A/V  ..S- 1/'-cL/7'/j
Doumnt of
The World Bank
FOR O.MJCLAL UE ONLY
N,, -pTCFFTCIXiE %l<PYl
!.e3i:o,rt NoJ :E-- 5R OCHA    Tyr>-: fFM)
T:.1e~:  :'TIAtN IIN INM[!;'TIPlAL Dl;VE IV1'M1T,NT
Avithc,:r: %.. KHAN                                                  Rpt No. P-5898-C
Ext.         Nc44<, hcrr' A.......t.. A2,A-TIE
MMORANDUM AAD RECMEATION
OF TME
PRESIDENT OF THE
IJllENATIONAL BA   FOR RECONSTRUCTION AND DEVELOPT
To THE
EXECUTIVE DIRECTORS
ONA 
PROPOSED LOAN
IN AN AMOUNT EQUIVALENT TO $150.0 ITLTION
TO
THE PEOPLE'S REPUBLIC OF CHINA
FOR A
TANJIN INDUSTRIAL DEVELOPMET PROJECT
FEBRUARY 19, 1993
This document has a restricted distribution and may be used by reCipients only In the performance of
their official duties. Its contents may not otherwise be disclosed without World Bank authorization.



CURRENCY EOUIVALENTS
(as of December 31, 1992)
Currency name   -   Renminbi (RMB)
Currency unit   -   Yuan (Y) - 100 fen
Y 1.00   -   $0.17
$1.00   -   Y 5.75
WEIGHTS AND MEASURES
Metric System
ABBREVIATIONS AND ACRONYMS
PFI    -   Participating Financial Intermediary
TLIP   -   Tianjin Light Industry Project
TMG    -   Tianjin Municipal Government
FISCAL YEAR
January 1 - December 31



FOR OMCIAL USE ONLY
TIANJIN INDUSTRIAL DEVELOPtSENT PROJECT
Loan and Project Summary
Borrower:          People's Repubiic of China
Beneficiarv s      Municipality of Tianjin (Tianj in)
Amounts            $150.0 million equivalent
Terms:             Twenty years, including five years of grace, at the stan-
dard variable interest rate
Onlendina Terms:   Tianjin would onlend the proceeds of the loan as follows:
(i) the industrial credit component of $134.5 million to
participating financial intermediaiLes (PFls), and (il) out
of the tecbnical assistance component of $15.5 million,
$200,000 to PFls and $9.7 million to eligible enterprises,
on the same terms and interest rate as that of the Bank
loan. PIle would onlend the loan proceeds of the indus-
trial credit component to eligible enterprises for a maxi-
mum period of 15 years including up to 3 years of grace and
at a variable interesX rate equal to the Bank rate plus a
minimum spread of 1.2 percent.  Subborrowers would bear the
foreign exchange risk under the industrial credit compo-
nent. Under the technical assistance component, PFIs and
enterprises would bear the foreign exchange risk on the
respective amounts indicated above, and Tianjin would carry
the foreign exchange risk on the balance of $5.6 million.
Financina Plan:                                        Local  Foreian   Total
-----($ million) -----
IBRD                                   -     150.0  150.0
PFIs, Industrial Enterprises,  WuG   72.0        -    72.0
Total                          72.0     150.0   222.0
Economic Rate of
Return:          Not applicable
Staff Appraisal
Reports          Report No. 11253-CHA
This document has a restricted distribution and may be used by tecipients only in the performance
of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.



MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT
OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TO THE EXECUTIVE DIRECTORS
ON A PROPOSED LOAN
TO THE PEOPLE'S REPUBLIC OF CHINA
FOR A TIANJIN INDUSTRIAL DEVXLOPMENT PROJECT
1.        I submit for your approval the following memorandum and recommenda-
tion on a proposed loan to the People's Republic of China for the equivalent
of $150.0 aillion, to help finance a Tianjin Industrial Development Project.
The loan would be at the Bank's standard variable interest rate, with a matur-
ity of 20 years, including five years of grace. The proceeds of the loan
would be onlent to the Tianjin municipality on the same terms as the Bank
loan. Tianjin would onlend as follows: (a) the industrial credit component
of $134.5 million to participating financial intermediaries (PFIs), and (b),
out of technical assistance component of $15.5 million, $200,000 to ?FIs and
$9.7 million to eligible enterprises, on the same terms and interest rate as
that of the Bank loan. PFIs would onlend the loan proceeds of the industrial
credit component to eligible enterprises for a maximum period of 15 years
including up to three years of grace and at a variable interest rate equal to
the Bank rate plus a minimum spread of 1.2 percent. The foreign exchange risk
of the loan amount will be borne by the Tianjin municipality on a part of the
technical assistance component ($5.6 million), by the borrowing enterprises on
the industrial credit component ($134.5 million) and the technical assistance
component ($9.7 million), and by the PFIs on the balance of technical
assistance ($200,000),
2.        Background.  Industry is China's largest productive sector, account-
ing for nearly half of its gross domestic product in 1990 and employing
17 percent of the country's total labor force. Despite its rapid growth, the
industrial sector is characterized by low efficiency and productivity and
often inferior quality of products. This is mainly due to inappropriate poli-
cies, outdated equipment and technology, inadequate infrastructure and weak
support institutions. The Chinese Government is carrying out changes in the
industrial structure through ongoing economic and enterprise reforms which
focus on market-oriented production and pricing, greater enterprise autonomy
and management accountability, modernization of existing equipment, export-
orier.;ed production, conservation of natural and energy resources, and
enhancement of the scope and efficiency of financial intermediation. At the
same time, steps are being taken to improve the infrastructure and to
strengthen the support institutions. The Bank is assisting in industrial
restructuring, through its economic and sector work and lending operations,
both at national and regional levels, the latter having special significance
because of the gradual decentralization of investment responsibilities under
China's reform process.
3.        The proposed project would support industrial restructuring in
Tianjin which is one of the three largest cities in China with the status of a
province. Tianjin has a relatively large and diversified industrial base.
Although its industrial output accounts for only 3 percent of the national
industrial output, it is quite sizeable in absolute amount--Y 71.7 billion
($15.2 billion) in 1990. Tianjin's industrial sector has faced many of the



same problems as the industrial sector has in the whole of China. In line
with the national polic7, the Tianjin Municipal Government (TMG) is implement-
ing a series of reforms to restructure the industrial sector. The Bank has
already started supporting this program through a loan, approved in February
1989, for the Tianjin Light Industry Project (TLIP, Loan 3022-CHA).  TLIP is
assisting TMG in restructuring three priority subsectors of the light industry
sector, viz., textile dyeing and finishing, paper and packaging. IDA has also
approved, in June 199^, a Tianjin Urban Development and Environmental Prcject
(Credit 2387-CHA) which envisages the removal of bottlenecks and improvement
of the physical infrastructure in Tianjin, including management of solid
wastes, and pollution control in industrial enterprises.
4.        TLIP has laid the foundation for a constructive dialogue with TMG
which has now requested Bank assistance for the proposed industrial restruc-
turing project aimed at new subsectors, viz., machine tools, construction
equipment, automotive parra, electronic components and electric motors.
International consultants (financed under Credit 1664-CEA) have carried out
the studies of these five subsectors which have helped to determine Tianj$'a'
comparative advantage in their main product groups and to prepare development
programs and strategies.
5.        Lessons Learned from Previous Bank Operations.  The Bank's lending
operations have included direct loans for large ludustrial projects including
restructuring, lending to development finance institutions, mainly for the
modernization of light industry, and regional subsector-focused operations.
The experience has shown that successful industrial restructuring depends
largely on well-prepared programs and strategies and on an integrated frame-
work of appropriate policies and incentives, suitable corporate governance,
technological modernization and satisfactory physical and institutional infra-
structure. Although overall implementation of the TLIP is satisfactory,
implementation was initially delayed due to lack of familiar-wty in ICB proce-
dures and Bank guidelines for selecting consultants, and because of a tendency
to underestimate costs, particularly for large subprojects. Under the pro-
posed project, very strong emphasis is being placed on project implementation
support, in order to minimize such problems and strengthen implementation
infrastruuture.
6.        Rationale for Bank Involvement.  Industrial restructuring is a pro-
longed process and requires a firm and long-term commitment from the TMG and
continuous support from the Bank. The Bank's involvement in the proposed
project would help to accelerate and broaden the reforms initiated with TLIP
and provide continuity in Bank support for the restructuring of the industrial
sector. The studies of the five selected subsectors have helped to detecmine
the comparative advantage of key products in each subsector and recommended
restructuring measures that would lead to economies of scale, product special-
ization, new marketing strategies, phasing out of nonariable products, reorga-
nization of the subsectors, improvements in enterprise organization and man-
agement systems, and strengthening of institutional infrastructure. The Bank
has considerable experience in industrial restructuring based on its earlier
work in China and other countries and has, thus, been able to provide close
guidance to consultants in developing appropriate programs and strategies.
Furthermore, a very constructive dialogue initiated with TMG on this subject
under TLIP has provided a good foundation for advancing reforms by adopting



