20078 WORLD BANK AND IDA ITERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Annual Report 1963-64 F1EClF 17 U-7 k" 1;A YJ ,IL, rn" W777 krl F;17s' P iJ:i -7: IsA OP" oi Z; N. ', , <>> AZ p  t"4v< >4 )V<., <1st- -\ k 4 t'-N,.,r. "u< 4. "-i --  d I * -< K"49 .-s44n - V w y.2rC'%4 r - 9. "6 "). until at least June 30, 1966, and payment is to be made in three equal installments beginning THE BANK CONTINUES TO PLACE A HIGH in November 1965, one year after the final pay- VALUE on soundly conceived national develop- ment on subscriptions to IDA's initial resources. ment programs which can serve as frameworks The 17 governments expected to assist in the for investment and for the evolution of policy replenishment of IDA's resources, together with and administrative measures conducive to eco- their proposed contributions, are as follows: nomic development. As detailed later in this Rteport (see page 17), it is continuing to assist its (U.S. i Equivalent) member countries to formulate development Australia . . . . . . . $19,800,000 programs. In some cases, this assistance is given Austria . . . . . . . 5,040,000 by general survey missions which make an in- Belgium . . . . . . . 16,500,000 ventory of a country's economic resources, Canada. . . . . . . . 41,700,000 analyze its needs and problems, and sketch the Denmark . . . . . . . 7,500,000 general lines of a development program. In Finland. . . . . . . . 2,298,000 others, the Bank provides resident advisers to France .61,872,000 help the planning authorities. Germany . . . . . . . 72,600,000 The usefulness of development planning by Italy . . . . . . . . 30,000,000 now is generally recognized, and hardly any de- Japan . . . . . . . . 41,250,000 veloping country is without a plan. National Luxembourg . . . . . . 750,000 Netherlands . . . . . . 16,500,000 Norway . . . . . . . 6,600,000 South Africa . . . . . . 3,990,000 The Island Bend Dam is one of nine large Sweden . . . . . . . 15,000,000 dams being built in the Snowy Mountains United Kingdom . . . . . 96,600,000 scheme for producing electric power and United Sae.....providing Zrrigation water in southeastern U)nited States . . . . . . 312,000,000 Australia. The Bank made a loan of 10 Total . . . . . . . $750,000,000 $100 million for the scheme in 1962. I~~~~~~~~~~~~~~~~~~~~~~~ / ; - sqr~ t~~~~~;, -~ * -, A'~~~~~~~~~~~~~~~~~~~~~~~X t . '7 - v~~~~~~~~~~~~~~~~~~~~~0 Al IL" I/ 'a~~~~~~~~~~~~~~~~ -4 / *~~~~ planning, however, has run ahead of the prepara- designated by 86 governments in all. The Execu- tion of projects, and in many underdeveloped tive Directors are now examining the results of countries, there is still a shortage of well con- the regional meetings in order to determine what ceived and well prepared high priority projects further steps should be taken toward preparing a available for financing. The shortage is critical, final text of a Convention for consideration by for neither general plans nor supplies of capital governments. will accomplish much until the right techniques, The Convention would make facilities avail- competent management. and manpower with able to which foreign investors and governments the proper blend of skills are brought togethcr could have access on a voluntary basis for the and focused effectively on projects of high eco- settlement of investment disputes through con- nomic value. The need, moieover, is urgent, for ciliation, arbitration, or conciliation followed by the failure to set projects in motion today will arbitration. The Convention would provide a handicap development far into the future. mechanism for the selection of conciliation com- To help remedy the lack of project planning, missions and arbitral tribunals and for the con- the Bank is taking and intensifying measures to duct of the proceedings. assist its members in the preparation of projects, The initiative for such proceedings might come apart from the arrangements with Unesco and either from a State or from an investor. But no FAO already mentioned. In appropriate cases, State by the mere fact of accepting the Conven- the Bank finds the necessary experts, draws up tion would be bound to resort to the facilities of an outline of work and pays the foreign exchange the Conciliation and Arbitration Center, and no costs of studies designed to produce viable proj- foreign investor could initiate proceedings against ects of high economic priority; it also plays a a signatory State unless both had previously similar supervisory role in cases where it acts as agreed to have recourse to the Center. Once Executing Agency for studies financed by the they had so agreed, however, both parties woluld United Nations Special Fund (see page 17). be irrevocably bound to carry out their under- The work of the Bank's Economic Develop- taking. The heart of the Convention, in fact, is ment Institute to improve the quality of proj- the assurance which it provides that if the parties ects also continues to expand. This year, EDI agree to resort to the facilities available under it, gave its first project evaluation course in Spanish, their agreement will be given full effect. This, it for participants from 16 countries, and conducted is hoped, will create an element of mutual con- its first course to he concerned primarily with the fidence that, in time, will contribute to a healthier evaluation of industrial projects, attended by investment climate and a larger flow of interna- participants from 19 countries. In cooperation tional private investment. with the Indian Institute of Management., Cal- cutta, EDI also has arranged for a course in AN EVENT OF OUTSTANDING SIGNIFICANCE project evaluation to be held in Jaipur, India, for the international development effort was the for participants from eight Asian countries. United Nations Conference on Trade and De- velopment in the spring of 1964. In twelve THE EXECUTIVE DIRECTORS AND STAFF weeks of deliberations it ranged over the whole of the Bank continued work on the proposal to panorama of issues relating both to international establish a center for the conciliation or arbitra- trade and to the financing of economic develop- tion of investment disputes arising between for- ment. eign investors and governments. The President of the World Bank group ad- During the year, the proposal was given the dressed the Conference, and the Bank and IDA form of a preliminary draft Convention on Settle- were represented throughout the proceedings. ment of Investment Disputes between States and The President transmitted to the Conference a Nationals of Other States. The draft was con- report on "Trade, Development and the World sidered at four regional consultative meetings of Bank Group"; and two Bank staff studies- legal experts, held in Addis Ababa, Bangkok, "Economic Growth and External Debt" and 12 Geneva and Santiago and attended by experts "The Comrrilodity Problem"-were prepared for the Conference as background for its delibera- tions. At the request of the Conference, the Bank agreed to unidertake several studies of problems and proposals in the field of development finance: of a plan by which increased funds for develop- ment would be raised in private capital markets , and lent to the developing countries at long term and low interest, with the governments of the developed countries guaranteeing the borrow- / ing operations and subsidizing the difference i -,tWc- between the cost of borrowing and the loan - 4." charges; of the feasibility of establishing a sys- _ tem, administered by IDA but with funds supple- _ P mentary to its own, for assisting countries whose development programs are threatened by a de- cline in export earnings below reasonable expec- tations, due to long-term factors beyond their control; of the use and terms of suppliers' credits, and of possible ways of financing exports from - developing countries; and of multilateral invest- ment insurance. The Bank's undertaking these studies implies no conclusion about the merits of the specific proposals involved. i"!p p T THE BANK CONTINUED during the year its - studies of the prospects for the principal com- . modities moving in world trade, which are so crucial to the investment and growth potential . of the less developed countries. It made available - 1_ to the International Cotton Advisory Committee a study of prospects for extra-long staple cotton. .._ In addition, at the initiative of the International Coffee Council, the Bank agreed to take part . with the Council and the Food and Agriculture Organization in a long-range study of the coffee E problem, directed in part to seeking alternative Sr production and investment opportunities for the countries concerned.-. . Some developing countries face difficulties in mobilizing local capital for productive invest- W , High-grade manganese ore is an important , earner of foreign exchange for Gabon. It is shipped to overseas consumers by way of Pointe Noire, an Atlantic Ocean Port of the Congo Republic. A World Bank loan helped finance a railway, shown under construction here, to connect mines and port. t- ment partly because of investor fears of inflation. The membership of IDA also rose by 17, to 93. The Bank has begun an examination of this Including subscriptions of new members, initial problem, and is studying the feasibility of meas- subscriptions to IDA rose to $987,445,000. A list ures that might be taken to assist in creating and of new members of the Bank and IDA, together maintaining domestic markets for bonds issued with their subscriptions, is given below. by the governments of less developed countries in their own currencies. THE REGULAR STAFF of the Bank and IDA grew during the year to a total of 975. The THE MEMBERSHIP OF THE BANK continued to number of nationalities included was 62. rise rapidly during the year. Seventeen countries Mr. Orvis A. Schmidt was appointed to be joined, including 16 in Africa, bringing total Special Adviser to the President, on matters membership to 102. Several members increased concerning Latin America; Mr. Gerald Alter their capital subscriptions to the Bank: Ecuador succeeded him as Director of the Department of from $12.8 million to $17.1 million, El Salvador Operations, Wcstcrn Hemisphere. Mr. Bernard from $6 million to $10.7 million, Israel from Chadenet, a former Bank staff member and $33.3 million to $66.6 million, and the Syrian more recently general manager of a French Arab Republic from $20 million to $33.3 million. group of industries, was appointed Associate At June 30, the subscribed capital of the Bank Director of the Dcpartment of Technical Opera- was $21,186 million. To enable the Bank to tions. Mr. Draeoslav Avramovic was appointed accept additional capital subscriptions, author- Assistant Director of the Economic Department, ized capital had been increased on December 31, and continues in charge of that Department. Mr. 1963, to $22,000 million. Federico Consolo rejoined the Bank's staff as New Members BANK IDA Country Subscription Date Joined Subscription Date Joined Algeria . . . . . . . . . $80,000,000 Sept. 26, 1963 $4,030,000 Sept. 26, 1963 Burundi. . . . . . . . . 15,000,000 Sept. 28, 1963 760,000 Sept. 28, 1963 Cameroon . . . . . . . . 20,000,000 July 10, 1963 1,010,000 Apr. 10, 1964 Central African Republic . . . 10,000,000 July 10, 1963 500,000 Aug. 27, 1963 Chad . . . . . . . . . 10,000,000 July 10, 1963 500,000 Nov. 7, 1963 Congo (Brazzaville) . . . . . 10,000,000 July 10, 1963 500,000 Nov. 8, 1963 Congo (Leopoldville) . . . . . 60,000,000 Sept. 28, 1963 3,020,000 Sept. 28, 1963 Dahomey . . . . . . . . 10,000,000 July 10, 1963 500,000 Sept. 16, 1963 Gabon . . . . . . . . . 10,000,000 Sept. 10, 1963 500,000 Nov. 4, 1963 Guinca . . . . . . . . . 20,000,000 Sept. 28, 1963 Kenya . . . . . . . . . 33,300,000 Feb. 3, 1964 1,680,000 Feb. 3, 1964 Laos . . . . . . . . . . 500,000 Oct. 28, 1963 Luxembourg . . . . . . . 375,000 June 4, 1964 Malagasy Republic . . . . . 20,000,000 Sept. 25, 1963 1,010,000 Sept. 25, 1963 Mali. . . . . . . . . . 17,300,000 Sept. 27, 1963 870,000 Sept. 27, 1963 Mauritania . .10,000,000 Sept. 10, 1963 500,000 Sept. 10, 1963 Rwanda. . . . . . . . . 15,000,000 Sept. 30, 1963 760,000 Sept. 30, 1963 Trinidad & Tobago . . . . . 26,700,000 Sept. 16, 1963 Uganda. . . . . . . . . 33,300,000 Sept. 27, 1963 1,680,000 Sept. 27, 1963 14 Special Representative to United Nations The Bank's Finances Organizations. Mr. George Martin, who had been Director INCOME N Net income reached $97 million and of the Marketing Department since 1950, retired loan commissions amounted to $33 million. from the staff; Mr. Howard C. Johnson, who Both were record figures. had been Manager of Portfolio Sales and Partici- Gross income for the year, excluding loan pations, was named Director of the New York commissions, was $219 million, a gain of $15 Office. Mr. Donald D. Fowler of the staff was million over the previous year. Bond and Note appointed Assistant Secretary. interest and issuance expenses were $103 million, General R. A. Wheeler retired in February a decline of $1 million. Administrative costs rose after 15 years of highly distinguished service. He by $1 million, to $14.6 million. Additional had served successively as Engineering Adviser, expenditures, for services to mcmbcr countries, the first Director of the Department of Technical amounted to $4.3 million, an increase of about Operations, and consultant. He played a highly $1.5 million; the total was spent on compre- significant role in the development of Bank hensive economic survey missions, project and policies, and undertook a number of special sector studies, training programs for officials of assignments of unusual importancc. Hc departs the underdeveloped countries, and other tech- with the good wishes of his friends in the Bank nical and advisory services. and throughout the world. The first two groups of appointees under SPECIAL RESERVE * Commissions were added the Junior Professional Recruitment Program to the Special Reserve and raised it to $288 entered the Bank during the fiscal year, and the million. Funds in this reserve are invested in third group was appointed. This program brings short-term government obligations, and can be young university graduates of outstanding ability used solely to meet the Bank's obligations arising into the career staff through a two-year period from borrowings and from its guaranteeing of of in-service training, upon completion of which loans. it is expected that they will be given regular staff After duc consideration of the reserve require- assignments. The 33 appointees average 28 ments of the Bank, the Executive Directors years of age, ranging from 24 to 31, and come concluded that it was no longer necessary to from 20 countries: Argentina, Austria, Belgium, automatically segregate a substantial portion of China, Colombia, Cuba, France, Germany, income in a form in which it was not available Greece, India, Italy, Japan, Norway, Philip- for the general operations of the Bank. They pines, Spain, Switzerland, Thailand, Turkey, therefore adopted a change in policy affecting the United Kingdom and the United States. commissions and the Special Reserve. Hereto- fore, the Bank has treated a portion of its loan charges, amounting to 1% per annum of out- standing loans held by the Bank, as commission, and has automatically allocated the proceeds to The Bank and its affiliates suffered a tragic loss through the Special Reserve. Effective July 1, 1964, this the sudden death of Mr. William F. Howell, Director practice will be discontinued, with the minor of Administration, on July 9, 1964. Mr. Howell exception of approximately $87 million of old joined the Bank in 1946, and was one of its earliest loans outstanding at June 30, 1964, for which employees; he had served as Personnel Manager and the loan agreements state the commission sepa- Assistant Director of Administration before becoming rately or mention "interest (including commis- Director in 1952. He played a leading role in building sion)." With this exception, the Bank will now the international staffs of the Bank and its affiliates; consider all income from loan charges as part of his outstanding professional and personal qualities had its regular income; and net income will thereby won him universal high regard and warm affection. be increased by the equivalent of what otherwise He will be sorely missed. would have automatically gone into the Special Reserve. The action will not affect the level of 15 loan charges; nor will it affect the amount of the Disbursements amounted to $559 million, as Bank's income which would be available in compared to $620 million in the previous year. future for reserves (either the Special Reserve or Borrowers repaid $117 million to the Bank the Supplemental Reserve) whenever such use and $150 million to investors holding maturities of income is thought desirable. of Bank loans. The total of $267 million com- pared to $244 million of repayments the year ALLOCATION OF NET INCOME * From the before. fiscal year 1950/51 to 1962/63, the Bank's net Sales of loan maturities declined from the income was allocated automatically to the Sup- $273 million of a year earlier. They amounted plemental Reserve Against Losses on Loans and to $173 million, of which $126 million was in Guarantees. In September 1963, the Executive sales from portfolio and $47 million in participa- Directors adopted a resolution discontinuing tions by investors who agreed to take up parts this automatic allocation, retroactive to July 1, of Bank loans at the time of the signing of the 1963, and the resolution was noted with approval loan agreements. In Europe, sales appear to by the Board of Governors. have been affected by rising yields on other During the fiscal year ending June 30, 1964, securities. In the United States, an important net income was credited to Net Income Account, factor was pending legislation which, retro- and on July 30, 1964, the Executive Directors actively to July 19, 1963, would impose an approved the transfer of $47 million of net income to the Supplemental Reserve. The addition raised the Reserve to $605 million. Amounts corresponding to the Reserve are mingled with LOAN COMMITMENTS, DISBURSEMENTS, general funds and used in the operations of the REPAYMENTS AND SALES Bank. Eapressed in mil/in-s of U.S. dolla,s The Executive Directors decided that the financial position of the Bank made it unncces- sary to transfer the balance of the year's net 7,000 income to reserves or otherwise retain it in the Loan commitments (nel, of cancellations, terminations Bank's business; and they have recommended and refundings) to the Board of Governors that this balance, 6,000 amounting to $50 million, be transferred to the Total loan disbursements International Development Association as a d,t grant. Concurrently, the Directors recommended 5,000 the following statement of policy by the Bank: Repayments and "Any transfers to the Association will be made sales of loans X only out of net income which (i) accrued during \,2X 4,000 the fiscal year in respect of which the transfer is made and (ii) is not needed for allocation to 0 Undisbursed portion of loans reserves or otherwise required to be retained in Disbursed portion of loans 3,000 the Bank's business and, accordingly, could _ Repaymentsandsalesof loans prudently be distributed as dividends." Both recommendations will be placed before the 2,000 Board of Governors at its Annual Meeting in ofg September 1964. DISBURSEMENTS, REPAYMENTS AND SALES OF LOANS -Total loans (including loans yet to , become effective) held by the Bank at June 30, net of exchange adjustments, were $5,192 mil- 1947 1950 :953 1956 1959 1962 1964 16 lion, a gain of $480 million for the year. Fis-a Y.. "interest equalization tax" on purchases by U.S. were $124 million, as compared to $56 million in investors of securities of 22 countries classified the previous year. The cumulative total of IDA as developed. Although participations in Bank disbursements stood at $193 million on June 30, loans would be exempt, it was decided as a 1964. matter of policy not to sell to investors in the Before the action for the replenishment of United States loans made in any of the designated IDA resources became effective on June 29, countries. 1964, IDA had committed almost all the resources With the sale to the Banque de France of which were available to it up to that time, $58.6 million of the loan of 1947 to Credit totaling $782 million. This figure rose to $1,450 National of France, the Bank disposed of all of million when the replenishment action became its holdings of its first and largest loan. The loan effective for twelve Part I Governments on June amounted to $250 million, and the proceeds 29, 1964, and will rise to $1,540 million with the were used to help France maintain a flow of completion of the replenishment formalities by imports essential to its post-war recovery. the remaining Part I Governments, including Kuwait, and with the actual receipt of Sweden's LOAN CHARGES - The rate of interest on loans third special supplementary contribution (see by the Bank remained unchanged at 5 %2, page 10A. With the completion of these formal throughout the year. Effective fromJulyl, 1964, actions, IDA will have available $762 million however, the annual commitment charge of %4% for new commitments in the period subsequent on the undisbursed part of Bank loans will be to June 30, 1964. reduced to 3 .