THE WORLD BANK GROUP ARCHIVES PUBLIC DISCLOSURE AUTHORIZED Folder Title: Power Agriculture and Industry Project - General Development - Italy - Loan 0117 - P037415 - Administration - Volume 4 Folder ID: 1854116 Project ID: P037415 Dates: 03/05/1958 - 05/30/1959 Fonds: Records of the Europe and Central Asia Regional Vice Presidency ISAD Reference Code: WB IBRD/IDA ECA Digitized: 11/30/2018 To cite materials from this archival folder, please follow the following format: [Descriptive name of item], [Folder Title], Folder ID [Folder ID], World Bank Group Archives, Washington, D.C., United States. The records in this folder were created or received by The World Bank in the course of its business. The records that were created by the staff of The World Bank are subject to the Bank’s copyright. Please refer to http://www.worldbank.org/terms-of-use-earchives for full copyright terms of use and disclaimers. THE WORLD BANK Washington, D.C. © International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org IIIIIIIIllII IIIIIIllIIIIIII IIIIIIll IIIllII IIIIIll! 1864116 A199S-17J Other#: 8 Bo)(# 182607B Power Agriculture and Industry Project. General Development_ Italy. DECLASSIFIED Loan 0117 • POJ7415-Administration - Volume 4 WITH RESTRICTIONS WBG Archives o,o•'S,,In R N O ) i/.2 16 9 4 ~.OtlAG.195~ Pro t. N . . ?.( Po siz. C}FT/VD/lb VIA AEREA ROM A .. . .... ...... . ........... . . .... . .. Alle g oti ~ I A 12A O CI CONC ,tcaa1 N . 20 (CU R ) T IE'L, 529 1 Risposto o del N. O GGETTO , Prestit o noII7/ I T - Finanziamen ti i ndustri .ali - S op . A. Augus t a Pe t rolchimica - Rich i est a di prorogao - Spett . BANCA I NTERNAZ IO:irAL:E PZR LA.HICO STH.UZIONE E LO :::;VILUPPO 18 18 H STHEET"H. W . WASHii4GTOH 25 1 D., C o I La S . p oAo Augusta Petrolchimic:a ha fatto pres ente la i mpos- s ibili ta di completare entro l a data f i ssaita del 30 g iugno I 9 59 i l pro- f r getto per la costr u zione dello s tab i liment;o :petrolchimico a Priol o-M e- lilli , f i nanziato con i fondi del prest i to n . 117/IT . Come risulta dai mod . C e D del r apporto t r i mestrale a l 31 m arzo I 9 59 present ato da lla Soc ieta e tra8messo a codesta Banca , le cau . s e del r i tardo s ono da attribuire a lla ma n ca t a consegna nei termini pre visti di a l cuni gruppi di macchi n e f r a l e pi u i mportant i ed al m ancato avvio dei l a vori per la cos truzion e del gELs- oleodotto di collegamento fra la Raffineri a della Ro AoS Q I. O.~ . e lo s tabilimento , ess en do, per lo stesso gas- oleodotto , ancora i n corso l a pr a t ica per l a conc ess i one del- l ' aut orizzazione , da parte del iili niste ro delle Fi nanza. Peri sudde t ti rnot i v i la SociE~ta s t e ssa ha chiesto un ' ulte- r i or e proro ga de l ter mi ne di u t iliz zo del mutuo dal 30 giugno al 31 di- cembre I 959 . Si a da parte dell ' I .rll?IS , sia da parte di q_ue sta 11 Cassa 11 si riconoscon o valide le r agioni su esposte H s i esprime parere favorevol e per l'accoglimento uella r i ch ie s t a av a n zata da l l a Societa ; si prega p e~ tant o codesta Bane.a di voler proro gare , sH d 'accordo, l a da t a di chius~ r a del Presti t - o n . 117 /IT, ne i r i guardi de JL prog e t to Augusta Petrolc:'li t.1i ca , dal 30 giugn o al 31 dicemb r e 1959 . Con i mi gliori salu t i . ., . INDI A IZZO T SLKGRA ... ICO: C A S M SZ • R OMA CASSA PER OPERE STRAORDINARIE DI IPUBBLICO INTERESSE NELL'ITALIA MERIDION,~LE (C ASS A P ER IL ME ZZOG I OR N O ) ;/21392 TRANSLATION .., 9 MAG.19t Prot. N . ......... . ...... .. Posiz.QIFT/VD/mg Allegali ..................... . ROMA ....... . .. . ........ . ............... .. .... . PIAZZA DEi CONGRB8SI N. 20 TSL . 8291 Risposla o ....... . .... ....................... . del .. ............ ... N. . ... . .. ... .. . OGGETTO: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington 25, D.C. ~ Gentlemen: • E ; 0 Subject: Loan No. 117 IT - S.p.A. SINCAT: Final Report 0 2 C :, :! !' l S.p.A. SINCAT has submitted the final report on the completion ·;; of the Project at Priolo-Melilli (Siracusa), financed out of Loan No o "' 0 117 IT. The Bank has already received copy· of such report, as it was delivered by the Company to Mr. de Albe. in occasion of his visit to the Project made in November 1958. .. 0 "' In that connection, we inform that both IRFIS and the Cassa ci. have no observations to make on the report: the Company has fulfilled its obligations under the contract and bas :met the additional expendi- ture required for completing the Project out of its own resources; the plants are already in operation. With best regards. Sine erely yours, § THE PRESIDENT " .. ~ : .. : /s/ Pescatore " M 11 I. nf~.c~.~VED (\ I r: ~r, . 1959 JUN - I f.lM II : 2'" "' " .. . • •' • \ 1 ~ .. \ 8\ ];,68C8+0L8 " iLHE l>BE8IDm1iL 8:fJJO GLOJA :A.om.ea DJSD+B 8L6 STL89Q'A VJ OD6L8+:f0D• ~ 8 Lean:rLsg tOL oombJG~D~ +PG 1,LO~GC+ on+ Ot :f+B O LG00nLG68! G .,. 1+8 opJ:fia+fOD8 J'JDgGL +PG COD+~ C+ avg pga mG+ +PG eggf+lODOJ GXDCDgr- peA8 DO Op86LA8+10DB +O ma~s OD +PC L6DOL+: +PG combaDA pas tnr~iJJGg • "' • ID .tJ.19+ c0Imec,i::r011 1 :flT.bOLUJ +JJ PO+ I IB ug ,i:pe e + c 1,LO~GC+ ll19gG :fl1 EOA6~p8L Jo28• r gGJ:fAGLsg p:A. .(!J:JG comfum'1 .co 1~· gG VJJ>8' p:r occea:rov ot p:re Afe:r + ,to we 0 "' C JJl IiL. JJJG }39'1J}t JWO SJL6SgA L 08:J'AGq CODA Ot BJJCJ] LGDOL+ 1 ea :r+ I. a 1 'i Ot +PS J:,L010C+ 8+ 1,LlOJO- GJJJJ:f ( :fLOOJJ88) tr:traJJC q OJJ+ Ot roaD o~ ~ • ~ a·n·v· 2D1CViL paa 8JJ.PtJ:f+ ,l! 6g +PG t:rner LGDOL+ OD +PG combr .(!:fOD :, .. C 0 0 ~ arrp~sc+: roan MO· JJ~ I i - a · b· E • o (}6IJ+JGmGD: eap:r~+ou s~· n·c· 1 J8J8 8+L68.(! H• • B8COD8.(!LJJC.(!:rou SDg DGA6JO GD+ !1J+8LD8+10I78J BSD}{ tOL oee 110 qc; .&.11r · •a•1 uowv iLB\f ar iLIOli bltts Ir ... SSOGIOW"10> "1Err .1.1.vr1v WEt:SIOIOL-"IVrE C'o'22V bEt:S ObEt:SE 2.Lt:SVOl:SDl"1Vt:SIE DI bneeraco 1"1..LEt:SEaaE tMDUIIISSO .i. nre11w11.,co: CY8H.CS • IIIOWY I N DI R IZZO T ICL K CJRAf"IC O : CASME Z • R OMA CASSA PER OPERE STRAORDINARIE DI PUBBLICO I NTERESSE NELL' ITALIA MERIDION A LE ( CAS SA PER I L MEZZOG I ORNO ) ;/.213·9·2 ~~ VIA AEREA Pro!. N . .5./. . . .. Posiz.Ol:FT/YD/me Allegoli ... . ............. . RO M A .. ... .................. ....... .. .. . .... . PIAZZ" 0£1 CONGRESS.I N . 2 0 <£UR> Risposto a .... THL. !5291 del N. OGG 1 7/IT - SopoAo S . IN . CATo - Rapporto conclusivo ETTO , Prestit.o. n .. 1.. Spetto BANCA INTERNAZIONALE PER LA RICOSTRUZIONE E LO SVILUPPO 1818 H Stfeet, No\/o \IASHINGTON 25 , D. C. .. 0 c e La Societa SoINoCAT . ha presentato il rapporto con- .. 0 ~ 0 clusivo sulla realizzazione degli impianti di Priolo-Melilli (Siracusa), finanziati con i fondi del Prestito n . 117/IT. Co- ] C :, desta Banca e in possesso della copia di detto rapporto , poi- ] .. :! che essa fu consegnata , da parte della Societa , al Sigo De Alba, ·c in occasione della visita a gli impianti effettuata nel novem- "' 0 bre 19580 • Q. In merito , si comunica che tanto l ' I RFIS che questa 11 Cassa" non hanno rilievi da fare nei riguardi del rapporto me- .. desimo : la Societa ha adempiuto agli obblighi contrattuali ed .. QI Q. ha sostenuto , con proprie disponibilita , le maggiori spese oc- corse per l a realizzazione degli impianti, che sono gia in e- sercizioo Con i migliori salutio ~ L PRESIDENTE L abriele Pescatore) . 0 few-~· ~ ! l.- 0 ~ ..; 0 ~ INDIIIIII Z Z O T & L&GAAf'JCO I C AaM&Z • .. O MA CASSA PER OPERE STRAORDINARIE DI PUBBLICO INTERESSE NELL ' ITALIA MERIDIONALE , ( CASSA P E R IL MEZZOGIORNO ) ;/21391 TRANSLATION Pro t. N . Posiz . . CIFT/VD/mg ? 9 AG 1959 Allego h . . ROMA ................ . ~IAX 'Z.A oa, CO NOA&as t N . 20 cau,u TEL. 5291 R,sposto o . del N. O GGETTO, International Bank for Reconstruction and Development 1818 H Street, N. W. Washington 25, D.Co Gentlemen: ~ Subject: Loan No. 117 IT - S.poA. Cementerie Siciliane : I Final Report .. ~ 0 ] C :, S.p.A. Cementerie Siciliane bas submitted the final report . on the completion of the Project for a cement mill at Isola delle Femine (Palermo), financed out of Loan No . 117 IT . The Bank has alreaJY .re- ceived copy of such report, as it was delivered by the Company :~ Mr. de Alba 1n occasion of his visit to the Project of October 1958. In that connection, we inform that both IRFIS and t he Cassa .. "' have no observations to make on the report : the Company has fulfilled • a. its obligations under the contract and has met the additional expenditure .;; required for completing the Project ou1J of its own resources; the mill is already in operation. We point it out also that the last quarterly report submitted by the Company and concerning the second quarter of 1958, has been for- warded to the Bank with our letter No. 5/20773 of September 1, 1958. / Wit'b. best i:,1gards . . .. ! j'., 4 /Sf 1nc erely yours , M ., Q~\3\SI THE PRESIDENT ~ /~/ Pescatore AMO A • s•MaA:> 10:»,.. AReJlj'aT OSS:t9'10Mf 3 c?c? 3 R3 T "'11 O :>t..J aauq 10 3 1R A IIIICROAR T2 3R3qo R3q Ac?c? A :> 3..JA"'1 0 101R 3M AI..J A TI' .J ...1 3111 (0~ROIOOS:S:3M JI RJlq A8._ AO) .. 110 I T. lule-n A.HT .testt\c wn\sv.t:so "' 0 .a~er 'I9cfo;to0 lo ;toeto'Iq erl;t o;t t.te.i:v a.td lo tIO.ta~ooo ll.t ed!A sb • .,, ! ,.-" !. s ees~ erl;t !um 8IY.fII d;too" .tent nno':ta..t aw , gol:;toeaaoo ta.cit aI , i o' bs!!..tl.Cul es!I v;asqmoO sd.t : .t'Io qa'I or.Ct .ao exam o;t aao..t;tsV'Isecfo oa avad • a-wt.tb119qxs Ls.cro..tt .tobs s.dt ;tem es.d bas ;t!>E'Iih100 sdt 'Ieb.au an:o.tt~.ticfo e;t l: "' .,, ! I!.i:.m a.dit , ee:>'I.Iloes'I !!WO at .t lo d:.uo .toet &b'ISW . ,' ~ \ ~ . . ~ ~ • ab'Ie-~ ~ '-.·;t,aetcf '111:8 \ \ ~ .. .. Twacrragaq SET r zione del cement ificio di Isola delle Femmine (Palermo) , finan- ziato con i fondi del Prestito n . 11 7/ITo Codesta Banca e in po~ sesso della copia di detto rapporto , poiche essa fu consegnata, • ~ Q. da parte della Societa , al Sig . De Alba , in occasione della vi- sita all ' impianto effettuata nell ' ottobre 1958 . In merito , si comunica che tanto l 1 IRFIS quanta que- .."' 41 sta "Cassa" non hanno rilievi da fare nei riguardi del rapporto ci .;:; medesimo : la Societa ha adempiuto agl i obblighi contrattuali ed ha sostenuto con proprie disponibilita le maggiori spese occor- se per l a realizzazione degli impianti , che smno gia in eserci- zio . Si fa inoltre presente che l ' ultimo rapporto trimestra- le presentato dalla Societa e relativo al 2° trimestre 1958, e state trasmesso a codesta Banca con lettera · n . 5/20773 del 1° set tembre 1958. .. 0 ~ 0 Con i migliori saluti • ~ ES IDENTE (~ el~ Pescatore) TAlvcv\A.~ ~ ~ Mq 29, 1~9 Gentl-.ns / 1mne lJ.7-tT M4 l SQ-IT The cloaing date tar the undermen'\ioned projects 1• ~Jun• 30, 1959. Th• u.ndiaburaed balances aa ot this date tar et!"h project are aa tollowaa klA 117 SIL paper mill project t 5'6,960.oo Auguata Petrolchemica Fertil1Hr project 2,232,000. 00 I.gap 150 SME Power project 1,488,tl~. o, SI.AL Pover project 284,835.6) Forino Fruit and Vegetable Canning project )1,l~9. 99 J'iat AutPOdte !t tn Sehedul• i. ot the Loan AgrNMnt, ~•t •• it the Clo•ing Date bad bNri 8PN!- fied aa June )O, 1959, lnetead or iltaPbcr .Jl, 19'8 •• pnTl... 1n the l e t t . e ~ n t be"'-n ua dated DIii ber 2', lffl, aD4 inn.ad ot June ,o, 19S8, •••\forth 1n \be Lou Aa1ua1nt. Tova au,oen~, Miobael L. Leje Aadatut Dil"Ntor ~ OperaUou narope, Atri• ant Au\nl•e1• 1N1Nt111a a o ..,.._...,..A,100 1 oAaMaa • 1110MA CASSA PER OPERE STRAOROINARIE DI PUBBLICO INTERESSE N ll!LL 'ITALIA MERIDIONAL!! (CAalSA ... A IL M • z z o . , o .. NO ) Prot. 1 N5./ 3. ..1.0.8.. Posiz . .CllT/ DA/ mg A llegati .. . ... .-oMA .t>..~.f.~\trJ7.l.~K J~, ,.IAZ ZA 0•1 CO HO fl.881 H . 80 •• T•L. 88et Risposta a . . ... . .... .... . del N .. O GGETTO: International Bank tor Reconatru.ction and Dev4tlopnent 1818 H Street, B.W. Washington 25, D. C• . . ,- Gentlemen: ... : ·· 0 ·c ::·..~ . . . . Subject : Loan Bo. 117 If - Irrigaticm. Project: Request tor E:xt4tna1on f!' 0 • "i -·------------------------ C :0 . With reterenc:• to your cable ot December 8, 1958, we 1.Dtora :! you that, owing to excttptionall.y adTerae weather con4itiou 1D the l wider of 1956-1957 and 1n the current eeaeon with start from early .!! ·c ... October, construction of the Catania Irription Project, timnoed out 0 of the funds of Loan Bo. 117 I!, bas undergone unfore•eeable dela79. :Por those rea:laona, we request that the Bank would kindly extend from December 3·1, 1958 to June 30, 1959 the closing date ot Loan No. 117 IT in com:1eotion with the Irrigation Pro;ject, ae an amendment to Loan Agremaent No. 117 I! of June 1, 1955 and to the related letters ot undttrstanding. • With best regards. Sincerely yours, ft I., !BB PRESIDER! Pescatore .. 0 ~ 0 M .•,.. .. . I. , ~ INDUIUZZO TCL••11Alll'ICO S CAaMaa • IIOMA CASSA PER OPERE STRAOROINARIE 01 PUBB.LICO INT~RESSE NELL'ITALIA MERIOIONALE (CASSA PIER IL MIEZZOGIOANO) Via aerea Prot. N.5/3.1.1.08Posiz.0IFT/DA/rae Allegeti ... ! ! DIC. 19'1 ROMA ..... .... .. . ... ...... . . . . ...... . . . .. .... . ltlAZ.ZA OKI C ON O Jlaeat N . 2 0 <• U A ) TEL. sae, del .. .8 o 8 12 o 5. N . .... . ... .... . O GGETTO : Ill :Pres.t i.t o,J3IRS n.117 /IT progetto irrizuo - Richiesta di proroga Spett o BANCA INTERNAZION ALE PER LA 1 RICOSTRUZI ONE E LO SVILUPPO 1818 H Street N.Wo WASHINGTON 25, DoCo l Con riferimento al cablogr amma sopra indicato, si co- munica che, a seguito delle ecce z ionali avversita atmosferiche verificatesi nell'inverno 1956-57 e di analogo avverso andamen- to stagionale manifestatosi dai primi di ottobre u.s., i lavori riguardanti il progetto irriguo della Piana di Catania, finan- ziato con i f ondi del III Prestito BIP.S n o117/IT, hanno subito imprevisti ritardio Per t ali motivi si richiede a codesta Spet t . Banca di voler - a modifica degli Accordi del Prestiti BIRS n.117/IT stipulato il 1° giugno 1955 e delle rela tive lettere a ggiunti- ve - prorogare· al 30 giugno 1959 la data di chiusura del Pre- stito no 117, nei riguardi del progetto irriguoo Con i mieliori salutio - ,- J' IL PRESIDENTE • • {Gabriele Pescatore) i .? /~ ~ ..-/ ( c!) C ~ ( l FOIIM No. 57 M j-t:, J t,,..l; t.1,7 Cs. 4 8 ) INTERNATIO!'.nL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Mr. P.A. Reid /L/tf/lt {, I< . DA TE: December 17 , 19.58 FROM: D. Gro~veld SUBJECT: Third Agricultural Report on Catania Irrigation Project (Loan 117- IT) \&lf'o' 0 <)c The second r ~ covering 19.5.5/56 was rec~ived by 1 ~ from the Cassa dated September .5, 1958. We urged in our letter of October 1958 the Cassa to expedite the preparation of the third report . The Cassa apparently saw the need for a more timely reporting and sent the third report, covering 19.56/57, by letter of .December 5, 1958 . This report , which is made along the standard lines, shows that agri culture in the Catania plain is developing further as expectedo The farmers are taking various actions in anticipation of t he completion of the irrigation works . Some salient points ar e : a) The area under tree crops (mainly citrus) increased from 12. 3% of the total project area in 1955 to 14 . 7% in 1957, or by 750 hectares . The area under cereals (extensive crop) de- creased from 61. 8% in 1955 to 52 . 7% in 19.57, and the area under secorrl crops expanded from 10. 7% to 23.7% . These are indications of a move to more intensive cropping, which is a result of improved drainage and of the expectation of irrigation . b) The number of production animals increased slightly in the report year, and the production of meat, milk and eggs was in 1957 considerably higher than in 1955 or 1956. This is partly due to better feeding. c) The market for land is very active and land prices are increasing . First- class land ~hat will be suitable for citrus after irriga- tion is provided, was sold in 1957 for over $2, 000 per hectare. The number of smallholdings is increasing , partly as a result of Land Refor11 activities . d) The estimated number of mandays worked in agriculture increased from 1, 369,000 in 1955, to 1, 444,000 in 1956 and 1, 483,000 in 1957. Wages for daily hands were in 1957 L. 150 per day higher than the year before . e) The use of machinery, modern implements , compound fertilizers and pesticides increased, and the area irrigated by pumps expanded from 1, 748 hectares in 1955, to 1, 847 hectares in 1956 and 2,000 hectares in 1957 . Mr. P.A. Reid - 2 - December 17, 1958 For the first time an estimate is given about the extent to which Land Irnprovenent Credit is provided for the farmers in the project area. The figures are : Number of loans 117 150 Amount approved (mln . L.) 400 500 11 disbursed " 220 280 The amount disbursed in short term loans was L. 450 million in 1956 and L. 500 million in 1957. Prices for many farm products decreased except for citrus , other fruits and vegetables , while those for wine and meat improved. The value of gross marketable production increased from L. 3.5 billion in earlier estimat es to L. 4.l bi llion in 1956 and L. 4.4 billion in 1957. A draft letter to the Cassa is attached. No further action is required. cc : Mr . Spiro ' December 17, 1958 Prof essor G. Pescator e President of the Cassa per il Mezzogiorno Piazza d.ei Oongr es si 20 Bome, I t a l y Loan 117-IT Dear Professor , ~- ~_ Allegoli PIAZZ A D E i C ONGRESS! N. 2 0 ( E.UR , T EL . 5291 Risposto o . del .... .. . . N. O GGETTO: . . . . . ... ..... . . . . . . . International 13ank for Reconstruction and Development 1818 H Street, N. W . Washington 25, D.C. £ C • Gentlemen: E .. 0 ~ Subject: Loan No. 117 IT - Industrial Projects: Augusta 0 ] Petrolchimica Report for the First Half-Year 1958 C :, ] :! 1! j/ ·c Further to our letter No. 5/28227 of November 13, 1958, "' 0 we attach hereto the report for the first hal:f-year 1958 of S.p.A. Augusta Petrolchimica financed out of the f unds of Loan No. 117 IT. With best regards • •Cl • Q. Sincerely yours, THE PRESIDENT / s/ Pescatore - Enclosure .. ., M .; . INOU:1 1220 TCLROAA"I COt CASM RZ • '8!0MA C ASSA P E R OPERE ST RA O R D I NAR I E D I PUBBLICO I NTER E S SE NE L L ' I TALIA MERIDIONALE: (CAS S A P ER IL M E ZZO GIOR NO ) 1 r DIC. 1953 Pror. $_) 19_ 2 i s,zC I.:FT/BA/me Allegat, "UnO .. RO MA . . . . ... . PIAZZA DBI CONOFUta•I N , 20 CSUR t T• t.. S2.01 R1sposta a . del N .. ··· ······ · O GGETTO , Prestito .. n .1 . 1 7-IT- Progetti Industriali - S.p . Ao Augusta Petrolchimica Rapporto . 1 °..semestre 1958 Spett o Bi\NCA INTERNAZIONALE PER LA RICOSTRUZIONE E LO SVILUPPO 1818 H Street, NoWo 0 \IASHINGTON 25 , DoCo c • E . 0 ~ 0 ] C :, Scio~liendo la riserva fatta con lettera no 5/28227 del 13 novembre 1958, alle gato alla pre- ~ • Q. sente si rimette il rapporto del 1° semestre 1958, della Sop .A o Augusta Petrolchimica fin~nziata con i fondi del prestito n. 117-IT • • "' • a. Con i mi6liori saluti. ::. .. 0 ~ M" .... ,; 0 • l 6 • . • = :prJ..TS' g:r C8+S'IJ:f' a JJS'lJ~f8- r 0 a, +! A:r +? G 81TJTS ar+JlS~f OUG ~+ :f8+:fCS S'J 30 OA WpL9 J ~ L J +:r- .: • 8JJ8~8+0 gJJS' DI. a U+G :r I.:f 8++8 :rJ LS'DDOLfO S-.s.7IJITSJ0 '; • e tSCSUgo 80 :f+O SJJS JO+ geJ 2 8S+; pI. Ja28 u · cl 0 • 0, ~ • C Q J r I 8+LS8+ 1 I 0" Hfl~IO 0 occ 110· .. VS''t'V OE.I COMCU!E881 M" SO E OIO A I.:f AI t,Q W Y bl a\i ce~ i .,~· c11Ji\DA\ oc 'rl'o' WEl;SIOIOL,1'o're: C 'o'22'o' b E ~ ObE:~E 2.Ll;S"o'O~OIL,1"o'l;SIE 01 bnesr1co llt1J.E!t:sE22E 1"10ttUW::CO .i, ..... u ..... , 0 ov•w ~ • tl O P'II Y , D R A F T To: Mr. Hugh B. Ripman December 4, 1958 From: E. de Alba c ct/!/- / Subject: End-Use Report - Industrial Pr2jects - Lonns 117-l'l' a.pi 189-JI FIRST S OOAT PROJECT (Loan Lit. 3. 6 billion; US$ 5. 76 million) SINJAT's plants at Priolo were visited on November 3, 1958. Progress to Da:!i, _- The first stage of the complex fertilizer plant was completed in March this year. Production has reached about 8,500 tons per month. The nitric acid plant, also completed in March, is operating at about 1,500 tons per month capacity, according to the requirements of the production of fertilizers. Sulphuric acid plant - the first production line has been in operation for several months. It is operating at more than the 3,000 ton per month capacity required by the first stage. The only- plant not yet completed is the phosphoric acid plant which has been delayed due to late delivery of the filters section. This plant will be in operation by December 1958. The steam turbine frc:mi. Franco Tosi has arrived and its installation was almost completed at the time of the visit. It was expected. to be in operation by the middle of November 1958. The total cost of the First SOOAT project was Lit. 8,020 (excluding working capital of Lit. 800 million), Lit. 520 million above original esti- mates which did not include the nitric acid plant. The estimates com.pare as follows with actual costs: (million lire) FiDal Estjmatedy Bala.nco orig1nal rectified Feb. 1955 June 1957 LaMs, lam settling 500 500 516 Sulphuric Acid 1,000 1,000 1,012 Complex Fertilizers 1,100 1,100 1,327 Phosphoric Acid 900 900 810 Nitric Acid 800 8.33 Facilities 950 950 1,194 Water Service 200 200 210 Electric Service 20.3 203 170 Thermal Station 900 900 997 Financial Expenses 540 240 267 Engineering costs, etc. 400 400 400 Starting costs, various, contingencies ~ __J.Ql i~ 7.500 7,500 ~ J/ Foreseen fluctuation+ or - 1~ in the particular items. To Mr. H. B. Ripman - 2 - December 4, 1958 SECOND SINCAT PROJEX::T (Loan Lit. 8.0 billion; IB$ 12.8 million) The second stage of the complex fertilizers plant to the 300,000 tons/ year capacity was practically canpleted except for the bagging and loading department which \18.S undergoing initial trial runs. The seeoIJd line of the sulphuric acid plant was practically finished. This plant will be operating at full capacity (170,000 tons per year) in January 1959. The nitric acid plant expansion to 70,000 tons per year has been com- pleted. The plant 'Will run at full capacity in J anua.ry 1959. The ammonia plant (5($ completed) has not been completed due to the delay of certain pumps now being delivered . The plant is expected to be in operation in April 1959. The ammonium sulphate plant, with a capacity of 66,ooo tons per year, has been completed aIJd trial runs wre started in October. Production during that month w.s 1 1 100 tons. It will operate at full capacity only when ammonia a.IXl sulphuric acid are available in the amounts required . Sta. Catarina mine installations are about 4($ completed. Extraction of kainite continues f rCBn mine development. Install&tions at the mine will continue when the mining concession is definitely granted (some legal red tape was given as the reason for the delay) . Refined potash selt plant will be oan.pleted aDi in operation by .£April 1959. Caustic soda plant, about 5c:d, completed, is expected to start production in April 1959. Perchloroethylene plant construction, to be started in December 1958, is expected to be completed in July 1959. The whole secoIJd SINCAT project will be completed by July 1959, one and a half years ahead of schedule. The total cos t of the second SINCAT project is expected to be plus or minus 1:fo of the Lit. 16 million figure originally estimated. Expenditures to October 30, 1958 were: First project 8,000 million lire Second project l4,50Q • " Total 22,500 To Mr. H.B. Ripman -3- December 4, 1958 Besides these expenditures, the compa.lV has invested Lit. 800 million in land arou.rrl the plant site am Lit. 200 million in a guest house being used to lodge the construction personnel (profess ional staff') am the operating staff until they find more permanent quarters. To finance the expenses listed above, the company has as at September 30, 1958, the following own resources: Paid-in Capital 5.0 billion lire Shareholders' advances 17.0 " II " tt Debentures ~ Total 24,0 They have used the Lit. 3.6 billion from lBRD's first loan atd will soon begin withdrawing fu.rrls fran the second loan. The advances fran F.dison are in current account with the parent company. Financial statements from S]X}AT as at September 30, 1958 are expected soon. The December 31, 1957 balance sheet is completely outdated and is not worthwhi+e having it included here. Variations in Costs of Production .. - The following items of cost have suffered modifications from the time the original estimates were made: Original Est ilqat, Actual Electric Power (lito per kwh) 8 10 Labor(% of increase) 10% Fuel oil (Lit. per ton) 16,000 13,500 Phosphate rock (Lit. per ton) 11,500 10,000 Potash chloride (Lit. per ton) 36,000 33,400 The cost of production has gone down about 6 or 71,. They expect a saving, due to more efficient use of their plants, of about '.i,. In general, the profit forecast seems to have considerably improved. Market - The local market for complex fertilizers is constantly increasing. The percentage of complex fertilizers on total sales of fertilizers in Italy during the last five years has improved as follo\.lS: Sales of complex fertilizers JAgricultural Year as% of total sales 1953/1954 4.7 1954/1955 6. 8 1955/1956 11.5 1956/1957 16.8 1957/1958 20.9 To Mr. H.B. Ripnan -4- December 4, 1958 Export sales for SIOOAT are expected to go mostly to Yugoslavia, Greece, Middle East, North Africa, French West Africa, Spain au:l Portugal. In all these countries, the German "Nitrof'o:scas" (complex fertilizers) have enjoyed practically no competition and SINCAT of'f'icials hope to create a large market for their products taking advantage of their location and costs. ENI's ammonia plant at Ravena is operatillg at about 9C11, of capacity (400 tons per day) and according to SI~AT 1s people, ENI has no problem in selling its output (seems that the obsolete plants of Montecatini using electro:cysis of water as source of' hydrogen, are taking the beating). ENI is building a complex: fertilizer plant at Ravena with a capacity between 250 am 350 tons per day. They will use a French process. According to SINCM's officials, the process is good, the plant is expensive and its locati on is very bad. To improve the Ravena port for large ships will require an expense of about Lit. 10 billion and also the potash salts have to come from Siciiy. Prices of fertilizers are going down but it is not expected that they will fall below those prices considered at the time the sales forecasts for SOOM' were bei.ng prepared. The third SINCAT project has been discussed in my letter No. 6 of November 5, 1958. Action required - To request from JR.FIS and Cassa a written state- ment regarding the status of the mining concession for SINCAT in the Sta. Catarina area. It may be advisable not to disburse funds for the mining operation unti]. this matter has been clarified. c.c.