§ Lord Aveburyasked Her Majesty's Government:
Whether any request has been made by Sierra Rutile to the World Bank for a loan; for how much and for what purposes; how the UK director has voted or will vote on the project; and what conditions of transparency and corruption-proofing the Bank will demand or has demanded. [HL2393]
§ Lord WhittySierra Rutile Limited (SRL) first approached the World Bank's International Finance Corporation (IFC) in January 1990 for project support. In April 1992, the IFC board, including the UK, considered a request for an investment loan in support of a US$71 million programme of rehabilitation of existing plant and infrastructure at SRL's mine in Sierra Leone and the development of new deposits. IFC's original loan commitment was US$15 million; other co-financiers are the Commonwealth Development Corporation, the US Overseas Private Investment Corporation and the German Investment and Development Corporation. The IFC board unanimously approved the investment; normal IFC loan conditions were applied.
The project was partially completed in 1995 when rebel action in Sierra Leone halted its development. Attempts were made to restart the project in 1996, but action was stopped in 1997 as a result of a further deterioration in the local security situation. In May 1998, the senior lenders including IFC and the project sponsors reached agreement on the settlement of SRL's debt repayment obligations. The project is on hold due to the current security situation in Sierra Leone.