-3-
new measures and undertaking new experiments in the industrial sector in
Tianjin. These measures and experiments go far beyond those initiated under
TIP.
7.        Prolect Objectives.  The main objective of the project is to support
TMG in restructuring the industrial sector. It would thus aim tot (a) expe-
dite policy and enterprise reforms at the regional level; (b) modernize and
reorganize the subsectors based on economic criteria and commercial viability;
(c) strengthen institutional infrastructure; (d) improve the organizational
structure and internal enterprise management and systems; and (e) diversify
and strengthen the financial intermediation process.
8.        Economic and enterprise reforms are the focal point of the restruc-
turing strategy, and the proposed project will assist in their implementation
on two fronts. On the one side, the project would help the Government in
carrying out subsector policy reforms (such as liberalization of investment,
production and pricing; improvements in the foreign trade regime; social
security and housing reforms; and promotion of industries in which Tianjin has
a comparative advantage). These policy reforms are needed irrespective of the
type of enterprise ownership. On the other side, a set of enterprise reforms
would be pursued (such as corporatization, improvements in the contract
responsibility system, reorganization of subsectors, introduction of modern
management systems and procedures and promotion of joint ventures) which will
make enterprises more efficient and profitable.
9.        Pro1ect Descr_-tion.  The project would includes  (a) financial
assistance in the form of an industrial credit of $134.5 million to be onlent
through three PFIs, viz., China Investment Bank, Industrial and Commercial
Bank of China and Bank of Communication, to enterprises in the five subsectors
included in the project for restructuring and modernization, and (b) technical
assistance of $15.5 million. Loan proceeds would be used by PPIs and enter-
prises on a first-come, first-served basis.
10.       The technical assistance component of the proposed Bank loan will be
used for: (a) strengthening of institutional infrastructure ($11.8 million)
through import of testing equipment, pilot plante, computer hardware and soft-
ware, teaching aids, etc., and staff training; (b) consultant services for
assistance in project implementation ($2.5 million); (c) training of enter-
prise management and staff ($0.7 million); (d) strengthening of the institu-
tional framework for labor redeployment ($0.3 million); and (e) strengthening
of PFIs ($0.2 million).
11.       Proiect Implementation.  The technical assistance component of the
project will be implemented by TMG except for the funds allocated to PFIs and
enterprises for their institutional strengthening. PFIs will be responsible
for onlending the financial assistance component to beneficiary enterprises.
The total cost of the project is tentatively estimated at $222 million equiva-
lent with a foreign exchange component of $150 milP:On (68 percent). Final
costs of the project would depend upon the individud subprojects that PFIs
will finance under the industrial credit component.
12.       Although the project is basically for assisting the five preidenti-
fied subsectors, TMG and the financial intermediaries will be free to include