-Mr. Diamond Mr. Jones Mr. Scott [ .foRM No . 59 ( 2- 55) CROSS REFERENCE SHEET COMMUNICATION: Memorandmn DAT ED: December 1 1 1958 TO: Mr. Ripman FROM: E. de Alba F1LED UNDER: Italy - Loan 189 SUMMARY: Discussion in Rome with Cassa officiaJ.s regarding the end- use / visits of the projects. Loans 50, 111, 150 and 189 rr. D R • A F T To: Mr. Hugh B. Ripman December 1, 1958 From: ..ff:H- E. de Alba Subject: End-Use Report - Industrial Projects - Loan ll7-IT AtntBTA PETROLCHIMIC~ (Loan Lit. 2. 74 billion~ tB$ 4.38 million) The plant being built by Augusta Petr<>lchimica at Priolo was visited on October 31, 1958. This project was originally for the installation or a plant to pro- duce 63,000 tons or ammonium sulphate. It was <:hanged in August 1957 for the present one which considers the installation or a plant to produce 33,000 of ammonia per year. Progress to Date - The estimated date for completion of the project has been changed to June 30, 1959. The delay wia.s due mostly to the time needed to design aJld build the equipment for the syntht~sis of ammonia which is the most important process. The IBRD has extended ithe closing date of the loan to June 30, 1959. At the time of the visit, office buildings , watchman house and work- shop were completed. The main building which w:Lll house the ammonia synthesis equipment was under construction aJld is expected to be completed by the middle or November 1958. The other buildings, gas and oil deposits and services, are expected to be completed by the end of the year,, Installation of equipment will start :Ln December and is planned to be completed in May 1959. About 15% of the equ:Lpment has arrived and 6<:JI, is expected to be at the plant by January next yeSJt". It is supposed that no delays will occur in the delivery of the equipment. Expenditures to September 30 amounted to Lit. 1.2 billion; orders for equipment were about Lit. 2.9 billion or some 8!5% of the total. The cost of the project is still estimated at Lit. 6 billio1:1. The plant is being constructed uaier a. special contract with Montecatini am no serious problems are considered during construction or starting up of • operations • To Mr. Rugh B. Ripman -2- December 1 1 1958 Financial Statements - A preliminary balance s heet of Petrolchimica 30, 1958 follows (million lire): as at September Assets Liabilities Lam 187 Share Capital 500 Buildings canpleted 106 Shareholders• Advances 400 Contractors• am suppliers• IBRD loan 244 advances 520 Suppliers' credits 64 Organization expenses 377 other liabilities 13 other Assets 24 Loss during previous year 7 Total Assets 1,221 Total Liabilities The parent company (Rasiom) will provide the funds for the construction as required. The share capital will be increased to Lit. 1.5 billion early next year. Market - The compa.D1' has letters of coimnitment from Montece.tini am Akragas (wholly-owned by MontecatinD for the purchase of 27,500 tons of ammonia per year. It is expected that the needs of ikragas will absorb the whole amount of ammonia produced by Petrolchimica which has not yet been allocated. No action required. c. c.-Mr. Diamond Mr. Jones Mr. Scott November 24, 1958 Dear Professor Pescatore, Thank you for your letter 5/28990 of November 20 sub- mitting a report on the Catania project. We vill be in touch vith you again on this subject after the report has been studied . Sincerely yours , 'Wi lliam Diamon:l Department of Operations Europe, Africa am Australasia .Professor Gabriele Pescatore Presi dent Cassa per 11 Mezzogiorno Piazza dei Congressi 20 (EUR) Rome , Italy ( 'WDiamond :vmc cc : Mr .. Rei d ln n-pl7 to I Loan 117- IT ttff'I' i\l&Ut. fetroloh.b doe Fer\111 ..r ?rojeot. C.n\ lenan t 1 ar.a n pl.J'l ng • 7cur letter :o, 5/28'7-;7 dated lio•aber 1), / 19~, vith nspeet 1.o ~ . CloeJaa U.t. tor th• lup•ta f'etrol• ehi rdoa Jert.ll.f•r Pl"oj•ot under tlie Lou J4(NUllnt betwen the ee•• and tho lie.Dk dated J1me 1, 19'5, (to.U1 r..o. 117-JT). W. an pl eaNd to fr'1'cra yn that, aubjeot to \he ~na tDd pl"CIYi •iona et the Leu "-«n-.n\, the Ilank "111, j n rett~o\ ol tbat. ProJee\ and the uaiMm\ eet torih Ofipoaite it 1n Sot.tule 4 •l the toan i.CJ'eellft\1 aot •• 1f V. Cloah"' Oat• had be•n speo- 1t1eci u June JO, lffl, i.nnead ot n.....1• ) 1, 19SS,•• pl'O"f1ded in the l . e t - ~:1\ bttwen ue stied ""IC'Jllt )1, 19St,, and 1.n- etud ot J une )O, 19'8, •• Mt forth ,n ~, Lou J.gre1Nnt, Youra ai12.o erel7, ::i. Fe. Cepe Diredt v0r or (JperaUona ~urope, ~~tri08. aDd •unralaada C.a.o.a >'9'" 11 Meaaor iorno Plaue dei C-onp-• ••1 Ne. 20 (F,U.P.) ae.,1~ JMJ.J..~Be.seton , ... oot ~•111"8• Die110nd, J ent.can, Anutrong, Ridd, Vertu,7en, Legal filea (through Me. .n. S.c,ott and Clark) November 19, 1958 Cassa per 11 Mezzogiorno Piazza dei Congressi N. 20 Rome, Italy Gentlemen a We thank you for your letter No. 5/2'Tl93 of November 8, 1958, enclosing some studies in relation to irrigatim and power projects which have been sent to us as a result of your conversations vith Mr. de Alba. We are now in process of passing the material as regards irri gation to our Agriculture DiVision and we in the Public Utilities Di vision are retainine the studies relating to that subject matter. After consideration of this material we shall no doubt be in communication with you again. truly, w. el Jago Public Uti ties Divisim Department of chnlcal Operatima cc: Mr. Spottswood Agriculture Division WLJagounec INOIPIIZZO ~~ TCLC~ .. ~~1~0 ·(.. _ \'J JASMCZ • flOM CASSA PER OPERE STAAORDINAR IE DI PUBBLICO/ J ~SE NELL'ITALIA MERIDIONALE: \ ~ ~ ( CASSA P E R IL MEZZO GIORNO) ~ ~-(l P,ot, , t~ N .f'2.2,Z,o,;,..C.ll'T/DV/ mg ltegeti ·······-·····-···········- TRANSLATION ' _ ROMA/3~ J~s ..~ l"IAZZA Dl!:I CONQ ..IUISI N . 20 ( l!:UR) TEL. 8 281 Rispcs te e ······-·-··········································· del_······································- N .....••••........... O GGETTO : - ···-·······················-········-····-·- ··-························································------------- International Bank for Reconstruction and Development 18 18 H Street, N.W. Washington 25, D.C. 0 c " e 0 Gentlemen: "' ;;; 0 ] Subject: Loan No. 117 IT - S.p.A. Augusta Petrolchimica: C :, Progress Rep orts and Request for Extension i! ~ .!! c "' 0 Further to our letter No. 5/26743 of October 28, 1958, we ~ " Q. attach hereto the reports of the subject Company regarding the quarter ended as of June 30, 1958. The Company has also informed that it cannot complete the project within the deadline agreed upon as December 31, 1958, because of unfores eeable delays in the deliveries of some major items. As indicated in the form C attached hereto, in connection with the orders placed with specialized firms in West Germany and § the USA, the Company was not able to obtain the delivery of machinery 0 0 and installations assembled at the plant before March-April 1959. C. As a consequence, Augusta Petrolchimica has applied for an ext~nsion from December 31, 1958, to June 30, 1959 of the completion date and closing date for utilizing the loan granted out of the IBRD 8 Loan No. 117 IT. 0 a: Considering the "fo rce majeure" cause, the Company's efforts for completing the program within the contract terms, and the present acceleration applied in project execution , the Cassa and IRFIS express favorable opinion for accepting the above request. CASSA Pl!R IL MEZZOGIORNO 2. We also point it out that Mr. de Alba, in occasion of his visit to the Project in Priolo, has e:l!:pressed a favorable opinion. . We will :forward the Company 11s reports regarding the first six months of 1958 as soon as receivecl: in the meantime, we remain awaiting to receive - if the Bank agrE~es on granting the extension - a draft letter of amendment to Loan Agreement No. 117 IT of June 1, 1955. With best regards. Sincerely yours, THE PRESIDENT ls.ii Pescatore - Enclosures - .. ' ; INOU1t1aa.o T CL..COAAfl'4COr O A.eM•a - AOMA. CASSA PER OPERE STRAORDINARII:: DI PUBBLICO INTERESSE NELL ' ITALIA MERIIDIONALE ( C A S SA Pf!:R IL ME :Z: Z O GIO RNO ) Prot~ ~ ~ . 2 2 7 Pos,z. O.IF'J'/DV/er VIA AE:REA fJ HO! S ·· Allegot, Vari ROMA ............ .... .. ...... . ....... . .. . .. . PIAZZA DEi CONOAE99t N. 20 (llUR> TIEL. !5281 Risposto o del N. OGGETTO: Presti to n. 117 /I. T - S. p. A. Augusta Petrolchi mica - Rapport i perio- dici e richiesta di proroga - SPE~~'r. BANCA INTE..rnAtI ONALE PErl LA RICOSTRUZIOHE E LO SVILUPPO 18 lB H. Street , lT. ll. WASHINGTON 25 D. C. 0 c • E Facendo seguito alla precedente n. 5/26743 del 28/10/1958 , si 0 ~ 0 trasmettono i r apporti della SocietaL in ogge tto relativi al trimestre ] 0 scaduto il 30 giugno 1958.- C :, :! La ;:iocieta. ha inoltre fatto presente l ' impossibilita. di ultimare ~ ] gli impianti entro la data prevista del 31/12/1958 a causa di impreve- ·c "" 0 di bili ritardi sui termini di consegna di alcune forniture principali . Come infatti risulta dall ' allebato modulo C) , per gl i ordini pas- sati ad alcune ditte s pecializzate della Germania O ccidentale e degli U. S. A., la Societa none riuscita ad ot tenere la consegna dei m acchina- .. ri ed i mpi anti montat i per epoca ant eriore al m arzo- aprile 1959. - "" 0 ci. In conseguenza l ' A ugusta Petrolchimica ha chiesto che vengano pro- ro gati dal 31 dicembre 1958 al 30 giugno 1959 l a dat a di ul timazione e il term ine utile per l ' ut ilizzo del finanziamento accordatole sui fondi del Prestito BIRS n. 117/I:To Considerando la causa di for za maggiore , gli sforzi della Societa per poter pervenire al completamento del programma nel termine contrat- tuale e l ' attuale ritmo impresso all ' esecuzione delle opere , questa "Cassa" e l ' IRFIS esprimono parere favorevole per l ' acco glim ento della .. richiestao .. ~ 0 !'.:> ./ . CASSA PER IL MEZZOQ I ORNO Foglio n... 2 Si fa inoltre presente che, in occasione della yisita agli impianti in Priolo, anche Mr. De Alba ha espresso il suo parere favorevole . 1.:entre si fa riserva di trasmettere , non appena saranno per- venuti, i rapporti della stessa Societa relativi al primo semestre del corr ente anno , si resta in attesa di ricevere , se codesta Ban- ca concorda nella concessione della prproga , la minuta della lette- ra di emendamento agli ~ccord i di prestito n. 117/I. T in data 1 giu- gno 1955.- Con i migl i ori saluti . "O 0 ,: · . .10 ... · T~ ABGUi:i 'iV. ;p;.:~:iO:LCSI 1·rcA S , ;p . A, - Stabilimento Petrolchimico ..::oDULO . '. ..,.... () \· A """' M. ~ YO El-'F~ 11 "IVO T_. I'.:E 'T r :>CA•.lUTO IL •.. . }Pl.~{?~..•....• (1.c tual p ro ;re ) ( a.rt er y ,~r ~nJ eu) _t · 11s1 : r DELL.u F,L~VI .IO ·r O .IGirA 1L:: ••••••••••••••••••••••• (..lcvir;e, c che-lulo) ~,., ' I .rI J.._ -::.'C ....,. ("'a )ell."' cl oi ·., · i " , ,i i , L · v,:. d .... , '.;o) '0 ( ..., 1 ~ 1 .,,.. ••u ' 1-:.... '1. T"' C ,. 1 ) - , Sottori l -~ O_Jv..t..'C . l ~ - La, 1 .l. " 1 S6 1 '=i 1 ·~ ~a 1, / \ •••••••••• . .·•-,.. ... I . • . • I -n1.' ) . . l .t ) • 0 10 2 0 0 0 10 30 C i0 ,2 0 30 0 .. " .i ... J.. :1 I , , '- 0 " .• ,J - . f ' ... ••• ' • " tr . L' . " • • , ' !'. tt • ' • ' ' t ' • I I. ' -- -- .... .....·- - Servizi Gen.eraJ_j 50 % ••••• ~ . . . .. .... -- - --·--- ·- - .- - - Frazionamento 35 % . ••••• • • • • e: Ari a 30 % . • C:ba.king e Con- versione - - - - - --- ... - ~ -._ - - .- ••••••••• ,.· - - · - - -- - - - ··- - Frazi onamento .35 A 70 •••• • ... • • • • It Gas ~ Mil mo , ll 9 l llglio 1958 Sintesi A ca mmonia - 40 % --- ...... -·--- -- - - - - -- ••••• AUGU~ r, p~ ROI.CH MICA s. I).~ ..... ~ 1/dk i,l]. • 40 % Servizi Ammonia ca - - - - - - - - - -·- .- - - 7 ' , h / MODULO B/ ( Sche dule) PROGETTO AUGUS TA PETROLCHIMICA S.p.A. - Stabilimento Petrolchimico - (Proj e ct ) TRI MES TRE SCADUTO IL ••• 3Q/.o/.l.95.8... .. . (Quarter year ended) q.J; TUA ZIONE PEI . FON DI •A DISPOSI ZI ONE DEL PROGETTO STIMA DEL COSTO ( Status of Project funds) In mi l i on i di lire ( Est i ma ted cos t ) (In 111illion Li't .) SETTO RI DI OPERE S tl ma p r ece d e n te Re vis i oni nel t rimestre S t i ma attua'le Spese s'Ostenute · bll a da ta ··del Sp esa r esidua p e r , i l rappo rt o c omp letamento (Se ction of P roject) (P revi o us es ti ma te ) (Revisio n s t hi s quar ter) (P r esen t e sti a ate) (E xpend itures to d a te) (B alanc e r equired to complete) A B C D (B ± C) E F (D ± E) 1 - Servizi generali 1. 190 -- 1. 190 115 , 664 1. 074,~36 2 - Frazionamento aria 755 -- 755 128 ,1 23 626,877 3 - Craking e conversione 925 -- 925 62 , 443 ' 862 , 557 4 - Frazionamento gas 655 -- 655 128 , 123 526,877 5 - Siritesi arnmoniaca 725 -- 725 210 , 355 514 , 645 6 - Servizi ammoniaca 510 -- 510 64 , 311 445,689 7 - Acquisto terreni 240 -- 240 186 , 788 53,212 Milano , li 9 Luglio 1958 AUGUSTA PETROlCHIMICA S.p.A. ~/ ' . .. •. TOTAL E (TotaL) 5 . 000,- -- 5.000 895 , 80( 4.104, 193 ~ - - MODULO PROGETTO C AUGUSTA PETROLCHIMICA S.p.A. - Stabilim. Petrolchimico (Schedule) (Project) Trimestre scaduto il 30/6/58 (Quarter year ended) SITUAZIONE ORDINATIVI MACCHINARI ED ATTREZZATURE PRINCIPALI (Status of major equipment orders) ac-===-=•a==-=---=---------==-=-----------= - -~-------------=------s--=---=-==--=---r--- -- =-=-=---=-=:=-=--~=------=~=-=•e==~-~=-===•==: =•=•=•= •========s•••==c==z~• Gruppi di macchinari Data dell Tor F .t I I p Ammontare in Data conse• Data conse.. - · eatt rezza t ure . t· dina ivo - (M f ore orni t ) (C aese ) mi . . d" . 1ioni i 1• gna previs t a f gna e fettiva OS SERVAZIONI . (Item of equipment) ( Date ordered ) anu ac urer ountry . ( Amount mil• ( scheduled ( Actual deli• (Remarks) lion Lit.) %:~ivery da• very date) I Ord.101L!21 - Pozzo 16/10/57 Compagnia Medi Italia 4,2 30/11/57 30/11/57 gia. consegnato acqua terranea Perfo razione - . Ord.102L.21 - Motocom 31/10/57 Termomeccanica Italia 190 28/ 2/59 pressori N + 3H (macchine mo!!_ 2 2 tate e funzio nanti) - ·ord.103/57 - Gasome= tri azoto e gas 31/10/57 Badoni Italia 74 31/12/58 (montati e funzionanti) Ord.E/104/57- Appare_£ 30/11/57 Adolf Messer Germania 465 15/ 4/59 chi di frazionamen G.m.b.H. 0cc. (montati e to aria e gas funzionanti) Ord.105/57 - Gasometro 10/12/57 Badoni Italia 25,6 31/12/58 02 (montato e funzionante) Ord.106/51 - Impianto 1/12/57 Worthington liquefazione am• Italia.na Italia 22,8 31/12/58 moniaca (montato e funzionan te) 0rd.107L51 - Pompe 15/12/57 Termomeccanica Italia 15,5 30/11/58 circolazione mi (montate e scela sintesi funzionanti Ord.108/57 - Refri= 15/12/57 Bonaldi Italia 8,5 30/ 9/58 geranti a pioggia Ord.109L51 - Polmone miscela 15/12/57 O.M.F.Bosco Italia 1,5 30/8 /58 •••a•••••••=•••====~==========s -----------=-=w--=== ==---=------==-=-s•=•-----1 i=m=====•===a=======•====••===c•=•••a ==•=•=aa=~====a== •=•=•=======•====••••s=•••••====== Gruppi di macchinari Data dell I ord Ammontare in Data conse• Data conse= Forni tore Paese gna effettiva OSSERVAZIONI e attrezzatura dinati vo milioni di L. gna prevista (Manufacturer) (Country) (Actual deli• (Item of equipment) (date ordered) (Amount mil• (scheduled (Remarks) lion Lit.) %:1ivery das very date) Ord.110/58 - Motore a gas per comando turbo compressore 1/2/58 Worthington Italiana Italia 146, 7 31/12/58 Ord. E 111/58 - Turbo Gutehoffnungshuette compressore tipo TKd 20/1/58 Sterkrade Germania 30 31/12/58 Ord. E 112/58 - Compre,! sore Sulzer 14/2/58 Sulzer Svizzera 35,7 31/12/58 Ord.113/58 - N° 3 pozzi Compagnia Mediterraa · acqua 15/2/58 nea di perforazione Italia 5,7 15/3/58 Ordo114/58 -Elettropom• Soc.Italiana Pompe pa sommersa Aturia 15/2/58 Aturia Italia 1,5 20/ 4/58 Ord.115/58 - N' 2 esp~ 19/2/58 Acciaieria e Tubifia:: sori per ammoniaca cio Brescia Italia 2, 1 15/10/58 Ord.116/58 - N° 24 Ser• batoi per NH3 15/3/58 Antonio Badoni Italia 144,6 31/12/58 Ord.117/58 - N° 1 Sepa• Montecatini - Fonde• ratore gocce 3 /3/58 Rie di Pesaro Italia 0,2 30/11/58 Ord.118/58 - 1 Compres• sore di ossigeno 1/3/58 Nuovo Pignone Italia 3,2 31/12/58 • Ord.119/58 - 1 Serbatoio p.acqua depurata 4/3/58 Antonio Badoni Italia o,6 30/11/58 . Ord.120/58 _- 2 Apparecchi.!, ture p.sintesi ammoniaca 6/3/58 Montecatini S.p.Ao Italia 103,2 31/12/58 Ord. E 121/58 - Turbina 15/3/58 Voith G.moBH Germania 10,2 31/12/58 Ord.122/58 - Serbatoi p.be.!:!. zina 20/3/58 Costruzioni Gargano Italia 4,2 31/12/58 Ord.123/58 - N° 1 Serbatoio p.soluzione ammoniacale 20/3/58 Costruzioni Gargano Italia 1,8 31/12/58 Ord. 124/58 - N° 1 Trasformai. tore trifase 400 KVA 20/3/58 S.T.E.M. Italia 1 31/ 5/58 Ord.125/58 - N° 2 Trasform.!. tore trifase 6.500 KVA 21/3/58 O.T.Eo Italia 23,5 31/10/58 Ord.126/58 - Compressore p. azoto 20/3/58 Worthington Italiana Italia 47 31/12/58 Ord.127/58 - Macchinari di• versi 20/3/58 Cesare Uboldi . Italia 9,2 15/8/58 . •=••c•••==••=•===~=•sa=a=sa•••••====•m================•============•=••••u••=••••====•===== ~========•==•====a===========•~========•========••===========•=====a GRUPPI di macchinari Data dell'or Data conse e attrezzature dinativo - Forni tore Paese Ammontare in mi lioni di L. gna previ .. Data conse gna effete (Manufacturer) (Country) (Item of equipment) (date ordered) (Amount million eta tiva OSSERVAZIONI Li ta) (scheduled (actual de {Remarks) del~rery livery da.=" date te) Ord.128/58 - Evaporat,2. Monteaatini ri ammonia.ca 2/4/58 Fond.Pesaro Italia 5,8 30/9/58 Ordo129/58 - Serbatoio olio di spurgo 2/4/58 II II II 0,08 15/9/58 Ordo I 130/58 - Pompa p.lavaggio CO 8/4/58 K.S .Bo Germania 8,25 15/3/59 2 Ord.131/58 - 3 Pompe Soc.H.Pompe p.caldaie 22/4/58 Aturia Italia o,8 30/8/58 Ordo132/58 - 2 Pompe soluzione 22/4/58 II II II 0,2 30/8/58 Ord.133/58 - Predega- . tore 23/4/58 Gargano 11 2, 1 - 31/12/58 Ord.134/58 - 3 Compre!_ Worthington sori· gas residuo 23/4/58 Italiana II 17 ,9 15/3/59 Ord.135/58 - 2 Compre!_ sori avviamento 23/4/58 II II II 1,8 28/2/59 Ord.136/58 - 2 Motori Ind.Meccaniche gas Deutz 23/4/58 Lombarde-Deutz Germania 17,2 15/3/59 Ordo 137/5.8 - 2 Separatori 23/4/58 Gargano Italia 0,4 30/9/58 Ord.138/58 - Colonna e refriger.Assorbim. 23/4/58 11 II 0,5 30/9/58 Ord.139/58 - Sapara.tore 23/4/58 II II 0, 1 30/9/58 Ord.140/58 - 2 Motori 30/4/58 C.G.E. II 1,0 30/11/58 Ord.141/58 - 3 Mptori 30/4/58 C.G.E. II 6,8 30/11/58 Ord.142/58 - Colonna lava~ Montecatini gio CO 30/4/58 Fond.Pesaro II ·1 8,3 30/11/58 2 Ord.143/58 - Estintori 9/5/58 Faro II 0,3 30/5/58 15/6/58 Ord.E-144/58 - Pompa 10/5/58 Laval Svezia 0,2 30/8/58 Ordo145/58 - Separatori Montecatini A.P. 13/5/58 Fond.Pesaro Italia 4,2 31/3/59 Ord.146/58 - Filtri aria 20/5/58 MIDEC Gr.Bret. 0,4 30/9/58 Ord.147/58 - 2 Trasform!:, tori 21/5/58 O.T.E. Italia · 5,0 31/12/58 maaeam•••••===•=========z==•========================================= ============ = ===•========================•m=============•==============r==•a=====c==m=e•=- Gruppi di macchinari Data dell'o.!:_ Ammontare in Data consem Data conse= Forni tore Paese e attrezzature dinativo ( milioni di L. gna prevista gna effett. Manufacturer) (Country) OSSERVAZIONI (Item o, equipment) (Date ordered) (Amount mil= (Scheduled (Actual deli (Remarks) lion Lit.) delivery d~ very date) te) Ord.148/58 - 2 Trasform!, tori 21/5/58 O.T.E. Italia 6, 1 31/12/58 Ord .• 149/58 - 3 Gru 20/5/58 Gentili-Brighi " 13,8 15/10/58 Ord.150/58 - Utensileria 23/5/58 Cea.Uboldi II 3, 1 15/ 8/58 Ord.151/58 - Degasatore 26/5/58 S.P.I.G. 11 12,0 15/ 2/59 Ord.152/58 - Elett rodot• to 20 KV 1/6/58 Baldaccini 11 3,2 1/ 7/58 Ord.153/58 - Motore 4/6/58 Ansaldo S.Gior II 9,6 15/ 3 /59 gio Ord.154/58 - 2 Pompe 11/6/58 Peroni 11 1,0 31/12/58 Ord.155/58 - Impianto de• mineralizzazione 16/6/58 Rossetti II 10,9 31/ 3/59 Ord.156/58 - Cingoli 19/6/58 Miceli II 0,2 30/10/58 Ord.157/58 - Stufe 19/6/58 s.r.E. 11 3,7 15/12/58 Ord.E- 158/58 - Rivesti= mento gasogeno e convert. 20/6/58 Westofen Germania 19,2 31/1 /59 Ord. E- 159/58 - AnaliZZ,! Hartmann tori 27/6/58 Braun " 11 7,3 31/3 /59 ' Milano, 9 1 llglio 1958 AUGUSTA PEtrROLCHIMICA S.p.A. / PROGETTO AUGUSTA PETROLCHIMICA S.p.A. - Petrochemical Factnry - MODULOD (Project) (Schedule) TRIMESTRE SCADUTO IL 31/6/58 (Quarter year ended) RELAZIONE SULL'AVANZAMENTO DEL PROGETTO E SUGLI EVENTUALI PROBLEMI OD IMPREVISTI CHE POSSANO RITARDARE IL COMPLETATuIENTO DEL PROGETTO (Commentary on the progress of the work,. and any unsual problems or condition being met which migth delay the completion of the project) The engineering work of all pla:rts was carried out in all its essential lines: the definition of some particulars of constructio and of assembly is going on. The issue of the orders relative to all machineries is going on, as in schedule 11 C11 • These orders were already carried out for all the must important machineries , and just so for about the 70% in regard to previsions . As in schedule "C", some orders pre- sent terms of delivery we were not able to reduce beyond certain limits: for that, all supplies will not be carried out before the 30th of April 19590 This situation is carried in schedule "A", in which, in revision to primitive previsions, we have indicated, as term of the plant's carrying out, the 2nd quarter of the 1958 year. The construction ' s works of the Factory has been begun by Pierdominici Firm practically on the 15th of April 1958. On the 30th of June 1958. ..the situation is as specified below : a)-Offices - Door-Keeper's house and Mess .- They carried out the foundations, the masonries, the floor under roof of these three buildings and are making their covering. We foresee the finishing of these three buildings for the date fixed in the contract and precisely on the 1st of July for the Offices and for the Door-Keeper's house,and on the 30th of September for the Mess. b)-Store-House and Workshop .- They finished all works in reinforced-concrete and the coverings of these two buildings. In next July we shall install the cranes and-therefore in the first days of August the Store-House and the Workshop will be in full efficiency. c)-Synthesis.- We finished the study of the foundations of this building and of the big compressors' bed and the Pierdominici ~ Firm carried out the mining for the castings' begginning. d)-Gasholders.- They ended the foundation's works regarding the two gasholders by 5000 me and are carrying out the works regardin the gasholders by 3000 me. e)-Ammonia's high pressure tanks.- They executed the foundation 's casting for the support's seating and the casting of the same support's seatings of the 24 tanks by 150 me is going on. f)-Wharf.- The Ing. Guido Lambertini Firm has begun the depth's soundings and the begginning of the wharf's construction's works is inuninent. g)-Wells .- We have begun the drillings for the 2nd and 3rd well . I. 2. h)-Roads . - The roadbeds were carried out for about the 70% The first assemblies ( gasholders) will begin in the August month . Milano , July 9th 1958 AUGUSTA PETROLCHIMICA s.p.A. ~~ D R A F T TO: Mr. H.B. ~ November 9, 1958 FRCM: Eduardo de Alba SUBJmr: End-use Report on Industrial Projects Loan 117 IT Cll'IENTElUE SICil.IANE (Loan Lit. 1006 bil.; US $1. 7 milo) The Plant at Palermo was visited on October 25 and a meeting with the Directors was held in Catania on November 4, 1958. Project Changes The plant was originally designed for a yearly production capacity of 130,000 tons of cement. In order to have a better thermal efficiency the plant was redesigned; the rotary kiln was elongated from 117 to 137 meters and the other production departments and ancillary services were adapted to handle the resulting increase in capacity to 170,000 tons of cement per year. The total cost of the project originally estimated at Lito 2.8 billion (plus Lit. 200 million for working capital) reached Lit. 4.5 billion as detailed below:(see note on last page) Comparison between the Originally Estimated Pro ect and the o al inal Expenditure Rectified Estimate Cost (million Lit.) Limestone quarry Constructions 95 BJ Installations 208 210 Clay quarry Constructions 23 10 Installations 32 45 Plant Raw mix preparation installa- tions: Constructions 105 165 Installations 160 395 Burning installations: Constructions 90 165 Installations 435 744 Cement preparation, filling of silos and loading: Constructions 178 188 Installations 218 521 General services - raw material shed: Constructions 571 1,222 Installations 337 581 Rectified Estimate Cost (milli on Lit•) Plant contld r s: Living quarte: Constructions 50 85 Erection cost,l!I 190 • Total Const.r uctions l,ll.6 1,918 Total Insta,l lations 1,580 2,496 Total Terrain 112 99 General. Total 2,810 41513 Financing of the project has been made as follows (in million Lit.): Original. Actual Share capi.tal 1,500 1,500 IBRD loan through mFIS 1,060 1,060 Shareholde1rs advances 440 2.000 (approx.) Tcital 3,000 41560 The plant was completed in March 1958 and at the time of our visit was running at full rated c:napacity, no technical problems of any significance affecting its operation. Cost Estimates The increased capacity of the plant as well as better thermal ef• fici ency has improved t he <1:o sts of production despite the increase in cost of fuel and electric power,, !2'0 1 tons 1\l1 00 tons (Lit, per ton) Quarry materials 100 100 Fuel 2,070 2,080 Electric power 900 1,020 Consumption materlals 1,000 150 Labor (plant and glu arry) 1,200 910 General plant expe1 nses 150 140 Production Costs 5,420 ;;oe;cr Depreciation* 1,525 1.,930 Administration Expenses 300 280 Selling expenses (incl. cost of bags) 930 880 IBRD loan interesi:, 460 360 Taxes 25 23 Total 8,660 8,473 * Du.ring the first, 10 years of operation the company is exempted from some taxes, for that reason depreciation rates will be lower than normal during that period0 The figur es quoted above correspond to normal depreciat ,ion r ateao - 3- The reduction in the selling price of cement decreed by the Comitato Intel'llinisteriale Prezzi in August 1958 has affected the return on investment of Cementerie Siciliane as follows: Production in Thous. of tons 120 170 Sales (million Lit.) 1,245 1,555 Total expenses 1,039 1,439 Estimated profit 2o6 116 Company• s investment 2,000 3,650 Return on investment 10% 3% IR.FIS people have the impression that the real profits of the com- pany will be higher than the estimatei for the expanded project since some expenses have been overestimated by the company which is in an all out effort to have the Comitato to reconsider the reduction in the selling price of cement mentioned above. Financial Statement The Balance Sheet of the company as at June 30, 1958 (three month• after starting operations), compares with the pro fonua bal.ance sheet as shown below(in Lit. million): Pro Forma Actual Pro Forma Actual Assets Liabilities Fixed assets 2,800 4,561 Share capital 1,500 1,500 ~ Less depreciation 30 Advances 440 2,041 4,531 IBRD loan 1,060 1,060 Current assets 300 477 Current liabili- Losses during con- struction Total Assets 3,100 15 5,083 ties Social security - 100 Total IJ.abilitiea31 100 464 12 5iOB3 !