Sessional Paper No. 02 of 1969 Government Guarantee for a Loan to the East African Harbors Corporation by the International for Reconstruction and Development

Abstract

In accordance with section 5 of the Loans (Guarantee) Act 1966, the following information is laid before the National Assembly in connexion with a proposed guarantee by the Government (jointly and severally with the Governments of Uganda and Tanzania) of the obligations of the East African Harbours Corporation in respect of a- loan of the equivalent of approximately K£12,400,000 to the Corporation by the International Bank for Reconstruction and Development (World Bank). To obtain the finance necessary for full implementation of its 1969-72 port development programme, the East African Harbours Corporation asked the International Bank for Reconstruction and Development for a loan in various foreign currencies equivalent to thirty-five miliion U.S. dollars or approximately K£12.4 million. Not all the programme will be financed by this borrowing. Careful assessment has been made of the amount that the Corporation itself can contribute towards the cost of implementing the programme: it js the shortfall,roughly equivalent to the foreign content of the necessary finance, that is to be borrowed.