-4-
other subsectors in the project scope provided they carry out subsector stud-
ies and prepare restructuring plans satisfactory to the Bank before providing
financial assistance. PFIs will be responsible for the appraisal and supervi-
sion of subprojects and all investment decisions under the proposed Bank loan
following agreed criteria, which would include, inter alia, compliance with
TMG's development program and strategies.
13.      Retroactive financing of up to $5.0 million equivalent is provided
for eligible expenditures made after July 31, 1992 for urgently needed equip-
ment and consultant services under the technical assistance component of the
project. A breakdown of costs and the financing plan are shown in Schedule A.
Amounts and methods of procurement and of disbursements, and the disbursement
schedule are shown in Schedule B. A timetable of key project processing
events and the status of Bank Group operations in China are given in Schedules
C and D, respectively. The Staff Appraisal Report (No. 11253-CHA), dated
Pebruary II, 1993, is being distributed separately.
14.       Proiect Sustainabilitv.  The subsectors to be restructured under the
project are of %igh priority and critical for China's future development.
Once their res ructuring is completed as planned, they would continue to oper-
ate satisfactorily. Beneficiary enterprises are commercial entities and
therefore would be able tz generate adequate revenues for maintaining new
a"sets. Support institutions would provide services which would be of direct
relevance to enterprises and, therefore, their services will remain in demand
and paid for by enterprises. PFIs have shown gradual institutional develop-
ment and, based on prudent financial policies being followed/agreed to be
followed, they would provide move efficient financial intermediation in the
future.
15.       areed Actions.  Key agreements reached during negotiations with TMG
and PPI* include the development program and strategy for the five subsectors;
onlending criterLa; and details of the technical assistance component to
strengthen support institutions. The engagement of consultants to assist in
the implementation of subsectoral restructuring progrsms and the signing by
Tianjin and the PFIs of subsidiary loan agreements satisfactory to the Bank
would be conditions of loan effectiveness.
16.       Environmental Asrects. The project subsectors are not major pollut-
ers but their manufacturing processes will still have environmental impacts.
To ensure that satisfactory measures are taken to protect the environment, the
Tianjin Environment Protection Bureau would approve renovation and expansion
plans of enterprises to be assisted under the proposed Bank loan and would
periodically monitor their compliance; all subprojects vould be consistent
with environmental standards satisfactory to the Bank; appraisal reporte and
summary information on individual subprojects to be sent by PFIs to the Bank
will indicate specifically the equipment to be procured for pollution control;
and Bank staff will make necessary checks during the approval of individual
subprojects.
17.       Project Benefits.  The acceleration of policy and system reforms,
improved services of support institutions and restructuring of enterprises
under the project would result in improvement of subsectoral efficiency and
performance. The subprojects would meet economic viability criteria, would



5-
result in significant improvements in product quality and production effi-
ciency and would promote economies of scale and product specialization.
18.       Risks.  There are two main project risks:  (a) unanticipated and
adverse future macroeconomic developments and the cumbersome process of coor-
dination between the central and provincial authorities could affect the pace
of implementation of the agreed policy and system reformst and (b) various
activities envisaged under the project may not be completed on time. However,
given the Government's strong commitment to the reform process, institutional
arrangements made in Tianjin for project implementation and experience gained
under TLIP, these risks are unlikely to pose a serious threat to the suceess
of the project.
19.       Recommendation. I am satisfied that the proposed loin would comply
with the Articles of Agreement of the Bank and recommend that the Execative
Directors approxe the proposed loan.
Lewis T. Preston
President
Attachments
Washington, D.C.
February 19, 1993



- 6 -                           Schedule A
CHINA
TIANJIN INDUSTRIAL DEVELOPMENT PROJCT
Estimated Costs and Financina Plan
($ million)
Local      Foreign      Total
Total Proiect Cost
Industrial investment                            65.5        134.5       200.0
Technical assistance & training                   6.5         15.5        22.0
Total Costs la                                72.0        lSO.Q       222.0
Financina Plan
IBRD                                              -          150.0       150.0
PPIs, enterprises and TMG                        72.0          -          72.0
Total                                         72.0        150.0       222.0
.L  Tentative estimates inclusive of taxes, duties, and contingencies.  Final
estimates would depend on individual subproject cost estimates which PPIs
would prepare at the time of subproject appraisal.