/ Depreciation is one half of normal and for two months only. The current ratio is only l to 1 but it should be considered that the plant was really in trial operations. By June 30, 1959 the current ratio is expected to be at least 2 to lo In the first two months of operation (May, June) the company had sales of IJ.t. 503 million with total expenses of Lit. 502,500,000 and a modest profit (rather theoretical) of Lit. 500,000. Market Prospects Although the reduction on the selling price of cement affacts the estimated net income of the company, it will avoid the competition being made by Naples plants (Cementir pirobably) and other mainland cement plants, in the Palermo area. The compamy- expects to sell its full production of 170,000 tons during the 12 month period ending June 30, 1959. No action requiredl. NOTE: The plant investment per ton of cement produced per year was Lit6 21,500 for the original project; it went up to Lit. 26,400 for the revised project. This increase shows that the coat of the original project was considerably underestimated by Italcementi. It should be considered that the equipment finally installed was of a most modern design than the one originally planned. More control instru- m~nts as well as dus1~ and fume control equipment of the most advance characteristics were provided for the revised project. lo~ember 4, 1958 Prot. Gabriele Pescatore President Caeea peril Measogiorno Piazza dei Con1resei N. 20 Rome, Italy Rei Loan 117-IT Dear Prof. Peacatores Ve acknovledg~1th thank• receipt of your l etter dated October 28, 1958. Ye are looking tol'\IBrd to rece1Tin(r the Periodical Reports on Auguata Petrolch1.Jllica, •• or June 30, 1958. tours very truly , )?fl11J~ ~ B. B. R11"1111llD Chief, Induet17 D1Tiaion Depe.rtm~nt of Technical Ooerat1ona aw DRAFT EdeAlba :mo November 2, 19.58 \ To : Mr . H. B. Ripman From: Subject: E. de Alba J End- use Re ort, Industrial Projects - 117-IT and 150-IT ABCD - Loan, Lit • • 9 billion U. S. ~9. million equiv. ) Lit . 1 • .5 billion from 117-IT; Lit . 4.4 billion from 150- IT The company ' s plant at Ragusa was visited on October 30, 19.58 . Status of Project The ABCD ' s projects for special cements and crude oil stripping have been completed and in operation for mare than a year . Production of special cements from July 1957 to September 1958 amounted to 4,100 tons; this section is operating at full capacity. The crude oil stripping tower has produced 8,500 tons of oil during the same period and is now operating at reduced capacity until the polyethylene plant is completed. The polyethylene and the thermo power plants are under construction and expected to be completed by the end of 1959 a full year ahead of schedule . The foundations of most buildings and machinery have been completed; the water- pumping station at the Irminio river is in operation . Fuel and gas tanks are being buil t . Some of the most important buildings are well advanced and will be able to house J' the m3.chinery as soon as it arrives . All equipment and machinery has been ordered a#....,.fn \. and will be at the plant by March 1~ '(' tJ-i} "\ / Technicians for the installation of the equipment have been train- / ing at the machinery suppliers ' plants for several months . The operating crew will be sent in January 1959 to Germany for their training in the operation of the plant . Up to September 30, 19.58, 3,066 million lire have been spent; to provide for the Lit . 8. S billion still to be sent, the company will do the following: Lit . billion Increase in capital from Lit . 2 to Lit . 3 billion 1.0 Shareholders advances already available (Lit. 800 million already spent are not included in this figure) 1.s IBRD unused funds 4. 0 Additional shareholders adv . profits & deprec . 2. 0 8 •.5 The machinery will have an increase in cost estimated at S to 7% which is expected to be covered by the contingencies allocation. - 2 - ABCD Financial Statements as at September 30, 1958 (Lit . million) ASSETS LIABILITIES Fixed Assets 6,148 Share Capital 2, 000 Depreciation 605 Surpl us & Reserves 790 5,543 Severance & tax funds 291 Current Assets 2, 058 Shareholders advances 768 Long- term Loans 2,728!/ Short- term loans 208 Current Liabilities 815 Total Assets Total Liabilities 7, 601 !f Long- term loans as follmY~ : Lit . million For the project from IRFIS 1,400 For Lime Kiln from IR.FIS 300 For project to be covered from IBRD funds,Banco Sicilia 520 Banco di Sicilia ol d l oan 508 Total 2,728 The Profit & Loss Statement for the year ending Sept. 30, 1958 (Lit. million) Expense Income Cost of goods sold 1,673 Total income 2, 706 Depreciation 185 Interests 112 Gen. & Adm. Expenses 55 Taxes 62 Profit for the period 619 Total 2,706 Total 2, 706 The allocation for depreciation is very low but will bei supplemented by about Lit . 310 million more from profits . About Lit . 200 million ~rill be dis- tributed as dividends,the rest of profits going to surpluso - 3 - . Market The market for polyethylene in Italy is getting extrene ly com- petitive since the followi ng manufacturers will be in the market in the next three to five years. Tons per year Phillips and Solvay 6, 000 (low pressure) l.fontecatini 20, 000 (including propylene) Cellene 10,000 (5, 000 ton plant for Novara ABCD 10, 000 already ordered) Total 46, 000 ABCD expects to be able to place its production locally and abroad based on high quality and low cost of production. Their cost per kilo is estimated at Lit . 140 to Lit . 150/kg. excluding depreciation; selling price at Lit. 375/kg. against curr ent selling price in the States of $0. 42 per pound or Lit . 575/kg. There is still a margin of Lit . 200/kg . within which ABCD seems capable to com- pete with for eign and local producers . The company may run into serious competition in about five years . No action required. FORM No. 27 INTERNATI ONAL BANK FOR RECONSTRUCTION ANO DEVELOPMENT ( s. 58) INTERNATIONAL FINANCE CORPORATION OUTGOING WIBB CLASS OF SERVICE: LT DATE: OCTOBFR 31, 19$8 TO: EDUARDO DE .ALBA HCY.l'm, EEELSICJl CATANIA, SICJLY M11( COUNTRY ( ITAL!) ~EXT: Cable No. SEVEN IN IRINCIR.E WE Wn.L NOT OBJECT TO CHANGE IN 'mIHACRIA . . . . . ' . . . ffiOJml' STOP PLEASE MAKE SURE WHEN FCEMJ.L REQUEsr IS FCRWARDED THAT DETAJLS OF REVISED lROJIDI' AND FINA.NCI.AL ~A.SrS ARE mCLUDED STOP mom::T IESaUPTION WOULD REQUIRE CHANGING AT SOME FOINT A_UTHORIZED BY: NAME: Hugh B. 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CASSA PER IL MEZZOGIORNO IL PRESIC>ENTE ROMA , October 30, 1958 PIA'Z.2A 0&1 CONC:RESSI N, 20 tF!UA, · Tf&l.. S2G1 TRANSLATION Dear Mro I wish to answer you right away for expressing my warm thanks for the interest you show in following the develop- ment of our agriculture in the area concerned with the Catania Irrigation Project. In connection with the report for the year 1957, while I have to let you know that increasing difficulties have been met by the entities preparing the report in respect of the ana- lysis of all the data supplied by the various Regional and Pro- vincial Agencies (having competence on territories only partial ly included in the Catania irrigation district), I want to assure you that its preparation is nearly completed. I hope to be in a position to forward you copy of the report you have requested very shoit.y. I am glad of this opportunity for extending best regards. Sincenely yours, /s/ Pescatore Mr. D. Groenveld .. International Bank for .. ~ 0 Reconstruction and Development ;;; 1818 H Street, N.W. Washington 25 , D.Co • • CASSA l"ER IL MEZZOGIORNO II.. PRESIDENTe: Roma , 3 OOTT. 1958 Egregio Dr . Groenveld , mi affretto a risponderLe per ringraziar La vivarnente dell ' interessamento con cui Ella segue l ' evoluzio- ne della nostra agrico ltura nell ' ambito della zona interessata dal Progetto Irriguo della Piana di Catania. Per quanto riguarda il Rapporto relativo all ' anno 1957 , mentre e mio dovere segnalarLe le accresciute difficolta incontrate dagli Organi compilatori per lo spoglio di tutti i dati forniti dai vari Enti Regi..onali e Provinciali (aventi competenza su territori solo parzialm ente interessati dal co mprensorio irriguo di che trattasi) , desidero assicurarLa che la sua elaborazione e pressoche ultimata . Spero di poterLe inviare la copia del Rapporto richiesta a breve scadenza. Mi e gradita l ' occasione per porgerLe di stinti saluti . . 0 Mr . GROENVELD .D ~ ... Agricolture Division Department ;;; of tecnical Operations INTERNATI ONAL BANK 1818 H. Street N. W . WASHI1JGTON , 25 D. C. U.S . A. INOtA IZZO T CLllORA.~ICOI CASM•z .. R OMA CASSA PER OP E RE S T RAOROINARIE 01 PUBBLICO INTERESSE NELL'ITALIA MERIOIONALE (CAS SA PER IL MEZZOGIORNO) TRANSLATION 2 8 f)T T 10t; Prot. N. Posi .CIFT/DV/PdP ROMA .......................... . Allegati PIAZZA 011 CONGRaSSI N. 20 <•URl TEL . 5291 R1sposla a del N. OGGETTO : International Bank for Reconstruction and Development 1818 H Street, N. w. Washington 25, D. c. 0 c • E 0 Gentlemen: .. ~ 0 ] Subject: IBRD Loan N.117 IT - S.p.A. Augusta C: ::, Petrolchimica: Periodical Reports ~ ,,, i 'i: this is to inform you that the reports as of "' 0 June 30, 1958 of the subject Company will be forwarded ... ~ • with delay, as they are still being examined by the Cas sa •s offices. - • .. "' Moreover, Augusta Petrolchimica has applied ii. .;; for an extension in the deadline term for utilizing the loan. This question will be examined together with Mr. de Alba before submiss ion to the Bank. With best regards . "' ~ Sincerely yours, § THE PRESIDENT ::. .. ~ .. ;; ')° ~. /s/ J Pescatore ~~« -0 0 l \J\ \\ CJ DCT 31 9 G • ., G 20 iu~ l~B\ JE,68CS.f0l.G \ \ \ gs VJ.Pa petoLa errpm:raarou +O +PG bslJJt · ros1J• ~p:ra arrsa~rou !\:!'"Jr pe sxgm:rueq to€s+PGL M:f +JJ pp:.• \ tOL SD' 6X+GU8~0D :fD +~G gsggJ:fl]G +GLm tOL rr+:rJ:r~;u€ +PS WOL60AGL) yrr€.rra+e ~G.fLOJCp~m:rca µaa abbJJGg ag 1 a Ott:rcs a • A\:f ~p qGJali. 1 88 +PGA SLG 8+:fJJ pG:fD"€ exsm:p1sg PA +JJG caa C]_/llJG )Q i Ja~g Ot .tPG arrp~6C+ QOWOODA A\:fJJ pe tOLIASLgsg +vra ~a ~o :rntoLm '.Aorr ~JJB+ ~ps LshoL+B ea ot .. J: 6fJ',OJCP':.flD:fC8: I,GL:rog:rcar BGDOI.+8 0 arrp~sc~: IBHD roau M · JJ~ IUJ - a · h· v · yn~e+a .. 0 & ~ C,GD.fJGllJ6U! • C 0 sap~D~+OU S~ 1 n• C" J8J8 H 2+LG6+) M• M• BGCOU8+lJJ'C+:fOU suq DGAGJODW6U+ IU+GLD8+:fOlJ8J B9'D~ tOL OCCEHO .1.ar aso, blYSXV O~J COMOW1i881 H . s o , .. n,u k:IOWW bl ,· vr ( C ¥ 8 2 "v' b E~ Ir W E :S:S O O I Ol:i"10> VIE:rr .u.,1T1'd INEtslOIOVl'drE C'd22V b E ts ObE~E 2.l.t:SVOMOlll1'7'tslE 01 bnear,co IVl.l.EtsE22E ,1i110 1..-1 s so .&.~r••-~11.rco; c••"""'•s . .. oww CASSA PER OPERE STRAOROINARIE 01 PUBBLICO INTERESSE NELL' ITALIA MERIOIONALE ( CASSA PER IL ME Z ZOGIORNO ) s/2 6 7 '* 3 P E R VIA AEREA Prot. ' N ........... ............... Posiz . .. C.I.F.T/DV/ Ct ?.. 8 011. ,958 Allegali. .............................. . R O M A ............................... .. .. ....... ........... . Risposta 11 ....................... ... ... .............................. . PIAZZA OEI CON GRESSI N. ao (EUR) TEL. 8779 del ............................................... N ..................... OGGETTO , .. Pr..e.st.i.to.....B.IJ:1S.. ] 0 11 r - S. p.A. Augusta ietro lchimica - Happorti per ioct1ci - Spett/ BAJTCA INT...!RNAZIONAL~ PER LA RICOSTRUZIONt E LO SV ILUPPO 1818 H. Street, N. W. £ WA~'HINGTOM , 25 D.C . i 0 .. E' 0 ] C :, ~ : .! Con l a pr esente si comunica che i r apporti al 30 c "' giugno 1958 della S. p.A. Augusta Petrolchimica verra.nno 0 • Q. ~rasmessi in ritardo , essendo ancora in esame presso gli Uffici di questa "Cassa". Si informa i noltre che la suddetta Societa ha .. OI chiesto una proroga del termine utile· per l ' util i zzo del • Q. f inanziamento. ~a questione sara esaminata insieme a Mr . De Alba prima di presentarla a codesta Banca. Con i migliori saluti . IL PRESIDENTl (Gab~ ~. FOR"4 NO, 26 ( 5. 58) INTERNATIONAL BANK FO~ RECONS TRUCTION AND DE VELOPMENT INTERNATIONAL FINANCE CORPORATION INCOMING WIBB DATE OF WIRE: OCTOBER 27, 1958 ROUTING TO: INTERNATIONAL BANK FOR RECONSTRUCTION ACTION COPY TO TECH.OP AND DEVELOPMENT FROM: INFORMATION COPY TO AGRIGEN'l'O Decoded By ,\ ~~ TEN TO RIPM,N PLEASE DISREGARD INFORMATION CONCER~o--cl-.-- V\1-:,""fs' -;fl ..} SINCATS NEW PROJECT MENTIONED MY LEY'.r.ER NUMBER FOOR REGA.RDS DEALBA ORIGINAL TYPED OCT 28 10 ss Pi1 i358 (j 0 0 C 0 p y Palermo October 24, 19$8 No. 4 Mr. Hugh B. Ripman World Bank W'aebington D.c. Dear Mr. Ripmanz I epent the whole morning yesterday getting the 400 1 000 lire from the Banea d'Italia due to the excessive red tape there. My reports on Marzotto and CONE were, therefore, delayed until 1117 weekend at Palermo. The 11eeting with Dlli'IS officials thia morning was very interesting on account of unexpected changes of the Trinacria project and some in!o~- tion obtained on the socal.led third SINCAT project which inay- be presented. fol'.IBRD financing. Trinacria - The Pai,quasia field, which together with Corvillo, forms part of Trinacria's mining concession has been thoroughl7 surveyed (15 core drill holes). The findings of this survey show that the Paaquasia field is of a greater potentiality than Corvillo, not only on the basis of tonnage of proven reserves of Jlineral.s but especiall7 because of the fact that the Pasquasia field contains three different potash bearing salts. This diversity of salts makes possible to produce, under optiaua conditions, not only potassium sulphate and ka]imagnesia but also potassium chloride. The following figures can give you an idea of the characteristics of both fieldsi Corvillo Paequaaia Kainite reserve• 5$ mile tons 251111. tons K20 content 13% 13o4% Carnalite reservee negligible 20 mile tons K20 content S1.l.Yinite reserYea - negligible 13. 1% 11 mil e tons K20 content - 18. 1% Total 55 mi.lo tons 56 milo tons Total. K2<) content 7 mil. tons 8 mile tons Carnalite and silTinite (especially the latter) are the raw materials for the production of potassium chloride. The three minerals are in different layers and can be mined separately• . Since the silvinite is the easiest to reach of the sal.ts available at Pai,quasia it is suggested by them that the Trinacria project should be modified as followsi To open the Jline at Paaquasia insteadl of CorYil.lo as originall.7 planned; the processing plant to be located in the most adequate place to handle minerals trom both field8 since Corv1ll.ci1 lline has to be opened within three years or lose the •1n1ng concession (Pasc;nuasia's mining right• expire Within three years alao) o This plant, which at, the beginning will handle only Pasquasia's minerals, will have a silllpler retiDing process to produce, initial.ly, 113,000 tons per year of potassium c:hloride vi.th a K20 content of 58 to f:IJ'I,. After a few years ot operation 1iJie other salts troa Pasquasia and lcainite .from Corvillo could be also process1ed and the production of po- tassium sulphate and kal 1 magnesia could be started. The cost of the Pasquasia project 1• estillated to be the same as Corvillo 'a. since the lower cost of the processi.ng plant vill. be upset by the added cost of a deeper mine (SOC> a.t. at CCJ1rvil.lo against Boo ..t. at Pasquasia). The cost of production per ton of K 2o (in the fol'll ot chloride) is eBtiDlated at Lire 18,000 at Paequasia again< Lire .33,000 at Corvillo (the K2<) being 1n the fol'III. o:t sulphate). The E'ranco-Germans, who have pro- vided the technical know-bow for the Pasquasia area exploration, are totally in favor of producing KCl at Trinacria and will. stop •ending this material into Italy" as soon as Trinacria can supply the local market 0 .Another reason for tJie interest in pr'Oducing the chloride ahead of the sulphate seems to be that Montecatini lu.l~ also found silvinite and the Trinacria partners want to be in a better piosition to defend their market for chloride which they control at the p1resent ti.Ile using imported product. A report on the new project (of whicllt I have a copy) has been prepared by Trinacria and a copy will be sent t,o the Bank soon. The visit to Trinacria ie scheduled f'or October 29 but I have allocated SOiie tiae on November 5 at Catani.a fo,r another meeting with Trin- acria officials, if' necessary-. Please let me know your instructions and comments on this utter preferably before m;r so:heduled return to Rome on November 6 • •••••••••••••••••••••• 1 ncer~, s: s:/ Eduardo E:. de Alba !Vo. 4. INTERNATIONAL BAN1fr FOR RECONSTRUCTION AND D~VELOP~IENT 1818 H STRE ET, N . ·w: WASHINGTON 25, D. C .. C ABl.E AOORESS · INTBAF RAO \ -,2 - r ;fJ1111/e7 re1e,t/eJ c ~ o (&nle11! /3% /3,4 % Cc:Jr,1Jr:1/;k /t'J e/ty'f »pj/&/e 20 nv// /cH.1 ~0 ctP;Jfenl - / .3 / % 51!t11111/e r~Je///t's /11/1/bk //. ~ 1!/.!t,>1J' Rz O {"() nkrJ/ LE· 7 Z ~IG,;s' ss /r}/' / / rf/1J 5b fr}///h'/JJ To/;/ /;_ tJ CP11#/JI 7 /JJ/fa~/J ft'//J Rm/// h>?J. -s- Ri cavi annui ( 1 l milioni di lire Glicole etilenioo 6.000 tonn. a. 225 £/Kg. 1.350 • (inoluso di- e tri-etilenglioole) Eteri di Glioole 3.000 tonn. a 300 £/Kg. 900 < Eteri di Di-etilenglicole 500 tonn. a 300 £/Kg. 150 Ossido di etilene 2. 500 tonn. a 300/£/Kg. 750 Etanolammine (mono,di,tril 2. 500 tonn. a 320 £/Kg. 800 Esteri ed eteri di poligliool 1. 500 tonn. a 400 £/kg. 600 Derivati vari dell ' ossido di etilene 1.000 tonn. a 350 £/Kg. 350 Polietilene f!.:,t.4/;6 !PPh P~fflt7A !) (resine base e compounds) 10.000 tonn. a 470 £/Kg. 4.700 \ ' Rioavo totale annuo 9. 600 , " (1) I prezzi si intendono per meroe franoo destine, imballo oompreso . ~r .. ., ',t. ~. \L I -; Cl nE('" ' ' ~ F CCT 30 0 • C 0 p ? .. RClll8, October 21, 19S8 1'01 Mr. Spottswood PRuri.11g uq visit during the past month to Italy' and collaboration with official•• ot the C.•sa, I asked tar an up-to-date resume ot the status of each of 1~ power projects included in the l oans to the Cassa. A field trip was JMLdB to onl.7 one or the proj- e cts, the Naple• theraal power station, which 1La in its early construction phue . I am enclosing the resume prepared t~~ me by the Cassa. It was canpiled as ot the period ending September 30, 1958. Attachment TRANSLATION PdP/mg - 10.10. 1958 CASSA ff:R IL MEZZOGIORNO Industry and TouriSlll Branch Data retlet.ting tb, .tolloving power projects financed out ot tbe proceed.a ot the Il1Ul Loans: Loan Ho. 117 IT (a) 5ME Project (b) UNES Project ( c) PUGLIESE Project Loan No. 1$0 IT {a) Elm Project (b) TIFEO Project (c) SIAL Project Loan ao. 169 IT (a) OOES Project (b) SM! Project 'We point out that data renecting ph;rsical progress ot the various proj- ects in the period endin,~ on September 30, 1958, have not yet been received. SUch data are expected within the first halt of November next. IDAB NO. 117 IT S!E ffiOJECT for the conatruction ofz (a) Lu1,:1 BydrO"!"Power station - Second Stage - Aggregate cost or1ginallT estimated at 7,ooo million linu reviead coat estimate 1,200 - Pinancillg granted, 3,340 million lire - D1.aburaements1 3,340 million lire - Construction completed in the 4th two-month period ot 1955. (b) Matese IJTdro- Power Station - Aggregate coat originally estimated at l,26o million lire & reT.laed cost estimate 1,280 - Financing granted, 3S8 million lire - Disburee1111!tnta: 358 million lire - Construction completed in the 1st two-month period of 1958. (c) Mucone-Rotonda-Fratta Transmission Line - Aggregate cost originally estimated at .3,000 million lire1 rensed cost estimate 2,154 - Financing granted, 1,927 million lire - Disbursements: 1,927 million lire - Constt-uction completed in the 4th two-month period of 1957 :WAN NO . 117 IT UlfES PROJECT ! or th& construction ors (a) Ascoli Hydro-Power Station - Aggregate cost originally estimate, .3,000 mUlion lire - Revised cost estimate , .3, 000 million lire - 8.nancing granted, 2, 113 million lire - D:l.aburae nta, 2,ll3 Jlilllon 11.re - Construction completed 1n the 6th two-month period ot l.9$6 (b) C&podiponte ltrdro- Ponr Station - Tronto and Castellano 'Sections - .Aggregate cost originally estimated, 6,400 million lire - Beviaed cost estimate, 6,632 m1llion lire - Financing granted, J,Sl2 million lire - lll.abureemanta thro\lih S.ptmber .30, l9S8, 2,213 million lire - Thi Tronto section b&a bean completed in the 2nd two-month period of 19551 Cut.llano aecti on (excluding the Talvacchia dam)s ccmpleted in the $th two- ontll period of 1955 Talvacchia dama 1 t should be pointed out that at the tine of occurrence, the causes of delay' haft been illustrated, or.l.gi- natini troa a delq in the approval ot the final design ot the dam; now construction is in regulu progress, in accordance witb the new program al.re~ forwarded to the UBD LOil NO. 117 IT PUGLIESE tROJECT tor the conatruction or, (a) Coaclle Hydro-Power Staticn - Aarecate cost originally estimated, 1,100 million lire - Rev.ised cost, eatillate , 1 1 100 million lire - Financing granted, 911 r.dllion lire - D1abureaenta, 911 mill.1on lire - Conatruetion caapleted in the 6th wo..month period of 1957 (b) Bari !bermal Power Station - Aggregate coat or:l.ginal]T estimate.\ 16, 500 m1llion lire - Reviead cost estimate, 16,SOO 111.llion Ure - Total expenditure through June 30, 19$6, 7,955 million lire - linancing granted, 6,589 •11J1on l1re - tJiabune119nts throup September 30, 19S8, 6, 589 million lire - Physical progress u ot J'CDII 30, 1958, 68j. CODStruction 1• 1n regul.a~ progress. (b) Pontecorvo lf1drc,-Power station .. Aggregate coat originally estimated, 5,)10 million lire - BaTiaed cost estimated, 5,SlO million lire -Total u:pemiture throµgh Jum 301 1958, 2, 437 aillion l1r8 - Financ:1.n& granted, 3,.310 •UJ1on lire - lli.sburaements through ~..pt.ember 30, 19S6, 1,844 million lire - ~ical. progress as ot June 30, 1958, 45j. Construction 18 in regular progress. LOAN NO. 189 IT SNE I=R~T tor the conatruct.1..on ot: (a) Baples thermal Power station • Aggregate cost orig! nal ly estimated, 2.3., 000 million lire - Re'Yised cost estimate, 24,500 million lire - Total expemditure through June 301 l958, 1., 768 million lire - Pinanc.1.ng granted, 13,750 DdJllon lin - Di.sbursements through Sep~r .30, 1958, 2,s-rs million lire - ffl18ical progress aa ot June JO, 1958, )j. Construction i8 in regular progress. LOAB KO. 189 IT &l:BS PROJECT tor tba construction ota (a) Ouadalam:I Hydro- Power Station - Aggregate cost o:r1g1nally' estimated,. 7,S67 million lire - Financing granted, 4,500 million lire - Di.aburaemants through ~ptember .30, l958, 271 aillion lire - Phpioal progress as ot June JO, 1958, U . Construction 1a 1n regular progreH. 14N BO. 1$0 IT Sim FROJECT for the Construction ota (a) Busaento llfdro-Ponr Station - Aggregate cost orig1n•ll7 eatiaated, 6, 7SO m1llion lire • Revised coat estimate, 6,SSO llill1on lire - Total expenditure through June 30, 19>8, 2, 7S3 JdJJion lire - Pfnena1ng granted, 4, 062. S ldllion lire - Dillbur98lll8nts through September JO, 19!,8, 2,117 Jli.llion lire - Fh7aical progress as ot June 30, 1958, 70%. Construct.ion 1a 1n regalar propaa. LOAK BO. lSO IT TD'IO FRO.JECT t or tba canatruction ot, (a) Auguata 'l'hlrul Power Station - Aggregate cost originall7 eatiaated, 10, ~oo million lire - Pi.nancing granted, 6,S62.s millicm lire - Diaburaementa through Sept.ember 30, 1958, 6, 066 milli. ~o IT SUL PROJE.'CT tor the construction ot: (a) San Blagio Hydro-Power Station - - Agpegate coat originally estimated, .3, 020 million lire - ReT.1.eed cost estimated, .3020 Jnill1on lire - Financing granted, 1,8151111.l.1an lire - Disbursements through September .30, l9S8, 1030 mil l:Son lire - Total expenditure through June JO, 1958, 1,)92 aillion lire • Ph1'81cal progress•• oi June JO, l9S8, W. Construction i.8 in regular progreaa. ' FO RM NO. 57 (5. 4 8 ) INTERNATIONAL BANK FOR RECONSTRUCT ION AND DEV ELOPME NT O FFI CE MEMORANDUM TO: Mr. H. B. Ripman DAT E: October 20, 1958 FROM: E. de ilba ~ ( _ SUBJ E C T : End-Use Report - Industrial Projects - Loan 117-IT SIL J~ (Loan Lit. 2. 6 billion) (U . S .$4.16 million) ~ The paper mill of the compan.y being built at Aveszano was visited o October 17, 1958. J Statu• of the Project - The s t eel structure of the paper machine building is practically completed and work was going at full speed to put on the roof and the walls before the winter stops all work outdoors. I f this work is done by November 15, they can continue with the in- stallation of the paper machine (most of the equipment is already there) and have it ready by the end of June 1959. If the weather catches up with them, the installation of the paper machine would not be completed before September next year. Ground.wood sections The building is almost finished, about 9<11, of the equipment has arrived, the installation can be completed by June 1959 but there is no hurry to complete this installation since the paper machine is going to be started using imported groundwood and pulp until all mechanical adjustments of its operation are corrected . Therefore this section would not be needed until the end of 1959. Straw pulp plant: Steel structure completed. Installation of equip- ment to begin in February 1959. This plant expected to be in operation by October 1959 or by the end of next year under pessimistic conditions. Electrolysis and service sections are expected to be completed by June 1959. In short, if everything goes right, the paper machine may be in operation by July next year, otherwise operation cannot be started until the end of 1959. This revised schedule brings up the problem of using the Bank loan completely. Even if the major sections of the plant are finished by t he end of June 1959, the compa~ will be holding payment to machine 1upplie~s for about 10 to "2<11, of the value of the equipment for guaranteed performance. The closing date of the loan is June 30, 1959. Repayments to the Bank by Cassa start in January 1960. Cassa officials will further discuss this situation with me and some recommendation for the solution of this problem may be ma.de to the Bank in the near future. Expenditur&s on the project, as at September 30, 1958, amounted to Lit. 1,576 million, orders for equipment at the same date were about Lit. 3,187 million. c,i:opaL J.