%. The reduction will apply to existing as well as new loans. Technical Assistance Fl-NDED DEBT The Bank continued in a .INDED DEB - The Bankcontinuedina PROGRAMS AND PROJECTS - The Bank's tech- liquid position that made it unnecessary to raise nical assistance to its member countries continued new monev during the year. The funded debt to widen both fuinctionallv and geographically declined for the second consecutive year; it was during the year. Bank missions were concerned reduced by $27.4 million. An increase of $4.5 with advice on national development programs million, arising from issuance to investors of in ten countries- the Bank was helping to carry bonds wThich were sold on a delayed delivery ' on a score of studies designed to further the basis in previous years, was more than off'set by development of particular economic sectors or to the repayment of $7.8 million of maturing advance the planning of specific projects; and obligations and by the Bank's purchase and help was being given in a growing number of redemption of $24.1 million of bonds to meet puredasemp ofun $24.1 miion ofun bondtmeets. special assignments. Specific details of the Bank's purchase fund and sinking fund requirements. technical assistance are given, for each country One refundine issue was placed during the . t . <' ~~~~concerned, in the Annex beginning on page 21. period. It consisteci of $100 million of Two-Year c Two teams were at work during the year on 47% U.S. dollar bonds, and was placed entirely outside the United States, with central banks mentnsifo eloments programs te and governmental accounts in 29 countries. It mnain o eeomn rgas h replaned genmenal acountsf ionds 29 cntharies I mission to Morocco finished its field work just replaced an equal amount of bonds ofthe sae before the end of the fiscal year; the mission to interest andtrm,lsoeldntirlyotsidt the Territory of Papua and New Guinea also fin- United States, that matured on September 15, i 1963. ished its field work, and its report was nearly completed. Members of the Bank staff served as IDA's Finances economic or planning advisers to the Govern- ments of Chile, Colombia, the Dominican Republic, The amount of new IDA credits approved Ghana, Libya, Nigeria, Pakistan, Panama, the during the fiscal year was $283 million, bringing Philippines, and the Sudan. Similar assignments total IDA commitments on June 30, 1964, to in Guatemala, Honduras and Thailand were com- $778 million. Disbursements during the year pleted during the year. 17 The Bank agreed to organize and help finance markets predominated. The team that has been a study of transportation in Northern Rhodesia. studying the capital market in Chile completed As Administrator of the Indus Basin Develop- field investigations and its report is now in ment Fund, the Bank organized a study of the preparation; a consultant finished a report on water and power resources of West Pakistan, to measures for improving the mobilization of do- be financed by the Fund. Studies were continued mestic savings in Tunisia; and the Bank retained of problems of coal transport in India, of electric experts to make preliminary surveys of capital power development in Ecuador, and of school markets in Pakistan and Peru. A mission to offer design and construction methods in Tunisia. advice on the financing of development in The Bank provided technical assistance to the Portugal was composed in part of staff members Iranian Electricity Authority. Studies were corn- of the Bank and the International Monetary pleted of the transport needs of the Republic of Fund. In another special assignment a staff China and of Ecuador, as were studies of the member continued to advise the Finance Min- development of secondary roads in Northern istry of Malaysia on the organization of economic Nigeria and of water and sewerage for the data. An adviser on agriculture completed his Manila area of the Philippines. Field work was assignment in Parama. completed in connection with a proposed new crossing on the Hooghly River in Calcutta, THE ECONOMIC DEVELOPMENT INSTITUTE India. Altogether, the Bank has financed or is conducted its ninth general course in English helping to finance 14 project and sector studies and its third in French. So far, 317 officials from in 12 member countries; the estimated cost to 84 of the less developed countries have partici- the Bank is approximately $3.8 million. pated in the courses of EDI. During the year The Bank also continued to act as Executing EDI began to distribute the first items of a Agency for project and sector studies financed by Spanish-language library on economic develop- the United Nations Special Fund, drawing up ment. The library is being donated to central the plan of operations for the studies, recruiting banks, finance ministries, planning organiza- the necessary expert assistance and otherwise tions and other institutions. It contains some supervising the work done. During the year, 400 books, studies and articles; for Portuguese- field work was begun on three projects: a study speaking areas, items in Portuguese are being of the technical feasibility and economic impli- substituted when possible. The cost of this cations of a railway to transport iron ore in project is being shared by the Inter-American Gabon, a survey of the road requirements for the Development Bank. EDI also contiinued its own agricultural development of southern Paraguay, contribution to the literature of economic devel- and a study looking toward port and railway opment. A monograph on planning in Pakistan, development in Costa Rica. Field work was com- the third in a series of case studies, was published pleted on the Costa Rican study and on a by The Johns Hopkins Press during the year. survey of coal deposits in Colombia. A study of The monograph is one of a series produced on port facilities in Thailand was being extended to the experience of many of the Bank's member include consideration of the possibility of ex- countries in the organization and implementa- panding port capacity at Bangkok. Final reports tion of development programing. The study were completed on power requirements in the ultimately will appear in book form. Sudan, power and irrigation projects in Guate- mala and a regionally integrated telecommuni- cations system in Central America and Panama. The Bank has agreed to act as Executing Agency WVith the help of a Bank loan, Israel has for two new Special Fund studies: a survey of been building a new port at Ashdod on the Mediterranean, to relieve the pressure telecommunications needs in Pakistan and a which heavy traffic is placing on Haifa transportation study in Surinam. and other ports. Here is the main break- Among special assignments undertaken or water under construction, protected by 18 carried forward during the year, studies of capital heavy concrete forms called tetrapods. gIV,~~~~~~ A /Jv I4, kiW MI us 4 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ;1~~~~~~~~~~~ Bank Loans and IDA Credits Classified by Purpose and Area CUMULATIVE TOTAL, JUNE 30, 1964 (Millions of U.S. Dollars, initial commitments net of cancellations and refundings) Areas Asia and Western Middle Austral- Hemi- Purpose Total Africa East asia Europe sphere Grand Total . . . . . . . . . . $8,532.5 $1,036.0 $3,235.2 $458.0 $1,725.6 $2,077.7 ELECTRIC POWER Generation and Distribution . . . . . S2,767.8 $ 312.1 $ 624.0 $161.8 $ 533.3 $1,136.6 TRANSPORTATION . . . . . . . . . $2,897.8 $ 463.9 $1,434.7 $140.1 $ 171.4 $ 687.6 Railroads . . . . . . . . . . 1,241.3 274.2 717.0 37.3 37.4 175.5 Roads . . . . . . . . . . . 1,159.1 106.4 450.5 50.9 68.0 483.3 Shipping. . . . . . . . . . . 12.0 - - - 12.0 - Ports and Waterways . . . . . . . 349.4 33.3 232.6 7.8 46.9 28.7 Airlines and Airports . . . . . . 56.9 - 5.6 44.1 7.2 Pipelines. . . . . . . . . . . 79.0 50.0 29.0 - - TELECOMMUNICATIONS . . . . . . . $ 88.2 $ 4.4 $ 42.0 S - $ 0.2 $ 41.6 AGRICULTURE, FORESTRY AND FISHING . S 681.4 $ 65.4 $ 282.5 $103.4 $ 107.8 $ 122.3 Farm Mechanization . . . . . . . 120.7 - 89.4 2.0 29.3 Irrigation and Flood Control . . . . . 458.3 48.0 258.6 6.0 93.3 52.4 Land Clearance, Farm Improvement, Etc. 45.8 17.1 15.1 6.0 2.2 5.5 Crop Processing and Storage .6.4 0.3 - - 4.2 1.8 Livestock Improvement . . . . . . - 1.0 - - 33.2 Forestry and Fishing . . . . . . . 16.0 - 7.8 2.0 6.2 INDUSTRY . . . . . . . . . . . $1,306.2 $ 140.5 $ 704.1 $ 52.7 $ 322.2 $ 86.6 Iron and Steel . . . . . . . . . 380.1 314.0 13.4 22.7 30.0 Paper and Pulp .. . . . . . . . . 138.6 - 4.2 1.1 113.4 20.0 Fertilizer and Other Chemicals . . . . 82.0 - 25.0 0.3 56.7 Other Industries . . . . . . . . 219.0 20.5 101.7 23.8 58.8 14.3 Mining . . . . . . . . . . . 203.5 101.0 54.5 14.2 11.9 21.8 Development Finance Companies. . . . 282.9 19.0 204.7 - 58.7 0.5 WATER SUPPLY . . . . . . . . $ 66.8 $ - $ 59.9 $ - 3.9 $ 3.0 EDUCATION PROJECTS . . . . . . . $ 22.6 $ 9.6 $ 13.0 $ - $ - $ - GENERAL DEVELOPMENT. . . . . . . $ 205.0 $ 40.0 $ 75.0 $ - $ 90.0 $ 20 POST-WAR RECONSTRUCTION . . . . . S 496.8 $ - - $ 496.8 $ NOTE: Detail may not add to totals because of rounding. Detailed Statements of Bank Loans and IDA Credits are available on request. ANNEX The information in this section describes Bank loans, IDA credits and other activities of both institutions during the fiscal year. Money amounts are usually expressed in United States dollar equivalents. Bank loans to borrowers other than member govern- ments carry the guarantee of the governments concerned, and the participations of financial institutions in the loans were all without the Bank's guarantee. All IDA credits were made to the governments con- cerned, on identical terms: No principal repayments are N, to be made for the first 10 years; thereafter 1% per annum is repayable for the next 10 years and 3% per annum is repayable for the final 30 years. The .. z~;' credits are free of interest, but a service charge of '4 of 1% per annum is payable on the amounts with- drawn and outstanding, to meet the administrative costs of IDA. t;Sz i 't This Annex also records commitments during the year by the Bank's other affiliate, the International Finance Corporation. Fuller descriptions of those com- mitments are given in the Annual Report of IFC, .s 'j ,which is published simultaneously with the Bank/IDA .4 g. , j 1 .. : 4 ......... . - -- . Report. AFRICA REGIONAL ' S':tl; ' Qi;!t,\a^ .|' Y'ts t- Afour-man mission was organized by the Bank to study the special problems of agriculture in F Xf s .- > S Africa south of the Sahara. The group began its M .-X?: field work in Kenya, and will next visit Tanganyika. ALGERIA .j. ',i;,'$20. n2-year5y2%BankloanofMay14,1964, to the Compagnie Algerienne du Methane Liquide (CAMEL). This loan will help to finance a natural gas liquefaction plant at Arzew on the Mediter- ranean coast of Algeria. The plant will produce - 2.4 million cubic meters of liquefied natural gas annually for sale in England and France. It will be the first large-scale commercial installation - of its kind. Gas will be supplied through an existing pipeline from the Hassi R'Mel field in the Sahara. The liquefied product will be trans- ported by special tankers to England and France. Other major installations at Arzew will be a 21 : -~~~~~~~~~~~~t 'XIS,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I -~~~~~~~~~~~~~~~~~~~~~~~~- S 10,600-kilowatt power plant, four storage tanks, of 30% annually and are expected to increase and port facilities for the berthing and loading by as much as 20% a year for a number of years of tankers. The total cost of the project, includ- to come. ing start-up expenses, is estimated at $89 million. The loan will assist in financing the second CAMEL is owned 40% by Conch Inter- and third stages of the Awash River hydroelec- national Methane Ltd., an international group, tric development southeast of Addis Ababa. 40% by a French-Algerian group, and 20% by They will provide 64,000 kilowatts of new ca- an agency of the Algerian Government. The pacity to augment the 23,000 kilowatts already project represents the first major industrial in- available from the first stage. The program also vestment by foreign capital in Algeria since the includes the expansion of transmission and dis- country became independent. It will make tribution facilities in EELPA's main intercon- possible the economic utilization of an impor- nected system which extends from Addis Ababa tant natural resource, assure the profitable op- eastward some 220 miles to Harar, as well as 22 eration of an extensive pipeline and increase diesel units with a combined capacity of 5,800 Algeria's royalty and tax receipts. The Govern- kilowatts in areas remote from the main system. ment also will benefit as a shareholder in The total cost of these projects is estimated at CAMEL. $34.9 million. The term of the Bank loan has been set at PARTICIPATIONS totaling $975,000: by Irving 12 years, but provision is made for accelerated Trust Company, The Chase Manhattan Bank, amortization under certain conditions depcnd- Bank of America National Trust and Savings ing on the level of profits. The Bank loan is Association, Commerzbank, A.G., Girard Trust guaranteed by the Algerian Government and, Bank, and The First Pennsylvania Banking and subject to certain conditions, by Conch Inter- Trust Company. national Methanc Ltd. and three shareholders in the French-Algerian group. GABON PARTICIPATION totaling $300,000: by Chemical The Bank is acting as Executing Agency for a Bank New York Trust Company. UN Special Fund project begun in Gabon this year. It comprises (a) surveys of the technical ETHIOPIA and economic feasibility of a railway to trans- ELECTRIC POWER port iron ore from the Mekambo mines to a $23.5 million 25-year 5' % Bank loan of May 8, 1964, seaport near Libreville and (b) studies of the to Ethiopian Electric Light and Power Authority impact the railway would have on the economic (EELPA). development of Gabon. All public power in Ethiopia is supplied by EELPA, except supplies to Asmara, which is GHANA served by a private company. Consumption of A member of the Development Advisory Serv- power in Ethiopia is still very low but has been ice continued to serve as Resident Representa- increasingsubstantially; between 1959 and 1963, tive and was available to advise the Government the number of customers served by EELPA rose on economic and financial matters. He was from 28,000 to nearly 50,000. Power sales during assisted until August 1963 by a staff member the past five years have been growing at a rate who worked primarily with the National Plan- ning Commission of Ghana, advising on methods for mobilizing internal and external financial resources for development. Earth-moving equipment imported undeer an IDA development credit is being used in KENYA Swaziland to cut a new all-weather highway In November 1961, the Bank made a loan of through the hills near the Mozambique border. The new road, spanning the country $8.4 million to Kenya, with the guarantee of the from east to west, will link the largest United Kingdom, for a project to develop farm- towns and open newz areas to cultivation. lands for the settlement of African families on 23 180,000 acres in the highlands formerly reserved for the country's size and population, the project for Europeans. The Bank loan, together with a being assisted by the Bank is an important step loan of $4.2 million from the Commonwealth in further road development. Initially, one of the (then Colonial) Developimient Corporation, was new roads will be an access route to a planned to he used for farm development purposes, such logging and sawmill operation in virgin forests. as water supply, fencing, access roads, farm Ultimately it should help promote agricultural buildings and the planting of cash crops. Imple- as well as timber development and bring an mentation of the project was delayed partly by entire region in western Liberia within economic changes in the organization of settlement affairs reach of Monrovia and of two of the country's in Kenya and partly by changes in the prospects large iron-ore mining complexes. The second for some of the crops to be developed under the road is part of a new 35-mile road being built to project. These developments required alterations replace a long roundabout route from Monrovia in the original loan documents, and a Supple- to Robertsfield, the center of rubber production mental Agreement was drawn up and signed on and the site of Liberia's international airport. April 2, 1964 by the Bank, Kenya and the Better road maintenance will restore Liberia's United Kingdom. main trunk roads to good condition and keep The character of the original scheme remains them operable thereafter. The total cost of the essentially the same, but under the new arrange- construction and maintenance projects is esti- ments, the average size of the farms has been mated at $4.5 million. enlarged so that the number planned has been Because of Liberia's difficult financial position reduced from 7,800 to 5,744, and greater empha- over the next few years, and the recent action sis has been given to the raising of dairy cattle. of other foreign creditors in accepting a re- The total estimated cost of the project has been arrangement of Liberia's external debt, the reduced because of the less expensive type of Bank set the commencement of amortization of developtnent. Consequently the amounit to be its loan for June 1972-a longer grace period drawn from the Bank loan may be less. The than is usual in Bank loans. guarantee of the loan by the United Kingdom continues in effect.. LIBYA A member of the Development Advisory Service continued to serve as Economic Adviser TRANSPORTATION-HIGHWAYS to the Prime Minister. In October 1963 another $3,250,000 18-year 5' 2% Bank loan of January 8, membrote DAs bn acto-ear assign- mnember of the DAS began a two-year assign- 1964, to Liberia. This is the Bank's first loan to Liberia. It will ment as Principal Adviser on Planning to the help to build two new roads totaling 62 miles Ministry of Finance and Development. and will pay for equipment and materials to improve maintenance of the country's entire MAURITIUS road system. Most of Liberia's road network has ELECTRIC POWER been built in the last 10 years, during which road $7 million 20-year 512F% Bank loan of September 23, mileage increased from 300 to 1,700 and the 1963, to Mauritius. number of motor vehicles rose from 650 to about Mauritius, a British colony in the Indian 10,000. The development of roads has stimu- Ocean, has an area of 720 square miles and a lated economic growth; because travel time population of 691,000, making it one of the from production to consuming centers has been most crowded areas of the world. Public power cut from weeks to hours, outlying districts now on the island is supplied by the Central Elec- provide foodstuffs to the capital city of Monrovia tricity Board (CEB), which now serves about and other population centers, and the production half the population. The generating capacity of of rubber, cocoa, coffee and other cash crops CEB's power plants is approximately 30,000 has increased considerably. kilowatts, which it supplements in the dry season 24 Since the road network is still small, however, by power bought from private plants on sugar estates. Two severe cyclones in 1960 damaged thcs system and curtailed sales of power. With the rehabilitation of the system, the.. extension of service to new areas, probable industrial expansion, and the growing popula- tion, annual power sales are expected to grow at a rate of 1 1% through 1970. The project being 9 ' assisted by the Bank loan should enable CEB to meet the island's requirements until that time. J It includes the first stage of the Fort Victoria diesel power station at Port Louis with an initial capacity of 12,000 kilowatts. In addition, trans- 3W 7 mission facilities will be reinforced in the area of heaviest electricity consumption, the distribution system will be reconstructed and expanded in the towns to provide better service, and the service area will be extended. The total cost of the project is estimated at $8.6 million. The loan is guaranteed by the UJnited Kingdom. PARTICIPATIONS totaling $4,825,596: by Banque Lambert, S.C.S., New York Branch of Barclays Bank D.C.O., Mercantile Bank, Limited, Hope & Co.,Jonker & Verschoor, Firma F. van Lanschot, ' Nederlandsche Credietbank N.V., N.V. Hol- _- landsche Koopmansbank, Bankierskantoor Staal & Co. N.V., Amsterdamsche Bank N.V., Nederlandsche Handel-Maatschappij, N.V., Nederlandse Overzee Bank N.V., Rotterdamsche Bank N.V., Banque de Paris et des Pays Bas, S.A., R. Mees & Zoonen, and Theodoor L_._ - Gilissen, N.V. MOROCCO At the request of the Government, the Bank sent a general survey mission to assess the country's development potential and to recom- mend economic policies, institutional arrange- - ments and the elements of an investment pro- gram designed to accelerate economic growth. r The mission is now preparing its report. Equipment in this Ethiopian fibre mill 7. was financed by a loan from the Ethiopian Development Bank (EDB), established with _ financial and technical assistance from the E ,...e World Bank in 1950. EDB has financed imports of equipment for industries in Ethzopia by drawing on foreign exchange resources provided to it through World Bank loans. NIGER miles of transmission lines, and extension of TRANSPORTATION-HIGHWAYS distribution systems. The Bank loan will finance $1.5 million IDA credit of June 24, 1964. the foreign exchange costs of the transmission Niger, a landlocked country, has to rely on and distribution facilities to be built during the the transport systems and ports of neighboring first 3 years of the program at an estimated Nigeria and Dahomey for its foreign trade. total cost of $42.3 million. These include about Because of the long distances to ports-over 640 miles of high-voltage transmission lines, 800 miles-the high transport costs of Niger's extensions of the existing systems at Port Har- overseas trade has a detrimental effect on the court, Lagos and lbadan, and the expansion of economy. distribution facilities at various centers to be Groundnuts, the chief export, are grown served by the new power network. These works mainly in the southeastern part of the country, will create three transmission systems-one each where the IDA credit will finance two small, in the Eastern and Northern Regions and the high priority road projects. A 21-mile earth road third in the Western and Mid-West Regions- from Damthiao to Dungass will be improved which subsequentlv will be part of the national and a new laterite-surfaced road of about the same length will be built from Dungass to grink Maigtar onthe ige-Nierin boder Onits PARTICIPATIONS totaling $2,170,000: by Bankers Maigatari on the Niger-Nigerian border. On its Trust Company, The Chase Manhattan Bank, side of the border, the Government of Northern ChemicalmBank The York