-7                              Schedule B
Page 1
TIANJIN INDUSTRIAL DEVELOPMENT PROJECT
Procurement Method and Disbursements
($ million)
Project element                                  Procurement method         Total
ICB         LCB      Other       cost
Industrial Credit Component /a            95.0           -       105.0    200.0
(95.0)                  (39.5)  (134.5)
Technical Assistance Component
Goods and Technical Assistance for
Project Implementation                               4.5      12.3      16.8
(4.5)     (7.3)   (11.8)
Other Technical Assistance
and Training                                         -         5.2       5.2
(3.7)    (3.7)
Total financina                      95.0           4.5     122.5    222.0
(95.0)        (4.5)    (50.5)  (150.0)
Note: Figures in parentheses are the amounts to be financed by the Bank.
La Includes initial raw materials and spare parts covered under incremental
working capital.



-8 -hedule B
Page 2
Di4sbursement_s
($ million)
Category                       Amount        Percentage to be financed
Industrial Credit Component   134.5    100% of amounts disbursed by PPIls under
subloans (except for interest during
construction which would be 902 of
amounts financed by PPIs)
Technical Assistance
Goods                           10.5    1002 of foreign expendituresl 1002 of
local expenditures (ex-factory); and
75% of local expenditures for other
items procured locally
Consulting services
and training                   5.0    100t
Total                     150.0
Estimated Disbursementst ($ million)
IBRD Fiscal Year    1994      1995     1996      1997     1998     1999      2000
Annual                5.0      9.5     28.5      52.5     35.5      11.0      8.0
cumulative           5.0      14.5     43.0      95.5    131.0    142.0    150.0



_ 9 _                         Schedule C
'C}IIN
TIANJIN INDUSTRIAL DEVELOPMENT PROJECT
Timetable of Key Proiect Processina Events
(a)  Time taken to prepare the project:    36 months
(b)  Project prepared bys                   Tianjin Municipal Government, for-
eigu and local consultants, partic-
ipating financial intermediaries
(c)  First Bank Mission:                    March 14, 1990
(d)  Appraisal mission departure:           June 21, 1992
(e)  Negotiations:                          January 11-15, 1993
(f)  Planned date of effectiveness:         July 1, 1993
(g)  List of relevant PCRs and PPARs:       Not applicable
The project was prepared by Z. Khan (Task Manager), H. Sethi (Teebuical
Adviser), N. Hughes (Senior Operations Officer), N. Lichtenstein (Senior
Counsel), N. Mathieu (Senior Economist), M. Pharwani (Senior Engineer) and
C. Punsalan (Senior Financial Officer). The Acting Division Chief is Mr. Z.
Rhan and the Director is Mr. S. J. Burki.



