DFC III IND.CREDIT

closed

Of the $40 million Third Industrial Credit Project, US$5.0 million equivalent will be on-lent to help finance the foreign exchange cost of imported equipment for investments in industrial subprojects with a labor-intensive orientation (defined as projects creating employment at a maximum cost per job of $23,000 equivalent); US$14.7 million equivalent will be on-lent for the same purpose to small- and medium-size industrial sub-projects (but without the specific labor-intensive emphasis); US$20.0 million equivalent will be on-lent for the same purpose to three "special" large "projects" already tentatively identified which have special developmental significance for Kosovo; and US$300,000 equivalent will be used to help finance the foreign exchange cost of technical assistance (mainly foreign consultants) for KBP and its industrial clients, all in the Autonomous Province of Kosovo, the poorest region of Yugoslavia. Twenty-five percent of each of three loans will be on-lent to help finance the foreign exchange cost of imported equipment for investments in industrial sub-projects with a labor-intensive orientation (defined as projects creating employment at a maximum cost per job of $23,000 equivalent) and 75 percent of each of three loans will be on-lent for the same purpose to small-and medium-size industrial sub-projects (but without the specific labor-intensive emphasis) in the Republics of Montenegro, Bosnia-Herzegovina and Macedonia. In respect of all three loans, sub-projects with total cost exceeding US$10 million equivalent will have to meet a cost per job criterion (US$40,000 per job or less); in addition, while the appropriateness of international competitive bidding (ICB) should be considered for all foreign procurement, any individual contract to be financed in whole or in part with Bank funds for imported goods that is expected to exceed US$2.0 million equivalent will be a candidate for procurement under ICB.