Trust Bany Nigeria intends to complete the paving of a road United California Bank, Bank of America Na- which links Maigatari with the railhead at tional Trust and Savings Association, New York Kano. The project roads will reduce the cost of Branch of Barclays Bank DsCsOci The Meadow transporting groundnuts from the Dungass area Brook National Bank, The First National Bank by nearly half and should also attract additional of Chicago, Irving Trust Company, The First settlers to the area and stimulate increased Pennsylvania Banking and Trust Company, agricultural activity. New York Agency of The Standard Bank Lim- The amount of Government revenues which ited, and Bayerische Hypotheken- und Wechsel- can be spared for road expenditures is needed to bank. finance essential maintenance operations, and almost all new construction is being financed OTHER ACTIVITIES * The Bank continued to wholly by external aid. In these circumstances maintain a Resident Representative in Lagos. the IDA credit will cover the total cost (exclud- A member of the Development Advisory Service ing import taxes) of the Dungass roads, most of ended a two-year assignment as Economic Ad- which is foreign exchange. viser to the Federal Government. In March NIGERIA 1964, at the request of the Federal and Mid- ELECTRIC POWER West Governments, the Bank sent another mem- $30 million 20-year 52%F Bank loan of March 12, ber of the DAS to serve as Adviser to the 1964, to the Electricity Corporation of Nigeria. Government of Mid-West Nigeria; he is also The Electricity Corporation of Nigeria, which available to advise the Federal Government. is responsible for providing electric power Four meetings of the Consultative Group on throughout the country, is carrying out a six- Nigeria were held during the year to discuss the year expansion program designed to establish coordination of assistance for Nigeria's develop- a national power grid and to provide enough ment. The group consists of Belgium, Canada, thermal capacity to meet requirements until Germany, Italy, Japan, the Netherlands, Swit- 1969, when the hydroelectric power project at zerland, the United Kingdom, the United States, Kainji in the Niger River should be in operation. the Bank and IDA. The Corporation now operates thermal plants Consultants completed a study looking toward with a combined capacity of 216,700 kilowatts. improvement and expansion of Northern The program contemplates the addition of Nigeria's road network. The Bank allocated 26 220,000 kilowatts of new thermal capacity, 840 $125,000 to meet half the cost of the study. IFC COMMITMIFINTS - $770.078 of loan and nection with the Ten-Year Plan. The Group share capital for Arewa Textiles Limited. consists of Belgium, France, Germany, Italy, $1,400,000 of sharc capital for Nigerian Japan. the Netherlands. Switzerland, the United Industrial Devcloprncnt Bank Limitcd. Kingdom, the United States, the Bank arid IDA. The Bank acted as Executing Agency for a NORTHERN RHODESIA UN Special Fund survey of the Sudan's electric The Bank has organized and is helping to power requirements and the preparation of a finance a study of the country's general transport long-term program for power development, requircments, including the priorities of various which was completed during the year. proposals for the future developinent of trans- port. The Bank has undertaken to meet the IFC COMMITMENT - $689,588 of loan and foreign exchange costs of the study, estimated at share capital for Khartoum Spinning and Weav- $140,000. Field work on the study commenced ing Company Limited. in June TANGANYIKA NORTHERN RHODESIA AND EDUCATION SOUTHERN RHODESIA $4.6 million IDA credit of December 19, 1963. Prior to the dissolution of the Federation of The expansion of secondary schools is vital Rhodesia and Nvasaland on December 31, 1963, to the economic development of Tanganyika. the Bank had made five loans totaling $146.6 There is an urgent and increasing demand for million for electric power, railways and agri- secondary school graduates, both for direct culture. and a total of $125.4 million was still employment and for further training in the outstanding on that date. The loans had been administrative and professional fields, private made directly to the Federation or carried the and public. The need is all the more pressing guarantee of the Federation. The Bank under- as expatriate civil service officials depart. In took negotiations with Northern Rhodesia, five years, Tanganyika will need to have trained Southern Rhodesia, the Federal Power Board and available twice the number now employed (now the Central African Power Corporation), in such careers as teaching and engineering, as the Rhodesia Railways and the United King- well as a wide range of technicians in other dom (which guaranteed all the loans), so that fields. the loan documents could be altered to take into In 1962 the Government began a prograrn to account the new political situation. As a result expand the secondary school system which will of the negotiations, effective January 1, 1964, increase the number of places for students to Southern Rhodesia assumed a total obligation of 24,300. The IDA credit is assisting this program $69.8 maillion and Northerna Rhodesia assumed and will be used for the constructioni of two neW an obligation of $55.6 million. The United schools and the extension and equipment of 53 Kingdom guarantec of the five loans continues others, providing in all nearly 6,900 additional in effect. places for students. Because of Tanganyika's scattered population, boarding facilities are SUDAN necessary in some cases to enable pupils to A member of the Development Advisory attend regularly. The two new schools to be Service is Adviser to the Department of Eco- built with IDA assistance will be government nomic Planning. He is available to help review boarding schools; the 53 schools to be enlarged and revise the Ten-Year Plan of Economic and include 12 government and 27 voluntary agency Social Development (1962-1972) to keep it boarding schools, and 8 government and 6 abreast of changing conditions, and to advise on voluntary agency day schools. The total cost of general economic financial policies. construction, improvement and equipment is A newly organized Consultative Group on the estimated at $6 million. The program is already Sudan held three meetings at the Bank to discuss well under way, and student enrollment in the the coordination of financial assistance in con- new facilities commenced this year. 27 TRANSPORTATION-HIGHWAYS foreign trade and serves an area containing more $14 million IDA credit of February 5, 1964. than half Tunisia's population of four million. The road system in Tanganyika is of primary The volume of traffic, nearly 2.4 million tons a importance, since the railways serve only parts year, is beyond the capacity of the port to handle of the country and the population, widely dis- efficiently, and is expected to increase by a persed over a large area, requires an extensive quarter in the next decade. Most of the general transportation network. There are some 10,000 cargo is now handled at the old port of Tunis miles of main roads which serve as trunk routes at the landward end of a six-mile canal across between provincial centers and with neighboring the Lake of Tunis. Since there is no room for countries. Their quality, however, is very un- expansion at Tunis and the approach is difficult, even, with paved sections near the towns and the Government intends to transfer port opera- long stretches between towns with only earth tions progressively to the new port of La surfacing. The project being assisted by the IDA Goulette at the seaward end of the canal, where credit is a step toward the construction of an conditions are more favorable. interconnected all-weather highway system. It The project consists of the construction of two consists of the construction or improvement of new, fully equipped berths at La Goulette, a eight main roads in various parts of the country, passenger terminal and office buildings, and the totaling 734 miles. All the roads are important equipping of five existing berths with transit to production and trade, as they serve areas now sheds and warehouses. It also includes the relo- producing cash crops or with a potential for cation of the access road and of the breakwater agriculture. at the harbor entrance, and the extension of the Three of the roads are part of the main system road and rail network within the port area. The which radiates from the capital, Dar es Salaam, total cost of the works to be undertaken is esti- and serves most of the major towns and some of mated at $11.4 million. The project will enable the most productive lands in the country. A La Goulette to handle a total of about one fourth road also runs from Dar es Salaam million tons of general and bulk cargo annually. through an area of established agriculture with a Passenger liners and cruise ships will also be large capability for increased production of food- diverted to La Goulette where the new terminal stuffs for the fast-growing population of the will replace old, inadequate facilities at Tunis. capital. A fifth road serves an agricultural PARTICIPATIONS totaling $420,000: by The Chase region in the south, near the Mozambique bor- Manhattan Bank, Commerzbank A.G., Chemi- der; and a sixth extends from Mbeya to the cal Bank New York Trust Company, and Bank northerin end of Lake Nyasa. The other two are of America, N. T. & S. A. in northern Tanganyika in the vicinity of Lake Victoria. The improved roads will result in OTHER ACTIVITIES * The Bank is helping to better routes for growing traffic, lower transport organize a study intended to improve school costs, faster transportation of agricultural prod- building design and to lower construction costs, uce to consuming centers and ports, and sav- and has undertaken to meet the foreign exchange ings in road maintenance costs. costs of the study, estimated at $375,000. Two meetings of the Consultative Group on IFC COMMITMENT * $1,931,172 supplemental Tunisia were held at the Bank. Representatives investment of loan capital for Kilombero Sugar of Belgium, France, Germany, Italy, the Nether- Company Limited. lands, Sweden, Switzerland, the United King- dom, the United States, the Bank and IDA TUNISIA attended these meetings. TRANSPORTATION-PORT The Bank provided a consultant to study the $7 million 25-year 5y2% Bank loan of June 5, 1964, Tunisian capital market and staff members went to Tunisia. to Tunisia to advise on development financing This loan will assist in creating a modern port institutions. In each case, the reports have been 28 for Tunis, which handles over half the country's transmitted to the Government. ASIA AND THE MIDDLE EAST REGIONAL A member of the Development Advisory Service was seconded to the United Nations to become the first Director of the Asian Economic i ~6 - - Development Institute in Bangkok. CHINA AGRICULTURE-FISHERIES $7.8 million 15-year 5y2% Bank loan of September 27, 1963, to the Republic of China. This, the Bank's first loan to China, will finance the foreign exchange costs of building and equipping 16 modern deep-sea fishing vessels to expand the country's tuna fishing fleet. It is estimated that a total of $9.4 million will be invested in the project. Population pressure on Taiwan's limited arable land has brought about +< ;, a / \\ an acceleration in the development of the fishing industry in the last 10 years. As a result, the fishing fleet has grown to some 5,800 powered vessels, the annual catch has increased to well over 300,000 metric tons, and the industry 4 z 4 ,'; +X;< -- t employs about 300,000 people, providing sup- port for over twice that number. The catch of tuna has increased substantially .<. l f * t 5 \\ with the introduction of deep-sea fishing vessels. ,e A F - ; \ When the new vessels join the fleet, the value of i g .-^ -. ' .-l Taiwan's annual catch of fish is expected to . ;i' - - X -\increase by the equivalent of over $4.5 million. The expansion will provide more employment, < >\3 ,lsg , laugment domestic food supply and, since two- thirds of the catch will be exported, will sub- stantially increase foreign exchange earnings. PARTICIPATIONS totaling $970,000: by Irving Trust Company, Chemical Bank New York Trust Company, United California Bank, The Bank of New York, Girard Trust Bank, Manu- - - -t . facturers Hanover Trust Company, The Marine Midland Trust Company of New York, Bank of - ;--.~- America National Trust and Savings Associa- -L g <. .a .> tion, Fidelity-Philadelphia Trust Company, The *f + . >: First Pennsylvania Banking and Trust Company, Crocker-Citizens National Bank, National Bank of Commerce of Seattle, First National City Bank, The First National Bank of Boston, Wells 29 Fargo Bank, and the New York Agency of the import licensing procedures of the Govern- Bank of China. ment of India; the procedures will be streamlined to ensure an expeditious use of the credit. OTHER ACTIVITIES - A study to formulate an investment program for the improvement of OTHER ACTIVITIES * The Bank continued to transportation facilities was completed. The maintain a Resident Representative in New Bank paid $207,000 to cover the foreign ex- Delhi. Two meetings of the Consortium on Aid change costs. to India were held during the year. Participants were Austria, Belgium, Canada, France, Ger- INDIA many, Italy, Japan, the Netherlands, the United INDUSTRY Kingdom, the United States, the Bank and IDA. $90 million IDA credit of June 9, 1964. In August 1963. the Consortium pledged the Within the last decade there has been con- equivalent of $1,052 million, subject as appro- siderable development in India of manufactur- priate to legislative or other necessary authoriza- ing firms capable of producing sizable quantities tion, to assist the third year (April 1, 1963 to of capital equipment. This has shifted part of the March 31, 1964) of the current Indian Five- import demand from finished goods to compo- Year Plan. Of this amount, the Bank and IDA nents and materials for inclusion in domestic share was $245 million. In May 1964 the products. Because of the shortage of foreign equivalent of $1,028 million was pledged for the exchange, however, manufacturers have not fourth year of the Plan, again subject as appro- been able to purchase all their import require- priate to legislativc or other necessary authoriza- ments, with the result that plant capacity has not tion; the Bank and IDA share was $245 million. been fully utilized. The Bank agreed to make an additional allo- The IDA credit will enable companies in cation of $100,000 to expand the scope and three major industries-commercial vehicles, in- complete the study of India's coal transport dustrial machinery and construction equipment problem. This brought the Bank's total alloca- -to import components and rmaterials on a tion to $850,000. Field work on a study looking larger scale than has been possible up to now and toward a new crossing on the Hooghly River thus to make fuller use of existing capacity and was completed. The Bank contributed $116,000 to produce more capital goods. In the industries to cover part of the cost. directly affected, it should make possible an increase of output averaging as much as 30%c IFC COMMITMENTS * $1,211,000 of loan and in the year ending March 31, 1965. share capital for Fort Gloster Industries Limited, The construction industry, which has been to help enlarge and diversify electric cable pro- handicapped by a scarcity of spare parts for its duction by the company. equipment, will also benefit from the IDA credit. $1,380,000 of loan and share capital for Funds are provided for the import of spare Lakshmi Machine Works Limited, a new cotton- parts for heavy earthmoving and construction textile machinery company. equipment already in India, of additional sup- $3,450,001 of loan and share capital for plies of such equipment, and of transporters to Mahindra Ugine Steel Company Limited, a move the equipment from one project site to new Indian firm which will build and operate an another. Furthermore, the Government is taking alloy steel plant. measures to ensure the maintenance in India of adequate stocks of spare parts and to expedite their delivery. This should speed up the execu- tion of various development projects throughout the largs lank(fo2 million)revertmode India, particularly in the fields of irrigation and been helping to build or improve 1h500 electric power. miles of highways in southwestern Iran. The proceeds of the credit will be made avail- This aerial view shows a new road winding 30 able to participating firms and agencies through along the Potagh Pass west of Kermanshah. <~~~~~~~~~~~~~~~~~~~~~t t t - N *~~~~~~~~~~~~~~~t 5 IRAN JAPAN TRANSPORTATION-HIGHWAYS TRANSPORTATION-HIGHWAYS $18.5 million 20-year 5%Bank loan ofJune 10, 1964, $75 million 26-year 5I2% Bank loan of September 27, to Iran. 1963 and Roads are the principal means of transport in $50 million 25-year 5'2% Bank loan of April 22, 1964, fran. The Government is carrying otit a con- to Nihon Doro Kodan. tinuing program of construction and improve- Both loans will help finance the construction ment to provitle paved roads for the movement of additional sections of the toll expressway of freight and passengers between important Nvhich will eventually extend 333 miles from centers of industry, commerce and agriculture, Tokyo to Kobe. The $75 million loan was for and to accommodate the country's rapidly grow- the 100-mile section between Tokyo and ing volume of traffic. There are now some 4,000 Shizuoka, and the $50 million loan was for the miles of paved main roads in Iran; a Bank loan 49-mile section between Tovokawa and Komaki of $72 million in 1959 financed a third of the in the Nagoya area. The total cost of the cost of building 1,500 miles of these roads. Tokyo-Shizuoka section, including construction, The Government now has under way the land acquisition. and engineering, is estimated at construction or improvement of a further 770 $628 million; the cost of the Toyokawa-Komaki miles of main roads. This year's loan will assist section is expected to be $202 million. Two earlier in financing five sections of these roads totaling Bank loans totaling $80 million helped to finance 425 miles. It will also finance a survey and 114 miles of the expressway from Nagoya to preliminary engineering of roads selected for Kobe, of which 88 miles are already open to future improvement. The work being assisted by traffic. With the exception of a section extending the Bank loan is expected to cost a total of about 23 miles from the suburbs of Tokyo, $44.2 million. which will be six-lane, the Tokyo-Kobe express- The project will extend the benefits already way will be a four-lane, limited-access, high- obtained from the earlier road program. It speed, divided highway with interchanges, serv- resulted in better access to semi-isolated regions ice areas, bus stops, toll stations and traffic in many parts of the country, a drastic reduction control facilities. in the time and cost of moving people and The expresswaiy, when completed, will he the freight, and a great increase in the frequency of most important highway in Japan. It will trav- service of public carriers. Of particular impor- erse the most highly industrialized and popu- tance was the improvement of the north-south lated area of the country, and will link five of artery from the Caspian Sea through the Tehran Japan's six largest cities: Tokyo, Nagoya, Osaka, area to the Gulf ports, on which the volume of Kyoto and Kobc. It will relieve the acute short- traffic has doubled since 1959. age of transportation capacity in this area, PARTICIPATIlONS totaling $1,460,000: by The providing for the safe and rapid movement of PARTICIATIONStotalin $1,46,000: b The eighanpasgetrfiatecudco. Chase Manhattan Bank, First National City freight and passenger traflic at reduced cost. Bank, Irving Trust Comnpany, Manufacturers PARTICIPATION totaling $50,000 in the $75 mil- Hanover Trust Company, Mellon National Bank lion loan: by Vereinsbank in Hamburg. and Trust Company, and Bank of America National Trust and Savings Association. JORDAN WATER SUPPLY OTHER ACTIVITIES * The Bank organized and $3.5 million IDA credit of December 12, 1963. is helping to finance a long-range study being One of the most pressing problems for munici- carried out to assist in the establishment and pal authorities in Jordan has been the provision initial operation of an Authority for the regula- of water. The large influx of people into the tion, planning and development of the electric towns has put a strain on existing supplies and, power industry. The Bank has undertaken to despite rationing, the chronic water shortage meet the foreign exchange costs, estimated at seriously affects living conditions. The Govern- 32 $750,000. ment therefore has given high priority to improv- Japanese National Railways used a BI3ah loan to help build the new railzay from Tokyo to Osaka, on whlich trains are scheduled at speeds up to 125 miles an hour. Shown here: Nagoya station. ing water supply systems. An IDA credit of water from a large spring to Ramallah .The main $2 million was made in 1961 to improve the components of the projects in each case involve system in Amman, the capital, and this year's collection works, transmission mains, pumping credit will assist similar projects in thc four next facilities, reservoirs and related facilities and largesturbancenters:RamallahintheJerusalem improvement or expansion of distribution sys- area, Zarqa, Irbid-Mafraq, and Nablus. None tems. The total cost of the works being under- of these centers has a sizable source of usable taken is estimated at $5.2 million. surface water nearby, and the projects involve The projects will be carried out by the Ccntral the development of new sources. New well fields Water Authority to which the proceeds of the will be developed for Zarqa and Nablus; water IDA credit will be relent initially by the Govern- for the Irbid-Mafraq area will be pumped 85 ment of Jordan. After the works are completed miles thlrough a salvaged petroleum pipeline, the new