Schedule D
Page 1 of 3
STATUS OF BANK GROUP OPERATtOWS IN THE PEOPLE'S REPUBLIC OF CHINA
A. STATEMENT OF BANK LOANS AND IDA CREDITS
(As of Oecaaber 31 1992)
LoWn                                                             Amount (USS mitlion)
Credit              80n-                                        (not of cancellations)
Number          FY  ower              Purpose                  Bank       IDA    Undisb.(a)
18 toans and 27 credits have been futly disbursed.           1t49.63    1549.0       -
Of which SECAL:
2967/1932     88 PRC   Rural Sector AdJ.                      200.0      93.2      -
1551       85  PRC   University Development II               -       145.0      t.0
2493       85  PRC   Second Power                          117.0                6.2
2501       85  PRC   Changcun CLuan) Cost Ninng             79.3        -      36.7
2540       85 PRC   Railway It                             220.0       -       38.7
1664       86 PRC   Technical Cooperation Credit II          -        20.0    11.8
26781680    86 PRC   Third Railway                           160.0      70.0    68.5
2689       86 PRC   Tianjin Port                           130.0               40.8
2706       86  PMC   Beilungang Thermal Power              225.0       -       19.4
2707       86 PRC   Yantan Hydroelectric                    52.0                2.3
Z72/1713    86 P.C   Rural Health 8 Preventive Ned.           15.0      65.0    33.2
2775       87 PRC   Shuikou Hydroolectric                  140.0        -       6.3
2783/1763    87 M C    Industrial Credit IV (CII lV)         250.0      50.0    85.2
2784       87 PRC   Shanghai Machine Tools                 100.0               13.8
1764       87 PRC   Xinjiang Agricultural Dav.                        70.0    10.1
2794/1779    87 PRC   Shanghai Sewerage                       45.0     100.0.   6; 
2811/1792    87 PRC  B8ijing-TisnJin-Tansgu Expre ssy         25.0     125.0    34.9
2812/1793    87 PRC   Cansu Provincial Dav.                   20.0     150.5    64.8
1833       87 PRC   Planning Support & Special Studies                20.7    11.5
238        87 PRC    Fertilizer Rationalization             97.4       -       10.2
2852       87 PRC   WuJing Thermal Power                   190.0       -       42.5
187        88 PRC   Rural Credit Ill                         -       170.0    10.5
2877/1845     8 PRC    Kuang  Port                            63.0      25.0    56.9
2907/1873    88 PRC   Dalian Port                             71.0      25.0    13.7
188        88 PRC   Northern Irrigation                              103.0    35.4
2924/1887    88 PRC   Coastat Lards Dev.                      40.0  C60.0)(b)    11.0
1908       88  PRC   Teacher Training                        -        50.0      6.6
2943        8 PtC   Pharmaceuticals                        127.0       -       10.3
2951/1917    88 PRC   Sichuan Highway                         75.0      50.0    72.6
2952       88 PRC   Shaanxf Highway                         50.0                6.1
1918       U8  PRC   Daxing An Ling Forestry                 -        56.2      6.6
2955       8  PRC   Beilungang It                          165.0        -      31.5
2958       88  PRC   Phosphate 0ev.                         62.7        -      39.9
2968       88 PRC   Railway IV                             200.0               82.9
1984       89 PRC   Jiangxi Provincial Highway               -        61.0    24.5
1997       89 PRC   Shaanxi Agricultural Dev.                        106.0    64.6
2006       89 PIC    Textbook Developmont                             5-S.0     2.1
2009       89  PRC   Integrated Reg. Health                  -        52.0    33.2
3006       89 PRC   Ningbo & Shanghai Ports                 76.4        -      22.8
3007       89 MPC   Xiamen Port                             36.0        -      23.2
3022       89 PRC   Tianjin Light Industry                 154.0        -      106.9
3060/2014    89 PRC   Inner Mongolia Railway                  70.0      80.0    53.5
2097       89 MPC    Shandong Agriculture Oev.               -        109.0    32.4
3066       89 PMC    Hubei Phosphate                       137.0        -      122.1
3073/205    89 PRC   Shandong Prov. hSghwy                   60.0       50.0    52.2
3075       89 PRC    Fifth industrial Credft               300.0        -      195.4
2097       90 PRC   Jifangxi Agric. Dev.                     -        60.0    28.2
2114       90 PRC   Vocationat & Tech. Ec.                   -        50.0    36.3