\ · J' rrr .f 0 1' T' :r ( . (10 lJ lJ C+O L S ' } ~ To Jlr. B. B. Ripman - 2 - Ootober 20, 1958 The ooat of the project is still eatiaa·ted at Lit. 4,750 million including interest .during oonstruotion and a1~oalled general expenses and reserves, but no provision tor working oapit11l (estimated at Lit. 500 million) is considered in this figure. The tinanoing of this amount waa est111a·t ed as follows: Contributed as at June 301 1958 Share oapi tal Lit. 1,050 11nillion Lit. 648 million Shareholders• adTanoea 1,100 " 562 " IBRD loan 2,600 " ___fil_1 It i• 750 ~ er estimated expenses up to .1 rough oa8l flow of the comp&n7 to oov1 Karch 31, 1959 follows: Payment of maohine?7 and equipment Lit. 500 million Buildings and inetallationa 450 " General expenses 120 " Total 1,010 ' Source• of :funds: , 1Caah Balance (September 30, 1958) Lit. 160 aillion ~Depreoiation and •al•• ot eleotrio power 150 " ISVEIKER contribution (IBRD loan) 578 •• Shareholders' adTanoea 182 " Total 1,070 i/ Since the oompax,,.y has been requested b7 the Italian Govermaent to change its fieoal 7ea.r to coinoi,de with the calendar year, SIL will have 18 montha of operation of its power plant instea4 or 12 and depreciation aooru.ala as well as profits may be above Lit. 200 million by the end ot· 1958. ~ That corresponds to 2/3 of Lit. 350 million spent by the company duriJl8 the third quarter ot 1958 and 2/3 of Lit. 400 million expected to be spent during the last quarter. Finanoial Statements - .1 preliminary balance sheet and profit and loss statement aa at June 30, 1958 follows, To Mr.H. B. Ripaan - 3- October 20, 1958 Killion Killion Aaseta Lire Liabilities Lire Power Plant Share capital (paid in) 648 P...,- millexpense Shareholders' adTances 562 Caah and banka Depreciation and reserves 309 J.dvanoes to auppliera Profit• carried forward 339 Accounts receivable Bank• short term 15 Suppliers' credits (mill) 183 Accounts payable 23 I SVEnmR loan 617 Profit and Losa Power sta tion operating Power sales 228 expense General and .ldminiatra- 2• Interest and other profits 6 tive Expense 31 2e23o, Final balanoe sheet and profit and loss statement will be prepared at the end of 1958 for an 18 month period. Karket - The compa!IY' may not operate at full oapa cit7 until 1961 or 1962 and its production of 30,000 tons of newsprint, aagasine and mediua and. fine papers ie expected to be aold easil7 due to the proxiait7 of the plant to the big market of Rome. Technical Proble11a - The suppliers of machinery will help the starting up of the different sections of the pJant. The experience of the Pomilio group, which ia in charge of the installation and starting operation provide• also qualified technical know-how. fhe most difficult problea aeems to be the hiring of paper manufacture specialists for the nol"ll&l operation ot the plant. The oompa~ 1 s revised construct i on schedule bringsthe starti~ of production b7 the end of 1959 creati~ the problem of closing of the loan and aay-be reaching the end of the grace period before all the equipment is installed. and paid for. A olose supervision of this project should be requested from Cassa and ISVEDIER. c.c.--Kr. Diamond October 16, 1958 To the President of the Cassa peril Mezzogiorno Piazza dei Congr essi 20 Rome, I t a 1 y Dear 1 1r. President: v Thank you. for your letter of September 5, 1958 providing the second annual report on the agricultural development of the area of The Catania Irrigation Project. I regret the delay ln answering you due to m:r absence fro• Washington. The report is very useful and gives 1Jubstantially all the in- fonnation we r equested. We note with pl ~asur e that agriculture in the area controlled by the Consortium deV19loped as expected. There seems to be a general t rend toward a more intensive cropping pattetn, which has resulted in higher retutns and 1nore employment. Unfortunately the report relates to ,l period which ended nearly two years ago and (!ives no iJ'fl.pression of the current situation. We sincerely hope that the preparation of the report for 1957 will be concluded soon and that we shall r eceiire it shortly. Please convey our thanks for the pre1;>aration of the 1956 r eport to the members of the Board of the Consor-t.iUJR. Yours sincelrely, D. Gr o~vold Agric11lture D:Lvision Department of Teohni~~al Oper ations CCI Kr . Spiro Cleared vi th and cop7 to: Messrs. Spottsvood 4~ Collier roroenvelds ccb FORM No. 59 ( 2. 55) CROSS REFERENCE SHEET COMMUN! CATION: Memorandum DATED: October 13., 1958 TO: Mr. Lej eune FROM: W. 1}1.aJnond FILED UNDER: Italy - SENN project. SUMMARY: Third report ot the Missica1 to ItaJ.¥• . n. JO:rNr OPmATION , 5. Havillg received your cable 4 and a cable f'l"all Cope stating that the management .telt conmd.tment charges should accrae as under previoua Cassa loana, we informed Governor Ma,j chella Saturdq that this part of our propoeal was not acceptable. He ns disappointed and inclined~ agree with the suggestian that the entire matter be allond to rest until the timing probl.em really arises {if it does) . Pescatore, who was informed today., had the same reaction. We do not know whether Cope or the JIIB!lagaaent discussed the matter vith Medici in New Dalhi. I l l. OTHm 6. After Visit.ing the nuclear plant site, the Volturno irrigation ~ject, and a cment plpe'.pro~ecst lut Saturdq, we vent, an Mondq and Tues~, to see the st. G obain glass tacto17 at Caserta and SME•s thermal plant at Viglient.i. We also spoke at s ome length to the manag8118Dts concerned. Alt.hough our visits were quite superficialt we had a n,q good :impression. The visit to SME was particular~ use- f'ul, tor it perml.tted us to talk to SEHN's largest shareholder and to get some up-tp-date data on the capital cost and operating cost o~ thermal po119r plants in I talian conditions. Incidental:cy'1 this waa the first e xperience for us in Cassa country and with Cassa operations. We got a very good impression of the Cassa, too. FORM NO. 57 (5. 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Mr. P.A. Reid DATE: October 10, 19.58 FROM : D. Groe5 veld SUBJECT: l.gricultural Report on Catania I1rigation Pr oject (Lo1.11 117-IT) ~ . ~~~ The SCI"~ annual report on agricultural developments in the area of the Catania~rl~ation Proj~ct has been recei ved by letter from the Cassa of September 5, 1958. This report covers the period December 1, 1955 to November 30, 1956. The first report of this kind, covering the year 1954-1955 was received in January 1957. It was then hoped that thP second report would be prepared quickly, si nce the pattern had now been set . The preparation of the second report, however, took more than a year and a half and the Cassa is now far behind schedule. The suggestion is made, therefore, to press for an early dispatch of the report on 1956/57 "};/. The reports are prepared by the Land ~ransformation Consortium, and all da+a refer to the territorJ of the Consortium. The contents of the second rerort, which covers substantially the year 1956 shows that agr iculture in the area is developin~ in the expected way, in anticip.tion of the completlon of the irri.:,ation works and under the influence of the completion of a number of smaller works (drainage, roads , land distribution and improvement, etc.). Although a period of one y 3ar is of course too short to notice great changes in the pattern o~ farn production, it is nevertheless nossible to ?oint out a nwnber of favorahle developments, such as: 1) The area under tree crops (citr us , pear, peach) increased by 290 hectares, whereas the area under grapes decreased by 50 hectares. 2) More land was used for intensive cr ops like pulses, cotton, artichokes, forage, and less for pastures and fallow. 3) The nwnber of draft animals is decreasinG, but the number of beef animals (and meat production) increased. 4) Mechanization progresses; for instance the number of tractors increased from 406 to 4do. 5) Irrigation by pwnping increased from 1,748 hectares to 1,847 hectares. 6) The use of nitrogen and phosphate fertilizers was larger in 1956 t han in 1955, but ~he use of J otassium fertiiizers decreased. 1/ A draft letter is attached. v"O \\)l ~-«- Mr. P . A. Reid - 2 - October 10, 1958 As a result of these chqn;es the estimated nwnber of workdays in agriculture increased from 1, 369,000 in 1955 to 1, 443,950 in 1956, and the average number o.f workdays per hectare per year from 45 to 48. The weather was not favorable in 1956 and yields per hect.are were consequently somewhat lower than in 195::,. There was a lack of rain especially in the spring. rlowever as i:Jrices were in 1956 somewhat higher than in the previous year, and as a result of the prouucti..on of ,11ore valuable cro_t>s, th1:1 5 ross value of .'ro uction in the area was L. 4.1 billion, a s compared with L. 31 . 9 billion in 1955 and L. 3.5 billion in earlier estimates. The Consortium reports that it is unable to collect data on agri- cultural loans nade in its territory, because the banks do not proc:ess them statistically lor small administrativ~ subdivisions. cc: Mr. Diamond Hr. Spiro Public Utilities Division FORM NO. 59 {2 - 55 ) CROSS REFERENCE SHEET COMMUN! CATION: Memorandum DAT ED: October 3, 1958 TO: Mr. Henry W. Riley FROM: Richard G• Batescn FILED UNDER: Italy - Loan 1.50 SUMMARY: Loan l.50I1 - Effective date - Amendment relating to ABCD project. Re additional. amount of $2, 080, 000 aJllocated to ABCD project out of Loan l.50IT. Mr .........Henry w. Riley October 3, 1958 Richard G. Bateson Loan No. 117 IT - Effective Date - Amendment relating to ABCD Project An agreement between the Cassa and the Bank amending the Ioan Agreement r elated to tho above loan by substituting the ABCD Pol yethylene and Special Cements Project for the Siculazoto Fertilizer l'rojeot under the Loan became effective as of September 17, 1958. Consequently, the rel ated Loan and Guarantee Agreements are , as of Sep'ten:ber 17 , 1958, effective in respect of said ABCD Project i n the amount of 2, ,400,000 (tho amount previ ously allocated to the Si culazoto Project , and in respect of which the Loan end Guarantee Agreements had previously bean made effective) . oos Hessre . Cope Aldewerel d Cavanaugh Ver heyen D i amond/Jentgan .Armstrong Miss Marchant Legal Files RGBateson aoa To be transmitted at 12:01 a .m. E.S .T. September 17 1 1958 FULL RATE SEPTEMBER 17, 1958 MINISTRY FOR THE TREASURY VIA :XX SETTEMffiE ROME I TALY BANK HAS TODAY CABLED NOTICE TO CASSA MAKING EFFECTI VE AS OF TODAY AN AMENDMENT AGREED BETWEEN CASSA AND BANK TO SCHEDUIES TWO AND FOUR TO LOAN AGREEMENT BETWEEN CASSA AND BANK DATED JUN!: 1, 1955 SUB3TITUTING ABCD POLIETHYIENE AND SPECIAL CEMENTS PROJECT FOR SICUIAZOTO FERTILIZER PROJEOJ: STOP COlf>E(..!UENTLY SAID LOAN AGREEMENT AND GUARANTEE 4~MENT OF EVEN DATE THEREWITH BETWEEN REPUBLIC OF ITALY AND BANK ARE AS OF TODAY SEPTEMBER SEVENTEENTH 1958 EFFECTIVE IN RESPECT OF SAID ABCD PROJECT I N THE AM>UNT OF TWO MI LLI ON FOUR HUNDRED THOUSAlID OOLLARS STOP PLEASE CABIE CONFIRMATION RECEIPT THIS CABIE KNAPP I NTERNATIONAL BAliK FOR RECONSTRUCTION AND DEVELOPMENT \ \ , \ Richard G. Bateson Legal Cleared Yith Area , T.o.n. and Treasurer' s Departments . To be transmitted at 12:01 a.m. E.S.T. September 17 1 1958 FULL RATE SEPTEMBER 17, 1958 CASSA PER IL MEZZOGIORNO PIAZZA DEI CONGRESn N. 20 (EUR) ROME ITALY I REFER TO !ETTER AGREEMENT BETWEEN US DATED ATRIL 11, 1958 (YOUR REFERENCE NUMBER 5/8255) AMENDING SCHEDULES 2 AND 4 T!D IOAN AGREEMENT BETWEEN tl3 DATED JUNE 1, 1955 STOP AM PIEASED NOTIFY YOU BANJ[ ACCEP'IS EVIDENCE SUBMI!TED IN CONNECTI ON WI TH AMENDMENT IN RE£PECT OF ABCJD POLYE'.rffYIENE AND SPECIAL CEMENTS PROJECT CONTAINED I N SAID U.T'IER AGREE?-'.t:NT $'IOP CONSE(;..OEl~'I LY SAID AM&NDMENT BECOMES EFFECTIVE I N RESPECT OF SAID PROJEC'Jr TODAY SEPTElm&R SEVEl~TEENTH, 1958 STOP PIEASE CABIE CONllfil'Jt'lION RECEIPT 'l'US GABIE I ~ATIONAL 1aANK FOR RECOUSTRUCTION AND DEVELOfl.iENT Richard G. Bateson Legal Cleared with Area , T .o oD. and TJreasurer' s Departments FORM No. 26 ( 5. 58) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE CORPORATION INCOMING WIRB DATE OF WIRE: ROUTING TO: mmmrA'r?O?fJ\l:i DANK FOR RECO.~!mOCTION ACTION COPY TO HR.JZJBUNE AHO D1VELOl>MEN'r FROM: INFORMATION COPY TO 111.BA.DS DBL 26 8ffmllRJI 19'8 CO Htl8'.l'l1'0 ft IWAfflO ACCCEDO CWWIZIA VIIGOtA. M!Afl J./0 GIUQIO W, Vmoot.A S'?ABILtTA PD l.7 8ffSIIIRI 19'8 DIAfflAID'S DIPClm> AOGIUJl'llVO DOUARI Dmm.XORI~OCD'lOMD.A A'f PBOGJ:ftu OCD ll'Ol.Ift1lUI ft CINIITl SFSCULI PD NDIIS!M !1180 DICBl8flJIA DUPLICATE FORM NO. 59 ( 2. 55) CROSS REFERENCE SHEET COMMUNICATION: Letter No. 3 DAT ED: September 29, 1958 TO: Mr. Spottswood FROM: N• Bass F1LED UNDER: ItaJ.y - SENN project. SUMMARY: Enclosing first progress report and :SENN project and the Cassa negotiations, Dra.i'ti letter on Novilegni project has been given to Cassa. Con.finning cables on ABCD project were presumably sebt by the Treasury on September 26. FORM No. 26 ( 5. 58) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE CORPORATION INCOMING WIRB DATE OF WIRE: &a=mlmR 261 19'8 ROUTING TO: ACTION COPY TO DIBBJllTIORA.L BAlllC J'C& BEC l'OLiftI1DS ft CIND'.t'l 8PICIALI PIB KliISmO 1SSCltO DICRISTIM DUPLICATE ~ -(lt\117 lo. 2 .... Eduardo de .Alba, Grand Hotel, Rolle, Ital:T. Dear ldwa.rdo, Encloaed. 18 a COVT of the lateat ~ Progress repon on Itaq. J. DUllber ot report.a cue in attar you left. B7 now you will haft M e n ~. I don't know wbetber or not he w1ll ban aentiomcl t.be tolloviDgi 1. would like to baft up-to-date operating data and bel&oe• abeeta (where available) tor all the qMr&ting proJect•J 2. The cub-tlov proJeoUooa llhould be cbN ed agaiut ' the forecuta 1n the 10D npol"teJ ). baa not, been reportlng on the apanded project bam.a. jJ3CI) Their coat estJ.aatea 8t.il1 refer to the firat projectJ and b. fiat now eetillatea t.M lapl•• plant con at Lite s.o billion and t.be7 ba.e aleo reduced the propoNd outpu.t. ot the pl.ant. Tbl Cuaa 1a clMcking into th1• to aee What abould be done. I feel tbat \lDleaa tM Cua i.Daiata that, the loan med not be re- dnced, the aillpleat w:r would 'be \o increue the percent draw dollll but ... what. the Cusa 11a11ta ~ do11 11ll D:luond 11 1n , probably at the Haaaler. You mpt, pt iD touch 1'1tb h1a to ae Vbat ia goin& on 1n coanect1on 111th the llft 1Ddua- tr1.al 1.oan. ln &l'J7 caee 7°'1 eb.ould talk to Peacatore about tl» the 1.DYeatiC&tiona. J)l'OIJ'••• of Jlr. de Alba • Septeaber 2s, 19sa Hqh and Ilana let\ for fin) •ad todq, BvtU ia on hia var, back frOJt Iran ao the office 1• rat.her quiff now. Bope 70U bad a good ftO&t.1.0D. Ben reprda, Sincere~, w.J. J.rmatrona Encl. FORM No. 26 ~ -h\117 ( 5. 58) INTERNATIONAL BANK FOR RECONSTRUCTION AD DEVELOPMENT INTERNATIONAL FINANCE CORPORA ION INCOMING IRB DATE OF WIRE: SEP'rEMBER 23 1958 ROUTING TO: INTERNATIONAO BANK FOR RECON MR. SPOTSWOOD STRUCTION AND DEVELOPMENT FROM: FORMATION COPY TO ROMA By TEXT: ~~-\ ~ ,"\..,~ ONE FOR SPOTTSW~SE AIBMAIL OF FINNES MEMORANDUM ON POWER TAR BASS DUPLICATE FORM NO. 27 INTERNATIONA L BAN K FOR RECONSTRUCT ION ND DEVELOPMENT ( 5- 58 ) INTERNAT IONAL FINANCE CORPOR TION To b e despatch9a'1.&'!.mf:tJT'!p!wer a_1, \ 9, B CLASS OF SERVICE: FULL RATE COPY DATE: SEPTEMBER 17, 1958 TO: CASSA PERIL MEZZOGIORt-IO PIAZZA DEI CONGRESS! N. 20 (EUR) ROME ITALY COUNTRY ( TEXT: Cable No. I REl<'ER TO LETTER AGREEMENT BE'IWEEN US DATED APRIL 11, 1958 (YOUR REFF.RF.NCE NUMBER 5/8255) AMENffiNG SClIEOOLF,S 2 AND 4 TO LOAN AGREEMENT BETWEEN US DATED JUNE 1, 1955 STOP AM PLEASED NOTIFY YOU BANK ACCEPTS EVIDENCE SUBMITTED IN CONNECTION WITH AMENDMENT IN RESPECT OF ABCD POLYE'IHYW1E ANO SPECIAL CEMP!TS PROJECT CONTAINED IN SAID LETTER AGREEMENT . CONSEQUENTLY SAID AMENDMENT BECOMES EFFECTIVE IN RESPECT OF SAID PROJECT TODAY SEPTEMBER SEVENTEEN'l't , 1958 STOP PLEASE CABLE CONFIRMATION RECEIPT _IS CABLE APP I NTERNATION BANK FOR RECONSTRUCTION AND EVELOPMENT AUTHORIZED BY: NAME: Richard G. Bateson For Use bv Archives Division DEPT: Legal Checked for Dispatch SIGNATURE: - ,.....-.:::-:-;~~.---:--:-:----;-:---:---:-:---:---:-~--- .J! (Signature of individual authorized to approve c ~ .....__ __ _ _ __ _ _ __ __J ORIGINAL (File Copy) (IMPORTANT: See over for guide in preparing Outgoing Wire) GUIDE FOR PREPARING OUTGOING WIRES l. Class of Service Type in class of service desired. Each class is describ1;d as follows: Letter Telegram Letter telegrams are normally delivered the morning after day of despatch. The cost is half the cost of full rate messages with a minimum charge for 22 words including address and text. Full Rate Full rate messages are normally transmitted and delivered immediately. There is II minimum charge for 5 words, including address and text. IBF Govt. This is II preferential rate extended by some member countries. Messages are sent at full rate speed and at about half the cost. This rate normally should be used whenever available. It is at present available for the following countries: Bolivia Cuba Honduras *Syria Brazil Dominican Republic Jordan Uruguay Burma Ecuador *Lebanon Venezuela Chile El Salvador Nicaragua Yugoslavia *China *France Pakistan Colombia Greece Panama Costa Rica Guatemala *Peru *In these countries the letter telegram rate is lower than IBF government rate and should be used for messages when immediate transmission is not required. Code Code messages are transmitted at full rate (or IBF Govt.) speed and cost. This rate should be used only for confidential messages to staff members having 11 code with them. Day Letter Day letters a re delivered during the day of transmission and should be used only for messages in the United States and to Mexico and Canada. There is a mini- mum charge for 50 words in text. Teletype To be used only for messages to the New York Office, United Nations, and certain commercial firms. For information, call Cable Post (Ext. 3008). 2. Address Use only last name of addressee and cable address whenever possible. The Bank cable address "INTBAFRAD" is registered in Paris, Bogota, Canal Zone, Karachi, Lima, London, New Delhi, New York, Quito, Tegucigalpa and Tehran. The International Finance Corporation cable address "CORINTFIN" is registered in New York, Paris and London. The name of the country of destination must always be added. (No charge is made for the name of a country.) 3. Text Messages to Missions and to Resident Representatives should be numbered. These numbers may be obtained by calling Ext. 3008. Type text in capital letters and double space between lines. The text should be edited to eliminate unnecessary words and unnecessary punctuation. If punctuation is needed, spell out the words .. Comma," .. Stop," etc. Use common abbreviations whenever possible, i.e. reourlet, reurfive, etc. Write as one word hyphenated words, hyphenated names, and certain two-word groups, e.g. Airmail, Newyork, enduse. 4. Signature Type in last name of sender. Use· INTBAFRAD or CORINTFIN as part of the signature only when addressee does not know the address of sender. 5. Authorization Type in name of department of staff member authorizing message and have authorizing ataffmember sign the original (pink copy). A list of authorized signatures is kept in the cable office. Forward messages in triplicate in a cable envelope to Room 211 for despatch. The cable service is open from 9:00 a.m. to 5:45 p.m. on working days. Special arrangements should be made for the despatch of cables outside of these hours. ANY QUESTIONS REGARDING INCOMING AND OUTGOING WIRES SHOULD BE REFERRED TO THE CABLE POST, EXT. 3008. FORM No . 27 INTERNATI ONAL BANK FOR RECONSTRUCTI ON AND DEVELOPMENT cop y ( 5. 58 ) INTERNATIONAL FINANCE CORPORATION OUTGOING WIBB To be despatched at 12 :01 a.m. F.ST September 17, 1958 CLASS OF SERVICE: FULL RATE DATE: SEPTEMBER 17 , 1958 TO: MINISTRY FOR THE TREASURY VIA XX SETTEMBRE ROME,ITALY COUNTRY ( TEXT: Cable No. BANK HAS TODAY CABLED NOTICE TO CASSA MAKING EFFECTIVE AS OF TODAY AN AMENDMENT AGREED BET...tEEN CASSA AND BA.NK TO SOIEWLF,S TWO AND FOUR TO LOAN AGREEMENT BE'IWEEN CASSA A.~D BANK DATED JUNE 1, 1955 SUBSTI'IUTING ABCD POLYFTHYLENE AND SPECIAL CEMENTS PROJECT FOR SI OJLAZOTO FERTILIZER PROJECT. CONSEQUEWTLY SAID OOAN AGREEMENT i\ND GUARANTEE AGREEKENT OF EVEN DATE '111EREWITH BE'IWEEN REPUBLIC OF ITALY AND BANK ARE AS OF TODAY SEPTEMBE.t SEVENTEENTH 1958 EFFECTIVE IN RESPECT OF SAID ABCD PROJECT IN THE AMOUNT OF 'IWO MILLION FOUR HUNDRED 'lliOUSAND OOLLARS . PLEASE CABLE CONFIRM4TI0N RECEIPT 'lllIS CABLE KNAPP INTER't'lATIONAL BANK FOR RECONSTRJCTION AND DEVELOPMEHT AUTHORIZED BY: NAME: Richard G. Bates on For Use by Archives Division DEPT: Legal Checked for Dispatch SI GNATURE: --,'F:::~ ~ ~.---;-::-:;-;-:~-.---~--;----:--:--- -- -:-:--,.-... (Signature of individual authorized to approve cable}. ORIGINAL (File Copy) (IMPORT ANT: See over for guide in preparing Outgoing Wire) GUIDE FOR PREPARING OUTGODN'G WIRES 1. Class of Service Type in class of service desired. Each class i s described o follows : Letter Telegram Letter telegrams are norma lly de liv e re the morning after day of despatch. The cost is half the cost of full r a te messages w i th a m i nimu m c harge for 22 words including address and text. Full Rate Full rate messages are normally trans m i tted and delivered immediotely. There is a minimum charge for S words, includ"ng address ond text. IBF Govt. This is a preferential rate extended by ! ome member cou ntries. Messages are sent at full rote speed and at about hal the cost . This rate normally should be used whenever available. It is at pres , t available for the following countries: Bolivia Cuba Honduras *Syria Brazil Dominican Republic Jordan Urug uay Burma Ecuador *Lebanon Venezuela Chile El Salvador Nicaragua Yugoslavia *China *France Pakistan Colombia Greece Panama Costa Rica Guatemala *Peru *In these countries the letter telegram -rate is lower than IBF government rate and should be used for messages when i1rrunediate transmission is not required. Code Code messages are transmitted at full rnte (or !BF Govt.) speed and cost. This rate should be used only for confidentinl messages to staff members having a code with them. Day Letter Day letters a re delivered during the day f transmission and should be used only for messages in the United States and to Mexico and Canada. There is a mini- mum charge for SO words in text. Teletype To be used only for messages to the Ne York Office, United Nations, and certain commercial firms. For information, ca Cable Post (Ext. 3008). 2. Address Use only last name of addressee and cable address when er possible. The Bank cable address "DNTBAFRAD" is registered in Paris, Bogota, Canal Zon , Karachi, Lima, London, New Delhi, New York, Quito, Tegucigalpa and Tehran. The Internatio al Finance Corporation cable address "CORDN'TFDN'" is registered in New York, Paris and London. The name of the country of destination must always be added. (No charge is made for the name of a country.) 3. Text Messages to Missions and to Resident Representatives should be numbered. These numbers may be obtained by calling Ext. 3008. Type text in capital letters and double space between lines. The text should be edited to eliminate unnecessary words and unnecessary punctuation. If punc'luation is needed, spell out the words "Comma," "Stop," etc. Use common abbreviations whenever possible, i.e. reourl et, reurfive, etc. Write as one word hyphenated words, hyphenated names, and certain two-word groups, e.g. Airmail, Newyork, enduse. 4. Signature Type in last name of sender. Use · DNTBAFRAD or CORDN'1 FDN' as part of the signature only when addressee does not know the address of sender. S. Authorization Type in name of department of staff member authorizing message and have authorizing staff member sign the original (pink copy). A list of authorized signatures is kept in the cable office. Forwa rd messages in triplicate in a cable envelope to Room 211 for despatch. The cable service is open from 9:00 a.m. to 5:45 p.m. on working days. Special arrangements s hould be made for the despatch of cables outside of these hours. ANY QUESTIONS REGARDDNG DN'COMING AND OUTGODN'G W S SHOULD BE REFERRED TO THE CABLE POST, EXT. 3008. INDIRIZZO T&LEGRAPICO CASMEZ•ROMA CASSA PER OPERE: STRAORDINARIE DI PUBBLICO INTERESSE NELL'ITALIA MERIDIO N ALE (CASSA PER I L MEZZOG I ORNO) TRANSLATION Prot, N--........ ~\.Ht.\......._Poslz......O.IQ.T/B.A/mg ROMA S,~te~ter_~- 12 S"&:' Allegoti -···········-···········- PIAZZA DEi C QRESSI N, ao (EUR) TEL. 0291 Risposto o ..............._ .................................. del ......................................_ N ..................- OGGETTO , _....................................._ . -·- International Bank for Reconstruction and Development 18 18 H Street , N. W. Washington 25, D. C. . 0 c E 0 ~ " 0 "§ C :, Gentlemen : " ~ ~ Subject : Loan No . 117 IT - Catania Plain Irrigation c Project : Annual Report for 1956 "' 0 .. C> V We refer to your letter of August 29, 1958 , and attach " hereto the annual report as of December 1956 on the operations "' ! related to the Cat.ania Plain Irrigation Project , financed out of a. ;:;; Loan No . 