facilities as well as the Authority's serving numerous towns and villages en route; financial liabilities will be transferred to operat- and a pipeline about 16 miles long will bring ing agencies. The funds will be repaid to the 33 These scoops begin tunnels to divert - 5 the Jhelum River - for construction of thze Man gla % o multi- 7 purpose dam in which tlSe banzk ha,s lent $90 million:- Government over a period of 20 years, after additional resources for the lending program of three years of grace, with interest at 4%v0 per the Agricultural Credit Corporation (ACC), the annum. largest institutional source of agricultural invest- ment credit in Jordan. To make its operations AGRICULTURE more effective, ACC will also receive technical $3 million IDA credit of December 12, 1963. assistance in accounting and lending procedures, Most of Jordan's land area is desert, and only and the IDA credit will include funds to cover about 10% is cultivated at any one time.Despite the foreign exchange costs of experts and unfavorable climatic conditions, agriculture is accounting equipment. the mainstay of the economy. Output can be ACC will make loans for the reclamation and increased both through intensification of pro- improvement of land, the establishment of per- duction and through expansion of agricultural manent plantations, some irrigation, and on- area. If sustained agricultural growth is to be farm development. There will also be modest achieved, however, the Government's efforts to investments in farm mechanizatioii, livestock improve agricultural research, extension services production, and farm and storage buildings. and marketing facilities must be accompanied These measures are expected to bring about an by an expansion of credit facilities. The IDA increase in food crops and dairy products for 34 credit will help to fill this need by providing domestic consumption-thus lessening Jordan's dependence on imported foodstuffs which ac- form and on suitable terms. MIDFL is designed counted for nearly a third of all imports in 1961 to meet this need by providing investment -and in export crops, mostly olives and capital in any form appropriate to its clients. It vegetables. can undertake equity participation, make me- The Government of Jordan will relend the dium and long-term loans, or provide other proceeds of the IDA credit to ACC which will financial and technical assistance to industry. repay the Government over a period of 10 years, It will sell its equity participations as soon as is after a 10-year period of grace, with interest at practicable, so as to expand the ownership of 314 % per annum. ACC will in turn relend the industrial securities and to recover its own funds to farmers and agricultural enterprises at resources for additional investments. an interest rate of not less than 51 % per annum The Bank loan will be committed, in parts, at maturities appropriate to individual projects. for individual projects to be agreed upon from time to time by the Bank and MIDFL. Each KUWAIT part committed for a particular project to be A Bank staff member continued as adviser to financed by MIDFL will be repaid according to the Arab Economic Development Fund. a schedule to be determined at the time of the commitment, subject to a maximum term of MALAYSIA 15 years. Interest will be applied to each part INDUSTRY-DEVELOPMENT FINANCE COMPANY of the loan at the Bank's then current rate. $8 million Bank loan of July 15, 1963, to Malaysian Industrial Development Finance Limited (MIDFL). ELECTRIC POWER MIDFL was established in 1960 by Malayan $51.9 million 25-year 5'2% Bank loan of August 7, and foreign investors to assist in the expansion 1963, to the Central Electricity Board of Malaya (CEB). of private industry. The Bank loan, together with The Central Electricity Board is the largest an investment by the Bank's affiliate, the Inter- supplier of electric power in Malaysia. The big- national Finance Corporation (IFC), are part gest project undertaken by CEB is the Cameron of a series of measures taken to strengthen the Highlands scheme for developing the hydro- organizational and capital structure of MIDFL electric power potential of groups of streams on to enable it to make a larger contribution to the the Cameron Highlands Plateau, about 100 industrial development of Malaysia. The im- miles north of Kuala Lumpur. A Bank loan of mediate financial resources available to MIDFL $28.6 million made in 1958 is assisting the first rose from M$10.5 million (US$3.5 million) to stage of the scheme which will provide 106,800 about M$62 million (US$20 million), as the kilowatts of capacity. This year's loan includes result of a M$7.5 million increase in share funds for the second stage, the Batang Padang capital-of which the IFC has subscribed project, which will add two more plants with a M$2.5 million (US$817,917)-a long-term, combined capacity of 102,800 kilowatts. In addi- interest-free loan from the Government of tion, the loan will assist the construction of the Malaysia, and the Bank loan. Malaysian inter- Prai thermal power station, with an initial ests, together with the IFC, now hold just over capacity of 60,000 kilowatts, on the west coast 50% of MIDFL's share capital, and the remainder in northern Malaya. Both projects are designed is held by financial institutions in France, Ger- for increases in capacity at a later date. many, Hong Kong, India, Japan, Thailand, the CEB's transmission network is being expanded United Kingdom and the United States. to connect the new plants with existing facilities Although still at an early stage, industrial and to interconnect all major power plants and development in Malaysia has shown a marked supply systems operated by CEB and other upsurge in the past few years. Malaysian enter- utilities on the western side of Malaya. This will prises, however, have often been handicapped increase firm generating capacity and realize by the inability of the local capital market to considerable savings in generating costs by using channel an adequate share of domestic savings both hydroelectric and thermal plants to their to productive industrial ventures, in suitable best advantage. The total cost of the generating 35 and transmission projects is estimated at $75 farm incomes in one of the most densely popu- million. lated agricultural districts of the world. PARTICIPATIONS totaling $2,830,000: by The The project will be built and operated by the Chase Manhattan Bank, New York Branch of East Pakistan Water and Power Development The Chartered Bank. Morgan Guaranty Trust Authority. The credit will be relent on IDA terms Company of Nevw York. Manufacturers Hanover by the Central Government of Pakistan to the Trust Company, National Bank of Commerce Province of East Pakistan, which will relend an of Seattle, Bank of America National Trust and equivalent amount to the Authority for repay- Savings Association, First National City Bank, ment over a period of 20 years, after a five-year The Philadelphia National Bank, Girard Trust grace period, with interest at 4% a year. Bank, The Marine Midland Trust Company of New York, cw York Agency of Thc Mitsui WATER SUPPLY AND SEWERAGE Bank, Limited, The First Pennsylvania Banking $26 million IDA credit of August 16, 1963, for the and Trust Company, Grace National Bank of Dacca project and New York, Crocker-Citizens National Bank, $24 million IDA credit of August 16, 1963, The Bank of Tokyo Trust Company, Chemical for the Chittagong project. Bank New York Trust Company, New York These credits will be used to provide adequate Agency of The Hongkong and Shanghai Bank- and safe water supply and sewerage services in ing Corporation, and Irving Trust Company. Dacca and Chittagong, the two most important cities in East Pakistan. Dacca is the capital and OTI-IIR ACTIVITIES * The Bank continued to leading commercial center, and Chittagong is providc to the Treasury the services of an the main port. With the rapid growth of popu- expert in organizing economic data. lation in both cities since 1951. water supply and sewerage services have become increasingly in- PAKISTAN adequate: in Dacca less than a third of the AGRICULTURE population of 555,000 is directly served by the $9 million IDA credit ofJuly 26, 1963. public water systems and only about a tenth This credit wvill assist in financing a flood have sewer connections. In Chittagong the water protection, drainage and irrigation project in systems serve just over a third of the population East Pakistan. About 95 milcs of embankmcnts of 365,500 and there is no public seweragc will be built around the project area, which lies system. to the north and south of Chandpur on the The water supply installations being assisted Meghna Estuary, to protect the land from flood by the IDA credit are designed to meet the and tidal waters of the adjoining rivers. Two expected water requirements up to about 1978. dual purpose pumping stations and one small As part of the project the distribution systems drainage station will be built to drain an area of will be extended until about 70% of the popula- some 135.000 acres and to provide irrigation tions of both cities are served directly in 10 years. for 109,000 acres within this area. Other works The sewerage schernes for the two cities will be include irrigation canals, drainage channels and the first phase of long-range programs which necessary appurtenances. The total cost of the ultimately will provide facilities for the entire project is estimated at $18.2 million. The Pro- municipal areas. When this phase is completed vincial Government of East Pakistan will pro- in about six years, approximately half the people vide agricultural extenisioni services to farrmers, wlho have watei connections will be served by including guidance in the adoption of suitable the sewer systems and connections will continue farming and irrigation practices; credit facilities to be expanded thereafter. Public sanitary struc- will be made available also. When the project tures will be built in both cities for those who is in full operation, crops can be grown through- cannot afford individual water and sewerage out the year and the increase in the net value of connections. The total cost of the Dacca project farm production should be equivalent to more is estimated at $50 million and of the Chittagong 36 than $6 million annually. This would double project, $43 million. The Government of Pakistan will relend the them. The cost of the project is expected to proceeds of the IDA credits to the Province of total $26 million. East Pakistan on IDA terms, and the Provincial The Government of Pakistan will relend the Government will relend an equivalent amount proceeds of the credits to the Provincial Govern- to the Dacca and Chittagong Water Supply and ments of East Pakistan and West Pakistan on Sewerage Authorities for repayment over 20 and IDA terms. 25 years respectively, after 5P-year grace periods, with interest at 312% a year. TRANSPORTATION-PORT $17 million 25-year 5' 2% Bank loan of May 14, 1964, EDUCATION to the Trustees of the Port of Karachi. $8.5 million IDA credit of March 25, 1964, for West This is the second Bank loan for expansion and Pakistan project and improvement of the port of Karachi, the only $4.5 million IDA credit of March 25, 1964, deep-water port in West Pakistan. Since the for East Pakistan project. time of the first loan in 1955, traffic has exceeded These credits will assist the expansion and forecasts, rising from about 3 million tons to 5.6 improvement of two agricultural universities, million tons in 1963. This has overtaxed berthing one at Lyallpur in West Pakistan and the other and cargo-handling facilities and resulted in a at Mymcnsingh in East Pakistan, six technical chronic congestion of ships. Thc improvements institutes in West Pakistan and eight in East now being undertaken will relieve this situation Pakistan, and Technical Teacher Colleges at and provide enough capacity to handle part of Karachi, Rawalpindi and Dacca. the increased traffic, which is expected to reach Although Pakistan has made considerable about 8 million tons by 1970. progress in the past 15 years in expanding and The loan will assist the reconstruction of four modernizing its educational system, facilities are berths at the East Wharves, the construction of still far short of the country's requirements. The three new berths at the West Wharves, the con- shortage of professionally trained personnel for struction of a new oil pier to replace an old, agriculture and industry is particularly acute. dilapidated one, the widening and deepening of Consequently, the Government is taking meas- the navigable channel to improve access to the ures to increase thie number of university-trained oil berths and reduce the risk of collision, and agriculturists to 840 annually by 1970 and of the rehabilitation of the Manora breakwater at trained technicians in industry to 7,000 by the the harbor entrance to help maintain the hy- same year. The projects assisted by IDA will draulic regime and so ensure access to the port. help to attain these goals. The berths at both Wharves will be provided At the Lyallpur and Mymensingh agricultural with transit sheds, passenger terminals, roads universities, IDA funds will be used for the con- and railways, electricity, water, bunkerage and struction of academic and other buildings, for cargo-handling facilities. Since these measures site development and for the procurement and are the maximum that can be undertaken within installation of teaching equipment. At the 14 the present physical layout of the port, Bank technical institutes, IDA funds will be used for funds will be used also for the preparation of a the procurement and installation of equipment master plan for future port development. The for classrooms, laboratories, libraries, workshops, total cost of the project is estimated at $37.5 student hostels and administrative offices. Since million. the success of the technical institutes depends on PARTICIPATIONS totaling $890,000: by Chemical the supply of qualified teachers, training pro- Bank New York Trust Company, Bankers Trust grams are being expanded at the three Technical Cutipany, Girard Trust Bank, Continental Illi- Teacher Colleges. IDA funds will cover the nois National Bank and Trust Company of entire cost of a three-year program for the em- Chicago, The First National Bank of Boston, ployment of expatriate teaching personnel in First National City Bank, The Meadow Brook certain specialized fields and for the overseas National Bank, The Philadelphia National Bank, training of Pakistani teachers who will replace Fidelity-Philadelphia Trust Company, Crocker- 37 Citizens National Bank, and The First Pennsyl- Subsequently, natural gas became available vania Banking and Trust Company. in northern parts of West Pakistan with the completion of a 300-mile pipeline from Sui to TRANSPORTATION-NATURAL GAS PIPELINE Multan and a limited pipeline system from the $15 million 20-year 5l2% Bank loan of May 14,1964, Dhulian oil fields to the Rawalpindi area. Sui to Sui Northern Gas Pipelines Limited. Northern Gas Pipelines Limited, to which this The utilization of natural gas from the Sui year's loan was made, was formed in 1963 to be field in West Pakistan, one of the largest in the responsible for the distribution of Sui gas in the world, began with a 346-mile pipeline from Sui north. It has already taken over the Multan and to Karachi which was built by the Sui Gas Rawalpindi systems, which it will improve and Transmission Company with the assistance of a expand. It will extend distribution of natural Bank loan of $14 million made in 1954. Sui gas gas from the Sui field farther into the north by has been an important element in the growth of the construction of about 370 miles of pipeline industry in Karachi, Hyderabad and other areas from Multan to Lyallpur, Lahore and the in the south, as it provided ample supplies of Gharibwal/Dandot area. The total cost of new indigenous fuel. construction is estimated at $35.5 million; the The Bank, IDA and 6 cooperating governments are financing a complex system of canals to distribute irrigation waters in West Pakistan. Shown here: a canal near the lower Ravi River. T~~~ -< '- t' -_ 4 u _ _t . v i i WB--_ t. r~~~~C - * - - _7i ~ ~ ~ ~ ~ ~ ~ i Bank loan will cover part of the foreign ex- freight, manufactured goods and foodstuffs be- change required for this purpose. The gas will tween the two cities and intermediate towns. It provide an economical and dependable supply should also stimulate the development of local of fuel to the expanding industries of the northern agriculture and industry. region, and will accomplish substantial savings West Pakistan, with 21,000 miles of roads, has of foreign exchange now spent on imports of oil a much more extensive network, but the roads and coal. are not designed to meet the demands of modern PARTICIPATIONS totaling $1,865,000: by Manu- traffic. The Karachi-Hyderabad road will be the facturers Hanover Trust Company, Irving Trust first section of a projected national highway Company, Girard Trust Bank, Chemical Bank which would extend from Karachi northward to New York Trust Company, Fidelity-Philadel- Lahore, Rawalpindi and Peshawar. Since the phia Trust Company, The Meadow Brook new road will reduce the distance between National Bank, Morgan Guaranty Trust Com- Karachi and Hyderabad by about 30 miles, pany of New York, Bank of America National cutting the traveling time from five to three Trust and Savings Association, and The First hours, the volume of commercial and passenger Pennsylvania Banking and Trust Company. traffic is expected to increase rapidly. TRANSPORTATION-HIGHWAYS TRANSPORTATION-RAILWAYS $22.5 million IDA credit of June 11, 1964, for East $10 million IDA credit of June 24, 1964, for Pakistan project and Pakistan Eastern Railway and $17 million IDA credit of June 11, 1964, for $25 million IDA credit of June 24, 1964, West Pakistan project. for Pakistan Western Railway. The credit of $22.5 million will assist the con- The two credits will help to finance comple- struction of a 150-mile two-lane, paved highway tion of the railway programs in East and West between Dacca and Chittagong in East Pakistan. Pakistan under the Second Five-Year Plan which The $17 million credit will assist the construction ends June 30, 1965. The Eastern Railway will of a 90-mile limited access, two-lane toll high- use the $10 million credit to finance signaling way between Karachi and Hyderabad and three equipment, plant and machinery for workshops, bridges, over theJhelum, Ravi and Sutlej Rivers, equipment for ferry operations, special type in West Pakistan. Both credits include funds to freight cars, and equipment and materials for finance the services of consultants to advise and the double-tracking of the most heavily traveled assist the highway departments of the Provinces sections of the Dacca-Chittagong line. The and to undertake feasibility studies of road access Western Railway will use the $25 million credit from the terminal points of both highways, which to finance railcars and trailers, plant and ma- extend only to the outskirts of the cities con- chinery for workshops, track maintenance equip- cerned, to the industrial and commercial areas ment, rails, sleepers and miscellaneous equip- of the cities. Both roads will be the first designed ment. These credits, together with five earlier and built to modern standards in each of the World Bank loans totaling $93.7 million, make Provinces. The total cost of the East Pakistan the railways the largest single beneficiary of project is estimated at $45.5 million and of the Bank/IDA lending in Pakistan. West Pakistan project, $35.5 million. ByJune 30, 1963, freight traffic on the Eastern East Pakistan has only about 3,500 miles of Railway was nearly 7 million tons annually and roads, which for the most part are unconnected the number of passengers carried was 72 million, stretches. Railways and waterways are the chief reflecting increases of 77% and 40%, respectively, modes of transport. With an all-weather high- over a 7-year period. Freight traffic on the way, a substantial volume of through and local Western Railway was 11.3 million tons and the traffic should develop between Dacca and Chit- number of passengers carried 123.4 million, tagong. While bulk freight will continue to be showing increases of 36%c and 41 %, respectively, carried by rail and to some extent by river craft, over a 7-year period. In both Provinces there is a the highway will be used to transport high-value growing demand for all modes of transport. To 39 assure priorities of investment among the alter- 35 million were foreign exchange loans and more native means of transport, the Provincial than three-fifths were to new enterprises. Governments have recently reconstituted their Each part of the Bank loan committed for a Transport Coordination Boards to advise on all particular project will be repaid in semi-annual matters relating to transportation investments installments according to a schedule determined and policy. at the time of the commitment. Interest will be The Government of Pakistan will relend the applied to each portion of the loan at the Bank's proceeds of the credits to the Provincial Govern- rate prevailing when that portion is committed ments of East and West Pakistan on IDA terms. for one of PICIC's projects. The Provincial Governments will in turn make the proceeds available to the two Railways. The OTHER ACTIVITIES * The Bank continued to parts of the credits used for replacements of maintain a resident mission, with offices in equipment and facilities will be repaid by both Rawalpindi and Karachi, headed by a member Railways to the Provinces over a period of 20 of the Development Advisory Service. years, including 312 years of grace, with interest An expert engaged by the Bank to carry out a at 51 2%. On funds used for additions, the preliminary survey of the capital market is Railways will pay interest of 4% annually. preparing his report. The Bank is organizing a study of the water INDUSTRY-DEVELOPMENT FINANCE COMPANY and power resources of West Pakistan, financed $30 million Bank loan of June 30, 1964, to the by the Indus Basin Development Fund, to assist Pakistan Industrial Credit and Investment the Government in planning development of the Corporation Limited (PICIC). water and power sectors. Since its establishment in 1957 by Pakistani In April 1964 the Indus Basin Development and foreign investors, with the assistance of the Fund (Supplemental) Agreement came into World Bank, PICIC has become one of the lead- force. Under it, the Governments of Australia, ing institutions in Pakistan for the provision of Canada, Germany, New Zealand, the U.K., the medium and long-term finance for private in- U.S., and the World Bank agreed to contribute dustry. It has been an effective channel for the an additional amount of $315 million in foreign allocation of scarce foreign exchange to sound exchange to be applied toward the cost of the industrial projects in the private sector, and the works to be constructed by Pakistan in the Indus projects it has financed have brought about Basin. Of this amount, $58,540,000 was to be in appreciable foreign exchange earnings or sav- the form of a contribution by the Bank or IDA, ings. Furthermore, its industry surveys and or both. The Bank and IDA decided that be- market studies have broadened the range of cause of Pakistan's heavy burden of external potential investment by private industrialists. debt, this contribution should be in the form of The loan made this year will provide PICIC an IDA credit. with about half the foreign exchange it will re- The Bank has agreed to act as Executing quire until the end of 1965 for loans to new and Agency for a UN Special Fund survey to deter- expanding industries. It increased PICIC's re- mine the future telecommunications require- sources to the equivalent of over $155 million. ments of the country and to recommend measures Including earlier loans, the Bank has now lent PICIC a total of $79.2 million, and the Interna- tional Finance Corporation holds 5 % of PICIC's This conduit will lead water out of a new paid-in share capital. Although PICIC takes reservoir into an irrigation system serving direct participations in share capital and under- 131,000 acres of land on the Petchhuri Plain writes new offerings of securities, lending has in western Thailand. The project, partly been its main activity thus far. By the end of financed by a Bank loan, will serve about 13,000 farm families. The Thai Government December 1963 it had approved 361 loans ' is also establishing an experimental amounting to Rs. 551 million ($115.7 million) to farm and expanding extension services to 40 a variety of industries. Of the total, all but Rs. improve agricultural practices in the area. 4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~;e0 V~~~~~~~~~~~P for the rational and efficient development and THAILAND operation of telecommunications. INDUSTRY-DEVELOPMENT FINANCE COMPANY $2.5 million Bank loan of March 11, 1964, to the PHILIPPINES Industrial Finance Corporation of Thailand (IFCT). The Bank established a resident mission to IFCT, a private company, is the main institu- work with the Government, and in particular tional source of medium and long-term finance with the Program Implementation Agency. It is for private industry in Thailand. The Bank loan, headed by a member of the Development Ad- together with an investment of 4 million Baht visory Service and initially included experts in ($193,108) by the International Finance Cor- agriculture, industry, transport, corporate poration, were part of a series of measures taken finance and statistics. to increase the financial resources of IFCT to A study directed toward the improvement and B 187 million ($9.13 million), and thereby enable expansion of Manila's water supply system was it to make a more significant contribution to completed. The Bank's contribution to the cost industrial growth in Thailand. Paid-in share was $220,000. capital, originally B 6.1 million, has been in- creased to B 30 million, while B 157 million of SYRIA loan capital is available to IFCT through the TRANSPORTATION -HICHWAYS Bank loan (B 52 million equivalent), B 48 million $8.5 million IDA credit of December 24, 1963. in loans from the Government of Thailand and a Although Syria's network of main roads has loan equivalent to B 57 million in foreign ex- been extended by nearly a third in the past changefromtheKreditanstaltfarWiederaufbau, decade, it has not been adequate to meet the of Frankfurt, Germany. Four foreign investment requirements of rapidly increasing traffic. Many and banking institutions made their first invest- sections of road have deteriorated badly and will ments in IFCT and seven of the existing 12 have to be reconstructed to bring them up to foreign shareholders increased their holdings in suitable standards. the company. With the completion of the expan- This credit will be used for the improvement sion, Thai investors, together with IFC, hold of two of the country's most important highways: approximately v9% of IFCT's share capital. the road from Damascus to Aleppo, the principal The Bank loan will provide foreign exchange north-south trunk highway, and the road from for the purchase of imported equipment, ma- Aleppo to Raqqa, the transport route for prod- terials and services. It will be committed in parts uce coming from the main agricultural areas for individual industrial projects to be agreed in the east. The improvements should reduce upon from time to time by the Bank and IFGT. vehicle operatirng costs, achieve substantial sav- Each part coinrmlitted for a particular project to ings in road inaintenance expenditures, and be financed by IFCT will be repaid over a expedite the movement of goods between Syria's period not exceeding 15 years, according to a largest cities and between producing and mar- schedule to be determined at the time of the keting centers. commitment. Interest will be applied to each IDA funds will also finance consultant serv- part of the loan at the Bank's then current rate. ices for a program to reorganize and strengthen the Department of Highways and Bridges, and OTHER ACTIVITIES * The Bank continued to for an overall survey of the country's roads to station a Resident Representative in Bangkok. assist in the formulation of a sound highway A Bank mission to advise the National Econo- investment program for the future. On the basis mic Development Board and the Committee for of the survey, the consultants will prepare the Development of the North East completed its final design of about 375 miles of roads to be assignment. constructed or improved in the next phase of this A UN Special Fund study of port siltation at program. The total cost of the project, including Bangkok is continuing, and is being extended to improvement works, consultants' fees and main- include the possible expansion of Bangkok's port 42 tenance equipment, is expected to be $14 million. facilities. The Bank is acting as Executing Agency. 23f, tik,,, AUSTRALASIA NEW ZEALAND TRANSPORTATION-PORTS $7.8 million 25-year 5Y2% Bank loan of November 12, 1963, to New Zealand. This, the Bank's first loan to New Zealand, was for the improvement of five ports, Auckland, Napier and Whangarei on the North Island, and Timaru and Lyttelton on the South, Island. The projects are part of a continuing development program being carried out at the larger ports to modernize and expand facilities to handle traffic, more expeditiously and to provide for future growth. At Auckland, New Zealand's largest city, quay cranes, cargo-handling and dredging equipment are being purchased and one of the wharves ex- tended. At Lyttelton, the port of Christchurch, the third largest city, quay cranes are being provided at a new wharf. At Napier, a new finger ' \2 2 s- } t lpier will be built, adding two berths to the six now available. At Whangarei, the site of New it '-e \;i - h , z z lZealand's only oil refinery, tugs, a tug jetty, a pilot launch, a slipway, navigational aids, a workshop and offices are being provided. At Timaru, which handles a growing volume of meat exports, the main item is a mechanical meat-loading installation; a transit shed will *^ J tt i. 45;t1 also be built and cargo-handling equipment pro- | \ \ -,4#\ t _ . vided. The total estimated cost of the projects being assisted by the Bank is $12.5 million. lk~ \ . 1 \ . .i' t-. :f tThe projects are being carried out by local Harbour Boards to which the Government will iMi- tl 4,:~h ri ' ,i relend the proceeds of the Bank loan on the same 2 .\ t k,, 22"''il, li ,_terms it received from the Bank. iPi: PARTICIPATIONS totaling $1,436,464: by Amster- damsche Bank N.V., Bankierskantoor Staal & Co. N.V., N.V. Hollandsche Koopmansbank, 22"tI2,21~ ~ Vermeer & Co., Hope & Co., Jonker & A i 'V Verschoor, and Nederlandsche Credietbank N.V. ELECTRIC POW'ER ' ' Iz jw $32.5 million 20-year 5Y2% Bank loan of March 12, 8 .:z 5 z 1964, to New Zealand. This loan was for the construction of an elec- tric power transmission link to carry power from 43 the Benmore station now under construction on the South Island to the North Island, which contains the greater part of New Zealand's popu- lation and economic activity. Until the midt 1950's demand for power was met almost entirelyvliy the developmnent of hydro- electric sites, mainly on the North Island. Most - ~~of the economically attractive hydroelectric re- * ~~sources of the North Island have now been largely developed, while large potential sites remain unexploited in the South Island. Al- though thermal capacity has been installed on -E ,14: the North Island, the prospects for its develop- _ -_ ; - ment on a largc scalc at costs comparable to those of hydroelectric power are not promising. The New Zealand Electricity Department has k therefore undertaken the construction of a high- -A.- : # . . voltage, direct-cu,rrent transmission line to trans- r_ _ fer up to 600,000 kilowatts of power from the - * Sc $ .' ^ _ South Island to the North Island. The line will f4P~ f _i i f i ibe 350 miles long ovcrland and submarine cables _-~ kl w: 5_ will be laid for the crossing of the 25-mile wide 3 Y.rK Cook Strait. The total cost of the transmission . . . # - i t , i_ facilities is estimated at $50 million. The success- .- * e .0 ar, ful operation of this link will open the way to *fi i . ~w- _ - S further developments of this kind to meet the country's power needs. 8- -. r' t ;' : PARTICIPATIONS totaling $3,722,624: bv Banque 7 Sh.~ a+'eea i0-_ , Lambert, S.C.S.. Dresdner Bank A.G., Com- pagnie de Gestion ct de Banque, Pictet & Cie., 'A. _t 4 _' j% \4t.~.j4,~ The Toronto-Domninion Bank, New York Branch : _.", of the Swiss Bank Corporation, Canadian Im- , . )perial Bank of Commerce, Bank of Montreal, _ ~ The Standard Bank Limited, The Bank of Nova Scotia, and Vermeer & Co. TERRITORY OF PAPUA AND NEW GUINEA A general survey mission to investigate the s 5 . ' t economic development potential of the Territory of Papua and New Guinea completed its field work, and its draft report has been sent to the Australian authorities for review. The Bank's $100 million loan for the Snowy Mountains scheme will help install 760,000 kilowatts of electric generating capacity in Australia. Of hydroelectric capacity, part will be based on the Geehi Dam; this picture shows preliminary work at the Geehi site. EUROPE DENMARK ELECTRIC POWER $25 million 20-year 5320% Bank loan of July 24, 1963, to Denmark. The loan will assist five utilities to expand their generating capacity by 477,000 kilowatts of / thermal power and to construct 400 miles of new ' transmission lines and associated facilities. The ./ projects, which will cost a total of $81 million, will increase generating capacity in Denmark by nearly a quarter. This will help Danish power undertakings to keep abreast of industrial re- t i- quirements and other power demand which is _ lX increasing at a rate well over 107o a year. . - J : / The service areas of the five utilities are on the /1' Jutland Peninsula and the islands of Zealand and 1 .i Bornholm. Three of the utilities are expanding - / i existing plants in Esbjerg, Aarhus and RAnne; s \ 1 these plants also supply steam for district heating di - purposes in the cities in which they are located and these facilities will be extended. The other M / two companies are building new thermal power V ld stations, one near Aalborg in the northern part I : f ' of Jutland, and the other near Skaelskor in the X southwestern part of Zealand.A1j ' PARTICIPATIONS totaling $8,641,160: by Banque i2 Lambert, S.C.S., Banque de Paris et des Pays- a Bas, Nederlandsche Handel-Maatschappij, N.V., ) Hope & Co., Bankierskantoor Staal & Co. N.V., ;i Jonker & Verschoor, Theodoor Gilissen N.V. - 7 (with Labouchere & Co. N.V.), Nederlandsche Credietbank N.V., Firma F. van Lanschot, Amsterdamsche Bank N.V., and N.V. Hol- i, landsche Koopmansbank. FINLAND ''R gM |d INDUSTRY-DEVELOPMENT FINANCE COMPANY - - ,; - $7 million Bank loan of September 18, 1963, to the Teollistamisrahasto Oy (Industrialization Fund). The Industrialization Fund, established in 1954 to provide finance for small and medium- sized industries in Finland, has been reorganized to enable it to provide a wider range of financial and technical assistance. Its financial resources have been increased five-fold to a total of 62 j45 million markkas ($19.34 million) through to reach the maximum that can be obtained Fmk 14.5 million in new share issues and from these sources-4,300 million imperial gal- Fmk 35.5 million in new borrowings. Ions annually by 1965, the only practical way The Bank joined with its affiliate, the Inter- of meeting future demand is through the conver- national Finance Corporation (IFC), in provid- sion of sea water to fresh water. The distillation ing part of this loan and share capital. IFC plant will be a multi-stage "flash" type and will subscribed Fmk 512,040 ($159,279), and the re- be operated hy steam supplied from the new maining shares were taken up by Finnish share- power plant. The power plant will havc an initial holders and by investment and banking capacity of 25,000 kilowatts, or double the pres- institutions in France, Germany, the Nether- ent capacity of Malta's public electricity system, lands, Sweden, the United Kingdom and the and the distillation plant will have a capacity of United States. In addition to the Bank loan, the one million imperial gallons a day. The new new borrowings include new debenture issues station is designed for an ultimate capacity of purchased by the Bank of Finland and the Post 100,000 kilowatts of power and water production Office Savings Bank, and a long-term loan from of six million gallons a day. The total cost of the private Finnish shareholders. project is estimated at $10 million. The Govern- The Industrialization Fund's financial opera- ment of Malta will relend the proceeds of the tions will include loans, loans with equity fea- Bank loan to a new public authority, the Malta tures, equity investments, underwriting of new Electricity Board, which sells power to the public issues and loan guarantees. A major objective and will supply water at cost from the new dis- will be to aid the development of the capital tiller to the Government's Water Authority. The market in Finland by such means as underwrit- loan is guaranteed by the United Kingdom. ing operations and sales of equity participations. PARTICIPATIONS totaling $7,465,000: by Banque The participation of foreign investors in its share Lambert, S.C.S., Girard Trust Bank, New York capital serves not only to increase the total re- Branch of Barclays Bank D.C.O., and two other sources of the Fund, but also to link the Fund institutional investors. with foreign financing and business enterprises. The Bank loan will be used to finance qualified NORWAY industrial projects to be agreed upon from time ELECTRIC POWER to time by the Bank and by the Industrialization $25 million 25-year 512% Bank loan of October 15, Fund. Each part of the loan committed for a 1963, to Norway. , . ... . . ~~~~The loan was for the construction of the particular project will be repaid according to a schedule to be determined at the time of the 230,000-kilowatt Rana hydroelectric power sta- commitment, subject to a maximum term of 15 tion in northern Norway, the 110,000-kilowatt years. Interest will be applied to each part at the hydroelectric power station at Trollheim in cen- Bank's then current rate. tral Norway, and 130 miles of high-voltage transmission lines with related facilities to link MALTA the Rana station with the Tr5ndelag grid in ELECTRIC POWER AND WATER SUPPLY central Norway. The projects, which will cost a $7.5 million 20-year 5Y2% Bank loan of September 6, total of $68.6 million, are part of a continuing 1963, to Malta. program being carried out by the Norwegian This loan, the Bank's first to Malta, was for a combined thermal electric power and sea water distillation project. Malta is in the process of building a diversified economy based on new A chief object of 15 years of Bank lending industries and expanded tourism, and additional in Finland has been to provide more electric electric power and water are essential to the suc- power for growing industries. Of many in- stallations to benefit, one is this thermal cess of these efforts. power plant near Turku, in southern Finland, All of Malta's water supply comes from un- whose generating capacity was doubled to 46 derground sources. Since consumption is likely 266,000 kilowatts with the help of a Bank loan. ~ ~~ r. W '. I I W V il'' ". " __ I is~~~~~~-= ---s - --E. - - 9~~~~~~~~~ - - -- - - - - - - -7- - - - - - - I~ ~~ ~~~~~~~~~~~~~~~~~~~~~~~~ 1 1 4 ~~ = , , w -ti 8',~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' '7< \2 ' .''w''* W w D_ ' 's"'~ ' __- " ------t F " ' -'6 f }ial, W F,, - * . 1 A w 5~~~~~.. 1 lEorkmen cut through1 rock loc ( cmrstrct t.MeAid rialic Highway, one of two imrportant new roads the Bank is heiping(, to finance i'n Yugloslavia. The roads will i.mprove connecti'ons zwith Greece and Austri.a, reduce transport costs, spur development and encourage tourism. Watercourse and Electricitv Board to expand heavily on the expansion of power-based indus- generating capacity and the transnmission net- tries during the present decade. The largest ex- work throughout the country. pansion is planned for aluminum. Present plans Norway's large supplies of low-cost power call for a tripling of the capacitv for aluminum have constituted the basis for important electro- prodiuction to a level of about 600,000 tons an- chemical and electrometallurgical industries. nually by 1970. This should result in a corres- 48 |Economic development will continue to rely ponding increase in foreign exchange earnings. About 65'.c of the output of the two power plants PARTICIPATIONS totaling $95,000 in the $5 mil- financed will le used ly aluminum smelters. lion loan: biy Chemical Bank New York Trust Company, and Bank of America National Trust PORTUGAL and Savings Association. ELECTRIC POWER $7.5 million 25-year 5X9% Bank loan of November 6, OTHER ACTIVITIES * At the request of the 1963, to Hidro-Electrica do Douro and Government, the Bank and the International $5 million 20-year 5 12% Bank loan of November 6, Monetary Fund sent a five-man mission to ad- 1963, to Empresa Termoelectrica Portuguesa. vise on the financing of development. The mis- These were the Bank's first loans in Portugal sion particularly studied tax reform, budgetary and will assist two power projects which will add policy, the capital market, and the banking sys- 260,000 kilowatts of generating capacity to the tem. The mission is now preparing its report. national power network. The $7.5 million loan was to partly finance a 210,000-kilowatt plant at SPAIN Bemposta which is the last of three hvdroelec- TRANsPORTATION-HIGHWAYS tric developments on Portugal's stretch of the $33 million 20-year 5/1% Bank loan of October 25, International Douro River. The $5 million loan 1963, to Spain. was for the installation of a third 50,000-kilowatt Spain has a very extensive road network but a unit to complete a thermal plant near Oporto. large part of the system was built some 40 years Part of this loan is also financing preliminary en- ago and design and maintenance methods arc gineering studies for another thermal plant to be inadequate for the volume and type of today's built near Lisbon. The total estimated cost of the traffic. Despite a considerable increase in road Bemposta project is $35 million, and of the in- traffic due to economic growth and increased stallation at the Oporto plant, $9 million. foreign tourism during the past decade, motor The expansion of manufacturing in Portugal transport in Spain is still at an early stage of during the past decade has been accompanied development. Rapid cxpansion is cxpcctcd as by a rapid growth in the use of electricity, with the economy grows, and the Government has industrial consumption quadrupling. Per capita embarked on a 16-year program to provide an consumption, however, is still among the lowest adequate road network. in Europe, and high priority has been given to This loan, the Bank's first in Spain, will assist power development, particularly to an increase high priority projects included in the first stage in thermal capacity to firm up the predominant of the program. These consist of the improve- hydroelectric capacity of the system. ment or relocation of 460 miles of roads forming the Madrid-Barcelona-Alicante triangle, includ- PARTICIPA1IONS totaling $630,249 in the $7.5 ing a new bridge across the Ebro River; the million loan: by The Chase Manhattan Bank, construction of a 15-mile highway between Chemical Bank New York Trust Company, Oviedo and Figaredo in one of the most indus- Bank of America National Trust and Savings trialized and important agricultural regions of Association, Fidelity-Philadelphia Trust Com- Spain; and a new 6.6-mile freeway between pany, Banca Nazionale del Lavoro, Banque Palma and the airport on Mallorca. Bank funds Lambert, S.C.S., Crocker-Citizens National will also be used for the establishment of two Bank, Continental Illinois National Bank and pilot road-maintenance divisions in the Madrid Trust Company of Chicago, Grace National and Lerida areas as a first step toward a com- Bank of New York, Morgan Guaranty Trust plete reorganization of highway maintenance Company of New York, The American Express operations throughout the country. The total Company, Inc., The Northern Trust Company, cost of the improvemenat and maintenance works First Western Bank and Trust Company, The is estimated at $91.5 million. First Pennsylvania Banking & Trust Company, Bankierskantoor Staal & Co. N.V., and Neder- PARTICIPATIONS totaling $1,658,588: by Neder- landsche Handel-Maatschappij, N.V. landsche Handel-Maatschappij, N.V., Neder- 49 landsche Credietbank N.V., Bankierskantoor Staal & Co. N.V., Firma F. van Lanschot, ,,, Labouchere & Co. N.V., Commerzbank A.G., .;, ' Dresdner Bank A.G., Vereinsbank in Hamburg, Compagnie de Gestion et de Banque S.A., Handelsfinanz A.G., and Banca Commerciale . Italiana. a. TURKEY IFC COMMITMENT * $916,667 in capital shares of the Industrial Development Bank of Turkey. ,*5 YUGOSLAVIA TRANSPORTATION-RAILWAYS 7, $35 million 25-year 5i2% Bank loan of October 28, -' 1963, to the Yugoslav Investment Bank. . This loan will assist the building of a 121-mile standard-gauge railway between Sarajevo and the port of Ploce, to replace a narrow-gauge line. The new line will be electrified and 4 equipped with central traffic control. The mountains of Yugoslavia obstruct access to the sea except at a few gaps and the Sarajevo- Ploce railway is one of the few routes to the coast. It links the industrial centers of Bosnia directly with the sea, and provides the only rail 4,/is link to Dubrovnik, the leading tourist attraction on the Adriatic, to Niksic, the site of new steel mills, and to Titograd, the capital of Montenegro. It is also the most direct connection between the Vojvodina, Yugoslavia's most important agri- - cultural area, and the coast. Because of the limited capacity of the narrow- gauge line, over 212 million tons of freight an-. nually have had to travel by more circuitous ' routes to and from the coast. The new line will X be able to handle this additional tonnage, there- \ 9 iIi -> by freeing a very substantial amount of railway Vt A / capacity for other uses. It will also lower trans- ' < k ,A l port costs, speed up travel and stimulate industrial |9' and agricultural expansion in the areas served. ,. t <4/ The Yugoslav Investment Bank will transfer the proceeds of the Bank loan to the Community of Railway Enterprises in Sarajevo which is build- 9 - ing the Sarajevo-Ploce railway at a total esti- mated cost of $96 million. PARTICIPATIONS totaling $375,000: by The Bank of New York, Fidelity-Philadelphia Trust Com- -? .