub-borrowers.




ESTIMATED COMPLETION DATE:     December 31, 1979

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