:/ International Bank for Reconstruction and Development IntemnationalDevelopment Association FOR OFFICIAL USE ONLY FOR EXECUTIVE For consideration on DERECUTORS Tuesday, July 13, 1993 - ~DIRECTORS' MEETING M93-33 IDA/M93-33 FROM: Vice President and Secretary July 1, 1993 Minutes of Meeting of the Executive Directors of the Bank and IDA held in the Board Room on June 8. 1993 at 10:00 a.m. 1. There were present: CHAIRMAN: L.T. Preston, President EXECUTIVE DIRECTORS AND ALTERNATES ACTING AS EXECUTIVE DIRECTORS I. Al-Assaf M. Aparicio (Temp. Alternate) Aris Othman M. Benhocine F.S. Carneiro (Alternate) G. Castellanos (Alternate) A.N. Doumnov (Alternate) F. Fischer J-D. Gerber J. Haas (Alternate) E. Herfkens M.W. Hosny (Alternate) B. Jalan D. Kline (Temp. Alternate) K. Kodera (Alternate) J-P. Le Bouder J. Maehlum H.M. Mapondo (Alternate) F. Ochoa (Temp. Alternate) N.F. Potter B. Snoy D. Stanton (Alternate) B-H. Won (Alternate) Zhao Hong (Temp. Alternate) ALTERNATES NOT ACTING AS EXECUTIVE DIRECTORS A.M. Al-Ghannam I.R. Ionescu J. Sulmicki M.A. Syed OFFICERS AND STAFF PARTICIPATING I.F.I. Shihata, Vice President T.T. Thahane, Vice President and General Counsel and Secretary S.M. Denning, Director, Africa 6 B.G. Kavalsky, Director, T. Ahlers, EC4 Europe & Central Asia 3 D. Flannery, Cofinancing D.T. Mattheisen, Secretary's ( Financial Advisory Services 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. ~ ~ --- ~-~---.--.~,,---- -2- M93-33 IDA/M93-33 MINUTES OF PREVIOUS MEETINGS 2. The Executive Directors approved the minutes of the meetings held on April 20 (M93-21[IDA/M93-21], April 27 (M93-22[IDA/M93-22]) and May 4 (M93-23[IDA/M93-23]), 1993. PROPOSED CREDIT - TANZANIA (PARASTATALAND PUBLIC SECTOR REFORM PROJECT) (IDA/R93-79.IDA/R93-79/1) 3. As notified (A93-33/1), considerationof this item was postponed until the meeting on June 10, 1993. ZAMBIA: ALLOCATION OF RESOURCES OF THE DEBT REDUCTION FACILITY FOR IDA-ONLY COUNTRIES FOR A PROPOSED DEBT REDUCTION OPERATION AND GRANT FROM THE FACILITY FOR PREPARATIONOF THE PROPOSED OPERATION 4. The Executive Directors consideredthe President'sMemoranmdumentitled "Zambia: Allocation of Resources of the Debt Reduction Facility for IDA-Only Countries for a Proposed Debt Reduction Operation and Grant from the Facility for Preparation of the Proposed Operation"(IDA/R93-69)and approvedthe recommendationsoutlined in paragraph 44 of the Memorandum. LOAN TO UKRAINE 5. The Executive Directors consideredthe President'sMemorandumand Recommendation (R93-94 dated May 19, 1993) and approved the loan to Ukraine for an Institution Building Project in the amount of US$27 million equivalent on the payment terms and other terms and conditionsset out in the President's Memorandum (LOAN APPROVAL NO. 93-34). LOAN TO COLOMBIA 6. The Executive Directors approved the loan to the Republic of Colombia for a Municipal Health Services Project in the amount of US$50 million equivalent on the payment terms and other terms and conditionsset out in the President'sMemorandum (R93-93 dated May 19, 1993) (STREAMLINED PROCEDURE LOAN APPROVAL NO. 93-27). CREDIT TO THE PHILIPPINES 7. The Executive Directors approved the credit to the Republic of the Philippines for an Urban Health and Nutrition Project in the amount of SDR 50.5 million (US$70 million equivalent)on the payment terms and other terms and conditions set out in the President'sMemorandum (IDA/R93-80 dated May 19, 1993) (STREAMLINEDPROCEDURE CREDIT APPROVAL 93-40). - ( - 3- M93-33 IDA/M93-33 IBRD'S NEGATIVE PLEDGE POLICY WITH RESPECT TO LENDING FOR INVESTMENT PROJECTS 8. The Executive Directors recorded their approval on May 24, 1993 of the recommendation contained in paragraph 4 of the President's Memorandum entitled "IBRD's Negative Pledge Policy With Respect to Lending for Investment Projects" (R93-88). SIERRA LEONE: INDICATION OF THE RESOURCES REQUIRED FOR A PROPOSED DEBT REDUCTION OPERATION AND GRANT FROM THE DEBT REDUCTION FACILITY FOR IDA-ONLY COUNTRIES FOR PREPARATION OF THE PROPOSED OPERATION 9. The Executive Directors recorded their approval on May 27, 1993 of the recommendation contained in paragraph 25 of the President's Memorandum entitled "Sierra Leone: Indication of the Resources Required for a Proposed Debt Reduction Operation and Grant