117 IT. The annwal report for 1957 is now being prepared . With best regards . Sincerely yours , THE PRESIDENT a0 = liEcrn,tu GF, . •·- I. ;, rs -' ,C Co•/)ri, ' l -1 /: ...,, '111 ., • / · 1 ,(• r- . . • \.• !:. INCIRIZZO TELEQ:RAPICO CASMEZ • ROMA CASSA PER OPERE STRAORDINARIE DI PUBBLICO INTERESSE NELL'ITALIA MERIDIONALE (CASS A PER I L M E Z ZOGIORNO) - 5 SET. i951 P,01. "'·-~ ···············--····- Po,/z..... QIFT/.BA/Ct ~ 5l l ~iil. . ... . _ g ROMA PIAZZA DEi C:ONQREIHII N. ao (EUR) TEL. 8291 Risposta a ........no.:ta....................·--······ del __29/$/1.9 58........- N .................••• OGGETTO: ..P.r.e.s.ti:to....n.,..1.1.1.~- I T - Progetto Irrigazione dells Piana di Catania Rapporto annuale 1956 - Spett.le Banca Internazi onale per la R~costruzione e lo Sviluppo 0 c ., 1818 H. Street, N.W. E 0 l:!' Washington 25, D.C. C, 0 ] C => C, ~ ~ c Con riferimen t o alla lette.Il-a di .codesta 0°' Banca del 29 agosto scorso, allegato alla presente si rimette ·il rapporto annuale sulla situazione al dicembre 1956, dei lavori dei" progetto d'irrigazi.2, ne della Piana di Catania, finanziato con i fondi del Pres t ito n. 117 - IT. Il rapporto annuale per l ' anno 1957 e in corso di redazione. Con i mi gli ori saluti. s 8 ~\"\c~ 0 C e ..2 } ... I~RESIDENTE ... ~ .. --)' ;) /~ "' = ; 0 0: (j' ~y' ~,9~ ~ w .,; 0 ::. • • Mea•re . Ladielav Svoboda and &:luardo de Alba. September 3, 1958 H. B. Ripman Tor,ns ot Raf'.mnot - Epq::JZse J:Sis1ion, It,J 1eu Ipdllfk1el froJ•gt;a l. You abould proceed to Italy about the end of September 1958 to make end- use 1napeot1ona of the 1.muatrial projects f'inanoed u.Dier Loans 50- I'!', ~7-rr, 150- rr al1d 189-IT to the Cassa per il Mezzogiorno. 2. On this mission 70u should investigate tho progress made on the varioua projeots paying particular attention to obanges in the projeota f'rom original plans ( teohn~oal and financial) , prob'lems encounterod, and market prospects. You should determine wethor the oompo.niea are eompl.Jring w1th the tc:'1118 of th& l•tters or agreeent aigned by' them. You should aeek to assist the Cassa and the regional institutes to develop a eontinuin, end-use eystem so they- can discharge their p r ~ relJ)Onsibilit7 efteot- ively for following-up on the projecta. You should also diaouaa with all concerned the adequacy or the progrea8 reporte being sul::aitt.ed to the Bank. 3. Iou ebould propare 1n the field and 11ul:mit by mail brief reports on each project, and bring back material from wich more detailed analJ'a1a can be prepared 1f' required. 4. It ia expected that 7ou:r mission will take about •ix or seven weeka. ~. Mr. de Alba should depart for Euro:pe on or abo•,t September 5, am visit Britannia Lead Refinery- (Mount lea) near London on or about September 8 , a.n:l on his wq to Italy-, af'tor hi.a holidays, visit Potuse d •Alsace m.1.Des am plants at Mulhouae, France. ccs Messra. s . : Aldevel!eld, P. J . Squire M1.f3s Van Gaaee (2) Cleared vith am c.c. a Mr. w. DiaJnom FORM No. 59 \ ( 2. 55) CROSS REFERENCE SHEET ' COMMUNICATION: Letter DATED: e. t ember 2, 1958 TO: Fr o! . Gvbr 1~l e Pe~cst or e ' \ FROM: Mr . Rifman F1LED UNDER: Italy - Lon 189 SUMMARY: nclo e$ tent 11ve ch dule ..,f t h' IDRD ' ::: mi' bion tor .e~id-uc- e v;t it to i.n1u r ri!J. '1 roj cte i n Italy - Lo r n n 50I T, J.:i:,r 'l' , l 50IT, :ind 1g9IT. ' I t. \ \ August 29, 1958 Professor o. Pescatore President, Cassa par 11 Mezzogio:rno Piazzale dei Congressi 20 Rome, Ital)r Loan no. 117-IT Catania Irrigation Project Dear Professor Pescatore: 'When Mr. Groenveld visited the Catania Project in October 1951, he discussed with your officers the preparation ot the annual report to us on the progress of agriculwral aapects ot the Project. He informed us that the second annual report, along the lines suggested in his letter to you of February 18, 1951, was then in preparation and could be expected shortly. / We do not seem &a yet to have received this report 'ldlich vas to cover the year 1956 and we would be grateful if you could f on,ard 1 t to us as well as the third one for 19$7 as soon as convenient. Sincerely yours, J'~ P. A. Reid Chief Agriculture Division Department of Technical Operations PAR:gm Mesora . Batftson, Armstrong, Ver heyen August 28, 1958 J . Jentgon:) nALY - Cassa - Loam, 11rrr and 150.rr Attached horewit h i n a copy of letter lo. S/20~08 of Augur.t 23 , 1958 concerning the loan contract IRYlS/ABCO. Will • Bates on pl easo pass on att achment (1) to Mr. lnDDtrong. A.ttaohr.:ent J Jentgen :v11tc FOR M NO. 5 9 ( 2. 5 5 ) CROSS REFERENCE SHEET COMMUNICATION: Memo DAT ED: August 25, 19$8 1 ( TO: Mcusrs. Spottswood, Reid, Amstrone, de Alba, Verheyen, Bateson ... Scott FROM: William Diamond FILED UNDER: Italy - Loan 88IT ii SUMMARY: •ITALY • Caosa Loans 88IT, ll7IT, l50IT, and l o9IT A Working nrty :eeting Vill be hold on 7uesday, August 26 at 1.uoo p . n. 1n Room 012 to consider tho Qssa letter s ., copi es of which have boen sent out on Aut,ust 19 and August 22 r eopcctive:cy. " ~ 1,7 FORM No. 59 ( 2. 55) CROSS REFERENCE SHEET COMMUNICATION: Letter DATED: Auguat 1,9• l9S'8 TO:llBD FROM: ~ p ~ 0..-. pll" U ~ . Rcme, lt&l¥• F1L E D UNDER: Itaq • toan 189 SUMMARY: ~ 1ettel' fl,:a lfre llip,c, of Avipst 8, 19S8 regarding t.he visit ~ the 111sa1ca\ to I ~. FOR M NO. 59 (2 - 55) CROSS REFERENCE SHEET COMMUNICATION: Mcrooranda.n DAT ED: AugtWt 19 _. J.958 TO: Working Part,- FROM: Will.i2m Diamond F1LED UNDER: I t ~ - Ca.saa.. SUMMARY: Enclosir..g copies of let ters concerning: 1) Novil19gni project (Loan 150) 2) Cana/IRFIS (Loan 117) t/ 3) mns and lSVEIMER (Loan l.89 > 4) CONE pit0ject (Loan l.89) ,, ~~''l FOR M NO. 59 ( 2. 55) CROSS REFERENCE SHEET COMMUNICA Tl ON: Letter DAT ED: August 18, 1958 TO: Prof'essor Pescatore, President, Cassa, Rome, Itacy. FROM: William Diamond FILED UNDER: I ~ - Loan 189 SUMMARY: Aclmowledging letters concerning: 1) Agri project (Loan 88) 2) Proposed new loan to Cass (Sixth Cassa negotiations) 3) CONE project (Loan 189) 4) Cassa/mFIS and Cassa/ISVEIMm (Loan 189) 5) Cassa/IRFIS (Loan 117)v"' 6) Novilegni (Loan 150) I N OIIII IZZO :52< 'Ii Tlll.110 .. Af"IC = O M A CASSA PER OP ERE STRAORDINARIE DI PUBSLICO INTERESSE ,, NELL'ITALIA MERIDIONALE (CASSA PER IL MEZZOGIORNO) TRANSLATION Prol, N ........... ...... ···········- Posiz ...s/C.IFT/CF /mg ROM.,1'- ~ \I 1 '[_)t...J1.11-;~ Allegoti •............•...........• ,.,... ZZA o : ~ S S I N, ao (EV ..) ff'- 11291 Risposlo o ................................................. . del .....................................• N ........ ........... OGGETTO: ..... ..................... ................. . International Bank for Reconstruction and Development 181 8 H Street, N.W. Washington 25, D. C. Gentlemen: !, ., r Subject: Loan No. 117 IT - SUpplementary Agreement to the L ' !-' Loan Contract Cassa/IRFIS of July 28 , 19 55 0 .o ., June 9 , 1958, we have provided to the execution of a On third supplementary agreement to the loan contract Cassa/IRFIS of July 28, 1955 . Enclosed please find the foll owing documents: (a ) Copy of the supplementary agreement to the loan contract Cassa/ IRFIS of July 28, 1955, executed on June 9, 1958, registered on June 19, 1958 at No. 44133, Vol. 658, of the Private and Foreign Deeds, Rome, complete with the prescribed appendices, with English translation; (b) Original and English translation of the required le@al opinion by Avv. Tracanna, Cassa Counsel, in respect of the cont:ract mentioned beforeo 0 C We point it out that such supplementary agreem,e nt has been stipulated following the draft previously submitted to, 1and approved by the Bank. 6 With best regards. e:: ' w Sincerely yours , THE PRESIDENT / s/ Pescatore - Enclosures \ The World Bank Group Record Re111oval Notice Arch~tes & R ecor ds M a n :age m a nt File Title Barcode No. Power Agriculture and Industry Project - General Development- Italy - Loan 0117 - P037415 - Administration - Volume 4 1854116 Document Date Document Type July 28, 1958 Memorandum Correspondents / Participants Subject I Title Opinion of Aw. Tracanna, Cassa Counsel, on the Third Supplementary Agreement to the Cassa/IRFIS Contract of June 9, 1958 Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information 01r other disclosure policies of the World Bank Grouip. Withdrawn by Date ~ Vlada A lekankina November 2 6 ~ Archives 01 (March 2017) I NDUI I ZZO TaLaGRAf'ICO . C ASMaz . fll O MA CASSA PER OPERE STRAORDINARIE DI PUBBLICO INTERESSE NELL' !TALIA MERIDIOl"JALE (CASSA PER IL MEZZOGIORNO ) PER VIA AERlA ,$/l !fl'~.2 t ·/osizQF/d 1 P t 1 t.:19 I Allegat· ~ r:_ RO M A . VI A AMltlt N•. 1-4 T CL. &-40 . 4 2 0 - 28 • 2'1 • 2e • 20 Risposta i, . . . . . . . del.. N. OGGETTO , .. I. I.I. ....P.r..e.. st.i.t.o - 117/IT Atto Aggiuntivo al Contratto Cassa/IRFIS ...........o~.i 2e/? /1955. - Spett. Banca Internazionale per la Ricostruzione e lo Sviluppo 1818 - H Street WASHINGT ON 25 D. C. 0 In data 9 giugno 1958, questa "Ca:ssa" ha provveduto alla stipula 2 C del 3° Atto Aggiuntivo al Contratto C19.ssa/IRFIS ( Isti tuto Regionale :, • peril finanziamento alle Industria in Si cilia) del 28 luglio 1955. i ~ ·;; Pert anto, accluso all a pre sente s:i trasmat tono : OI 0 a) Copia dell 'Atto Aggiuntivo al contratto di mutuo Cassa/IRFIS del 2817/1955, stipulate il 9 giugno 1958, registrato al n. 44133 vol.658 il 19 giugno 1958, agli Atti Prive.tied Esteri di Roma, corredato dei prescritti allegati, con relativa traduzione in in glese; b) Originale e traduzione in inglese 1 del prescri tto parere di confer_ mita del Consulente legale di questa "Cassa" Avvo Luciano Tracan- na, circa l'atto di cui al punto a). Si fa presente che l'atto Aggiuntivo di cui innanzi e stato redat to secondo lo schema a suo tempo inviato ed approvato da codesta Spe! tabile Banca. Con i migliori saluti Record Ren,oval Notice Archives & Records M anagement File Title Barcode No. Power Agriculture and Industry Project - General Development - Italy - Loan O117 - P03 7415 - Administration - Volume 4 1854116 Document Date Document Type July 28, 1958 Memorandum Correspondents / Participants Subject / Title Opinion of A vv. Tracanna, Cassa Counsel, on the Third Supplementary Agreement to the Cassa/lRFIS Contract of June 9, 1958 (in Italian) Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Vlada Alekankina November 26, 2018 Archives 01 (March 2017) FOR M No. 59 ( 2. 55) CROSS REFERENCE SHEET COMMUNICATION: Letter DAT ED: August 8• 1958 TO: Professor Gabriele Pescatore, Cassa per il Meszogiomo• Bame, Ita:b"• FROM: H. B. Ripnan F1LED UNDER: I ~ • Loan 189 SUMMARY: Advising that Messrs. Svoboda and de Alba are tentatively acbednl1ng a visit to Ital;, about September 291 19.58 to examine projects under various Bank loans. / t OC• May 26, 19$6 Gentler~en r Thi;( l.'111 acknowledr,• recei?t of your lettei- ot May 20 \Eogetht'- r with the enclosure~ UBnd1ng Loan Agree• ment 117 rr with respe ct to the urs, $. a. cope Director or Operationa l\lroJ>e, Atrlca and .lwstralu1& ca~sa per U Mesaogiorno Piasa de1 Congreaai 1'. 20 (~UR) ~ , Italy ccr Mr. Scott~ Mr. F~efl:h·. Groenveld \ . J)Mro Ve e y e ~ o K t , ~ h~ l m j ~ '- CAS SA PER OPERE STRAOROINARIE 01 PUBBLICO INTER!ESSE NEL L ' ITALIA MERIOIONALE VIA A~'HEA (C AS S A P ER IL MEZ Z OG I O R N O ) .. • r• , ei~n Pr. ,,,, PosizCit'T/DA/am ',i :-'1 f.,,U. I,, .)¥ Allegat 2 ROMA . . ,sposte R a J.e tte r a T CL. 940 ,4 20 - 28 - 2'7 - 2a • 2. de l. 2:j_/ 4/53 N. OGGETTO , .V~o Ei rs n.117/IT I I I .0 ... :? ;,:·es·!; _ ;uo - Varianti irri ~ i?rot;e t to Lette ra di eraendamento Spet t . BANCA I NTERNAZ I ONALE per l a RICOSTRUZION£ e lo SVILUPFO 1818 Street, N.W. WASHIN~HTON 25, D. q• c 0 .. .. E 0 Con riferi ~ento a lla nota sopra indicata, si uni s ce all a presen- . ~ 0 te un orig inale f irmato, con copia , della lettera formale di eraenda- ~ ~ento , cosl come predisposta da codesta Spe t t . Bsnca , a ll' Accor do di C :, ~ :? re s ti to (n. 117/ If ) del 1° giugno 1955, pe r quanto r i g~arda i l pr£ ~ ~ ge tto irriguo, con :pre ghiera di voler re s tituire la cop ia f ir;uata per I ·.; t7 a ccet taz ione . .. l 0 .; Q. ~ Con i mi e liori saluti. ::! ~ .. ~ ., u: 0. ;;; ,.. ,.-, ,,_,,.· • \.,:; . ' .. ., ' .. • _ .. t""j • • <· • I \ . " t• ,,/1> L~ tNOUl tZZO T CLlltG .. A ... tCO t CAeM .. Z • IIOMA CASSA PER OPERE STRAORDINARIE DI PUBBLICO INTERESSE NELL 'ITALIA MERIDlc:>NALE ( CASSA PER IL MEZZOGIORNO ) T::lM~3LATI0N ?ro t. N . Pos•,. (; IFT/JA/mg Allegol, ROMA .... .. . P I A'l.?.A OEI C0N G R £SS1 N . 20 tf:": UU Risposta o TE:\... 52~ 1 del N. O GGETTO , Internati onal Bank for Reconstraction and DeYelopment 18 18 H Street , N. W . 3a shington 25 , D. C. Gentlemen: !? C • E Subj ect: Third IBRD Loan No. 117 IT -Letter of Am0ndm~nt 0 e' 0 • j C :, W ith reference to your letter dated April 28, 1958 , we e !!. enclose herewith, in original and duplica te, the fo rmal letter of .'.! amendment t o Loan No. 117 IT of Junie 1, 1955 . You a r e kind ly re- 'i: 0 0 quested to r eturn to us the duplicate of such letter signed for acceptance. Bith best r egards • • "' • ci Sincerely yours, c;; THE PRESI DENT /s/ Pescatore - Enclosures :;; 0 ~ "' 0 M INDlfllZ&O T • L • • " " ' ' c o : c . . . . . . . . llltOMA 1955, as heretofore amended (hereinafter called the Loan Agreement) , j we hereby request your a greeement to the following further amendment to Schedule 2 to said Agreement , namely: 10 i. That all of part B of Schedule 2, entitled " I RRIGATION • PROJECT", be deleted and there be substituted theref or a new p.art "B i l as follows: .. 'ii • • a. "B. I RRIGATION PROJECT This Project is designed to provide irrigation to about 46 , 000 hectares of the Catania Plain by means of the following works : I. Pozzillo Dam The Pozzillo Dam, to be constructed on the Salso river which is a tributary to the Simeto river, near Regalbuto , will be 55 meters high and will have a developed l ength of 35 3 met ers at crest level. It will be composed of c oncrete blocks . • 4 x 4 x 4 meters, with an upstream s heet metal a pron. A para - .. 0 pet 1 meter high will be constructed on t~ e top of the dam ~ on the upstream side. The structure will include the neces- • CAeeA ~-" IL MltZZ0910 .. NO f09llo n. .. 2 ......... . sary spillway and discharge works. The dam will form a re- servoir with a maximum capacity of 136 million cubic meters. It will be completed in time tc> furnish some water for the irrigation s eason of 1958. II. Works between the Dam and the Ma in Canals a) Contrasto Barrage . \Yater will be diverted from the Simeto river at a :point a bout 18 km downstream from the Pozzillo dam by means of a 140 meter long barrage to b e constructed at Contrasto , at an elevation of about 170i meters. b) Structures between the Contrasto Barra ge and the Main Canals The structures to be constructed for the transport of the water fr om the Contra sto barrage along the left bank of the S1me to river to the ma in irrigation canals •..vill i nclu de about 8 1on· of tunnel s , about 7 km of canals , a 1, 500 meter long siphon across the Simeto river and structures connected with powerhouses a t Paterno and Barca.. The ma in waterway , including the f i rst part of the siphon , which will be used as a penstock for the Barca power pl ant , will have a capacity of 24 cubic meters per second. The second part of the s i ph on, which will carry the water to an elevation of 100 meters on the right bank of 'the Simeto r iver, will have a capa city of 10.25 cubic mete:rs per secotjd . These structures a r e not a part of the Projec"t o . · The wor ks between the dam and tJoe main cana l s will be completed by Dev ember 31, 1959. III. Irrigation Networks a) Passo d 'Ipsi Main Canal and l~etwork The Passo d 'Ipsi main canal, with an upstream capacity of 10~ 25 cubic meter s per sec ond , v 1ill orie ina te at elevation 100 met er s on the right bank of the Simeto river and will be fed f rom the siphon at Barca. It will be about 62 lon. lone and will have a capacit~r adequate fo r the ul tima te ir- rigation of about 20 , 500 he ctares in the western part of C A S SA P ER IL M EZZOGIOR N O Foglio n. ) 0 • the Catania Plain and in the Lentjni Plain in the ,outh., About 750 km of lAte rals , sublateral s ani s~al l c~nals will be constructed to serve an initial area of about 15 , 500 hectares . b) Gerbini Maj.n Canal and Netv-1ork The Gerbini Main Canal, with an upstream capacity. of B. 2 cubi c meters per second , will ori g inate at elevation 60 m~ ters and will be fed fr0m the tailrace channel of the Ba1"ca power pl ant. It Yd 11 be about 25 km long and will split in two branches in its l ower reaches to irrigate ultimately about 15 500 hectares in the central part of the Plain . A network of about 400 km of laterals , s11b- la terals and small ca11al s will . be constructed to irr:i.gate an i nitial area of about 10, 000 hectar es. c) · Mel licucco U:Sin Canal and Network The Mel licucco main canal , with an upstream capacity of 4. 75 cubic meters per second , \Vill originate at elevation 102 meters and will be fed di rectly from the diver sion canal on the Simeto l eft bank . It wil l be 3 km long and in ad dition to f eeding the Paterno Main can8l , it wi ll have a capaci tJr adequate for the u l timat~ irrigation of 5,000 hectares in t~e upper northert,part of the Pla i n . Soir-e 5 km of small cana l s wil l be constructed to irriga te an initjal area of 130 hectares o d) Paterno Main Canal and Network The Paterno main 0anal, with an upstreat1 capacity of 2o 8 cubic meters per second , wi l l or iginate at elevation 'SO met ers at a point about 3 km downstream from Bar ca and v1ill be fed from the M ellicucco main canal by means of a chute discharging into a sti lli ng basin . ~he Paterno ma i n c~nal will be abou~ 18 km l ong. A network of about 220 km of laterals , sublaterals and small canals will be construe! ed to irrier.ate an are~ of about 5 , 400 hectar es in t h e l ower n orthe:r11part of the Plain on the left of the Simeto r i ver. CA88A PltR I&. MltZZOGUORNO Foglio n. 4• All canals will be constructed of concrete or l ined wi th concrete and the networks will include a l l necesss r y str u ct urea such as bridges,siphons a:nd outlets . The irrigation networks will be compl eted by March 31, 1960 . IV. Other Works The Projeot also includes a system of levees, drainage canals and structures t o protect the irrigat ed area de- scribed above against floods, .and about 50 km of roads , aqueducts, electric lines and other miscellaneous wo r ks ~ This part of the Proj ect will 'be c ompleted by Decembe:r 3 1, 19600" Pursuant to Section 4. 01 of Lo1an Regulations No. 4 of the Bank, dated February 15, 1955, as amende,d by Schedule 3 to the Loan Agreement, we also r~quest your agreement that Subsecti on 4.01(iii) of said Loan Regulations as so amended shall be treated as i f it provided as follows: "the structures to be included as part II(b) of the Irrigation Project as described i jn Schedule 2 to the Loan Agre~ ment". Wil.l you kindly signify your agreement with the f oregoing amendments to Schedule 2 of the Loan Agreement and to the Loan Regula - tions as amended by the Loan Agreement "by signing and returning to .. us the enclosed duplicate copy of this l ,e tt er • ~ Yours very truly, CASSA CER IL MEZZOGIORNO By ~ CONFIRMED The President INTERNATIONAL BANK FOR RECONSTRUCTIO T.U!Sltr'C'ITOPMENT S. R. Cot,e Director ot Operati s Europe, Africa and Anstr FORM No. 59 (2 • 55) CROSS REFERENCE SHEET COMMUNICATION: JIMOlr•MII• DA TED: JfaQ' 9 1 19S8 TO: Mr. WU11aa ns..cn, FROM: ~Roat FILED UNDER: I ~ • LolD 1SO ?'-4-~ ''7 Mr. S. R. Cope April 28, 1~8 >tirra;r Rose Italy - Loan 117 - Catania Irrigation Project / Attached is a letter to the Cuea enoloeing a proposed Letter of Agreement between the Cassa and the Bank reYising the description of the Catania Irrigation Project. ' I have exudned the •tter in some detail and have compared the original projeot with the proposed changes in deecr1ption. The rnieed projeot vlll ultimatel.7 irrigate 46,000 heotaree i nstead ot 31, 000 heo- tarea aa originally planned. Practical.17 all t he other changes are of a technical nature am I have gone over th• with Mr. Finne. The only major difference in the revised projeot is that we are including nov the Contrasto Barrage (II a) whioh wu not prniousl.7 included among the it9Jll8 against which we would dieburse since it vu still in a verr tentative stage of planning when the l oan waa made in 1955. The revised project, u the original one, excludes our disbursements against the power facilities which are being constructed by i.S.E. The Cassa and the Bank mi•aion to Italy l ast tall agreed on the proposed revised description. Beoawse of the increased a oreage to be irrigated and no increase in coats, I bel1ne that the rnised project is better than the or iginal one and I recommend your •ilning the attached letter to the Cassa. R.e1 1,oan Jo. U7-IT - Catania Irrigation Projeot Oentl-.01 With reference to your letter of September 25, 1957, Ro. 5/11900, requ.eatingOID' agreeaent to a change in the Catania Irrigation Project and to t he discsuaaiona on thia subject between the Cassa and the Bank miaaion to Ita.11' in the tall ot 1957, we ue pleased to enoloee herewith a dr..tt ot a propo.ed Letter ot Agre-.nt. betveen the Quaa and the Bank vhioh would make the neoessar7 ohansu in Schedule 2 to the Loan jgrHMnt (Loan lo. ll7-rr) and in the Loan Regulations. These changes are in the form agreed upon b7 the Cassa and the Banlt aiaaion. If the enclosed letter 1a aati taotory to 7ou, wuld 7ou pleue exeoute two oopiu and send th to ua tar oon- t irmation. Upon contil'Dl8.t1on, t he Bank vlll return one signed oopy: to the Caaaa. f1rdt ot Proposed Lett.r Agreement Between the Caua and the Bani/ International Bank tor bconatru.ction and Deffl.op118Dt 1818 H Street, 1.w. Wa•hington 25, D. O. Bes Loan Bo. 117-IT - Irrigation Project Oentlemena Purauant to Section 3. 0l(b) ot the Loan Agreement (Electric Pover, Irrigation and Indu•trial Projects) between ue, dated June l, 1955, u heretofore 8Mna.d (hereinafter called the Loan Agreement), we hereby requ.eat 7our agreement to the following turtber u.endaent to Schedule 2 to Aid Agreement, namelya That allot part B or Schedule 21 entitled •IRRIGATION PBOJECT•, be deleted and there be 8'lb•t1tu ted therefor a new part B as tollovaa "B. IRRIGATION PROJECT Thia Project 1a d.eaigned to pron.de irrigation to about I.&,000 hectares of the Catania Plain b7 ••an• of the following irorkat I. Posaillo Da Tb. Posslllo Daa, to be conatructed on the Salao ri•1'r vhich ia a tributary to the 81.aeto riYer, near Regalbuto, v1ll be 55 11etera high aid vill baTe a deTelop.d length ot .353 aetera at crest level. It vill be composed ot oonorete blooka 4 x 4 x 4 meters, with an upstream eb..t . .ta1 apron. A parapet l Mt.r high vill be conatru.cted on the .top ot the dam on the upstream aide . The 1tructure - 2 - will include the necessa17 apillv.,- and discharge works . The dam will form a reservoir with a aaximmn capacity of 136 million cubic metere . It will bo completed in time to 1\lmi•h SOM wate r for the irrigation season of 1958. II. Work• between the Dam. and the Main Canale a) Contruto Barrage Water will be diverted fron the Simeto river at a point about 18 1cm downetream from the Pozzillo dam by means ot a l.40 meter long barrage to be constructed at Contrasto, at an eleYation of about 170 meters. b) Structure• between t he Contraato Barrage and the ain Canals The structures to be conatructed tor the transport ot the water from the Contraato barraee along the left bank of the Simeto river to the 1IUlin irrigation canals will include about 8 km or tunnels, about 7 kJl of canal.a, a 1500 meter long eiphon across the Simeto river and atructures connected with powerhouses at Paterno and Barca. The main waterway, including the first part of the siphon, which vU.l be used as a penstock for the Barca power plant, will have a capacity of 24 cubic 111eters per second. The second part of the siphon, which will carry the water to an elevation of lOO aetera on the right bank or t.he S1meto riYer, will ha-ve a capacit7 of l0. 25 cubic meters per aecond. These structure• are not a part of the Project. - - ) The worka between the dam and tbe main canal.a will be com- pleted b7 December 31, 1959. III. Irrigation Network• a) Paeao d 'Ipai Main Can.al and JS•twork The Pasao d•Ipai main canal, with an upatreal'!l capacit7 of 10.25 cubic meters per eeconitl, will originate at elevation 100 meters on the right bank of the 81.meto river and 1f1ll be tad. from the siphon at Barca. It will be abo1.1t 62 kr.l lon& and vill have a capacity adequate for the ultimate irriga- tion ot about 20 1 500 hectaree in the weatem part ot the Catania Plain and in the Lentini Plain in the south • • About 750 km of laterals, sulblaterala and all canals will be constructed to aene an ilriitial area of about 15,500 heotarea. b) Oerbini Kain Canal and Netw91~ The O.rbini main canal, with an upstream capac1t7 of 8. 2 cubic meters per second, will orig:lnate at elevation 60 meter• and Will be .ted troM the tailrace channel of the Barca pover plant. It will be about 25 klll long 1 and will split in two branches 1n its lower reaches to irrigatl• ultimately about 1$,SOO bectarea in the central part of the ~~ain. A network of about 400 Jaa or lateraa, eublaterals and hall canals will be con•tru.cted to irrigate an initial area ie>f about 101 000 heotarea. c) Mellicucco Main Canal and ~worlt e1 The Mell1.cuceo main canal, w:Lth an upatream capacity ot 4. 