-' pany, and The First Pennsylvania Banking and K * - 50 Trust Company. WESTERN HEMISPHERE reduction of these imports would save foreign exchange expenditures. PARTICIPATIONS totaling $225,000 in the $19 million loan: by Grace National Bank of New York, First Chicago International Banking Cor- poration, The Marine Midland Trust Company REGIONAL of New York, and The First Pennsylvaniia Bank- A UN Special Fund study for development of ing and Trust Company. telecommunications in Central America and Panama was completed. The Bank served as OTHER ACTIVITIES * The Bank continued to Executing Agency. The study contemplates the maintain its resident mission in Santiago. establishment of a regional telecommunications A technical representative of the Bank con- organization. tinued to act as liaison with the Chilean authori- ties for the purpose of assisting in the execution CHILE of highway construction and maintenance proj- AGRICULTURE AND PROCESSING ects financed by an IDA credit and a Bank $19 million 15-year 5' 2% Bank loan of December 18, loan made available in 1961. 1963 and Field work was completed for a study of ways $5 million 15-year 51/2% Bank loan of December 18, to make the Chilean capital market a more effi- 1963, to the Corporacion de Fomento de la cient instrument in the mobilization of domestic Produccion (CORFO). savings for development. The study was directed The $19 million loan was for a project which by a member of the Development Advisory provides for the improvement of 825,000 acres Service, and a report is now being prepared. of pastureland, together with the acquisition of The Bank's contribution to the cost of the study machinery, materials and breeding stock. Its amounted to $122,000. purpose is to increase Chile's production of dairy products, meat and wool by increasing the num- COLOMBIA ber of productive animals which can be carried ELECTRIC POWER on pastures and by improving the average pro- $5 million 20-year 5',% Bank loan of July 16, 1963, ductivity per head through better feeding and to the Electrificadora de Bolivar S.A. (Electribol) and management. The total cost of the livestock $45 million 35-year 5'2% Bank loan of February 7, development program over three years is esti- 1964, to Empresas Publicas de Medellin. mated at $58.6 million. The $5 million loan will The $5 million loan was for the addition of assist a related project for the modernization and 25,000 kilowatts of capacity at the Cospique expansion of milk plants, slaughtcrhouses and thermal plant and for the rehabilitation and associated facilities, which will cost a total of expansion of the transmission and distribution $8 million. The project will result in rationaliza- systems serving Cartagena, an important sea- tion of the meat processing and distribution port and commercial center in northern Colom- system and nearly double the quantity of milk bia. The project will more than double present processed through dairy plants. power supplies in the Cartagena area, providing CORFO will extend credits to farmers and some standby capacity which is of particular cooperatives for these purposes on terms ranging importance since the Cartagena system is not from three to 12 years. This type of operation interconnected with power sources of other has been one of CORFO's activities for some metropolitan areas. years. The loans will enable CORFO to expand The $45 million loan was for the first stage of this phase of its operations to make it more con- the Nare hydroelectric development to supply sistent with the targets of Chile's Ten-Year more power to the Medellin area, where the Development Plan. High priority has been given population has nearly quadrupled since 1938. to the projects since Chile now imports substan- The city of Medellin is the center of Colombia's tial quantities of dairy products and meat, and a textile and clothing industry and the site of 51 'V *~~~~~~~~~. -'so~~~~~~~~~~~ 4s ', 4Lrt - - $ r-'~~~ it ;tA &7 - f1r A a~~~~~~~~~~~~~-k 44, many other important industries. The Nare de- advanced stage of' preparation to be ready for velopment is part of a continuing program l)eing financing l)efore the end of 1965. carried out by Empresas Publicas de Medellin to The Bank acted as Executing Agency for a strengthen and enlarge its system to meet the U.N Special Fund Survey of the Cauca 7Valley growing requirements of its service area. The coal deposits, on which the consultants are now project includes a new power plant with an completing their report. initial capacity of 132,000 kilowatts, about 50 miles of double circuit transmission lines with IFC COMMITMENTS *$701,403 of share capital associated facilities, and an expansion of Em- for Corporacion Financiera de Caldas, an in- presas' distribution system; its total cost is es- dustrial development finance company. timated at $75.5 million. The loan for the Nare $1,503,006 in Forjas de Colombia, SA.., a project, with a final maturity of 35 years, was company formed to build a new plant for the the longest ever made l)y the Bank. production of steel forgings. Approximately $1 PARTICIPATIONS totaling $140,000 in the $5 mil- million of this commitment is for a direct sub- lion loan: l)y Fidelity-Philadelphia Trust scription to capital shares; the remainder (now Company and First Western Bank and Trust reduced to approximately $334,000) is a com- Company. mitment to underwrite placemiient of the coin- PARTICIPATIONS totaling $560,000 in the $45 pany's stock with other investors. million loan: by The Chase Manhattan Bank, Bank of America National Trust and Savings COSTA RICA Association, The Marine Midland Trust Com- ELECTRIC POWER AND TELECONIMUNICATIONS pany of New York, The Mleadow Brook National $22 million 23-year 5 ]2% Bank loan of July 10, 1963, Bank, Grace National Bank of New York, and to Instituto Costarricense de Electricidad (ICE). The First Pcnnsylvania Banking and Trust Additional electric power and a mnodern tele- Company. communications system are of prime importance in the economic development of Costa Rica OTHER ACTIVITIES * The Bank continued to where the Government is encouraging indus- maintain its resident mission in Bogota. trialization as one of the principal nmeans of Two members of the Development Advisory maintaining a satisfactory growth of national Service are helping the Cauca Valley Corpora- income. tion to organizc its department for regional An amount of $12.5 million of the loan will be planning, particularly for industrial development, used for the construction of a 56_000-kilowatt The Consultative Group on Colombia, com- hydroelectric power plant near Cachi on the prising representatives of Belgium, Canada, Reventazon River and the extension of trans- Denmark, France, Germany, Italy, Japan, the mission facilities. This will increase generating Netherlands, Switzerland, the United Kingdom, capacity of ICE, which supplies most of the the United States, the World Bank and the Inter- power in Costa Rica, to 139,000 kilowatts by Amcrican Development Bank met in June. The 1966. Group reviewed the year's activities, and con- Telephone installations in Costa Rica have sidered a list of projects under the Colombian been inadequate to meet the demand for service Development Plan which were in a sufficiently for many years. The balance of the loan, $9.5 million, will help to finance the first stage of the development of a modern and efficient telecom- iiunications systeimi. It will provide new auto- matic exchange equipment for 26,000 telephone Work proceeds preparatory to the construt ctionl lines, together with associated installations. The of a concrete arch dam 300 feet high on the new system will provide service in San Jose the Rapel Ricer in Chile. The dam will store ne ytmwl rvd sriei a oe h RapelRive in hile Y'hedam ill torecapital, and 22 other towns. The total estimated water for a hydroelectric plant serving both p Santiago and Valparaiso, and for the irriga- cost of the power and telecommunications proj- tion of about 25,000 acres of farm lands. ects is $36 million. 53 PARTICIPATIONS totaling $265,000: by Wells PARTICIPATIONS totaling $120,000 in the $9 mil- Fargo Bank, and Maryland National Bank. lion Bank loan: by Bank of America National Trust and Savings Association, and Grace OTHER ACTIVITIES * Field work on the UN National Bank of Ncw York. Special Fund study of ports, railways and asso- ciated highways, for which the Bank acted as OTHER ACTIVITIES - A study to help the Executing Agency, has been completed; the Government to formulate a long-range program final report is now being prepared. of investment for the improvement of transpor- tation in the country was completed. The Bank DOMINICAN REPUBLIC contributed $340,000 to cover the foreign ex- A Bank staff member took up duties in Feb- change costs. ruary 1964 as resident adviser on development The Bank has agreed to make an additional problems. allocation of $100,000 for the continuation of advisory assistance to Ecuador's National Insti- ECUADOR tute of Electrification in preparing the basis for a TRANSPORTATION-IIIGHWAYs national electrification plan. This brings the $9 million 25-year 5Y2% Bank loan of May 26, 1964 Bank's allocation to cover the foreign exchange and costs of this advisory assistance to $220,000. $8 million IDA credit of May 26, 1964, to Ecuador. This loan and credit were part of a joint trans- EL SALVADOR action whereby thc Bank and IDA joined with TELECOMMUNICATIONS the United States Agency for International De- $9.5 million 20-year 5'2% Bank loan of October 1, velopment (AID) and the Inter-American 1963, to Administracion Nacional de Telecommunica- Development Bank to provide the equivalent of ciones. $39 million for a $62.2 million five-year national El Salvador is encouraging industrial produc- highway program. AID financing for the pro- tion, both for the local market and for the gram totaled $16 million, and the Inter-American Central American Common Market. Industrial Bank, $6 million. The part of the program being and business expansion is hampered, however, assisted by the four organizations involves the by the limited capacity of the prcsent telecom- completion of roads already under construction, munications system. There are only 16,000 the construction or improvement of 314 miles of telephones in the whole country, about 6 per additional roads, and the training and equipping 1,000 people; in the capital, San Salvador, alone of a maintenance organization so that it can there are over 12,000 applicants awaiting tele- provide adequate maintenance of about 3,000 phone service. miles of surfaced highways by 1968. The loan will help to finance automatic ex- Ecuador's highway system constitutes the change equipment for 26,000 telephone lines in principal mode of transportation. Some key the three principal cities, San Salvador, Santa roads were built or improved with the assistance Ana and San Miguel, together with the con- of earlier financing by the World Bank and AID, struction of a micro-wave radio system con- and have already had a beneficial effect on the necting these three cities and several small economy. High priority has been given to the communities throughout the country. The total current program: adequate maintenance is estimated cost of these installations is $13.6 mil- essential to protect the substantial capital in- lion. They are the first phase of a long-range vestments already made or to be made in high- program and will meet the most immediate and ways; the roads to be built or improved will essential needs. make new and productive lands in the coastal PARTICIPATIONS totaling $385,000: by First Na- region accessible to efficient transportation, will tional City Bank, Girard Trust Bank, The establish reliable communications between im- Philadelphia National Bank, Continental Bank portant urban centers, and will considerably International, and The First Pennsylvania Bank- 54 reduce vehicle operating costs. ing and Trust Company. GUATEMALA A mission to advise the Governmnent on de- velopment policy and planning completed its assignment; it had been in Guatemala a year. A UN Special Fund survey of power and irriga- tion, for which the Bank acted as Executing . - Agency, also was completed. HONDURAS The assignment of a member of the Develop- ment Advisory Service to advise the Government on development policy and planning was com- ei pleted; he had been in Honduras for a year. * IFC COMMITMENT 350,000 of loan and r share capital for Empresa de Curtidos Centro - K Americana, S.A., a company formed to build a * modern leather tannery. M-XICO W. TRANSPORTATION-HIGHWAYS $40 million 20-year 512% Bank loan of September 20, 1963, to Nacional Financiera, S.A. 'X For many years the Mexican Government - . has been carrying out a road improvement pro- i * 5 -' gram and the highway network, although still i small in relation to area, has been nearly doubled , - to 30,000 miles since 1955. Two earlier Bank loans totaling $55.5 million have assisted this development. This year's loan will help to finance the program during the 1963-66 period for which X total costs are estimated at $96 million. . The three-year program provides for the im- A . - provement or reconstruction of 1,340 miles of 11 1 1. paved roads, completion of 1,256 miles of 20 ' ; roads alreadv under construction, and construc- ( tion of 9 new roads totaling about 493 miles. f - . Maintenance and laboratory equipment will be i purchased to improve and expand maintenance operations and to facilitate the control of road construction. The roads included in the program are located in many different parts of the country. Some will be new roads providing shorter routes 3X- A: The Reventazon River will be dammed in this 'z / Costa Rican gorge to store water for a 56,000- kilowatt power plant. The Bank loan for the project also will be used for major additions It to Costa Rica's telephone system. between important centers, or giving access to three-year period is expected to be $6 million. potentially important agricultural regions which The Central Bank will administer the project are now virtually isolated from the rest of the and act as agent for the Government in dis- country; others will be built to higher standards hursing the IDA credit. Most of the credit will to accommodate the constantly increasing traffic. be used for loans to ranchers for approved live- PARTICIPATIONS totaling $3,225,000: by First stock developmnent plans; ranchers will repay the National City Bank, Wells Fargo Bank, National Central Bank in Paraguayan currency. usually Bank of Commerce of Seattle, Wachovia Bank over 12 years with a four-year grace period and and Trust Company, The Northern Trust Com- interest at 9%. A small part of the credit will be pany, Southern Arizona Bank and Trust Com- lent to contractors for the importation of ma- pany, The First Pennsylvania Banking and Trust chinery for building stock watering facilities, Company, and J. Henry Schroder Banking principally earth tanks; these loans will have a Corporation. term of 3 to 5 Nears with interest at 9%. Repay- ment of funds from the IDA credit to the Central IFC COMMITMENT $ $1,601,281 of share capi- Bank will be retained in a revolving fund for a tal for Industria del Hierro, S.A., a company period of 20 years from the date of the credit and which is buildling a plant to manufacture heavy used for furthcr loans for ranch development. equipment. OTHER ACTIVI'TIES * The Bank is acting as PANAMA Executing Agency for a UN Special Fund survey The Bank continued to maintain its Resident looking toward the construction of roads in Representative in Panama to advise on budget- southern Paraguay to open up virgin land for ary and planning problems. The adviser on land settlement and agricultural development. settlement, whom the Bank had provided, com- pleted his assignment during the fiscal year. PERU ELECTRIC POWER PARAGUAY $15 million 25-year 512% Bank loan of November 22, AGRICULTURE 1963, to Empresas Electricas Asociadas (Lima $3.6 million IDA credit of December 26, 1963. Light and Power Company). This credit will assist a three-year program to Lima Light and Power Company serves improve and increase cattle production. Al- Greater Lima which has a population of over though cattle production is Paraguay's principal two million and is the administrative, commer- industry and main source of foreign exchange cial and industrial center of the country. To earnings, the quantity and quality of cattle can meet the rapidly rising demand for electricity in be greatly improved by the application of mod- the area, Lima Light undertook an expansion ern techniques. The primary need now is for program in 1960, in which the main itemswere subdivision of pastures by fencing, adequate the Huinco hydroelectric project about 40 miles water supplies and proper facilities for stock northeast of Lima, and the associated Marca- handling. Under the program, funds will be pomacocha water diversion scheme. An earlier lent to ranchers for these purposes. With im- Bank loan of $24 million assisted the first stage proved facilities they will be able to reduce costs of these projects, which included structures to and progressively increase production up to collect water from the Marcapomacocha Basin, double present levels at approximately 12 years a six-mile diversion tunnel through the Andes to after the investment is made. The program is bring waters to the Santa Eulalia Basin on the expected to involve approximately 5,000,000 western side, and the Huinco plant with an acres now carrying about 400,000 head of cattle. initial capacity of 120,000 kilowatts. It is a pilot operation which, if successful, will This year's loan is financing the second stage provide the basis for wider application that under which additional waters will be diverted could have far-reaching effects on the economy. to the tunnel, making possible a substantial in- 56 Total investment in the program during the crease in the output of existing power plants, more drinking water for Lima and enough OTHER ACTIVITIES * The Bank's Resident Rep- water for the irrigation of some 12,000 acres of resentative continued in his post. arid land south of Lima. Two more generating The Bank has provided an expert who is units will be installed at Huinco bringing it to carrying out a preliminary survey of the capital its full capacity of 240,000 kilowatts. Bank funds market. will also be used to strengthen and expand the distribution system in Lima, connecting up 45,- IFC COMMITMENT - $1,600,000 in a loan to 000 new customers. The total cost of these works Compania de Cemento Pacasmayo, S.A., for a is estimated at $30 million. program to expand the company's production of PARTICIPATIONS totaling $615,000: by Bank of cement. America National Trust and Savings Associa- SU RlNAM tion, Girard Trust Bank, Irving Trust Company, 'Vells.. Farg Bak FieiyPiaepi Trust The Bank has agreed to serve as Executing Comps Fanyo . TBank oFi Califoria Nati Agency for a port and transportation study fi- Companv. The Bank of California National . .' . . . ~~~~nanced by the UN Special Fund. Work con- Association, The Philadelphia National Bank, tinued on a UN Special Fund survey of mineral The First Pennsylvania Banking and Trust Com- tinued on a hUN SpeialkFun survey of mier pany,Grac Natinal ank f NewYork and resources, for which the Bank is serving as Exe- pany, Grace National Bank of New York, and cuigAgny Crocker-Citizens National Bank. VENEZUELA TRANSPORTATION-PORT ELECTRIC POWER $3.1 million 25-year 512% Bank loan of April 22, 1964, $85 million 25-year 5'2% Bank loan of September 20, to Peru. 1963, to C.V.G. Electrificacion del Caroni C.A. This loan was for the construction of a new E port at Paita, the main harbor of northern Peru. (EDELCA). port at Paita,the ain harboroforthernPeru. The loan will assist construction of the first The project includes the dredging of the port stage of the Guni hydroelectric project on the area, construction of a jetty equipped to berth Caroni River, one of Venezuela's most impor- four ocean-going ships simultaneously, adapta- tant sources of power. The ultimate capacity of tion of existing sheds, warehouses and other thn sites estmTe a t6 kiow buildings to port use, a new road approach to the fir site whicht willecost6a0total estimated the ~ ~ ~ . pot.od n tlte ntepr ra The first stage, which will cost a total estimated the podrt candoutlite in t ortsaea at $137 million, includes the construction of a andpmdernt crohnlnanwrkop dam about 300 feet high, a power plant with equipment. 