from the Debt Reduction Facility for IDA-Only Countries for Preparation of the Proposed Operation" (IDA/R93-77). (7 SIERRA LEONE: RECONSTRUCTION IMPORT CREDIT (2352-SL)- RELEASE OF THIRD TRANCHE 10. The Executive Directors recorded their approval on May 27, 1993 of the recommendation contained in paragraph 23 of the President's Memorandum entitled "Sierra Leone: Reconstruction Import Credit (2352-SL) - Release of Third Tranche" (IDA/R93-78). ECUADOR: FIRST TELECOMMUNICATIONS PROJECT (LOAN 3052-EC) - CHANGE OF BORROWER 11. The Executive Directors recorded their approval on May 27, 1993 of the recommendation contained in paragraph 10 of the President's Memorandum entitled "Ecuador: First Telecommunications Project (Loan 3052-EC) - Change of Borrower" (R93-92). CALLS OF DEM SERIES A BONDS - AMENDMENT TO RESOLUTIONS NOS. 90-7 AND 91-4 12. The Executive Directors recorded their approval on May 27, 1993 of the recommendation contained in paragraph 5 of the President's Memorandum entitled "Calls of DEM Series A Bonds - Proposed Amendment to Resolutions Nos. 90-7 and 91-4" (R93-95) and adoption of the following Resolution: £'9:- -4- M93-33 IDA/M93-33 RESOLUTIONNO. 93-3 Amending ResolutionsNo. 90-7 and 91-4 WHEREAS the InternationalBank for Reconstruction and Development (the Bank) has determinedpursuant to Resolution No. 90-7, adopted by the ExecutiveDirectors of the Bank on June 12, 1990, and ResolutionNo. 91-4, adopted by the Executive Directors of the Bank on February 12, 1991, to authorize borrowings in Deutsche mark (represented by Series A Bonds, Series B Bonds or both) in the markets of the Federal Republic of Germany on the terms and conditionsspecified in the respective Resolutions; and WHEREAS it has become necessaryto amend such Resolutions with respect to the authority of the Bank to exercise its call option in respect of the Series A Bonds thereunder; NOW THEREFORE IT IS RESOLVED THAT: Paragraph 2 of each of ResolutionNo. 90-7 and Resolution No. 91-4 is hereby deleted and the following new paragraph 2 is substituted therefor: "2. Such borrowing may be representedby Series A Bonds, Series B Bonds, or both (the Securities)in such form and denominations as shall be determinedby any Authorized Officer. The Securities shall consist, initially,of Series A Bonds, the terms and conditions of which will contain a call option providing the Bank the right to prepay Series A Bonds on certain specific dates. If and to the extent that the Bank exercises its call option in respect of the Series A Bonds, the Bank is further authorized to issue and sell Series B Bonds in an aggregate principal amount up to the aggregateprincipal amount of Series A Bonds so called and having a rate of interest and final maturity identical to such Series A Bonds." In all other respects, ResolutionsNo. 90-7 and 91-4 shall remain in full force and effect. JBMISSION TO THE BOARDOF GOVERNORS OF A REPORT OF THE 1993 STANDINGJOINT COMMITTEE ON REMUNERATION W. The Executive Directors recorded their approval on May 27, P99t of the icretary's memorandum dated May 24, 1993 (R93-100)regarding transmittalto -5- M93-33 IDA/M93-33 the Board of Governors, for a vote without meeting, of the report of the 1993 Standing Joint C c ittee on Remunerationof ExecutiveDirectors and their Alternates. APPOINTMENT OF CHIEF ECONOMIST 14. The Chairman announcedthe selection of Mr. Michael Bruno as Chief Economist for a four-yearterm, which due to public speculationof Mr. Bruno's appointment he was informingthe Executive Directorsnow. ExecutiveDirectors welcomed the appointment. Subsequentlythe usual notice of appointment was circulated (R93-120). EXECUTIVEDIRECTORS'ASSISTANTS- RECORD OF APPROVED TRAVEL 15. The Executive Directors recorded their approval, on the dates shown, of the following proposals for travel by Executive Directors'Assistants: May 25, 1993 - SecM93-492 May 25, 1993 - SecM93-493 DATE OF NEXT MEETING 16. It was agreed to hold a meeting of the ExecutiveDirectors of the Bank and IDA on June 10, 1993. ADJOURNMENT 17. The meeting adjourned at 12:20 p.m. -Distribution: Executive Directors and Alternates Office of the President Executive Vice Presidents, IFC and MIGA Vice Presidents, Bank, IFC and MIGA Directors and DepartmentHeads, Bank, IFC and MIGA -7---