7, cubic meters per second 1, will originate at elevation 102 meter s end will be ted d:llrectly from the diTersion canal on the Simeto left banlr. It vill be 3 km long and in addition to feeding tl~e Paterno main canal. it Will ba•e a capacity adequatA, tor the ultimate irri.ga- tion of S,000 hectares in ~ ' upper northern part of tbe Plain. Sonae 5 km of small ~~ala will. be oonatructecl to irrigate an initial area of 130 hectares. d) Paterno Main Canal and Netwoit!i The Paterno main canal, with an upstream capacity ot 2.8 cubic meters per second, vU:L originate at elevation 6o meters at a point about 3 km downstream trom Barca and will be fed from the Mellicuioco main canal by means ot a chute discharging into a sti:lling basin. The Paterno main canal will be about 18 km l01t1g. A network of about 220 km of laterals, sublaterals and em.all canals will be con- structed to irri&ate an area of about 5,400 hectares in the lower northern part of tlbe Plain on the left of the Simeto River. ill canals vilJ. be constructed o.r concrete or lined with con- 11de all necessary a~cturea IRloh crete and the networks will incl1 as bridges, siphons and outlet,. completed by March )1, 1960. The irrigation networks will be 1 IV. Other Works The Project alao includes a eye~am of levees, drainage canals and atl"Uctures to protect the irlt'igated area described abo.,.. - s- agains t tlooda, and about SO laa of roads, aqueducts, electrio lines and other miscellaneous works . This part o! the "Project. will be completed by December 31, 196o. " Pursuant to Section 4 . 01 of Loan Regulations No . 4 of the Bank, dated Februarr 15, 195$, as mended by Schedule 3 to the Loan Agreement, we also reqnest your agrec,ment t hat Subsection 4 .01(111) or said Loan Ref;U].a- tiona as so amended ahall be treated as if it provided ae follovat ••the strt:ctures to be included ns part TI(b) of the Irrigation Project es described in Schedul e 2 to the Lom1 Agreenient" . Will you kindly signify your agreement with the foregoing amendaenta to Scr.edule 2 of the Loon Agreement and to the Loan Regulations as amended. by the Loan Agreement by aigninr, and returning to us the enclosed duplicate cow or this letter. Yours very truly, CASSA PER IL MEZZOOIOR!~O The Preaident CONFIRMED DlTERNATIONAL BANK FOR RECO.STRIJCTION .AND D~VELOPMENT FORM NO. 26 ( 1-50) INTERNATIONAL BANK FOR RECONSTRUCTION ANO DEVELOPMENT INCOMING W IRE DATE OF WIRE: APRIL 281 19'8 J.6'0 ROUTING TO: llffEPJ'~TI O!fAL ~ '5'CB BECO. llfZTRUCT!an U7 rr. I baTe todq oontlraed the Bank'• agreanent to your propoeal to ohang• the production program of '1P pta Petr olohimioa and u enaloeina herewith a 00P7 of your letter d'Ul1' signed. S.inoerely 7oure, S . R. Cope Dlreotor ot ~rationa bope, Afri ca and Aust ral.ala lnalosure Oaaea per 11 Mezsogiorno EDR P1aHa de! Congresa1 N. 20 J'lcme, Italy' ocs Mr. Scott Mr. Armstrong Mr. Verheyen April 22, 1958 Italy - Loan 117 1T - Augusta Petrolohimioa lllduatr1al Projeot ~a.?\~ AttaohXhereto 1a a letter for 7our •iiknature to the Cassa per U Measogiorno. 'l'he purpose of this letter [a to tormaliae the pr..,. Tioualy reaohed agreeDlent between the eu;~rm:t the Bank regarding the change-over of the Augw,ta Petrolobbdoa 119trial Projeot from the produotion of ammonia and fertilizer to the )production of ammonia onl.7 but double its pre-vi.ous oapaoit7. You ~ recall that on April 1 you lent a cable to the Casaa in response to the Cassa •a telegraphio inquiry o the effect that the agreement between Irfie and Augusta Petrol ca vas satisfactory to the Bank providing the Cassa and its legal el were satisfied that the oorxlition in Article 4 of the supplaen contract had been ful- filled . A cable reply to this effect was r eived April 21 and the Legal Department 11 preparing the necessary pers with the v1ev of Ila.king this project effeotive. As soon as ~ sign the attached letter and Hugh Scott cables the Cassa, this proje ~ vill become effective. Attachment ~ru 22, 1958 Gentlemena ~ y~ Thia will acknowledge receip~ your letter of April 11, Bo. 5/6456 and the enoloeed letter No. 5/8255 of the same date, amending Loan Agree- ment 117 IT. We are returning 7onr copy of the latter herewith, confirmed by us. We are sorry to note that 7ou did not execute our proposed letter or amendment with regard to Loan Agreement 150 IT. While we can appre- l ciate your reasons for wishing to defer execution of' this letter, we be- lieve that there are distinct ad.Tantages to ocapleting it without delay. The ABCD 8Jllendment cannot be declared effective until this letter has been duly signed and exchanged between us. Therefore, in order to com- plete the necessary formalities arising from the changes in the ABCD Pro- j ect, we urge you to sign promptly the letter aoditying Loan .Agreement 150 IT in the form proposed by us and forward it for oonfirllation by the Bank. We understand, of course, that any possible change in the status of the Hov11.egni Project will necessitate an additional further amend- ment of' the agreement between us. Likewise, the dispoaition of currently unallocated. funds under Loan 150 IT will require an additional agreement between the Cassa and the Bank. At this point, however, our only objec- tive is to take care of all the requirements neoess&r7 to formalize our agreement with regard to the ABCD Project and to prepare the ground for its being declared effective at the appropriate time and without uq additional delq. /~ With respect to your letter of' Januaey 27, No. 5/2374, the Bank has reviewed the drafts of the supplementary agre•ents enclosed there- with frhird Supplementary Agreement, Cassa/Irfis (Loan 117 IT); First Supplamenta17 Agreement, Oassa/Irfia (Loan 150 IT); First SUpplementaey jgreement, Casea/IsTeimer (Loan 150 IT), am draft ot Irfis/~CD contract to replaoe contract of .lpr11 11, 1957 between Irfis and »Jdij/ am tinds them satisfactory, subject, however, to the following pointaa Cassa per 11 Mezzogiorno EUR Piazaa dei Congresei N. 20 Rame, Italy -2- (i) In Appendix A to the draft Third Suppl11Denta17 Agreement, Cassa/Irf'ia (IRan 117 IT) the Sincat, ABCD and Oementerie S1clliane project descripti ons should be ude to contorm with the descriptions of those projects as amended by the abOT&-41entioned letter of' amend- aent Bo. 5/8255 and the proposed letter of amendment relating to Loan 150 IT. A s1mllar oaaent applies t o the St. Gobain and l"iat project desori,Pti ons 1n Appendix A to the draft First Supplementary jgreement, Cusa/Isveiaer (Loan 150 IT) and the S . \~ ~"'' '-.2...I Italy - Loan ll7 1T - .a.BCD Pol.7eth1'l ene Ind~,tri&l ProJeot Attaohed hereto 11 a letter tor 7our aijrnature to the Ca.sea per il Meaaogiorno. The purpose of this l etter i a 1~o take care ot the necea- •arr backgroum t0l'llal.1t1ea aaeming both ~µis 117 &Del 150 IT with the Yiew to m•k1na effective the rniaed ABCD jeot. The other points are merely •houaekeeping• details. Will 7ou pleaae aign the attached lettei~ ae vell u both copies ot- the proposed letter ot ameooment of Loan 117 1T dated April ll, 1958. V Mt-. Murr ~ Ross .April 18, 1958 R. G. Bateson Italy - Loans No. 117-IT and 150-IT. 1. I am sending herewith the tollowingt (i) Cassa letter No. 5/6456 dated 11th April, 1958, together with all enclosures thereto; (ii) Cassa letter No. '5/2374 dated 27th January, 1958, together with all enclosures thereto; (iii) Draft letter from the Bank to the Cassa respecting the above letters from the Cassa. 2. Insofar as the Legal Department is concerned the letter or under- standing relating to Loan Ro. 117-IT enclosed with the Cassa letter re- ferred to in item (i) above oan be confirmed by the Bank. Both copies ot the letter in English should be signed by Mr. Cope and one 001>7 re- turned to the Cassa together with one copy of the Italian version (which should not be eigned by the Banlc). Will ;rou please have a photostatic copy of the confirmed letter made tor Legal Files. 3. I think it would be well if we could discuss the substance or the draft letter (item (iiij above) at your convenience. cc: Mr. Scott I NOlllll ZZO T tU ,.&eAA,,tCO: C A SM•Z • .. OMA CASSA PER OPERE S T RAORDINARIE DI PUBBLICO INTERESS E NELL 'ITALIA MERIDIONALE (CAS SA PER I L M E Z Z O G I O R N O> Prot. N . . 2/8950 Posiz. LV/mg TRANSLATION I ., .ti APR. 1959 • ' Allegoti ROMA . ...... .. . .. .... . .. . . . ....... . . . PIAZZA OKI CONORas•• N . 20 <&UA> TEL . 9291 Risposto o del N. OGGETTO : International Bank for Reconstruction and Development 1818 H Street, N. r. Washington 25 , D. C. 0 Gentlemen: c • E Subject : Loan No . 117 IT - S. p.A. Au~Petrolchimica 0 .. ~ .. 0 0 C t/ith reference to your l etter of April 2, 1958, we :, at uch hereby two English copies , duly s i gned , of the letter of understanding between us for the changes in Loan Agr eement ·c No . 117 IT regarding the change in the production program of "' 0 S. p . A. Augusta Petrolchimica . Best regards . Sincerely yours , • "' • Q. THE PRESIDENT .;; /s/ Pescatore - Enclosures .. 0 l; ..., 0 tNot,11zzo TaL.aCIAA~I C O I C:AeMaz .. flOMA CASSA PER OPERE STRAORDINARIE DI PUBBLICO INTERE:SSE NELL' ITALIA MERIDIONALE ( CASSA PER I L ME Z ZO GI O R N O ) 5/80fi) LV PER VIA AEREA I - .. '•I 4 f.P~. t~8 Prol. N ........................... Posiz ...................... . Risposte e .........1~ t 4. del.... 2..~ Allegeti.... _4. ~.~.. 2.... ~.ra ............. N........ .. --- ------- R O M ,11. ...,... n.-~ DEi TCL. 877e ............................................... CONt.J,tESSI N . ao (l!.UA) oGGEno , ....I.I..l.~.. . f..r.$.S.ti.t.o n .117/IT- ..... p.A.- Augusta Petrolchimica - Spett . B.HJ.~CA Lti'~1frJAZI01iALc; PJrt LA RIOOSTRLllIONZ ]~ LO SVILUPPO 1818 H Street WASHL GTON 25 D. C. Con riferimento alla nota a ma:rgine segnata, 0 a eel use alla presente si rimettono le dw3 copJe inglesi, .. c E debi tamente firmate , della letter a d ' int_i3sa tra ·questa 0 !!' Cassa e codesta Banca per gl i emendament:i all ' Accordo di • 0 Prestito n.117/IT , per quan to riguarda il cambiamento di ] C :, programma produttivo de lla s .p .A.Augusta Petrolchimica. Con i migliori saluti . c 0 0 ~ • Q. I ~ I}1ENTE • 0 • Q. ;;; (Ga_-jr~xm}- tNOtfltZZO T KL•eflAf' ICO l CAaN.•a ~A CASSA PER OPERE STRAORDINARIE DI f:,UBBLICO INTERESSE NELL'ITALIA . MERIDIONJ~LE (CASSA PER IL MEZZOGIORNO) Pr,,t. N . ;s/ .... ,.,.. Po~,?~ 5 Allegat, ROMA ............ .... .... . .. .......... . P I AZZA 021 CONORaSSI N. 20 rint, and of magazine, medium gr ~ e and fine grade paper. The plant will have a groundworlcmill, producing 12,000 tons of wood pulp per year, and a straw pul p mill, producing 6 ,000 tons of bleached sulphite pul p per year . The equipment of the plant will include an elec trolysis plant for the produc- tion of caustic soda and chlorine, and a small thermal platjt producing process steam and pa rt of the required power. The Pr oject will also include an ex:isting hydro-electric plant owned by SILo III o CEI.~NTERIE SICILIANE Cement Pla.nt Project This Project consists of a dlry-process cement plant et Isola dello Famine, near Palerrrto, to be constructed , owned and o~erated by S . p.A., CEu.iENTI:RIE SICILIANE, with a capacity of about 160,000 tons of cement; per year. I Vo AUGUSTA PZTROLCHIM ICA Anhydroue1 Ammonia Pr o ject This Project consists of an ammonia plant near Melilli- Augusta , to be constructed, owned and operated by Augusta ..:, Petrolchimica, S . p . A., with a capacity of about 33,000 tons .... per year of anhydrous ammonia • v. A. B. C.D. - Polyethylene and Spt~cial Cements Projects This Pr oject consists of a Jplant at Ragusa to be con- structed, owned and operated by A. B. C. D. (Asfalti, Bitumi, Cementi e Derivati, S. p.A .) to produce annually about 30,000 tons of s~ecial cements and 10 , 000 tons of polyethylene with facilities for processing 700 ·tons of crude oil per day and generating about 70 million kwh of electric power per year." (b) that all part C of Schedule 4, entitled "Industrial Projects", be deleted and there be substituted therefor a new part C as follows: • CAaaA P ll:R IL Mll!!:ZZOGI O RNO • • Foglio n. 3• II C. Indu s trial Proj ects 1 0 SINCAT Fertili zer Plant • . ... .. 5, 760 , 000 2o SIL Pap er M ill • •. . . • •. . • • • 4 , 160 , 000 3o CEMENTERIE SI CILI ANE Cement Pl ant • • 1, 696 , 000 4o AUGUSTA PETROLCHir,;ICA Anhydrous Ammonia Plant .. . • .. . ... • 4, 384 , 00C 5. A. BoC. D. Polyethyl ene and ~ec ial Cements Plant . . . . .. .. . . • 2, 4oc , 000 11 In view of the ex pected c ons truction :p2r iod f or t he .A . r . C. D Polyethylene and Spec ial Cement s Pr o jec t , we also he r eby r eques t that , sub ject t o t h e t erms a n d prov is i ons of the Loan Ag re ement , your Ba nk a ct i n r espect of the A. B. C. D. - Pol y ethyl ene an d Special Cement s Pro j e ct and the amount set fo r th opposite such Proj ect i n Schedule 4 (as so amended) of t h e Loan Agreement a s if t he Cl osing Date had been spec i fied a s Decemb er 3 1, 1960 , instead of June 30 , 195~~ . We requ est your agr eement t ha t the forego i ng amendment be- c ome eff e ctive in respec t of t h e A. B. C. D. Pol yethyl ene and Special c-ements Pr o j ect (a ) when you s hall have receiv ed evidenc:: e sa tisf a c t or y to you that the requirements set fo rth in Sections 4~0 1 and 4. 03 of t h e Loan Agr e ement ha v e been sati sfie d i n r espect of th:i s proj ect (including , as part of such ev i denc e , an opinion satisfact ory to you of counsel acc eptable t o you s howing that the a r rang ements and a gr ee- ments t o which s uch evidence r elate s a r e vali d , bi nding and enforcea bl e in accorda nc e wi t h their t erms a nd conta in va lid pr ovis:ion s sati s fying the requi r ements of Section 4. 03 of t he Loan Agreement ) and (b ) as of the da t e specif i e d by you i n a not i ce to us of your acceptanc e of such ev idence o ..:, Will you ki ndly signi f y your a greement with t he f or ego ing by.s igning and r eturni ng to us the enclosed du pl icate c opy of t hi s lett er. Yours very truly , CASSA PER I L IIBZZOGI ORNO By ~ e s i d.en1 ~ CONFI RMED . 'T-'-~ : .. i , s. R. Cope Director of Operati o~ Europe, Africa and Australasia ·· · ~· ... o/. :.?.::...~ CASSA PER OPERE STRAOROINARIE DI PUBBLICO INTERESSE .. NELL' ITALIA MERIOIOiNALE ( C A S S A P E R I L M E Z Z () G I O R N O ) Prol. ~s; 8 2 5 5 ~ ........................... Posiz ........... Q.IfT/RE/cr 11 APR, 1951 t Allegati.. ............. . ROMA . .......... .................... .'...................... Risposta a ........................ .. PIAZ.2.0. D l! I CONGFU!SSI N, ao (£UR) TEL , 6 779 del ............................................. N ..................... oGGEno, .....Pres.t.i.t.o....n........117 /IT. - ALLA BANCA INT~NAZIONALE :?ER LA RICO STRUZIONE E LO SVILUPPO 1818 H Street WASHINGTON 25 DC 0 c ~ 0 Ai sensi del Paragrafo 3.01 (b) dell'Accordo di Prestito (Pro getti . ~ 0 Elettrici, Irr i 5u i ed Industriali) tra la Banca e la Cassa in data 1 giu- ] gno 1955, con gli em endamenti fi nora concordati (qui di seguito indicato C: ::, :! come Accardo di Prestito), si chiede con la presente il consenso del la ,!?, .! Banca alle seguenti ulteriori variazioni da introdurre nell'allegato 2 c e nell 'allegat o 4 a detto Accardo: "' 0 ;; a. a) L'intera Parte C dell' alle 6 ato 2, dal ti tolo "PROGETTI INDU- STRIAL! ", sia annullata ed una nuova Parte C sia ad essa sostituita come segue: "C. PROGETTI HIDUSTRIALI" I. Pro getto SINCAT per concimi Tale Progetto consiste in una fabbrica di concimi a Melilli-Augu- sta, che sara costrui ta ed eserci ta da1la proprietaria SINCAT , Societa Industriale Catanese S.p.A., con una capacita iniziale di 100. 000 ton. "E 0 di concimi complessi all'anno. Oltre alle attrezzature occorren~i ,per § la produzione di concimi compl essi , le opere principali previste ~er ct ., ta~e progetto comprendono: (1) attrezzature per la produzione di 30. 000 !! ., ., ton~ di acido solforico; (2) attrezzature per la produzione di 35. 000 ton • M di acido ~itrico; e (3) attrezzature per la produzi one di 12.000 ton. di acido fosforicoo •, ~.. . ;_,. ''-~ ,, ~w<- lO~, rt&. td, .f(:,._~7. l~ ./o , ,e..r. CA S SA PER IL MEZZOGIORNO Foglio n. ...... 2......... ................... II., Progetto di cartiera SIL Tal e Progetto consiste in una cartiera nei pressi di Avezzano che sara costruita ed esercita dal la proprietaria sii, Societa I dro - el ettrica Liri, per produrre circa 30. (X)O ton. all ' anno di carta da giornale e da rotocalco, di carta t i po medio e tipo fine . L' impi anto sara dotato di una impastatrice meccanica avente la capacita di 12.(X)O ton. all ' anno di pasta di legno , e di una impastatrice di pagl ia aven- te la capacita di 6. 000 ton. all ' anno di pasta sbianchita al solfuro. Le attrezzature dell'impianto comprenderanno anche un reparto elettro- lisi per la produzione di soda caustica e cl oro , ed un piccolo impian- to termico per la produzione del vapore occorrente alle lavorazi oni e di parte dell' energia elettrica necessaria. Il Pro get to comprender a anche una centrale idroelettrica gia esistente e di proprieta della SIL. III. Progetto di cementificio C Elv{ENTERIE SICILIANE Tale Pro getto consiste in un cementificio con procedimento a sec- co situato ad Isola delle Femine, nei pressi di Palermo, che sara co- struito ed esercito dalla proprietaria S.p.A. Cem enterie Siciliane, con una capacita di circa 160.000 ton. di cementa all'anno. IV., Progetto AUGUSI'A PETROLCHI1:ICA per ammoniaca anidra Tale Progetto consiste in un impianto di amm oniaca nei pressi di ., Mel illi - Augusta, che sara costruito ed esercito dalla proprietaria 0 E Augusta Petrolchimica S.p. A. , con una capacita di circa 33. 000 ton. di "" 2 ammoniaca anidra all'~no. C: " E - ~ 0 V., Progetto ABCD per politene e cementi speciali C: ;.; ci .... Tale Progetto consiste in un impianto a Ragusa che sara costruito ed esercito dalla ABCD , (Asfalti , Bi tumi, Cementi e Derivati S.p. A.) per produrre annualmente circa 30.000 ton. di cementi speciali e IO. (X)O ton. di politene; l ' impianto comprendera anche attrezzature per la lavo- razione di 700 ton. di petrolio grezzo al giorno e per la produzione di circa 70. 000. 000 di kwh di energia elettrica all ' anno". b) L'intera Parte C del l' allegato 4, dal ti tolo "PROGETTI INDU- "O 0 STRIALI " , sia annullata ed una nuova Parte C sia ad essa sosti tuita :f come segue : CA:3SA PER IL MEZZOGIORNO Foglio n. .... .. 3 ........... "C. PROGETTI INDUSTRIALI 1) SINCAT - Fabbrica di concimi $. 5. 760. 000 2) SIL - Cartiera " 4.160. 000 3) CElllNTERIE SI CILIANE - Cementificio " 1.696.000 4) AUGUSTA PETROLCHIMICA - Impianto per ammoniaca anidra It 4.384.000 5) ABCD - Fabbrica di politene e cementi speciali " 2. 400. 000" In considerazione del previsto periodo di costruzione peril Pro- getto ABCD (politene e cementi speciali ), si richiede anche con l a pre- sente che , fatti salvi i termini e le disposizioni dell ' Accordo di Pre- stito, l a Banca vo 5lia considerare il Pro getto A BCD per politene e ce- menti speciali, e l' ammontare segnato a fianco del progetto stesso nel- l'allegato 4 (com e sopra emendato) all 'Accordo di Prestito come se la Data di Chiusura fos se st ata specificata al 31 Dicembre 1960, anziche al 30 giugno 1958. Si richiede il consenso della Banca affinche gli em endamenti di cui sopra entrino in vigore in r elazione al Progetto ABCD per politene e cementi speciali: 0 a) Allorche la Banca abbia ricevuto la documentazione di prova, che ri- E 0 "" tenga soddisfacente , r el ativa all ' adempimento dell e condizioni con- 0 tenute nei Par agrafi 4. 01 e 4. 03 dell ' Accordo di Prestito nei riguar- c E" di del Pro getto di cui trattasi (ivi compreso, come parte di tale do- ~ 0 C: cumentazi one, un parere che la Banca rit enga soddisfacente del consu- ii: Q. lente legale accettabile da parte della Banca, di mostrante che le di- .... sposizioni e gl i accordi ai quali si riferisce la documentazione di prova, so no validi, vincolanti ed esecutivi ai sensi dei loro stessi termini e vincoli, e contengono disposizi oni i donee a soddisfare gli adempimenti previsti dal Paragrafo 4.03 dell' Accordo di Prest ito); b) A far tempo dalla data speci ficat a dalla Banca nella notifica alla Cas sa di accettazi one della documentazione di prova anzidetta. La Banca e pregata voler significare il suo consenso a quanto so- pra esposto m ediante apposizione di fir ma al.la allegata copia della pre- sente let tera, e mediante restituzione alla Cassa di tale copia firmata. Dist i nti saluti. Per conferma: BANCA INT!!3RNAZI O RICOSTRUZI NALE PIB LA VILUPPO m~ r CASSA PER IL l.~ZZOGIORUO INDUIIZZO TaLaCIAA .. I CO I C A S M az - R O M A CASSA PER OPER E STRAORDINARIE 01 PUBBLICO INTERESSE NELL' !TALIA MERIDIONALE (C A S SA P ER I L M E Z Z O G I O RN O ) Prot. N . ........... .~!. ... ~ '·- ~ jz~ .. ...... ~ .01.FT/ RE/ er Allegoti.................................. SANO ......... ........................... x:o er:nrr T a L. JO a,a.420 - ~ e .. 2 T - 2 a - 20 Risposto o ...................................................... . PIAZZA OEI CONGRESS! N. 20 (£UR) Tt!.L. 6779 del............................................... N .. ....... ......... . oGGEno , ......Prest.i.t.o ..n •.... 117 /IT. - ALLA Bti.1WA IN~ .iRNAZIOU~LE PER LA RICO STRUZI ONE E LO SVILUPPO 1818 H Street ,IASHI1lGTON 25 DC Ai sensi del Paragrafo 3.01 (b ) del l ' A ccordo di Prestito (Pro getti El et t r ici , Irr i 5ui ed I ndustriali ) tra. la Banca e la. Cas sa in dat a 1 giu- gno 1955, con gli emendamenti finora concordati (qui di seguito i ndica.to cone Accordo di Prestito ), si chiede con la. presente il consenso della. Banca cl.le seguenti ulter i ori variazioni da introdurre nell ' allegato 2 e nell ' al l egato 4 a detto A ccor do: " a. a ) L' i ntera Parte C del l 1all e at o 2 , dal titolo "PROGETTI INDU - 0 STR IALI ", sia annullat a ed una nuova Parte C si a ad essa sos t i tuita com e segue : "C. PROGUf 7 I I1IDUSTRIALI " l. Progetto SHWAT per concimi Tal e Pr oget t o consis te in una f abbrica di concimi a M elilli- Augu- sta, che sara costrui ta ed eserci ta dalla pr opri etaria SIU CAT , Societ a, Industriale C atanese S. p. A. , con una capacita ini zia.l e di 100. 000 ton. di conci m i com plessi al l ' anno. Ol tre alle attrezzatur e occorrenti per l a pr oduzione di concimi complessi , le opere principali previste per t ale proget t o co m prendono: (1) a.ttr ezzature per l a pr oduzione di 30. 000 ton. di acido solf orico; (2 ) at t rezzature per la produzione di 35. 000 ton. di a.cido ~itrico; e (3) attrezzature per la pr oduzione di 12.000 ton. di acido f osforico. CASSA PER IL MEZZOGIORNO Foglio 0 .. .. .... 2............................. II. Progetto di cartiera SIL Tal e Progetto consiste i n una cartiera nei pressi di A vezzano che sara cost ruita ed esercita dal la proprietaria s1i, Societa Idro - elettrica Liri , per produrre circa 30. (X)O ton. all ' anno di carta da gi ornale e da rotocalco , di carta tipo m edic e tipo fine. L' impianto sara dotato di una i mpastatrice m eccanica avente l a capacita di 12. 000 ton. all ' a.nno di pasta di legno , e di una impast ~trice di paglia aven- te l a capacita di 6. 000 ton. all ' anno di pasta sbianchita al solfuro . Le attrezzature dell ' i mpianto com prenderanno anche un repart o el ettro- lisi per la produzi one di soda caustica e cl oro , ed un pic colo i mpian- to termico per la produzione del vapore occorrente alle lavorazioni e di parte dell ' ener gia elettrica necessaria. Il Pro 6 etto comprendera anche una cen~ral e idroelettrica gi a esistente e di propriet a de lla SIL. III. ~roget t o di cementi ficio CE~.•'J1frER IE SI CILIA1TE Tale Pro 5 etto consiste in un cementi f icio con procedimento a sec- co situat o ad I sola delle Fam ine, nei pressi di Paler mo, che sara co- struito ed esercito dalla propriet aria S. p. A. Cem enterie Sicili ana, con una capacita di cir ca 160. 000 ton. di cem ento all ' anno. ! Vo P:t·obetto AUGUm1A PZT30LCHI1.:ICA. per ammoniaca anidra Tale Probetto consiste in un impianto di ammoniaca nei pressi di Mel illi - Augusta, che sar a costrui to ed esercito dalla propr ietaria .. C) E 0 Augusta Petrol chimica S. p. ~., con una capaci ta di circa 33. 000 ton. di 0 ammoniaca unidra all ' auno. c ., E ~ C) C: V. Pro 9 etto ABCD per politene cementi speciali e ii: ci ;:: Tale Progetto consi ste in un impianto a Hagusa che sara costr uito ed eserci to aalla A BCD , (Asfalti , Bi tumi , Cementi e Derivati S. p. A.) per produrre annualmente circa 30.000 ton. di cement i speciali e I0. (X)0 t on. di poli tene; l' impianto comprendera anche attre zzat ure per la lavo- razione di 700 ton. di pe t rolio ~ezzo al. giorno e per la produzione di circa 70. 000. 000 di kwh di energia elet t rica all ' anno". b ) L' inter a Parte C dell ' allegat o 4 , dal ti tolo "PROGETTI IMDU- STtll.t\.LI " , s i a annul l at a ed una nuova Parte C sia ad essa sost i tui ta com e segue : ./ . CASSA PER IL MEZZOGIORNO Foglio n. ...... ........... 3................. "C. PROGETTI INDU~TRIALI 1) SI NCAT - Fabbrica di concimi $. 5. 760. 000 2) SIL - Carti er a " 4. 160. 000 3 ) C~ 1~MTJi~rl IE SI CILIA.NE - Cementificio 1 " 1. 696. 000 4 ) AUGUSTA PETl10LC1IL. IC.A. - I m pi anto per amm.o niaca anidra " 4. 384. 000 5) ABCD - Fabbr ica di politene e cementi speci ali tl 2. 400. 000" I n conG itlerazione del previsto per i odo di costruzione per i l Pro- getto ABCD (polit ene e cement i special i ), si r ichi ede anche con l a pre- sente che , fatt i salvi i termini e l e di spos izioni dell ' A ccordo di Pre- st i t o, la Banca vo0 lia considerare il Pro0 etto 'i..BCD per poli tene e ce- m enti s9ecial i , e l ' ammontar e se6 nato a fianco del proget to stesso nel- l ' alle6ato 4 (com e sopr a emendato ) all ' Acco rdo di Prest i t o come se l a D at a di Chi usura fosse st ata specif icata al 31 D i cerabre 1960, anziche al 30 gi U5 IlO 19 58 • Si r ichiede il cons enso del la Banca affinche gli em endam enti di cui sopr a entrino in vi gore i n r el azi one al Proge~to ABC D per politene e cementi special i : " E a) A l lorche la Banca abbi a ri cevut o l a doc 1m enta zione di prova , che r i- 0 "" t onga soddi sf ....cente , r el ativa al l ' adempimento de lle condi zioni con- 0 c ., t enute nei Pa.ragrafi 4. 01 e 4. 03 dell ' A ccordo di Prestito nei riguar- e ~ di del Pro get t o di cui t r at tasi (ivi co mpr eso , com e parte di tale do- ., C cum ent azione , un parere che l a Banca r itenga soddi sfacente del consu- « ci ;:: l ente le& al e accet t abi le da parte del la Banca, di mostrant e che le di- sposizioni e bl-i accordi ai quali si r i f er i sce la docum ent azione di prova , sono val i di, vincolant i ed esecutivi ai sensi dei loro stes si termi ni e vincoli , e cont enGono di sposizioni i donee a s oddisfare gl i adempi oenti previst i dal Paragrafo 4. 