3000klwtso aaiy n 0ml The new port will speed up the turn-around 350,000 kilowatts of capacity, and a 50-mile transmission line to connect the plant with Ciu- time of ships, materially reduce cargo-handlng dad Guayana. The initial capacity could be costs, eliminate the long overland haulage of expanded to 1,750,000 kilowatts in a second certain goods destined for northern Peru which stage by the installation of additional generat- now have to be imported through Callao some ing units without further increase in the height 600 miles to the south, and provide for the effi- of the dam. cient handling of up) to three times the present The Guri project will help to realize the eco- volume of traffic. The Paita project will cost a nomic potential of the Guayanas, a region in total of $5 million. It is part of a long-range eastern Venezuela richly endowed with mineral program to improve Peru's public ports, except wealth. The Corporacion Venezolana de Gua- Callao, which is being modernized and ex- yana (CVG), a government agency responsible panded with the assistance of earlier Bank for promoting development of the Guayanas, financing, has initiated a number of steps for industrial PARTICIPATIONS totaling $160,000: by Bank of development in the region. Industrial power America, Fidelity-Philadelphia Trust Company, consumers already include three mining com- Grace National Bank of New York, and The panies and a large steel mill; an aluminum plant Royal Bank of Canada Trust Company. is to be built. 57 El Novillo Dam, i'n the State of Sonora, ' xzco, nears completion. It is one of ten hydro- electric i'nstallations bei'ng built with the help of a $130 million -3ank loan made in 1962. ,d~~~~~~~~~~~~~~~~~~~~~~~~~~~~2 EDELCA, established in 1963 as a subsidiary pany, New York Agency of The Royal Bank of of CVG, will operate Guri and the 365,000-kilo- Canada, The Meadow Brook National Bank, watt Macagua plant downstream. EDELCA The First Pcnnsylvania Banking and Trust Com- will sell power in bulk to other systems operat- pany, and Dresdner Bank A.G. ing in Venezuela. The power requirements of its combined market area-those of the Gua- yanas, CADAFE, the national power company, IFC COMMITMENTS * $1,325,967 of share cap- and Caracas-are expected to increase to 2,720,- ital for C.A. Venezolana de Desarrollo (Socie- 000 kilowatts by 1979; about 85% of this de- dad Financiera), a new industrial developmcnt mand will be met by EDELCA. finance company. PARTICIPATIONS totaling $1,225,000: by The $140,529 of share capital for Siderurgica Marine Midland Trust Company of New York, Venezolana, S.A., an addition to IFC's existing 58 The Chase Manhattan Bank, Irving Trust Com- investment in this steel company. Bank Appendices page A Balance Sheet . . . . . . . . . . . . . . . . . . 60 B Comparative Statement of Income and Expenses . . . . . . . .62 59 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX A Balance Sheet JUNE 30, 1964 Expressed in L nited States Currency. See A otes to Financial Statements, Appendix G ASSETS Due from Banks and Other Depositories (See Appendix C) Member currencies, including $8,214,233 United States dollars Unrestricted . . . . . . . . . . . . $ 15,496,822 Subject to restrictions-NOTE B . . . . . . . 117,202,909 $ 132,699,731 Non-member currency (Swiss francs) . . . . . . . 2,189,682 $ 134,889,413 Investments Government obligations (At cost or amortized cost) Face amount $943,665,093 including $744,470,000 United States Government obligations . . . . . $ 938,127,798 Time deposits, including $300,000,000 Unitcd States dollars. 343,100,601 Accrued interest . . . . . . . . 18,013,847 1,299,242,246 Receivable on Account of Subscribed Capital (See Appendix D) Mcmber currencies, other than United States dollars-NOTE B Non-negotiable, non-interest-bearing, demand notes . . S 301,571,825 Amounts required to maintain value of currency holdings. 18,253,358 319,825,183 Effective Loans Held by Bank (See Appendix E)-NOTE C (Incltiding undisbtirsed balance of $1,488,217,278) . 4,949,366,069 Accrued Charges on Loans-NOTE C . . . . . . . 44,486,837 Receivable from Purchasers on Account of Effective Loans Agreed to be Sold (Including undisbursed balance of $29,422,387) . . . . . . . 40,387,151 Unamortized Bond Issuance Costs . . . . . . . . 15,361,103 Land and Buildings . . . . . . . . . . . . $ 22,446,403 Less reserve for depreciation . . . . . . . . . 1,498,818 20,947,585 Other Assets . . . . . . . . . . . . . 3,060,755 Special Reserve Fund Assets-NOTE D Due from Banks-member currency-United States . . $ 421 Investment securities-United States Government obligations ($279,335,000 face amount; at cost or amortized cost) . . 278,628,504 Accrued loan commissions-NOTE C . . . . . . . 9,490,529 288,119,454 Staff Retirement Plan Assets (Segregated and held in trust) . . . . . . . . . 19,193,512 60 Total Assets . . . . . . . . . . . . $7,134,879,308 (Continuted) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX A Balance Sheet (continoed) LIABILITIES, RESERVES AND CAPITAL Liabilities Accrued interest on borrowings . . . . . . . . . . . . $ 33,396,835 Accounts payablc and other liabilities . . . . . . . . . . 8,379,954 Undisbursed balance of effective loans (See Appendix E) Held by Bank . . . . . . . . . . . . . . . . 1,488,217,278 Agreed to be sold . . . . . . . . . . . . . . . 29,422,387 1,517,639,663 Funded debt (See Appendix F) (Of this amount $328,908,149 is due within one year) . . . . . 2,491,844,034 Reserves for Losses Special reserve-NOTE D . . . . . . . . . . . . . . $ 288,119,454 Supplemental reserve against losses on loans and guarantees-NOTE E . 558,115,003 846,234,457 Staff Retirement Plan Reserve. . . . . . . . . . 19,193,512 Capital Capital stock (See Appendix D)-NOTE F Authorized 220,000 shares of $100,000 par value each Subscribed 211,860 shares . . . . . . . . . . . . $21,186,000,000 Less-Uncalled portion of subscriptions-NOTE G . . . . . 19,066,350,000 2,119,650,000 Payment on account of pending subscriptions . . . . . . 1,085,000 Net income-NOTE E From July 1, 1963 to June 30, 1964 . . . . . . . . . . 97,455,851 Contingent Liability-LOANS SOLD UNDER GUARANTEE-NOTE H $5,195,000 Total Liabilities, Reserves and Capital $7,134,879,308 61 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX B Comparative Statement of Income and Expenses FOR THE FISCAL YEARS ENDED JUNE 30, 1963 AND JUNE 30, 1964 Expressed in United States Currency. See Notes to Financial Statements, Appendix G July I to June 30 1962-1963 1963-1964 Income Income from investments . . . . . . . . . . . . . . $ 59,498,841 $ 62,255,005 Income from loans: Interest . . . . . . . . . . . . . . . . . . . 133,613,153 145,499,497 Commitment charges . . . . . . . . . . . . . . . 9,678,887 10,177,747 Commissions .31,295,385 33,176,093 Service charges . . . . . . . . . . . . . . . . . 28,055 65,478 Other income . . . . . . . . . . . . . . . . . . 1,072,274 1,146,786 Gross Income . . . . . . . . . . . . . . . $233,186,595 $252,320,606 Deduct-Amount equivalent to commissions appropriated to Special Reserve-NOTE D . . . . . . . . . 31,295,385 33,176,093 Gross Income Less Reserve Deduction . . . . . . . $203,891,210 $219,144,513 Expenses Administrative expenses: Personal services . . . . . . . . . . . . . . . . $ 7,840,651 $ 8,169,350 Contributions to staff benefits. . . . . . . . . . . . . 1,211,835 1,307,724 Fees and coinpensation . . . . . . . . . . . . . . 487,321 514,382 Representation . . . . . . . . . . . . . . . . . 132,499 164,063 Travel . . . . . . . . . . . . . . . 1 . . . 1,883,453 1,841,405 Supplies and material . . . . . . . . . . . . . . . 109,154 135,203 Office occupancy . . . . . . . . . . . . . . . . 744,570 967,115 Communication services . . . . . . . . . . . . . . 417,835 519,341 Furnituie and equipment . . . . . . . . . . . . . . 329,819 547,062 Books and library services . . . . . . . . . . . . . . 152,044 177,612 Printing. . . . . . . . . . . . . . . . . . . 143,338 162,964 Insurance . . . . . . . . . . . . . . . . . . 114,239 77,851 Other expenses . . . . . . . . . . . . . . . . . 9,801 7,249 Total Administrative Expenses . . . . . . . . . . $ 13,576,559 $ 14,591,321 Services to member countries . . . . . . . . . . . . . 2,829,714 4,304,571 Interest on borrowings . . . . . . . . . . . . . . 101,821,187 100,712,616 Bond issuance and other financial expenses . . . . . . . . . 1,866,385 1,860,149 Discount on sale of loans. . . . . . . . . . . . . . . 1,142,050 220,005 Gross Expenses . . . . . . . . . . . . . . $121,235,895 $121,688,662 62 Net Income-NOTE E . . . . . . . . . . . . . . . $ 82,655,315 $ 97,455,851 Bank Appendices (Continued) page C Statement of Currencies Held by the Bank . . . . . . . . 64 D Statement of Subscriptions to Capital Stock and Voting Power . . . .66 E Summary Statement of Loans . . . . . . . . . . . . .68 F Funded Debt of the Bank . . . . . . . . . . . . . . .70 G Notes to Financial Statements . . . . . . . . . . . . .72 OPINION OF INDEPENDENT AUDITOR . . . . . . . . . . . . . .74 H Administrative Budget of the Bank . . . . . . . . . . . .75 63 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX C Statement of Currencies Held by the Bank JUNE 30, 1964 See NVotes to Financial Statements, Appendix G Unrestricted Currency Restricted Currency (Note B) Member Currencies Amount Total Amount Total expressed in expressed in expressed in expressed in Memder Unit of currency member currency U.S. dollars member currency U.S. dollars Afghanistan . . . . Afghani - $ - 53,982,014 $ 1,199,600 Algeria . . . . . . Dinar - 355,469 72,000 Argentina . . . . Peso - - 468,000,000 26,000,000 Australia . . . . Pound 29,329 65,696 - Austria . . . . . . Schilling 1,997 77 Belgium . . . . . Franc 14,143,477 282,870 - - Bolivia . . . . . Peso Boliviano - - 119,146 10,033 Brazil . . . . . . Cruzeiro - 618,665,296 33,441,367 Burma . . . . . Kyat 120,584 25,323 1,156,727 242,913 Cameroon . . . . . Franc - - 2,906,758 11,775 Canada . . . . . . Dollar 859,011 794,587 - - Central African Republic . Franc - - 1,353,637 5,484 Ceylon . . . . . Rupee 323,713 67,980 2,835,704 595,498 Chad. . . . . . . Franc - - 2,221,677 9,000 Chile . . . . . . Escudo - - 19,345,014 8,267,100 China . . . . . . New Taiwan Dollar - - 38,617,294 965,432 Colombia . . . . . Peso - - 43,145,434 4,793,937 Congo (Brazzaville) Franc - - 2,221,677 9,000 Congo (Leopoldville) Franc - - 345,495,630 5,398,369 Costa Rica . . . . Colon - - 2,383,816 359,821 Cyprus . . . . . . Pound - - 4,131 11,567 Dahomey . . . . Franc - - 2,221,677 9,000 Denmark . . . . . Krone 10,660 1,543 - Dominican Republic . Peso 18,404 18,404 1,254 1,254 Ecuador . . . . . Sucre - - 6,966,000 387,000 El Salvador . . . . Colon - - 1,934,142 773,657 Finland . . . . . . Markka 245,795 76,811 1,462,094 456,904 France . . . . . . Franc 202,434 41,003 - Gabon . . . . . . Franc - - 906,173 3,671 Germany . . . . . Deutsche Mark 866,838 216,708 - Ghana . . . . . Pound 5,144 14,402 786 2,200 Greece . . . . . . Drachma - - 133,946,098 4,464,870 Guatemala . . . . . Quetzal 2,345 2,345 352,970 352,970 Guinea . . . . . . Franc - - 443,951,355 1,798,444 Haiti . . . . . . Gourde - - 9,043 1,809 Honduras . . . . . Lempira 15,333 7,667 - Iceland . . . . . . Krona - - 4,747,827 110,415 India. . . . . . Rupee 93,883 19,715 3,018,185 633,820 Indonesia . . . . . Rupiah - - 58,180,236 184,699 Iran . . . . . . . Rial 197,188 2,603 - Iraq . . . . . . . Dinar 2,428 6,799 - Ireland . . . . . . Pound 3,334 9,334 23,357 65,399 Israel . . . . . . Pound 415,501 138,501 168,728 56,243 Italy . . . . . . . Lira 671,027,919 1,073,644 - Ivory Coast . . . . . Franc - - 3,989,624 16,162 Jamaica . . . . . . Pound - - 8,346 23,370 Japan . . . . . . Yen 535,351,756 1,487,088 - - Jordan . . . . . . Dinar - - 268 749 Kenya . . . . . Shilling - - 153,811 21,534 Korea . . . . . . Won - - 280,910,490 2,247,284 Kuwait . . . . . . Dinar - - 19,451 54,462 64 Laos . . . . . . . Kip - - 71,741,072 896,763 (Continued) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX C Statement of Currencies Held by the Bank (contznuzed) lUnrestricted Currency Restricted Currency (Note B) Mrember Curreaczes Amount Total Amount Total expressed in expressed in expressed zn expressed in Member Unit of currency member currency U,.S. dollars member currency U.S. dollars Liberia . . . . . . Dollar - S - 13,461 $ 13,461 Libya . . . . . Pound - - 2,004 5,612 Luxembouirg . . . Franc 117,069 2,341 - - Malagasy Republic. . . Franc - - 3,294,632 13,347 Malaysia Dollar 118,773 38,799 - Mali . Franc - - 382,717,761 1,550,387 Mauritania . . . . . Franc - - 1,549,734 6,278 Mexico . . . . . . Peso 513,004 41,040 - - Morocco . . . . I Dirham - - 250,758 49,552 Nepal . . . . . . Rupee - - 31,372 4,118 Netherlands . . . . Guilder 8,567,055 2,366,590 - New Zealand . . . . Pound - - 48,584 135,107 Nicaragua . . . . Cordoba - - 3,540,925 505,846 Niger . . . I . . Franc - - 1,862,827 7,546 Nigeria . . . . . . Pound - 1,974 5,528 Norway . . . . . . Krone 288,581 40,401 Pakistan . . . . . . Rupee - - 6,265,087 1,315,669 Panama . . . . . . Balboa 28,861 28,861 Paraguay . . . . . Guarani - - 57,535,667 471,604 Philippines . . . . . Pcso - - 12,462,503 6,231,251 Portugal . . . . . Escudo - - 1,659,386 57,718 Saudi Arabia . . . . Riyal - - 68,890 15,309 Senegal . . . . . . Franc - - 6,088,094 24,663 Sierra Leone . . . . Pound - - 2,736 7,661 Somalia . . . . . . Shilling - - 9,627,587 1,347,862 South Africa . . . . Rand 42,682 59,754 - - Spain . . . . . . Peseta 698,764 11,646 10,800,000 180,000 Sudan . . . . . . Pound 22,191 63,724 - - Sweden . . . . . Krona 773,049 149,433 - - Syrian Arab Republic . . Pound - - 3,983 1,817 Tanganyika . . . . Shilling - - 85,145 11,920 Thailand . . . . . Baht - - 868,762 41,767 Togo . . . . . . Franc - - 1,817,888 7,364 Trinidad and Tobago . . Dollar - - 40,443 23,592 Tunisia . . . . . . Dinar - - 25,618 60,995 Turkey . ... . . . Lira - - 373,432 41,492 Uganda . . . . . . Shilling - - 188,185 26,346 United Arab Republic . Pound - - 1,581 4,539 United Kingdom . Pound 35,694 99,942 - - United States . . . . Dollar - 8,214,233 - - Upper Volta . . . . Franc - - 1,452,357 5,884 Uruguay. . . . . . Peso - - 2,774,701 374,960 Venezuela . . . . . Bolivar 87,154 26,016 358,785 107,100 Viet-Nam . . . . . Piastre - - 94,307,500 2,694,500 Yugoslavia . . Dinar 706,409 942 5,922,404,155 7,896,539 Sub-Total . . . . . . . . . . . . $ 15,496,822 $117,202,909 Total-Member Currencies . . . . . . . . . . . . $ . . . . . . S132,699,731 Non-Member Currency-unrestricted (Switzerland) . . . . . . . . . . . . . 2,189,682 Total . . . . . . . . . . . . . . . . . . . . . . $134,889,413 65 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX D Statement of Subscriptions to Capital Stock and Voting Power JUNE 30, 1964 Expressed in United States Currency (in thousands). See Notes to Financial Statements, Appendix G Amounts Paid in in In non- currency interest- of member bearing, Subject other than non-ne- to call Subscriptions In United gotiable to meet Voting Power United States demand obligations Percent Amount Stakes dollars notes of Bank Number Percent Member Shares of total (Note F) dollars (Note B) (Note B) (Note G) of votes of total Afghanistan. . . . . 300 .14 $ 30,000 $ 300 S 1,200 S 1,500 S 27,000 550 .23 Algeria .800 .38 80,000 800 72 7,128 72,000 1,050 .44 Argentina .3,733 1.76 373,300 3,733 27,000 6,597 335,970 3,983 1.68 Australia 5,330 2.52 533,000 5,330 47,970 - 479,700 5,580 2.35 Austria 1,000 .47 100,000 1,000 9,000 - 90,000 1,250 .53 Belgium. . . . 4,500 2.12 450,000 4,500 40,500 - 405,000 4,750 2.00 Bolivia . . . . . . 210 .10 21,000 210 13 1,877 18,900 460 .19 Brazil . . . . . . 3,733 1.76 373,300 3,733 33,597 - 335,970 3,983 1.68 Burma .400 .19 40,000 400 1,207 2,393 36,000 650 .27 Burundi . . . . . 150 .07 15,000 150 - 1,350 13,500 400 .17 Cameroon . . . . 200 .09 20,000 200 18 1,782 18,000 450 .19 Canada . . . . . . 7,500 3.54 750,000 7,500 67,500 - 675,000 7,750 3.26 Central African Republic . 100 .05 10,000 100 9 891 9,000 350 .15 Ceylon . . . . . . 600 .28 60,000 600 1,136 4,264 54,000 850 .36 Chad . . . . . . 100 .05 10,000 100 9 891 9,000 350 .15 Chile. . . . . . . 933 .44 93,300 933 8,397 - 83,970 1,183 .50 China . . . 7,500 3.54 750,000 7,500 1,081 66,419 675,000 7,750 3.26 Colombia. . . . 933 .44 93,300 4,293 5,037 - 83,970 1,183 .50 Congo (Brazzaville) 100 .05 10,000 100 9 891 9,000 350 .15 Congo (Leopoldville) 600 .28 60,000 600 5,400 - 54,000 850 .36 Costa Rica(l) . . . . 80 .04 8,000 440 360 - 7,200 330 .14 Cyprus . . . . . . 150 .07 15,000 150 14 1,336 13,500 400 .17 Dahomey . . . . . 100 .05 10,000 100 9 891 9,000 350 .15 Denmark . . . . . 1,733 .82 173,300 1,733 15,597 - 155,970 1,983 .83 Dominican Republic(I) . 80 .04 8,000 80 6 714 7,200 330 .14 Ecuador. . . . . 171 .08 17,100 1,323 387 - 15,390 421 .18 El Salvador . . . . . 107 .05 10,700 287 783 - 9,630 357 .15 Ethiopia . . . . . . 100 .05 10,000 1,000 - - 9,000 350 .15 Finland . . . . . . 760 .36 76,000 760 6,840 - 68,400 1,010 .42 France . . . . . . 10,500 4.96 1,050,000 10,500 94,500 - 945,000 10,750 4.53 Gabon . . . . . . 100 .05 10,000 100 9 891 9,000 350 .15 Germany . . . . . 10,500 4.96 1,050,000 10,500 94,500 - 945,000 10,750 4.53 Ghana . . . . . . 467 .22 46,700 467 2,702 1,501 42,030 717 .30 Greece . . . . . . 500 .24 50,000 500 4,500 - 45,000 750 .32 Guatemala . . . . . 80 .04 8,000 440 360 - 7,200 330 .14 Guinea . . . . . . 200 .09 20,000 200 1,800 - 18,000 450 .19 Haiti . . . . . . 150 .07 15,000 150 35 1,315 13,500 400 .17 Honduras(l) . . . . . 60 .03 6,000 600 - - 5,400 310 .13 Iceland . . . . . . 150 .07 15,000 330 124 1,046 13,500 400 .17 India . . . . . . . 8,000 3.78 800,000 8,000 23,432 48,568 720,000 8,250 3.48 Indonesia(2). . . . 2,200 1.04 220,000 2,200 198 2,800 198,000 2,450 1.03 Iran . . . . . 900 .43 90,000 900 6,048 2,052 81,000 1,150 .48 Iraq . . . . . 150 .07 15,000 150 1,080 270 13,500 400 .17 Ireland . . . . . . 600 .28 60,000 600 4,815 585 54,000 850 .36 Israel . . . . . 666 .31 66,600 666 2,997 2,997 59,940 916 .38 Italy(l) . . . . . . 3,600 1.70 360,000 3,600 32,400 - 324,000 3,850 1.62 Ivory Coast . . . . . 200 .09 20,000 200 18 1,782 18,000 450 .19 Jamaica . . . . . . 267 .13 26,700 267 24 2,379 24,030 517 .22 Japan . . . . . . 6,660 3.14 666,000 6,660 59,940 - 599,400 6,910 2.91 Jordan . . . . . . 150 .07 15,000 150 35 1,315 13,500 400 .17 Kenya . . . . . . 333 .16 33,300 333 30 2,967 29,970 583 .24 Korea . . . . . . 250 .12 25,000 250 2,250 - 22,500 500 .21 Kuwait . . . . . . 667 .31 66,700 667 3,060 2,943 60,030 917 .39 Laos . . . . . . . 100 .05 10,000 100 900 - 9,000 350 .15 66 Lebanon . . . . . . 90 .04 9,000 900 - - 8,100 340 .14 (Continued) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX D Statement of Subscriptions to Capital Stock and Voting Power (continued) Amounts Paid in In In non- cvrrency interest- of member bearing, Subject other than non-ne- to call Subscriptions In United gotiable to meet Voting Power United States demand obligations Percent Amount States dollars notes of Bank Number Percent Member Shares of total (Note F) dollars (Note B) (Note B) (Note G) of votes of total Liberia . . . 150 .07 $ 15,000 $ 150 S 14 S 1,336 $ 13,500 400 .17 Libya. . . . . . 200 .09 20,000 800 15 1,185 18,000 450 .19 Luxembourg . . . . 200 .09 20,000 200 1,800 - 18,000 450 .19 Malagasy Republic. . . 200 .09 20,000 200 22 1,778 18,000 450 .19 Malaysia . . . . . 500 .24 50,000 500 4,500 - 45,000 750 .32 Mali . . . . . . . 173 .08 17,300 173 1,557 - 15,570 423 .18 Mauritania . . . . . 100 .05 10,000 100 9 891 9,000 350 .15 Mexico . . . . . . 1,733 .82 173,300 1,733 15,597 - 155,970 1,983 .83 Morocco . . . . . 700 .33 70,000 700 75 6,225 63,000 950 .40 Nepal . . . . . . 100 .05 10,000 100 9 891 9,000 350 .15 Netherlands. . . . . 5,500 2.60 550,000 5,500 49,500 - 495,000 5,750 2.42 New Zealand . . . . 1,667 .79 166,700 1,667 150 14,853 150,030 1,917 .81 Nicaragua . . . . . 60 .03 6,000 60 540 - 5,400 310 .13 Niger . . . . . . 100 .05 10,000 100 9 891 9,000 350 .15 Nigeria . . . . . . 667 .31 66,700 667 60 5,943 60,030 917 .39 Norway . . . . . 1,333 .63 133,300 1,333 11,997 - 119,970 1,583 .67 Pakistan. . . . . . 2,000 .94 200,000 2,000 2,049 15,951 180,000 2,250 .95 Panama (1) . . . 4 (1) 400 40 - - 360 254 .11 Paraguay . . . . . 60 .03 6,000 60 540 - 5,400 310 .13 Peru . . . . . . . 350 .17 35,000 3,500 - - 31,500 600 .25 Philippines . . . 1,000 .47 100,000 3,700 6,300 - 90,000 1,250 .53 Portugal. . . . . . 800 .38 80,000 800 72 7,128 72,000 1,050 .44 Rwanda . . . . . 150 .07 15,000 150 - 1,350 13,500 400 .17 Saudi Arabia . . . . 733 .35 73,300 733 22 6,575 65,970 983 .41 Senegal . . . . . . 333 .16 33,300 333 30 2,967 29,970 583 .24 Sierra Leone . . . . 150 .07 15,000 150 13 1,337 13,500 400 .17 Somalia . . . . . 150 .07 15,000 150 1,350 - 13,500 400 .17 South Africa . . . 2,000 .94 200,000 2,000 18,000 - 180,000 2,250 .95 Spain. . . . . . 2,000 .94 200,000 2,000 7,380 10,620 180,000 2,250 .95 Sudan . . . . . . 200 .09 20,000 200 1,800 - 18,000 450 .19 Sweden . . . . . . 2,000 .94 200,000 2,000 18,000 - 180,000 2,250 .95 Syrian Arab Republic . 333 .16 33,300 333 44 2,953 29,970 583 .24 Tanganyika. . . 333 .16 33,300 333 30 2,967 29,970 583 .24 Thailand . . . . . 