Nigerian Engineering Works (NEW), a metalworking company based near Lagos, will begin making auto wheels and other metal car parts with the help of a loan of about $11 million from the International Finance Corp.
IFC, an affiliate of the World Bank, provides equity financing and long-term loans without government guarantees to private enterprises in developing countries.
NEW has been manufacturing fans, metal furniture, air conditioners and other metal products since 1971. Its major shareholders are the Biria Brothers of India, the government and the Nigerian Industrial Development Bank. NEW will supply parts to three car assembly plants: Peugeot Automobiles of Nigeria, the largest passenger car assembly plant in the country; Societe Commercial of West Africa, which makes light commercial vehicles; and Volkswagen of Lagos.
By 1990, NEW will supply 100 percent of the wheel requirements of the plants. The automotive division of Dunlop Ltd. of the Britain will provide technical assistance for the project.
In addition to the IFC loan, local banks will provide $1.2 million in loans, and the company will contribute the equivalent of $2.5 million from internally generated funds.
The International Monetary Fund (IMF) approved a $48 million loan to assist Ecuador in meeting its foreign exchange needs following the earthquakes that struck in March.
The earthquakes caused landslides and mudslides that buried towns, destroyed bridges and ruptured a 30-mile stretch of the main oil pipeline. At least 1,000 people were killed and 30,000 left homeless or jobless in an area that stretches from the Colombian border to Riobamba, 95 miles south of Quito.
President Leon Febres Cordero estimated that Ecuador stands to lose $600 million in revenue, about one-third of the national budget, as a result of the damage to the country's only pipeline