03 dell ' Accordo di Prestito ); b ) A far tempo dalla dat a speci ficat a dall a Banca nella notif ica all a Cassa di accet t azione del la documentazione di pr ova anzi det t a. La Banca e pr eGat a voler si gnificare i l suo consenso a quanto so - pra espost o m edi ante apposi zi one di f irm a alla allegata co pi a del la pr e- s ente l etter a , e medi ante restituzione al la C as sa di tale copia firmat a. D i stinti sal uti . CASSA PER IL l.!EZZOG IORNO Per cunferma : B ANC~ HIT lNAZIOlL\LE PIB LA ..J. ~Ejl.t°'fl?' RICOSTRUZIO' LUPPO I FKLE COPY Mr . A. Perra April 4, 1958 R. E. DN]T Loan I lU ;tr // By letter dated April 2, the Bank a~ ed to postpone the cloaili1 date or the ONES Power Project in he subject Loan, to September 30, 19.59. Pleaae amend your reC1 rd• acoordin&lT• cc: Miss Chara1amboua Mra . B. Brown ¥.r. Rutland Loan Accountants REO.ely/er • April 2, 1958 Re: Loan 117 IT - UNm Power Project Gentl elDeD.I v I refer to your letter 5/169, dated lanuary 3, 1958, concer ning the UNm Power Project in Loan N0 • 117 IT. I 8lD. happ7 to inform you that, subject to the terms and pro- visions o:t the Loan Agreement, the Bank will, in respect of that Project and the amount set forth opposite it in Schedule 4 of the Loan Agreement, act as if the Closing Date had been specified as September 30, 1959, instead of June .30, 1958. In addition the Bank approves the changes in the Cassa/UNES agreement noted in said letter 5/169. · I also refer to 7our letter 5/17199, dated Bovember 29, v"' 1957, requesting the postponement of the completion date ot the concrete arch dam which forms part o:t the Castellano Section of said UNFS Power Project. Pursuant to Section 3.01 (b) of t he Loan Agreement the Bank hereby agrees to a change in the completion date set forth in Schedule 2 ot the Loan Agreement for said dam and for the over- all UNliS Power Project from December 31, 1957, to September 30, 1959, as requested by you in said letter 5/17199. Sincerely yours, S. R. Cope Director of Operations &Jrope, J!rica aM Australasia Cassa per 11 Mezzogi orno azza dei Congress! I . 20 e,- I tal.7 • Mr. Scott - Mr o Finne - Mr. Verheyen e ed with: Mro Clark BScott:lmj Apr il 2, 1~8 Dear Profess or Peeoatores v /. We have just diacovered t hat your letter ot August 9, 1957 r equesting a change in the description of Loan Agree- ment 117 IT with respect to the Augusta Petrochimica Project has your s i gnature only on the I talian copies . In order to haTe our record• complete we will also need your signature on the Inglish copies. We are therefore encloeing herevith two copies ot the Inglish ver sion or your letter of August 9 which we would appreciate your signing am r eturning to ue . Very ai ncerel.7 7oure, Mirra;, Roes Department ot Operations liurope, Africa a!ld Auetraluia Profeesor Gabriele Pescatore, President Cassa per 11 Mezaogiorno Piazu.l.e d ei Congresai H. 20 WR R co: cott J FORM NO. 27 ( I 1 - 53) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OUTGOING WI BB DATE: APRIL 1, 1958 ~ CLASS Of SERVICE DESIRED TO: PFSCATCRE '1 (\ NIGHT LETTER [!J CODE D G.ASMEZ £\\'Y . ROME (ITALY) · \' FULL RA'IE D TELETYPE D TEXT: . // REURTEL 5/7647 BANK APPROVFS SUPPLEMENTARY CONTRACT BEI'WEEN IRFIS AND AUGUSTA PErROCHIMICA AND IS WILLING DECLARE LOAN EFFECTIVE UPON RECEIPl' FROM YOU OF CABLE STATING THAT CONDITION I N ARTICLE FOUR ClF SUPPLEMENTARY CONTRACT HAS BEEN FULFILLED TO S'ATISFAC'?I ON CF CASSA AND TRACANNA COPE • t:S: 0 ll 1 .~ tt, (.) t..r. I ._ c- . :1. c::. For Use by Archives Division AU1HORIZED BY: Checked for Di spatch NAME S . R. Cope ~ Director of Operations DEPT. Europe, Africa and Australas Cleared with Legal - E. Clallltl L E COP Y ccz Mr. Scott - Mr. Armstrong mosszlmj FORM NO. 26 (I. 50) INTERNATIONAL BANK FOR RECONSTRU TION ANO DEVE LOPMENT INCOM I NG WIR E DATE OF WIRE : AP.Rn. l, 1958 1255 ~---~~~==-R _O _T _U _I_NG ---·- . TO: INTERNATIONAL BANK FOR RECONSTRUCTION ACT ION COPY TO MR ROSS & DEVELOP?oENT FROM: ROME INFORMATION COPY TO j Dec oded By ----- TEXT: , / 5/7647 RIFERIMENTO LET'IERA CASSA CINQUE ZO 5/5522 PREGASI COMUNICARE PETROWHIMICA ESIDENTE CASMEZ ORIG I NAL ~p~ \ \\ OS Al'i ~~ bf->" ~ t 6"' o>..,o ' \ c, ~~ :REVISIONS OF AMORTIZATION SCHEDULES OF CERTAIN LO.ANS TO CASSA PER IL MEZZOGIORNO LO.AN :RO. 20 IT LOAN NO. 88 IT LO.AN NO. 117 IT v LOAN NO. 120 IT LO.AN NO. 189 IT Original Revised Original Revised Original Revised Or~ginal Revised Original Revised Date Payment Due Schedule Schedule Schedule Schedule Schedule Schedule Schedule Schedule Sched~e Schedule January February March 15. 15. 1, 1961 1961 1961 $ $ $ $ $1.498,000 $1,000.000 $ 1,463,000 • Nil $ 1,302.000 ,$ 3,6o9,ooo Mey 1. 1961 185,000 Nil 161.000 Nil July 15. 1961 1,507,000 Nil August 15. 1961 1,338,000 4,699,000 September 1. 1961 1,500,000 Nil November 1. 1961 189,000 Nil 165,000 Nil January 15, 1962 1,543,000 984,ooo Februery 15. 1962 1,374,000 2,319,000 March 1, 1962 1,537,000 1,151,000 Mey 1, 1962 193,000 193,000 169,000 169,000 July 15, 1962 1,579,000 2,186,000 August 15. 1962 1,412,000 80, ,000 September 1, 1962 1,576,000 1,576,000 November 1, 1962 197,000 197,000 174,000 174,ooo Jenuery 15, 1963 1,618,000 1,618,000 February 15. 1963 1,451,000 1,150,000 Merch 1, 1963 1,615,000 1,615,000 May 1. 1963 202,000 503.000 178,000 178,000 July 15, 1963 1 ,656,000 2,498,000 August 15. 1963 1,491,000 250,000 September 1, 1~63 1,655,000 1,655,000 November 1, 1963 206,000 279,000 183,000 509,000 Jenuery 15. 1964 1,696,000 2,811,000 Februery 15, 1964 1,532,000 Nil March 1, 1964 1,697,000 2,1111,000 August 15, 1964 1,574,000 Nil September 1, 1964 1,739,000 3,313,000 J'ebruery 15, 1965 1,617,000 259,000 March 1, 1965 1,783,000 3,141,000 OTHER MATURITIES TO REM.AIU UUCHANGED FORM NO. 27 ( 11. 53) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OUTGOING WIBB ~~ DATE: MA.ROH 17, 1958 TO: PESCATCRE NIGHT LETTER [!J DE D CASMEZ RCME (ITALY) FULL RATE D D ,.....,,{' TEXT: y<' REURTEL 5/6267 BANK WILLING EXTEND CLCSING DATE UNES PROJEar TO SEPr THIRJ.'I EI'H NINm'EEN FIFTY- NINE STOP BANK HAS NO CBJEOTION TO EXTENSION CLCSING DATE AND PCBTPONEMENT AMCRTIZATIONS IN YOUR CONTRAar WITH UNl!S AS DESCRIBED IN YOURLEI' 5/J-69 STOP LEI'TER DESCRIBING FCRMAL STEPS TO BE T FOLLOO . I-Ol""·. ~\"5~ COPE For Use by Archives Di vi sion AU1HORIZED BY: Checked for Dispatch II NAME S. R. Cope II Dir ector of Operations DFPT. Europe, Afr ica and Austral Cleared with: Mr. CJ.ark/Mr. Scott - Mr. Spottswood - Mr. Ver heyen Mtoss:lmj FILE COPY . 1 . "" - r . t ... " I • FORM NO. 57 (5. 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Mr. S. R. Gope DA TE: March 17, 1958 FROM : Mlrrq Ross'lR SUBJECT: Italy - Loan l l ~ Power Project We are in rec,!pt of the attac~ three letters from t)le Cassa dated November 29, 1957, January 3, 1958 and February 20, '1.958 and a cable dated March 14,i/1958. According to these letters a legitimate delay in the construction of the UNES Power Project has created a need to extelxi the present closing date of June 30, 1958 to September 30, 1959. The Wory~ng Party recommends that the Cassa's request to change the closing date be approved. There is some ambiguity with regard to the remaining two points raised by the Cassa. Both the legal department and I believe, however, that these points refer to the loan contract between the Cassa and UN.ES and the Cassa is merely asking our agr eement before entering into sup- plementary agreement with UN.ES. The first of these points deals with the closing date for Cassa disbursements to UNES and the second point reduces from 35 to 32 amortization installments thereby in effect giving recognition to the delay in construction and extending the grace period to UNES. The Working Party feels that this is a reasonable request and that the Bank should not stand in the way. There is, of course, no change contemplated in the amortization of the loan by the Cassa to us other than as amended in Section X of the Loan Agreement 189. en the basis of the above I recoimllend your signing the attached cable which will enable the Cassa to execute its supplementary agree- ment with ums . A letter describing the formal steps that will have to be taken by the Cassa finalizing these changes will be presented for your signature in the near future. Attachments FORM NO. 26 ( 1.50) INTERNATION AL BANK FOR RECONSTRU TION AND DEVELOPMENT INCOM ING WIRE DATE OF WIRE: MARCH 14, 1958 1815 I ROUT! NG -~--~ TO: INTERNATIONAL BANK FOO RroONSTRUCTION & DEVELOPMENT I ACTION COPY TO MR WHEELOCK FROM: RCME IINFORMATION COPY TO I d _B tEec ode_ Y_ _ _ TEXT: ,s\ 4~\11 5 /6267 REaJR IET~ 5 /2374 OF FEBRUARY REGARDING EXECUTION SUPPLEMENTARY AGREEMENT UNES PROJECT FCEWARD BANKS APPROVAL ORIGIN.AL fl~Q 1,1. 4 o9 Pl't ~ . FORM No. 59 ( 2. 5 5 ) CROSS REFERENCE SHEET COMMUNICATION: Letter DAT ED: March 12, 1958 TO: Professor Pescatore, President, Cassa per il Mezzogiomo, Rome, Italy. FROM: So R. Cope FlLED UNDER: I ~ - Loan i:lLT \ tro . SUMMARY: Confirming March llth. cable re increase in allocation of ABCD project from unallocated funds now avail.able in Loans 117 and 150IT. It will be necessary for Cassa to f ~ request Bank's agreement to required changes in Schedules 2 and 4 of tne two loan agreements. I am enclosing two draft. (proposed) .1.et.ters f n, m the Cassa to tne Bank which would be appropriate for this purpose. FORM NO. 59 ( 2- 55) CROSS REFERENCE SHEET COMMUNICATION: Outgoing wire DAT ED: Marc\} 11, 1958 TO: Pescatore, Casmez, Rome, Italy. FROM: Cope FILED UNDER: Italy - Loan ~ IS"o SUMMARY: BANK PREPARED INCREASE ALLOCATION ABCD jBlOJECT BY FOUR MILLION FUUR HUNIRED EIGHTY THOUSAND DOLLARS FROM UNALLOCATED FlJNI6 IN LOANS 117 AND 150 STOP LETTER SUGGESTING PROCEDURE FULLOWS. (not for public use ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT DECLASSIFIED FEB 2 6 2018 WBGARCIBVES CONFIDENTIAL FOR EXECUTIVE R 58-22 DIRECTORS' (For consideration by the MEETING Executive Directors on Marcil 11, 1958) FROM: The Secretary / Marcil 7, 1958 LOAN NO. 117 IT - - $70 MILLION AND LOAN NO. 150 IT - $74.628 MILLION NADE TO ITALY The Bank made a loan to the Cassa peril Mezzogiorno of $70 million ~74.628 equivalent (117 IT) on June 1, 1955 and another loan (150 IT) of ~ million equivalent on October 11, 1956 . In Loan 117 IT, ~20 million and in Loan 150 IT, $23. 963 million were allocated to private industrial projects . At the request of the Cassa, the Bank cancelled the SICULAZOTO Project for $2. 4 million in Loan 117 IT and the CHIMICA DEL TIRRENO Project for $2. 56 million in Loan 150 IT. The first was cancelled because of inadequacy of raw materials and the second because of inability of the company and the i ndustrial credit institute (ISVEil1ER) to agree on security provisions . As a result of the above cancellations, $4. 96 million are now unallocated in the above two loans . The Cassa has requested that $4.48 million of the above unallocated funds be made available for a revised A. B. C. D. Project which was originally allotted Dist ribution : Executive Directors and Alternates President Vice Presidents Department Heads Sec. 58- 93 - 2 - $4. 96 million in Loan 150 IT. This would increase the total amount for the revised A. B. C. D. Project to $9.44 million . A Bank report on the technical, financial and economic aspects of the revised A. B. C. D. Project is attached . The President proposes , if there is no objection, that the amount for the revised A. B. C. D. Project in Loan 150 IT be increased by i 4. 48 .million by utilizing the unallocated $2. 4 million from Loan 117 IT and ~2. 08 :million of the unallocated amount in Loan 150 IT. Attachment Sec . 58- 93 A .R .C .D. Borrower The prospective borrower is Asfalti Bitumi Cementi e Derivati, S.p.A. (A.B.C .D.) a company now producing cement, asphalt and fuel oil (for internal use at their plant) at Ragusa , Sicily . The com pany plans to erect a polyethylene plant with an annual capacity of 10,000 tons per year and a 10,000 kw thern.al- power plant . The project is a revision of a portion of an earlier project which received Bank financing under Loan N o. 150-IT. This portion of the earlier project consisted of the construction of a pol yethy- lene plant with an annual capacity of 5 1 000 tons and did not include a power plant. The cost of the revised project, including working capital and inter- est during construction, i s estimated at Lit . 13. 1 billion ($20.96 million) of which Lit . 5.9 billion ($9.44 milli on) wopld be financed from IBRD funds . The Bank has already financed Lit. 3.1 billion ($4 . 96 million) under Loan No. 150-IT. 'J.'he addi t::.on~l Lit. 2. 8 billion ($4 .48 millio. ::i) now requt:>ntod is needed to finance t he i .ncreas-3 in capacity of t h9 poly;it.bylene plant cllld th~ thermal-pow er plan-..; • .'\3CD is owned (9o% ) by Calci e Cementi di Segua , which i n turn is controlled by Bombi-ini•· Parodi- Delfino , a company with large interests in chemic als and plast ic r a11 materials. Descr~ ~on of the Proj~~ The original project consist ed of: (1) the construction of a plant for the pr0duction of special cem ents mac.e by reprocessing ordinary cement clinker; ::. !:, would result in no appreciable increase in the company I s total cement output; (2) the installation of two crude oil stripping towers opera- ting on Ragusa crude which would provide the raw materials to be used in the production of polyethylene as well as additional fuel for ABCD 1 s cement and asphalt plants ; each tower would have an annual throughput of 100,000 tons of crude oil; and (3) the erection of facilities for the production of 5,000 tons per year of polyethylene . The cost of the project was estimated at Lit. 6 . 6 billion including working capital and interest during construction . A rise int he cost of fuel oil from 7 . 5 to 10 lire per kg has im- paired the pr ospects of the or iginal project . The company has, therefore , proposed to double the capacity of the polyethylene plant and to construct a thermn- electric plant (10, 000 kw) to supply its own power. Even after the increase in its capacity to 10, 000 tons per annum, the proposed plant is the smallest size polyethylene plant now being built in Europe . Construc~ion of the power plant would enable the company to use by- product gases and to re- cover steam energy with back- pressure turbines . The cost of the electric power produced would be about Lit . 8 per kwh com pared with Lit. ll per kwh, the cost allowed for in estimates for the original project. The plant would produce polyethylene by the high pressure process . The main raw mat er ial would be crude oil from nearby fields, to be purchased under a long-term contr act with Gulf. - 2 - The Koppers pyrolysis process which the colllFany now plans to use will result in a much larger yield of light fractions from the crude oil pro- cessed than the Kellog process which it originally planned to use. The 220,000 tons of crude oil contracted for should thus be more than ample for requirements in spite of the planned increase in polyethylene production capacity. Present Status The special cement plant and the first oil stripping tower were com- pleted and put into operation in 1957. The polyethylene plant site, located in the same ar ea as the cement and asphalt plants , is now being cleared, and foun- dations have been star ted . Plant engineer ing studies have been completed, and agreements have been concluded with manufacturers (Badische , Koppers) for the use of patented processes . Most of the equipment for the second oil stripping tower and for the polyethylene and t~e thcr~mo- power plants has been ordered . About 400 million lire have beer. paid on these o:2ders, and payment commit m (act. ) {prel • ) III. ~11ance Sheet, as ot September JO) Fixed Assets: 1BRD Project {aee breakdown below) 505 1,060 4,749 9,556 ll,548 11,.548 11,548 other ~ ~ ~7 ~ ...J...31,,J_ ...2....3lt2 ~ ...2.,.Jl.7 Total Fixed Assets 2,286 2,852 J ,40'[;.; 7,096 ll,903 13,895 13,895 13,895 Lesa depreciation _m _.m _jQ_ --22l _m ~ ~ ~ Net Fixed Aaaeta 2,105 2,561 2,901 6,405 ll,027 12,8.34 11,949 10,769 Current Aaaeta 610 1,168 1,544 1,344 1,790 2,340 2,370 2,594 •Additional Aaaeta• - - -- __2QQ __J.f£l ~ ...LJ.ll ~ Total Aaaets i.aIU ~ ~i ~ ~ ~ ~ ~ Current Liabilities 374 490 35'~ 354 500 550 580 804 Share Capital 400 900 1,500 2,000 2,500 3,000 3,000 3,000 Shareholders' Advances ~5 517 56() 1,060 1,720 2,220 2,220 2,220 Surplus 278 382 55'7 1,278 1,999 2,720 3,920 5,520 IBRD - loan 150-IT 60() 1,050 2,600 J,100 2,867 2.,541 - Proposed 2nd loan 1,150 2,400 2,800 2,590 2, 295 Other debt - long-tera 1,098 1,440 87,~ 807 rJ6 660 579 492 - -'-iua-tera - -- --- _..2jQ ~ -2],J. -- -- Total Fquit>' and LiabilitiH 2,715 J,729 ~- --~ 7,949 13,217 15,774 15.756 16,872 l/ Co~ eatiJlatea adjusted upward by about~ tor thei years 1958-1962. ';/ Attar Lit. 297 million apeoial depreciation. J/ After Lit. J2J million special depreoiation. l,/ Including Lit. 85 llillion special d.-preoiation. ~ Assuming loan ot Lit. 5.9 billion at 6% tor 117eara hcluding J year grace period. Brfakdow •• IBRD {milli.on lire :f Ject Special cement plant Po~etb;ylene plant {includiI. i.g crude oil atrippiii.g plant) 8,732 Power plant 1,850 Interest during con11truct1011 ~ Totel ~ ANNEX 2 Page 1 ASFALTI BITUMI CEMENTI e DERIVATI November 29, 1957 International Bank for Reconstruction and Development 1818 H Street N.W. Washington, D.C. Gentlemen: (1) This will confirm certain understandings which have been reached during recent discussions between representatives of the International Bank for Reconstruction and Development (hereinafter referred to as the Bank) , the Cassa per Opere Straordinarie di Pubblico Interesse nell'Italia Meri- dionale (the Cassa), Istituto Regionale peril Finanziamento alle Industrie in Sicilia (IRFI S) and Asfalti Bitumi Cementi e Derivati (the Company). (2) On ,Tune 26 1 1956, we ~./I'ote you a l etter settint{ forth certain under - standings ~ f a loan to be made to us by IR.FIS out of the proc,'3ed.s -n re:::pcct o. of a loan proposed to be made by the Bank to the Cassa. (3) On April 11, 1957, we entered into an agreement ~ith IRFIS providir-g for such loan in the amou.~t of Lit. 3,1co,ooo, ooo repro8anting the amoun~ lent, by the Cassa to IRFIS out of the proceeds of a loan from the Bank t o the Cassa provided for in a loan agreement, dated October 11, 1956, between the Bank and the Cassa . (4) S:;..~ce the date of the agreement, dated April 11, 1957, between us and IRFIS, the project proposed to be financed by the loan provided for in said agreement has been revised and we have requested that the amount of the loan to us be increased by Lit. 2,800,000,000. (5) We have been informed that before such increase could be considered it would be necessary t o amend in certain respects the statements contained in said letter dated June 26, 1956. This letter is intended to set forth those modifications . (6) The project which we proposed should be financed by said loan, as so increased, is the construction and operation at Ragusa of a polyethylene plant with a capacity of 10,000 tons per year, a crude oil stripping plant with a capacity of 200,000 tons per year, a special cement plant with a capacity of 30, 000 tons per year, and a thermal electric plant with a generating capacity of 10,000 kw. The special cement plant and the first section of the oil stripping plant were completed and put into operation in 1957; the remaining facilities, representing the major part of the pro- ject, are scheduled to be completed by September 30, 1960. We have informed you that the proforma balance sheet of the Company, on completion of the project, would be as follows: ANNEX 2 Page 2 Fixed Assets Lit . 13,895,000,000 Share Capital Lit. 3, 000, 000, 000 less Depreciation 1,061, 000, 000 Surplus 2,720, 000 , 000 Net Fixed Assets 12,834, 000, 000 Shareholders' Advances 2,220, 000, 000 Net Current Assets 1,790, 000 , 000 mRD wans 5, 900, 000, 000 "Additional Assets" 600, 000,000 Other debt : long- term 660,000,000 Short- term 724, 000,000 Lit . 15, 224,000,000 Lit.15,224, 000, 000 It is understood that the amount shown as surplus and additional assets may be reduced by the amounts of dividends paid during the interim period subject to the restrictions of this letter . (7) The cost of the project should be considered as Lit. 12,348,000, 000 composed of Lit" 11, 5,~8, 000, 000 for additional fixed assets and Lit . 800, 000, 008 for additional net current asGets. In addition to the pro- ject, an amount of J,it. 754,000, 000 will be required to increase the net current a~s9ts pe"t"taining to the oth3r activities of the Company. (8) We have been informed that the Cassa would lend to IRFIS for the pur- poses of the inc1~ased l 9an to the Company amounts out of proceeds of loans provided for in loan agreements , dated June 1, 1955 and October 11, 195l, between the Bank and the Cassa. You have said that before you could awrove favora~le consideration by the Cassa or IR.FIS of the proposed loan you wculd require certain undertakings from the Company with respect to share capital, working capital and shareholders' advances. (9) 'I'he assurances and undertakings which you have requested, to be effec- tive while any part of the loan from IRFIS to the Company will be outstand- ing, are that valid aITangements will be made, under which : A. Elccept as the Bank, the Cassa and IRFIS shall otherwise agree , the share capital of the Company shall be at least Lit . 3,000,000, 000 paid in as required and shareholders • advances on completion of the project will total at least the difference between Lit. 5,220,000, 000 and paid in share capital; B. If the completion of the project or its successful operation is hindered or delayed or is threatened with hindrance or delay because the funds available are inadequate to ensure its completion and the provision of the necessary working capital, prompt arrange- ments shall be made in accordance with a financial plan approved by IR.FIS and the Cassa to provide the necessary funds as and when they are required; C. During the construction period the aggregate amount of borrowings maturing within one year or which could be called for payment within one year shall not at any one time exceed the amount of Lit. 800, 000, 000; ANNEX 2 ~ Page 3 D. Shareholders' advances already made and ariy new funds provided under subparagraphs A and Bin the form of shareholders ' advances: I. Shall not be withdraw ; II. Shall in all respects be subordinated to all debts of the Company; and III. Interest or any other remuneration shall be payable and paid thereon only out of net profits and only to the extent that dividends would be payable thereon if such shareholders ' advances had originally been paid in as share capital. E. The undersigned will not wi thout approval of the Cassa and IRFIS pay dividends or make any other payments to shareholders or adopt any policy if such payments or policy would result in or envisage at any time aft er the completion of the project : I. The ratio of current assets to current l iabilities 'cei!!g less than 2 :1 or II . l~e excYas of current assets over current liabilities being less than Lit . 1, 790,000, 000. (10) For the purpose of this letter "g_urrent assets." shall be considered as cash and assets readily convertible to cash and all other assets whi~h would, within one year in the ordinary course of the Company ' s business be converted. into cash or assets readily convertible into cash; and "current liabilities" shall be considered as liabilities due and payable and all other liabilities which would be payable or could be called for payment within one year. (ll) It is understood that the substance of the assurances and undertak- ings set forth above are to be incorporated in an amendment of the agreement, dated April 11, 1957, between JRFIS and the Compariy providing for the pro- posed increase in the loan presently provided for therein. (12) It is further understood, however, that the above assurances arid undertakings are to be effective and that the letter dated June 26, 1956 is to be deemed superseded hereby only when the agreement, dated April 11, 1957, between JRFIS and the Company shall be amended to provide for an increase from Lit. 3,100, 000, 000 to Lit . 5,900,000,000 in the amount of the loan therein provided for . Yours truJ.¥, ASFALTI BITlil.fi CENENTI e DERIVATI L1 Amministrator e delegate FOR M NO. 59 ( 2. 55) CROSS REFERENCE SHEET COMMUN! CATION: Memorandum DAT ED: March 5, 1958 TO: Mr. S . R . Cope FROM: Murr~ Ross FILED UNDER: Italy - Loan 150 SUMMARY: Regarding increase for A. B. C.D. project from unallocated funds of Loan 117 and 150IT o ~117 C 0 p y March 5, 19.58. Prof . Gabriele Pescatore President Cassa per 11 Mezzogiorno Piazza de1 Congreasi N. 20 ROlD8 , Italy Dear Prof. Pescatore: Re: End- uso Supervision of Industrial Projects Du!-ing your recent visit to ~ashington, we discussed with you and your associates the question of supervision of the indus- trial projects covered by the new loan and the previous Bank loans to the Cassa. You were kind enou1.,.1 to explain the progress made by the Cassa in setting up a comprehensive system of end- use supervision along the lines discussed with Mr . Svoboda during his visit to Rome last autumn. 