Schedule 0
Page 2 of 3
LoanW                                                             Aaeunt CUSS million)
Credit              ior-                                         (net of cancellations)
Number           FY  rowr              Purpose                   Bank       IDA    Ujdisb. a)
214S       90  PRC    lational Afforestation                   -       300.0    192.7
2159        90  PRC    Nebef Agricultural Oev.                 -        150.0     94.4
2172       91  PRC    Mid-Yangtze Agricultural 0ev.                     64.0    40.6
3265/2182     91 PRC    Rural Credit IV                         75.0     200.0    138.7
3274/2186     91 PRC    Rural Indust Tech (SPARK)               50.0       64.3     96.6
3286/2201    91  PAC    Mediun-Sized Cities DCv.                79.4      89.0   128.9
3288       91  PRC    Shanghai Industrial Dev.               150.0               148.5
2210       91  PRC    Key Studies Devetopaent                  -        131.2    116.6
2219       91  PRC    Lilaning Urban Infrastructure            -        77.8    30.6
3316/2226    91  PRC    Jiangsu Provl. Transport               100.0      53.6    90.7
2242       91 PRC    Henan Agricul. Oev.                       -        110.0     91.7
3337/2256     91 PRC    Irrig. Agricut. Intenslf.              147.1     187.9    240.8
3387       92  PRC    Ertan Hydroelectric                   380.0                190.8
2294       92 PRC    Tarim   sin                               -        125.0   107.4
2296       92 PRC    Shanghai Metro Transport                  -        60.0      51.2
3406       92  PMC    Railways V                            330.0                323.8
3412/2305     92 PRC    Daguangba Multipurpose                  30.0      37.0      57.4
2307       92 PRC    Guangdong AOP                                     162.0    159.7
3415/2312    92  PRC    Beijing Environnent                    45.0        80.0    114,3
2317       92  PRC    Infectious and Endemic Oisease Cant    -         129.6    122.3
3433       92 PRC    Yanshi Thermal Power                    180.0       -       147.6
2336       92  PRC    Rural Water Supply and Sanitation       -        110.0   101.8
2339       92  PRC    Educ. Oevelopmant in Poor Prays.         -       130.0    117.5
343        92 PRC    Regional Cmennt Industry  Cc)           82.7        -       82.7
3462       92  PRC    Zoutian Thermat Power                 310.0        *  .  310.0
3471        92  PMC    Zhejiang Provincial Highway           220.0       -       197.3
2387       92  PRC    Tianjin Urban Oevt. & Envir.            -        100.0    100.8
2391       92 PRC    Ship Waste Disposal                      -         15.0     15.1
2411       93  PRC    Sichuan Agricultural Devt.              .        147.0   142.2
3515       93  PRC    Shuikou Hydroelectric tt (c            100.0               100.0
2423       93  PRC    Financial Sector Tech.Assist.(c)         -        60.0      57.9
3530       93  PRC    Guangdong Provinefal Transport tc)   240.0          -     240.0
3531       93  PRC    Henan Provincial Transport Cc)        120.0        -       120.0
2447       93  PRC    Ref. Inst'l and Preinvest. (c)           -        50.0    50.0
3552        93  PRC    Shanghai Port Rest. and Devt. (c)    150.0                150.0
... ... .......... .................... ...  .
Total                               7891.8    6102.8  6256.5
of which has been repaid          575.9        2.1
Total now held by Bank and IDA      7315.9    6100.7
Amount sold: Of which repaid       -         -         -
Total Undisbursed                   3865.3    2391.2  6256.5
(a) As credits are denominated in SDRs (since IDA Replenishmnt VI), undisbursed $0R credit
batances are converted to dollars at the current exchange rate between the doltar anq the SOR.
in same cases, therefore, the undisbursed balance indicates a dollar woma't greater then the
orgfinal principal credit mount expressed in dollars.
tb) Credit fully disbursed.
Cc) Not yet effective.



Schedule 0
Page 3 of 3
S. STATEMENT tF IFC INNESTENTS
tAs ot Oecebohr 31, 1992)
Invest-                                           Type of       Loan    Equity    Total
ment No.         FY       Borrower                8uinesa      --- - USS Million)  -------
813/2178   85/91 GuAngzhau and Peugeot        Automobile       13.9       4.5      18.4
974        87  China Investment Co.         Investmmt         3.4        0.0      3.4
1020       47 Shosuhen China                 Biclyle         17.2        2.5    19.7
Bicycles Co. Ltd.         Manufacture
1066        88  craow  Electronics           Electronics     11.3         -      11.3
1119       89 Shenzhen Chronar Solar         Solar  (a)        1.0        1.0     2.0
Energy                    Energy
Total Gross CommItments                      46.8        8.0    54.8
Less cancellations, terminatfons              1.0                 1.0
repaymmnt and sales
Total Commitments now Held by IFC            45.8        8.0    53.8
Total Undisbursed                             0.0                 0.0
(a) Loan subsequently cancelled.
12/31/92
EA2DR