I wish to inform the House that the International Bank for Reconstruction and Development—the World Bank— has sanctioned a loan of $14½ million to the Electricity Supply Board. The loan is repayable over a period of 25 years and interest is payable at 6½ per cent per annum. Payment of the interest and repayment of the principal will be guaranteed by me as Minister for Finance under powers given by the Electricity (Supply) Acts.
The proceeds of the loan will be used to finance part of the cost of the ESB's new pumped storage scheme at Turlough Hill, County Wicklow: It is expected to meet about half the cost of the project. This is one of four new generating stations at present being undertaken by the ESB. The Board has a very heavy investment programme because of the continuing growth in the demand for electricity arising from our economic development. The growth in demand here is higher than in most other European countries and indicates the progress we are making.
The decision of the World Bank to invest in Ireland and in our industrial future is welcome, particularly at a time when our expanding programme of capital investment is tending to exceed the capital available to us from traditional sources. It is a gesture of confidence by this major international investment institution in our industrial future and in the competence and efficiency of our electricity authority.
I am happy to take this opportunity of expressing my thanks to the Bank and its illustrious President.