18 were particularly gratified to learn about the close cooperation between the Cassa and the regional institutes 1n this matter and the interest taken, and assistance rendered by the Cassa to the institutes in making their follow- up on the projects most effective . Needless to say the Ban.le always stands ready to support and assist you in these efforts, and ,,e will be pleased to have Mr . SVoboda, on the occasion of his next visit to Europe stop over in Rome to reviow the work done so far and to discuss any further pro- blems. ~e have also reviewed the revised forms of progress reports to the Bank, enclosed in your letter dated January 28 . to are glad to confirm that these forms in general are satisfactory for our purpose . In addition to the statements suggested in your letter, we would appreciate it if, in cases where the project is part of a going concern, the borrower would submit brief statements, say in half- yearly intervals, describing important developments in the company' s operations and financial position. As you know, the value of the progress reports li.es mainly ill their comprehensive presentation and early submission to the Bank, and vie would like to commend you on the thorough screening of and follow-up on the latest reports and their prompt dispatch to the Bank . - 2 - The present reporting arrangements mainly refer to the construc- tion period of the projects . Naturally after completion of a project the Bank remains interested in its further progress, in particular during the initial operating period. Since in the course of this year several more projects will enter their operating stage, we sug- gest the following reporting procedures to be adopted in respect to such projects . On completion of each project, the borrower should prepare a final construction report, giving a brief technical des- cription of the project as finally completed, and indicating any major changes from the original plans. A statement of actual con- struction cost of the project as compared to original estimates should also be included. Henceforth, we would expect to receive quarterly reports on the technical performance of the project, its current rate of pro- duction, operating costs and sales, as well as on important develop- ments in the company' s overall operations and finances . After the project has attained its normal production stage, it would be suf- ficient to submit summary r eports on operations together with finan- cial statements, over yearly periods . Normally, such information can be found in the companies' Annual Reports . For your convenience, enclosed is a checklist of progress reports which we would like to receive, covering both the construction and operating period. Your conunents on this list are invited. lis you are aware, the industrial sector covered by the Bank loans involves a variety of projects which by their very nature require somewhat more elaborate methods of end- use supervision . We believe that a good start has been made in wor king out a system, whereby the Cassa and the institutes would gradually assume in- creased responsibilities for most of the detailed end-use work on the projects, leaving the Bank mainl y the task of an overall fol- low- up on their progress . We very much appreciate your continued cooperation in this natter . With best regards , Yours sincerely, W. J. Armstrong Assistant Chief, Industry Division Department of Technical Operations Encl . L.M. Svoboda:ejw Cleared with and cc . to llr . Wheelock CASSA PER IL UEZZOOIORNO LOANS 50IT, 117IT~l50IT , & 189~T IBRD REPORTING RE4UIRhMENTS ON I NDlJSTRlAL PROJECTS 1. Construction stage: A. Technical Report - Quarterly (1) Construction Schedule (2) Equipment Schedule (J) Commentary Notes B. Financial Report - Quarterly (1) Status of Project Funds ( 2) Sources and Application of Fum.ds (J) Commentary Notes C. Operational Report ( if applicable) - Ha.lf Yearly 11. Operating Stage : A. Annual Report (1) Progress on Operation of ProjE1ct (2) Summary of Company Oper ations (J) Bal ance Sheet am Profit and l:.Oes Statement FORM No. 59 ( 2. 55) CROSS REFERENCE SHEET DATED: March S, 19,S TO: Mr. R. ~ and Loan Accountant. FROM: W. C. P.Rutland FILED UNDER: Itaq - Loan 189 v SUMMARY: Rft1aiC1D ot Aaort.1.saticn Scbednl.ea ot Loans SOIT, 881T, 1171!, l.SOlT and 1891T. FORM No. 59 ( 2- 55) CROSS REFERENCE SHEET COMMUNICATION: Letter DAT ED: March SI l.9S8 TO: Professor Oabriel.e Pe9C&tore, Preaidlllt, Cua peril Meszog1.rcno, Rcae. FROM: W. J. Anstrcag F1LED UNDER: I ~ - Loan 189 SUMMARY: End-Uae superw1a1on of induatri.al projects. • Mlrob 3, 1958 ,-,..,a.. ~ I\aly • Loam 88, 11'1. 1'0 , ...uaa hok pla• oa Yndq, ,..._., 21th Mt.we~ &Id 71JO p. a. a\ vb1eh the tollwJ.Qs pen... 11114 Mr. cl• Pa1M on t • IteltaD • were•••• Frar...or P•oator•• Mr. Gel o aDl NN1n. Clark, ~oo\t. Ulll IN• t .. th• . . . be tollowtnc ln\a were 41eOUNec11 (l) Lou 88 - ~ Apl ProJiN'\. lTot...w Peloatore add. t.ba\ clur.b& ta.. -~ r....-. T181\ ot Nllllan. rtw ml Katen te Ital¥ 111 ~ i o n vi\b __,aaUae of tbe ,.,_ proJ-.e for the DW lOAn, tir. l'lnne ..... 11,Yea MIi lrd'OIIIIIUea oa a ,fftac '&rl oJNt.. flda btoraatlon ~ • • ltnh U. teelutloal a l ti-eta] ~ · ot. \he proJ1MI\. fh• alN1ce hall oa1aed to e\\l!y th•• MW •t.erlala and aotU, Frot••or --,.or• ~ the Bank wul.4 apprne Ille r-S.•ed qr1 Jen aa \he buts ot utlUalrlg t\mlla lNII Leu 88. He vu vc.mderJ.ac vtaet.bw t.be Bau W • 7"' reuhed a 4NS.a1oa in ti.la •t.ter. I told or....- Pailoatore tlla-t ve haft Na ao \lu7 vl\la •tt.era reht.1111 \o t.11.t&iMW lout.ha\ w ba'ft 1'o\ bad• opponwd.\7 k ...._a.._ ,-1,1oa on U:ae Acri *t\ff. Bou- ..,_., DOit 'that, th1' nev lou bu Ne as.pea we VMl14 MN4 '° .,..14.,. tile N\wlala nlllll\ted wit.It r ar4 to rffialon11 ot the AO"l ProJMt, ad. vau.14 PUty hill u \o _. cleeulon 1n the neiar t\l:btN. (a) l'l'.lere U at ~ P1'•-' U.. U ..U«.a\4d aaoUft\ eq,d.Yalet \O IS.IS ldlllOD in 1.-- 11? ULI 1'(). fteile f\lllU • • W \aall.ooat-4 .. • ....w.t ot ti. .....u.,1. ot \be 1eu1uet,o Illhltrlal ProJ.- 1.n Lo.a 117 1..-dnl • . . - t of' $2. 4 ldllioe ..S the oaMel 1atloa of the tell.._ t,..,. lnlulvlal ,-.oJ la 1.-a uo, Ob11d• del. tlaTea\o wt.\h $2. '6 Jd.ll1on a.a tet.raria cU. Lt.ts. v1tb '61.o,ooo. ID .U.tlcm, ta,0,000 are afttl•bl• troll uae ..,,..,1at1on or t. t.ebllJoal ....1... nat.rao\ 1n lAMn 1,0. fo rN11Pi"'1at., the &IIO\lllta &T&Uabl• in are • follow, · th•• ive 1. . . •auam Wu 1.s £..a lo. 1,0..:ff I Gwd.oa el irl'ao ftlthria 41 Lat.SM feoblO&l. .n1.- 1,Mt Mr. "1.ook Mr. Clark/ Mr. Scott. Mr. Flm:Mt Mr • .lnl&trong FORM No. . 209 INTERNATIONAL BANK FOR ( 1. 58) RECONSTRUCTION AND DEVELOPMENT . INCOMING MAIL ROUTING SLIP Ddt~ 1..'1 Mr. Black 102ij Office Service:s 203 Mr. Broches 1113 Mr. Perry 620 Mr. Cargi 11 500 Personne l Div. A521 Mr. Clark 1113 Mr. Poore 1107 Mr. Consolo 521 Mr. Reamy A321 Mr: Cope ij03 ltesearch Fi Jes I 12ij Mr. Demuth ij2 I Mr. Riley 1126 Mr. Doucet 1009 Mr. Rist Aijl7 E. D. I. Mr. Rosen 500 Mr. Goor Aijl3 Mr. Rucinski 620 Mr. Hamilton 1103 Mr. Schmidt 521 - , . Howel 1 1107 Mr. Sommers 1003 Mr. 11 iff 1003 Techn i ca 1 Op. 308 Mr. Johnston A318 Translation 1106 Mr. Knapp l02ij Travel & Trans. 1109 Mr. Mend~! s 1009 Mr. Worthingtc>n A316 ,._ • ,. Mr. Muri ck 1121 - - ' ., ' ~ - & ... Office of Info. 221 ~n1, ;t"j ,:. i ~i D, d{)~ Remarks: . Fr,. ....._ . General Fi Jes & Correspondence Section INDUIIZZO T aLaCIAA .. ICO t CA.eM•z. flOMA CASSA PER OPERE STRAORDINARIE DI PUBBLICO INTERESSE NELL' ITALIA MERIDIONALE (CASSA PER IL MEZZOGIORNO) TR.AJ."'fSLATI ON Prol. N ............................ Posiz ..O.l.Jr:J.'/B. ~I as ROMA .... Allegati.............. Risposta a......................................................... . ~ IAZZA DEi CONGR ES91 N, ao (EUR) Tl!L. 877a del............................................... N ..................... OGGETTO : ................................................... ················· ..H·························· ... i Internation~l Bank for Reconstruction and Development 1818 H Street, NoW . vlashington 25 , D. C. .. 0 Gentlemen : c ~ 0 ~ • Subject : Third IBRD Loan ho . 117-IT - Po\ver Projects 0 ] Ul~ JS Supplementary Agreement C ::, :! l! .! We refer to our letter 51169 of Janu'""ry 3, 1958, with c 0 which we have asked the Bavk to be authorized to stipulAte and 0 execute with the U H~S the appronriate supplementary agreement in amend~ent of the Cassa- UNBS LoRn contract of July 21, 1Y~5 . 7e beg to inform the Bank , in t~i9 conn°ction , th~t , pending said authorizqtion, all sporopriate steJs prelininary to the stipulation have .,lready been taken . ,e rem~i, therefore waitinJ for a kind approval of Bank, in order to ~tipulate and execute speedily the supplement ary agreement , wh.ch, to 5 ether with the pertinent written leg.,l opinion, will be readily submitted to the Bank. With best regards . Sincerely yours , THE p-q_ESID~NT Isl AMOJII • S.M.A:) r 0::tl .. AfH)a~aT OSSIRtQMt 3aa3R3T"11 OOIJaauq IC 31RA"11CROARTa 3R3qO R3q AaaAO 3JA"101CIR3M AIJATI 'JJ 3"1 ( 0 "1AOIE>OSS3M .JI R3q AeaA:::>) ITAiicl1AffT .v1 .10,ci .AMOR ..logsllA .o olwqaiH ( A U3) 0£ ·""' tae !IR.>MOO l30 .4 SS:Al Inc.ff e.ri;t b'9':>feo e ven sw rfo.i:rfw ',' "' 0 9'1'88 'l'If'.t~emo ! qqIJa ej"f'.i:·10.o'lc_:q.s erl-:t E~vIU erl.t rlt .i:r1 e-:t"osxe ... • 1:o I> t tSi 'll"t 'Io .t'0£ 'Ii1°fi00- nnoJ f~,}IU- sec~O erl.t tnembaems a.i: .. ~ ~ ;_ , j" · r!;t , aoJ:j~ ",aaoo c:.tJ!;t rt.i: , :>Iasff erl;t 90 9 .;;: IO 1(;'1Crt.t1 · rls'lq a, s.t'e e.t's.i:'lqO'ICl.(!S Ll t no.i:.tn~.i:'lorl.t"s b.i:sa Ba.i:nneq ! I> • ae1:s;:t need' "l 'lln evnrl ao.i:.tel "q.i:;te erl.t o.t N ~o irvc'lq son.tin '101 ~al ls~ q'lo?e'lsrlJ qlrme'l e .t 0lqque 9jt 'lllbesqr ~ ta~ s.tsi"q.i:.te o.t '19b'lo al , xnsff ·- .... I l nattl~~ .taea.tt'leq j·er,.o.r , rlo.i:.dw , tneruse'lBS "l'lS ~ . ~asff e d"e ~lLbPe~ ecf li.i:w , no.i:n.i:qo "' -~ ' ... ' , i:r 0 § . ~b'l~TI9~ .teed dt.i: .. !:? .. .. ~ t r·,'l.t;O'l "'(;le'Teon.i:8 ~ {-:r:t:, ... .,. m I2,.'Fq : PT -.Jii./ ''/iv 0 • t 9$ U/ s I~?,.,. \ Pc IJ.:tJ ;,9 -,.,,t --...,.-r, L' Of!,11·, I .. y "' 1;):;lJ fNOIRIZZO TE.LEQRA.f"&CO CASMEZ •ROMA J CASSA PER OPERE STRAORDI NARIE DI PUBBLICO INTERESSE / NELL' ITALIA MERIDIONALE ( C A S S A P E R I L M E Z Z I:) G I O R N O ) I 9, ,., r 1· 1 20 FEB. 1958 Prol. N, 5A / !_i v '± a· -·····················---------- Posiz. LV/ ·------------- PER VIA .A.EREA -• I RO M A _······· ·······························- Allegoll ___ ······················- PIAZZA CEI CONQRESSI N. 20 (EUR) T~L. 8291 Risposta a ...................................................• del........................................ _ N. ................... S:pett. B 1AZI0N ANCA INTER1 ALE PER LA oGGETTo, III 0 Prestito BI:as n.117/IT- RICOSTRUZIONE E LO SVILUPPO Atto aggiuntivo UNES - 1818 H Street ASHIN W GTON 25 D.C. Si fa seguito alla nota n. 5/169 del 3 gennaio U · S · con la quale questa "Cassa" richiedeva l ' autorizza- 0 c ., zione di codesta Banca alla stipula dell 'atto aggiuntivo E 0 a al contratto di mutuo Cassa/UN~S 21/7/1955, per la varia- 0 0 zione di alcuni termini del contratto stesso. ] C :, In merito si inform a che, i n attesa della auto- ~ .!! rizzazione suddetta, si e provveduto ai vari adempimenti 1! c preliminari alla stipula dell ' atto in questione . a 0 Pertanto , non appena codesto Ente avra dato il proprio benestare, potra. procedersi alla firma dell ' atto aggiunt i vo che, muni to d.el prescri tto parere di conformi- ta del Consulente legale della "Cassa", verra poi trasmes- so a codes ta Banca • .,; 0 :. .. ,. To: Files January 17, 1958 From: Walter J. Armstrong Subject: Italy - loAns Nos , lJ..7-T,T and 150-lT During the past year, thr ee industrial projects as well as a Technical Services contract accepted for financing under Loans Nos.117 and 150-IT have been cancelled at the r equest of the Cassa. The projects and the amounts involved are: $ Million Billion Lire F.guivalent loan No . ll?-IT: Siculazoto Loan No . 150- IT : Chimica del Tirreno 1. 6 2.56 Vetreria di Latina 0.4 o.64 Technical Services 0,156 0,22 Total Available T~e Siculazoto project w as cancelled at the request of the Compel\>' after completion of the loan contract between the Company and Isveimer . The reason given was that r aw material s were not available in the quantity or quality desired, although i n the Bank ' s opinion an alternative ra·.,r material could have been used . The Chimica del Tirreno and Vetr eria di Latina pro- jects were cancelled because of the inability of the companies and Isveimer to agree on security provisions. The Cassa now proposes to finance an amended project for the ABCD company in the amount of Lit. 2.8 billion out of the funds remaining from Loans Nos . 117 and 150-IT. The appraisal of this project follows. To Files - 2 - January 17, 1958 A.B .c J) I Borrower The prospective borrower is Asfalti Bitumi Cementi e Derivati, S.p.A. (A.B.C .D.) a company now producing cement, asphalt and fuel oil (for internal use at their .y lant) at Ragusa, Sicily . The company plans to erect a polyethylene plant with an annual capacity of 10,000 tons per year and a 10,000 kw thern:al-power plant. The project is a revision of a portion of an earlier project which received Bank ti.Dancing under loan No. 150-IT. This portion of the earlier project consisted of the construction of a polyethy- lene plant with an annual capacity of 5,000 tons and did not include a power plant. The cost of the revised project, including working capital and inter- est during construction, is estimated at Lit. 13.1 billion ($20.96 million) of which Lit. 5.9 billion ($9.M, million) 'WOl:.\lllt sho\m as surplus and additional assets may be reduced by the amounts of dividends paid during the interim period subject to the restrictions of this letter. (7) The cost of the project should be considered as Lit. 12,348,000,000 composed of Lit. ll,548,000,000 for additional fixed assets and Lit. 800,000,000 for addit::.ona.l net current assets. In addition to the pro- ject, an amount of Lit. 754,000,000 will be required to increase the net current assets pertaining to the other activities of the Company. (8) We have been informed that the Cassa would lend to IRFIS for the pl,r- poses or the increased ~oa.n to the Company amounts out of proceeds of loc.Ls provided for in loan a~G sments, dated June 1, 1955 am October 11., 1956:, between the Bank and the Cassa. You have said that before you could aw:-o"'·e favorable consideration by the Cassa or IR.FIS of the proposed loan you wo,·i.u require certain undertakings from the Compiey with respect to share capital, working capital and shareholders' advances. (9) The assurances am lmdertakings which you have requested, to be effec- tive while any part of the loan from IRFIS to the Company will be outstand- ing, are that valid arrangements will be made, under which: A. Elccept as the Eank, the Cassa and IRFIS shall otherwise agree, the share capital of the Company shall be at least Lit. 3,000,000,000 paid in as required and shareholders' advances on completion of the project will total at least the difference between Lit. 5,220,000,000 and paid in share capital; B. It the completion of the project or its successful operation is hindered or delayed or is threatened with hindrance or delay because the funds available are inadequate to ensure its completion and the provision of the necessary working capital, prompt arrange- ments shall be made in accordance with a financial plan approved by IRFIS aDd the Cassa to provide the necessary funds as and when they are required; C. During the construction period the aggregate amount of borrowings maturing within one year or which could be called for payment within one year shall not at any one time exceed the amount of Lit.800,000,000; ANNEX 2 Page 3 D. Shareholders I advaACea already made ~ld a,q new funds provided under subparagraphs A and B in the form of ahareholders' advances : I, Shall not be withirawnJ II. Shall in all respects be subc> rdinated to all debts or the Company; and III. Interest or any other remune?'ation shall be payable and paid thereon only· out of net profits and only to the extent that d.i v14en1s would be payable thereon if such shareholders' advances had original]¥ been paid in as share capital. E. The undersigned will not without approval of the Cassa and mFIS pay dividends or make any other payments to shareholders or adopt s:n:y policy if such ~ n t s or policy •would result in or envisage at any time after the completion of tb,e project: I. The r atio of current assets t<> current l iabilities being less than 2:1 or II . The excess of current assets over cUITent liabilitics being less t han Lit~ 1,790,000, 000. (10) For t he purpose of this letter "£YD:ent assets" shall be consideroo as cash and assets r eadily convertible to c~ash and all other assets which would, within one year i n the ordi nary course of the Compe.ll1' 1 S business b '3 converted into cash or assets readily conve,rtible into cash; and 11 cµn:ent liabilities" shall be considered as liabili.t ies due and payable and all other liabilities which would be payable or· could be called for payment within one year. (ll) It is understood that the substance of the assurances and undertak- ings set forth above are to be incorporated in an amendment of the agreement, dated April 11, 1957, between 1RFIS and the Company providing for the pro- posed increase i n the loan presently provid,ed for therein. (12) It is further understood, however, tlaat the above assurances and undertakings are t o be effective and that t he letter dated J\ll'le 26, 1956 is to be deemed superseded hereby only when the agreement, dated April ll, 1957, between mFIS and the Company shall b4:t amended to provide for an increase from Lit. 3,100, 000,0CX) to Lit. 5,900, 000, 000 in the aiootmt ot the l oan therein provided for. Yours truJ.y-, ASFALTI BITffi~CI CD.iENTI e DERIVATI L1 Amrn1nistratore delegato ~4-~ 1,7 Janua1710, 1958 Mr. Gabriele Pescatore President caasa per Opere Straordinarie di Pubblico Intereaae Nell'Italia Meridionale Piasa dei Congreasi No. 20 Rome, ItaJ.7 Dear President Pescatore, I have checked against their drnf'ts the seven signed letters on the industrial projects which you sent with your. letter of December 13, 1957 and find them all 1n order. We a.re p r e ~a draft of changes to be made 1n Loan Agreements 117 and 150-IT to acoomdate the A.B.c.D. Project and v1ll send you copies as soon aa drafts are prepared. All your f'r:1.enda here Join me in vishing you a baJ>W new year. Sincerely yours, Hugh Scott Attomq HScott,n Fo .,MNo. 209 INTERNATIONAL BANK FOR (6- 57) RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE CORPORATION , INCOMING MAIL Date ROUTING Sll P JAN7 19:a Mr. Beevor 1013 Office Services 203 Mr. Black 102~ Mr, Perry 620 Mr. Broches 1113 Personnel Div. A521 Mr. Cargi 11 500 Mr. Poore A318 Mr. Consolo 521 Mr. Reamy A321 Mr, Cope ~03 Research Files 112q Mr. Demuth ~21 Mr. Riley 1126 Mr. Doucet 1009 Mr, Rist Aq17 E. D, I, Mr , Rosen 500 Mr, Garner 1013 Mr. Rucinski 620 - ·~ Goor Aq13 Mr. Schmidt 521 ... . Hami 1 ton 1103 Mr• Sommers. 1003 Mr. Howel 1 1107 Techn i ca 1 Op, 308 Mr. 11 i ff 1003 Translation 1106 Mr. Johnston A318 Travel & Trans. II 0,9 Mr. Knapp 102q Mr, Woolley 1007 Mr, Mendels 1009 Mr. Worth i~ton A316 Office of Info. 221 ,.,,.. ~ 1A~ 1/ 1.-J V Remarks: Froi,,• Genera 1 Fi 1es & Correspondence Section ._ I N Ol .. t ZZO T ELllG"AIWtCO : CAeM.__ • ..,M CASSA PER OPERE STRAORDINARIE DI PUBBLICO INTERESSE NELL ' ITALIA MERIDIONALE ( CASSA PER IL MEZZO G IORNO ) TRANSLATION Prot. N. ... .... . ...... Pos,z. CIFT/ RE/mg GEN.. 1951 .- - - Allegoti ROMA .... .......... . . .. . .. . .. . . .. . . .. ~IAZZA DEi CON C RKSSI N. 20 CEURJ TaL. 529 1 R,sposto a del N. O GGETTO : International Bank for Reconstruction and Development 18 18 H Street , N. r. Washington 25, D. C. Gentlemen: 0 Subject : Third IBRD Loan No . 117- IT - Power Projects : c UNES Company • E 0 ~ L 0 0 V ] W e refer to our letter 5/17119 of November 29 , 1957 with C ::, which we have made known to the Bank the f orecast of postponing to :! !! September 30, 1959 the deadline of work completion for the UNES l C project , financed out of the pre ceeds of Loan 117- IT, to the end of QI 0 ~ obtaining the related formal extension. • Q. Further to such letter , we point out here that it is also necessary as a consequence to extend the deadl ine set forth in the • loan contract as closing date for disbursements (Dec . 31 , 1957) , and "' • 0.. the date for starting amortization (Jan . 1, 1958, with t he first ;;; instalment becoming due and payable on June 30, 1958) . It will be also necessary to postpone , for the same project , the closing date set forth in the Loan Agreement 117- IT at June 30 , 1958. The above requirements are illustrated by the following financial situation of the UNES project : - Total project cost : Lit . 9 , 200 million ; - Expenditure made before December 3 1, 1954 and excluded from .. 0 financing : Lit . 2, 392 million ; • 0 ~ Project cost eligible for financing : Lit . 6, 808 million ; CASSA Pl!:R IL MEZZOGIORNO Foglio n. 2. ... - Amount of the loan: Lit . 5, 625 million ; - Disbursements made through December 31 , 1957 to match an equal expenditure made (100%) : Lit . 4/117 million; - Expenditure still to be made within Sep . 30, 1959 : Lit . 2, 668 million; - Disbursements to be made to match an equal expenditure to be made (100%) : Lit . 1, 508 milli on; - Expenditure to be made out of Company ' s own resources : Lit . 1,160 milli on ; - Compl etion of disbursements: June 30 , 1959; - Startin g date of amortization: July 1, 1959; - Maturity da te upon which the first amortization instal ment wil l become due and payable: Dec . 31 1959 . ' Naturally , the new amortizati on schedule to be attached to the supplementary agreement amending the original loan contract shall envisa ge the same closing date for loan amortization , i . e . the amortiza tion period will be short er and the number of semi-annual instalments - will drop from 35 to 32. We remain waiting for a kind approval of the Bank on the aforegoing, before arranging with UNES the stipula ti on and execution of the appropriate supplementary agreement in amendment of the l oan contract . With best regards . Sincerely yours , THE PRESIDENT /s/ Pescatore .Mr/ 7 g . •. 58 AM l£158 :E,68CS+OL6 ... l LLHE ::5BE2IDEI1iL 8:fl.JCGLGJA ,loJTI.a l COU+LSC.{! • Ot +P6 ODDLODL::rG+G 8NDDJGID6D+8LA S~66IDGU+ ru SIDGI7qIDGU.{! Ot +PG JOSI7 StOLS€O:f1J€> PGtOLG 8LL9ll'€::ru€ Mf+P' nMEa +PG a~::rh.ITJ8+JOI7 gug exscrr+::rou M, 6 LGIDS :ru M8 =!° .~:p;€ t OL 9 J{:p1g S :Ol>I.OASJ Ot +P6 B91JJ{ OlJ +JJ'6 M=!"JJ LOID 3~ +O JS • +rou ~"Tog MfJT pG apoL+GL eug +VG u.r.rmpGL ot asm::r- auurrar tIJa+SJmGU+a GDAtB 6 +PG aems CJ08tll€ gs.{!G tOL JOSU SIDOL+!~S+tOU> ::r • e • +PG SIDOL+::r~s +PG srrhl>J6W6I7.{!8LA s€L6Gl GD+ ameugru€ +JJ'G oLr~::rusr JOSI] COU.{!LSC.{! apSJJ ll8+fi'L8JJA J +PO UGM SIDOL+::r~s+rou acpsgNJG .{!Ope S++Scpsg +O pGCOIDG gNG SDg DSASpJG! nsc • 3J • Ja2a • - WS+J!I.J+A gs.{!6 rrhou ~p~cp +PO t!L8.(! SIDOL.{!J~a+rou :fl.J8~$JIDGI7.{! MiJJ - 8+8L.{!!U€ gS.{!6 Ot SIDOL+::r~a+::rou: 1NJA J > Ja~a! - QOWDJG+::rou Ot gJapNL8GIDGU+8: ~NUG ]O > Ja~a! m::rrr::ro1J ~ - EXl>Gug::r.{!NLG +O pG JDS'gG ON+ Ot QOIDDSUA 1 8 OWJ LGBOJ'l'LCG8: r::r+ • J>JeO (JOO~): r::r+ · J J208 mrrr::rou~ - n::reprrL9GIDGI7+B +Ops IJJSgG .{!O IDO+CP SU C T sxheuq::r+NLG +O PG msgG - EXDGuq::r~LG a+rrr +0 pe maqe A-q.f!p::ru a~t • }Ol Ja~a: r::r+ · s•eeg mtrr::rou: sxbGug::r+Jll.,6 mgge (JO~): rr~ · t ) JJ~ mrJJ~~u! - D!9prrL86 GU~a mags +PLOJ!€p DGCGIDpGL JJ ) Ja~} ~o IDS'~Cp SD GOIT8J - VIDOJ'flJ~ Ot +PG JOSD : r~~· ~ ~ €S~ mrJJrou! 1:oa110 u· s INDUltZZO TaLaCIRA~ICO I CA•M az - flOMA CASSA PER OPERE STRAORDINARIE DI PUBBLICO INTERESSE NELL' ITALIA MERIDIONALE (CASSA PER IL MEZZOGIORNO ) Prot. N ...t ... s!1. . . . . . .1 .. 6 9 Posiz.0.IF.T/R~/ dpr P:R VIA AEREA I~ - - Allegeli......... ....... . :- J GEN. TS5a ROMA ! ..... . . . . .... .... . ......... ... ..... .. Risposte 0 .. .............. .... ....... .... ....... .. .. ........ ... PIAZZ A D IU CONOAES81 N . 2 0 (!EUR) del............................................... N ......... ......... TEL,. 8779 OGGETTO, .. JJl~... f.:r.e$.t.i..to BIRS .1.17 /Ir - Progetti elettrici - .............................S.-.p.-.A.• .ffi;~s •... Spett. Banca Internazionale ner la Ricostruzione e lo Svilupno I8I8 H Street WASHINGTON 25 De ~ " i 0 :ra r1Ier 1ruento au.a 1.e ttera n. 011·111~ 1.n ua t,a G~ novem ore iSl .. fl u.s ., con cui si segnalava - agli effetti della relativa proroga formale- . 0 0 la previsione di postergazione al 30/9/I959 del termine d'i ultimazione " :, dei lavori peril progetto UliuS, finanziato da fondi del Presti to I17/IT. Sciogliendo la riserva fatta con la lettera stessa, si comunica con la pre sen te la n1cessi ta di prorogare di conseguenza anc:1e il termine previsto dal contratto di mutuo per la chiusura delle erogazioni (3I/I2/57) e per l ' inizio del relativo ammortamento (I/I/58 con scadenza della prima rata al 30/6/I958) . Correla ti vamente accorrera, per il -progetto in questio-- ne, prorogare anche il termine generale per la chiusura delle erogazioni, previsto dall ' accordo di Prestito 117/IT al 30/6/I958 . La necess ita di cui sonra consegue dall ' esame della seguente si- tuazione finanziaria del progetto : - Costo totale del pro getto : L. 90200 milioni § Spese anteriori al 31/12/1954 non finanziabili: L. 2.392 milioni '2 Costo finanziabile del pro getto : L. 6 .808 milioni 0 § Am.montare del mutuo concesso: L. 5.625 milioni <.:? ~rogazioni effettuate al 3I/I2/I957 a fronte di pari spesa (I00%) .. 0 ~ 0 effettuatQ: L. 4 . II7 milioni !:? ..., Sp9sa ancora da effettuare entro il 30/9/I959: L. 2 .668 mil i oni ,; 0 - Ero gazioni da farsi a fronte di pari spesa (100%) da effettuare : Lire l ~ L. 1. 508 :nil ioni - Spcsa da effettuarsi a carico aziendale : L. 1 .160 milioni • ./ . CASSA PER IL MEZZOGIORNO Foglio n . .............2.). ......... • - Ul timazione delle erogazioni : 30/6/IS:59 - Inizio dell ' am.mortamento : 1/7/I959 - Scadenza della prima rata di ammortamento: 3I/I2/I959. Uaturalmente, nella nuova tabella di am.mortamento da al- legarsi all ' atto aggiuntivo di modifica permarra Lnmutata la data finale di scadenza del mutuo, riducendosi la durata di ammortamento ed il relativo numero di rate semestrali ( da 35 a 32) . Su qu:,..nto sopra si resta in attesa della prescritta auto- ri zzazione di codes ta Banca per poter provvedere nei confron ti della Soc. UlL.;S alla stipula del relati vo atto aggiun ti vo di modifica . Distinti saluti. .. Cl E 0 Q, ;.:: 1' 0 !