600 .28 60,000 2,850 123 3,027 54,000 850 .36 Togo. . . . . . . 150 .07 15,000 150 13 1,337 13,500 400 .17 Trinidad and Tobago . . 267 .13 26,700 267 24 2,379 24,030 517 .22 Tunisia . . . . . . 300 .14 30,000 300 85 2,615 27,000 550 .23 Turkey . . . . . . 1,150 .54 115,000 1,150 271 10,079 103,500 1,400 .59 Uganda . . . . . . 333 .16 33,300 333 30 2,967 29,970 583 .24 United Arab Republic (1) . . . 1,066 .50 106,600 1,066 96 9,498 95,940 1,316 .55 United Kingdom . . . 26,000 12.27 2,600,000 26,000 234,000 - 2,340,000 26,250 11.06 United States . . . . 63,500 29.97 6,350,000 635,000 - - 5,715,000 63,750 26.86 Upper Volta . . . . 100 .05 10,000 100 9 891 9,000 350 .15 Uruguay (1) (2) . . 105 .05 10,500 210 438 - 8,400 355 .15 Venezuela . . . 1. ,400 .66 140,000 1,400 1,997 10,603 126,000 1,650 .69 Viet-Nam . . . . . 300 .14 30,000 300 2,700 - 27,000 550 .23 Yugoslavia . . . . . 1,067 .50 106,700 1,067 9,603 - 96,030 1,317 .55 Totals . . . . 211,860 100.00 S21,186,000 $800,043 $999,781 $301,572 $19,066,350 237,360 100.00 (l) Additional subscriptions in the amount of $377,600,000 are in process of completion. (2) Amounts aggregating the equivalent of 318,253,358 receivable as a result of revaluation of these currencies are not included in the "Amounts Paid in columns, (') Less than .005 per cent. 67 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX E Summary Statement of Loans JUNE 30, 1964 Expressed in United States Currency. See Notes to Financial Statements, Appendix G Effective loans held by Bank Members in whose terratories loans have been made(') Disbursed Undisbursed Loans not yet portion portion (2) Total(0) effectise(,) Algeria . . . . . . . . . - - $ - 20,500,000 Argentina . . . . . . . . . 88,740,898 54,134,102 142,875,000 Australia . . I . . . . . 153,858,312 41,130,866 194,989,178 Austria . . . . . . . . . . 70,828,126 - 70,828,126 Belgium . . . . . . . . . . 31,472,575 13,459,126 44,931,701 Brazil . . . . . . . . . 188,489,221 4,805,482 193,294,703 Burma . . . . . . . . 21,456,903 4,902,664 26,359,567 Ceylon . . . . . . . . 26,212,650 7,478,910 33,691,560 Chile. . . . . . . . . . . 59,305,710 26,818,290 86,124,000 24,000,000 China . . . . . . . . . - 6,830,000 6,830,000 Colombia . . . . . . . 167,214,138 108,761,862 275,976,000 45,000,000 Costa Rica . . . . . . . . 15,003,948 25,902,228 40,906,176 Cyprus . . . . . . . . . 1,485,085 17,781,115 19,266,200 Denmark . . . . . . . . . 31,661,930 13,043,620 44,705,550 Ecuador . . . . . . . . 33,761,318 142,682 33,904,000 9,000,000 El Salvador . . . . . . . . 22,426,184 5,984,525 28,410,709 9,500,000 Ethiopia . . . . . . . . . 20,261,340 1,816,660 22,078,000 23,500,000 Finland . . . . . . . . . 79,173,257 20,947,488 100,120,745 France . . . . . . . . . . 58,412,550 - 58,412,550 - Ghana . . . . . . . . . 19,870,008 27,129,992 47,000,000 Guatemala . . . . . . 11,055,000 - 11,055,000 - Haiti . . . . . . . . . . 1,601,000 - 1,601,000 - Honduras 14,855,748 186,252 15,042,000 - Iceland . . . . . . . . . . 4,289,017 1,049,543 5,338,560 - India . . . . . 528,760,482 119,893,039 648,653,521 Iran . . . . . . 99,071,632 4,657,493 103,729,125 18,500,000 Israel . . . . . . . . . 28,683,233 42,177,767 70,861,000 - Italy. . . . . . . . . . 128,637,757 4,231,627 132,869,384 - Japan . . . . . . . . . 399,800,567 126,123,207 525,923,774 - Lebanon. . . . . . . . 18,959,775 5,697,225 24,657,000 - Liberia . . . . . . . . . 5,620 3,244,380 3,250,000 - Malaysia . . . . . . . . . 23,967,747 60,141,253 84,109,000 Mexico . . . . . . . . . . 258,489,493 114,882,507 373,372,000 - Morocco. . . . . . . . . 2,611,645 12,388,355 15,000,000 - New Zealand . . . . . . . . 2,601,767 32,539,145 35,140,912 - Nicaragua . . . . . . . . 17,803,300 6,342,067 24,145,367 - Nigeria . . . . . . . . . 2,595,821 10,244,179 12,840,000 30,000,000 Norway . . . . . . . . . . 65,084,554 31,741,559 96,826,113 - Pakistan . . . I . . . . 125,108,486 119,796,798 244,905,284 62,000,000 Panama . . . . . . . . . . 6,334,753 4,298,247 10,633,000 - Paraguay 276,000 - 276,000 - Peru . . . . . . . . . . . 63,377,659 30,331,692 93,709,351 3,100,000 Philippines . . . . . . . . . 31,578,193 42,469,507 74,047,700 - Portugal . . . . . . . . . 2,556,080 9,218,671 11,774,751 South Africa . . I . . . . . 56,920,294 - 56,920,294 - Spain . . . . . . . . . . - 31,341,412 31,341,412 - Sudan . . . . . . . . . . 52,948,779 14,908,221 67,857,000 - Thailand . . . . . . . . . 85,280,670 50,163,862 135,444,532 - Tunisia . . . . . . . . . . - - - 7,000,000 Turkey . . . . . . . . . . 37,215,999 - 37,215,999 - United Arab Republic . . . . . 49,250,000 - 49,250,000 - United Kingdom . . . . . . . 90,877,614 33,665,627 124,543,241 - Uruguay . . . . . . . . . 48,613,682 20,778,318 69,392,000 - Venezuela . . . . . . . . . 26,291,900 101,540,100 127,832,000 - Yugoslavia . . . . . . . . . 96,863,388 73,095,613 169,959,001 - Totals . . . . . . . . . $3,472,001,808 $1,488,217,278 $4,960,219,086 $ 252,100,000 LESS: Exchange adjustments . 10,853,017 10,853,017 68 t $3,461,148,791 $4,949,366,069 (Continued) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX E Summary Statement of Loans (continued) SUMMARY OF CURRENCIES REPAYABLE ON EFFECTIVE LOANS HELD BY BANK Currencv Amss,nt Argentine pesos . . . . 1 1,053,612 (l) Loans are made (a) to the member or (b) to a political sub- Australian pounds ...... 58,616,473 division or a public or a private enterprise in the territories of the Austrian schillings . . . . 12,147,391 member with the member's guarantee. Belgian francs. .. .. . . 64,744,294 (2) This does not include $29,422,387 of effective loans which Burmese kyats . . . . . 1,146,989 the Bank has agreed to sell. Of the undisbursed balance, the Canadian dollars . . . . 106,027,956 Bank has entered into irrevocable commitments to disburse Ceylon rupees . . . . . 540,000 $19,161,209. Danish kroner . . . . . 17,103,615 (5) Original principal amount of loans signed $7,931,327,893 Deutsche mark . . . . . . . 394,508,101 DEDUCT: Finnish markkas . . . ... 6,685,356 (a) Cancellations, termina- French francs ..126,890,708 tions and refundings $ 177,204,806 Ghana pounds. . . ... .3,041,835 (b) Principal repayments to Indian rupees . . . . . . 28,309,504 the Bank . . . 772,746,077 Iranian rials . . . . . 7,664,560 (c) Loans sold or agreed to Iraqi dinars . . . . 1,290,652 be sold of which Irish pounds . . . . . . 5,545,466 $29,422,387 has not yet been disbursed . 1,769,057,924 Israel pounds . 3,096,912 (d) Loans not yet effective 252,100,000 2,971,108,807 Italian lire. . . . . 36,669,528 Japanese yen . . . . . . 59,295,954 $4,960,219,086 Kuwaiti dinars . . . . . . 3,032,084 LESS: Exchange adjustments . . . . 10,853,017 Luxembourg francs . . . . 2,288,466 Effective loans held by Bank . . . $4,949,366,069 Malayan dollars . . . . . 5,208,316 Mexican pesos . . . . . . 19,624,315 (l) Agreements providing for these loans have been signed, Netherlands guilders . . . . . 86,068,128 but the loans do not become effective and disbursements there- Norwegian kroner . . 14,589,250 under do not start until the borrovers and guarantors, if any, Pakistan rupees. . . . . . . 174,552 take certain action and furnish certain documents to the Bank. Pounds sterling . . . 236,425,318 The Bank has agreed to sell $9,530,000 of loans not yet effective South African raisd 24,558,774 and thus the total of both effective and non-effective loans sold or agreed to be sold is the equivalent of $1,778,587,924. Spanish pesetas . . . 7,510,254 Sudanese pounds . . . . . . 2,192,581 Swedish kronor . . . . . . . 23,052,002 Swiss francs . 190,361,281 New Taiwan dollars . . . . . 100,895 United States dollars . . . . 1,917,807,532 Venezuelan bolivares . . . . . 2,534,562 Yugoslav dinars . . . . . . . 2,094,592 Disbursed portion of effective loans held by Bank . . . . . $3,472,001,808 LESS: Exchange adjustments . . 10,853,017 $3,461,148,791 ADD: BUnidisburscd portion of effective loans held by Bank . . . . . 1,488,217,278 Effective loans held by Bank . . . $4,949,366,069 69 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX F Funded Debt of the Bank JUNE 30, 1964 Expressed in United States Currency. See Notes to Financial Statements, Appendix G Princzpal Annual sinking Payable in issue and maturity outstanding fund requiremcnt(') United States Dollars 34% Two Year Bonds of 1962, due 1964 . . . . . . . $ 100,000,000 None* 3'8% Notes of 1961, due 1964-65 (2) . 1 . . . 148,000,000 None* 384% Notes of 1961, due 1965-67. . . . . . . . . 110,000,000 None* 4% Two Year Bonds of 1963, due 1965 . . . . . . . 100,000,000 None* 4% Notes of 1962, due 1967 . . . . . . . . . . . 5,000,000 None* 432% Twelve Year Bonds of 1960, due 1968-72 . . . . . 120,000,000 None* 384% Ten Year Bonds of 1958, due 1968 . . . . . . . 150,000,000 None* 3'2% Fifteen Year Bonds of 1954, due 1969 . . . . . . 66,960,000 1965 $2,960,000 1966 $4,000,000 1967-68 $5,000,000 33/% Nincteen Year Bonds of 1952, due 1971. . . . . . 44,209,000 1964 $ 209,000 1965-66 $2,000,000 1967-70 $2,500,000 3% Twenty-Five Year Bonds of 1947, due 1972 . . . . . 124,239,000 1965 $2,739,000 1966-67 $4,500,000 1968-72 $7,500,000 4A28% Fifteen Year Bonds of 1958, due 1973 . . 95,000,000 1965-73 $5,000,000 35/% Twenty-Three Year Bonds of 1952, due 1975 . . . . 39,262,000 1965 $ 762,000 1966-74 31,500,000 3% Twenty-Five Year Bonds of 1951, due 1976 ..... 45,694,000 1965 $ 694,000 1966-75 $2,000,000 4'2% Twenty Year Bonds of 1957, due 1977 (3). . . . 85,676,000 1967-76 $5,000,000 4Y20% Fifteen Year Bonds of 1962, due 1977 . . . . . . 5,000,000 1973-77 $1,000,000 484% Twenty-One Year Bonds of 1957, due 1978 . . . . 100,000,000 1967-71 $4,000,000 1972-77 $5,000,000 4y4% Twenty-One Year Bonds of 1958, due 1979 . . . . 150,000,000 1968-77 $7,000,000 1978 $5,000,000 484% Twenty-Three Year Bonds of 1957, due 1980 (3) . . . 70,601,000 1968-79 $3,000,000 1980 $1,500,000 384% Thirty Year Bonds of 1951, due 1981 . . . . . . 100,000,000 1966-67 32,000,000 1968-73 $3,000,000 1974-80 $4,000,000 452'% Twenty Year Bonds of 1962, due 1982 . . . . . . 100,000,000 1972-81 $5,000,000 5% Twenty-Five Year Bonds of 1960, due 1985 . . . . . 125,000,000 1970-79 33,750,000 1980-84 $5,000,000 Sub-Total. . . . . . . . . . . . . . . $1,884,641,000 Belgian Francs 5% Ten Year Bonds of 1959, due 1969 (BF500,000,000) . . . $ 10,000,000 None Sub-Total . . . . . . . . . . . . . . . $ 10,000,000 Canadian Dollars 334% Ten Year Bonds of 1955, due 1965 (Can11,500,000) $ 10,637,510 3'2% Fifteen Year Bonds of 1954, due 1969 (Can$19,819,000) . 18,332,594 1965 Can$419,000 1966-68 Can$900,000 Sub-Total. . . . . . . . . . . . . . . $ 28,970,104 Deutsche Mark 334% Notes of 1961, due 1964-65 (DM200,000,000) (2) $ 50,000,000 None* 384% Notes of 1961, due 1965-67 (DM200,000,000) . . . . 50,000,000 None* 434% Bonds of 1960, due 1968-72 (DM500,000,000) . . . . 125,000,000 None* 5% Bonds of 1959, due 1974 (DM200,000,000) . . . . . 50,000,000 1965-74 DM20,000,000 70 Sub-Total. . . . . . . .S. . . . . . . $ 275,000,000 (Continued ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX F Funded Debt of the Bank (continued) Principal Annual sinking Payable in Issue and mnaturit outstanding fund requiremenx(') Italian Lire 5%0 Bonds of 1961, due 1976 (Lit.15,000,000,000). . . . $ 24,000,000 None Sub-Total . . . . . . . . . . . . . . $ 24,000,000 Netherlands Guilders 353%2O Fifteen Year Bonds of 1954, due 1969 (f.19,500,000) . . $ 5,386,740 1965 f.3,500,000 1966-69 f.4,000,000 3'21/% Twenty Year Bonds of 1955, due 1975 (f.28,992,000) . . 8,008,839 1965 f.2,192,000 1966-74 f.2,640,000 1975 f.3,040,000 41/2% Twenty Year Bonds of 1961, due 1981 (f.50,000,000) 1. 3,812,155 1972-81 f.5,000,000 423% Twenty Year Bonds of 1962, due 1982 (f.40,000,000) . 11,049,724 1973-82 f.4,000,000 Sub-Total . . . . . . . . . 38,257,458 Pounds Sterling 3Y2% Twenty Year Stock of 1951, due 1971 (3,419,986) . . S 9,575,960 1965 149,879 1966-71 166,700 3Y2<7 Twenty Year Stock of 1954, due 1974 (4,027,901) . . 11,278,123 1964 14,984 1965-74 166,700 5% Twenty-Three Year Stock of 1959, due 1982 (10,000,000). 28,000,000 1965-82 278,000 Sub-Total . . . . . . . . . . . . . . . $ 48,854,083 Swiss Francs 3%8`, Loan of 1957, due 1965 (Sw F 33,333,333) . . . . . $ 7,756,447 None 334% Loan of 1961, due 1966-68 (Sw F 100,000,000) . . . 23,269,343 None 4% Loan of 1961, due 1967 (Sw F 33,333,333) . . . . . 7,756,448 None 3V2% Fifteen Year Bonds of 1953, due 1968 (Sw F 50,000,000). 11,634,671 None 3'2% Fifteen Year Bonds of 1953 (Nov. Issue), due 1968 (Sw F 50,000,000) . . . . . . . . . . . . . 11,634,671 None 31/2% Eighteen Year Bonds of 1954, due 1972 (Sw F 50,000,000). 11,634,671 None 41A% Twelve Year Bonds of 1960, due 1972 (Sw F 60,000,000). 13,961,606 None 4% Eleven Year Bonds of 1962, due 1973 (Sw F 100,000,000) 23,269,342 None 4% Fifteen Year Bonds of 1959, due 1974 (Sw F 100,000,000) 23,269,343 None 4% Fifteen Year Bonds of 1960, due 1975 (Sw F 60,000,000) . 13,961,606 None 320% Twenty Year Bonds of 1955, due 1976 (Sw F 46,000,000) 10,703,898 1966 Sw F 4,000,pO(f 1967-74 Sw F 4,000,000 1975-76 Sw F 5,000,000 4% Eighteen Year Bonds of 1961, due 1979 (Sw F 100,000,000) 23,269,343 1971-78 Sw F 11,000,000 1979 Sw F 12,000,000 Sub-Total. . . . . . . . . . . . . . . 182,121,389 Gross Total . . . . . . . . . . . . . . 52,491,844,034 (1) Each issue, except those isidicated with an asterisk, is subject to (e) The Bank has arraniged to refinance at maturity notes totaling redemption prior to maturity at the option of the Bank at the prices and 3148 million and DM 200 tnillion (U.S. equivalent $50 million) which upon the conditions stated in the respective bonds. The amounts shown mature on August I, 1964 and February 1, 1965, by issuing in exchange as annual sinking fund requirements are the principal amounts of bonds new notes totaling $98 million and DIv 400 million (U.S. equivalent to be purchased or redeemed to meet each year's requirement, except $100 million) with maturities ranging from August 1,1968 to August 1, thatinthecasesofthe 3ts%TwentyYearStockof1951 and of 1954 and 1970, and interest rates ranging from 4Y8% to 4V%. the 5% Twenty-Three Year Stock of 1959 the amount shown is the (s) In the cases of the 42% Twenty Year Bonds of 1957 and the 434% amount of funds to be provided annually for purchase ot redemption. Twenty-Three Year Bonds of 1957 the Bank will, as purchase funds, use The amounts are shown after deduction of sinking fund requirements its best efforts to purchase bonds of these issues in the open market or by met as of the date of this statesne-t. acceptance of tenders at prices up to and including 100% of the princi- The following table shows the aggregate principal amount of the pal amount plus accrued interest. The purchase funds will be at the maturities and sinking fund requirements each year for the five years annual rate of 35,000,000 through 1966 in the case of the 45b% following the date of this statement: Twenty Year Bonds of 1957 and at the annual rate of $3,750,000 through 1967 in the ease of the 4%4% Twenty-Three Year Bonds of 1957. The Period Amount purchase funds are cumulative on a month-to-month basis only within July 1, 1964 to June 30, 1965 . . . . . . . $ 328,908,149 each calendar year. July 1, 1965 to June 30, 1966 . . . . . . . 201,881,242 July 1, 1966 to June 30, 1967 . . . . . . . 103,065,896 July 1, 1967 to June 30, 1968 . . . . . . . 267,944,120 July 1, 1968 to June 30, 1969 . . . . . . . 202,693,805 Total ... . . . . . . . $1,104,493,212 71 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX G Notes to Financial Statements JUNE. 30, 1964 NOTE A volved; provided, however, that, if necessary, after Amounts in currencies other than United States the Bank's subscribed capital is entirely called, such dollars have been translated into United States dollars: restricted currencies may, without restriction by the (i) In the cases of 63 members, at the par values members whose currencies are offered, be used or as specified in the "Schedule of Par Values", pub- exchanged for the currencies required to meet con- lished by the International Monetary Fund; tractual payments of interest, other charges or amorti- (ii) In the cases of the remaining 39 members zation on the Bank's own borrowings or to meet the [Algeria, Argentina, Bolivia, Brazil, Burundi, Bank's liabilities with respect to contractual payments Cameroon, Central African Republic, Chad, Chile, on loans guaranteed by it. China, Colombia, Congo (Brazzaville), Congo (Leopoldville), Dahomey, Gabon, Guinea, Indo- Under Article II, Section 9, each member is required, nesia, Ivorv Coast, Kenya, Korea, Laos, Malagasv if the par value of its currency is reduced or if the Republic, -Mali, Mauritania, Nepal, Niger, Para- foreign exchange value of its currency depreciates to guay, Peru, Rwanda, Senegal, Sierra Leone, Tan- a significant extent in its territories, to maintain the ganyika, Togo, Trinidad and Tobago, Tunisia, value of the Bank's holdings of its restricted currency, Uganda, Upper Volta, Viet-Nam and Yugoslavia], including the principal amount of any notes sub- at the rates used by such members in making pay- stituted therefor, and the Bank is required, if the par ments of capital subscriptions to the Bank; and value of a member's currency is increased, to return (iii) In the case of Swiss francs, non-member to the member the increase in the value of such currency, at the rate of 4.2975 francs to 1 United restricted currency held by the Bank. To the extent States dollar. such restricted currencies are out on loan, the Bank and the members are obligated to make such pay- See also Notes B and C. ments only when such restricted currencies are recov- No representation is made that any currency held by ered by the Bank. the Bank is convertible into any other currency at any rate or rates. The equivalent of 51 8,253,358 is due from 2 members in order to maintain the value of their restricted cur- rencies as required under Article II, Section 9. NOTE B These currencies of the several members, and the Some members have converted part or all of the notes issued by them in substitution for any part of Bank's holdings of their restricted currency into such currencies as permitted under the provisions of United States dollars to be used and reused as United Article V, Section 12, are derived from the portion of States dollars in the Bank's operations, subject to the the subscriptions to the capital stock of the Bank which right of the Bank or the member to reverse the trans- is payable in the currencies of the respective members actions at any time, with immediate effect as to dollars (such portion being hereinafter called restricted cur- then held by the Bank, and, as to dollars loaned, upon rency). Such restricted currencies may be loaned by repayment of the loans. Such dollars while held by the Bank, and funds received by the Bank on account the Bank or on loan are not subject to the provisions of principal of loans made by the Bank out of such of Article II, Section 9. Such dollars held by the Bank restricted currencies may be exchanged for other cur- or repayable on loans are shown in these financial rencies or reloaned, only with the approval in each statements under "United States dollars" and, where 72 case of the member whose restricted currency is in- relevant, as "unrestricted". INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX G Notes to Financial Statements (continued) NOTE C Governors that an amount equal to the balance of The principal disbursed and outstanding on loans and $50,000,000 be transferred by way of grant to the the accruals for interest, commitment charge, service International Development Association. charge and loan commission are receivable in United States dollars and other currencies (for which the In terms of United N O T E F dollar equivalent is shown) as follows: fineness in effect on States dollars of te weigt and fineessin ffet oJuly 1, 1944. Receirable in U.S. dollars Other currency Tot,l N O T E G Principal Out- Subject to call by the Bank only when required to standing . . . . $1,917,807,532 51,543,341,259 53,461,148,791 meet the obligations of the Bank created by borrowing Accrued interest, or bv guaranteeing loans. As to $16,948,800,000 the Commitemen andbylas Servicc Charges . 25,413,511 19,073,326 44,486,837 restrictien on calls is imposed by the Articles of Accred Loan 5,265,854 4,24,675 9,493,529 Agreement; as to $2,117,550,000 by a resolution of Total . . . $1,948,486,897 $1,566,639,260 S3,515,126,157 the Board of Governors. The dollar equivalent shown as principal outstanding NOTE H includes an amount which in accordance with Article The Bank has sold under its guarantee $69,003,844 of II, Section 9, will be receivable from members to loans of which amount $63,808,844 has been retired. maintain the value of their currencies, and is net of The following table sets forth the maturities of the an amount, equal to the increase in the value of their guaranteed obligations outstanding: currencies, which in accordance with Article II, Sec- - tion 9, will be payable by the Bank to members, when Period Amount such currencies are recovered by the Bank. July 1, 1964 to June 30, 1965 . . . $1,000,000 July I, 1965 to June 30, 1966 . . . 1,000,000 NOTE D July 1, 1966 to June 30, 1967 . . . 1,195,000 Amounts of commissions set aside pursuant to Article July 1, 1967 to June 30, 1968 . . . 1,000,000 IV, Section 6, as a Special Reserve to be held in July 1, 1968 to June 30, 1969 . . . 1,000,000 liquid form and to be used only for the purpose of Total. . . . $5,195,000 meeting liabilities of the Bank on its borrowings and guarantees. Subject to minor exceptions, no portion GENERAL of the charges on loans accruing after June 30, 1964 As of June 30, 1964, the Board of Governors had will be designated as commissions. approved applications from seven members for in- NOTE E creases in subscriptions totaling $377.6 million; two All net income of the Bank earned to June 30, 1963 members with applications totaling $7.3 million had has been allocated to a Supplemental Reserve Against paid in full the amounts due on account of such in- Losses on Loans and Guarantees Made by the Bank. creases pending completion of legal formalities and Of the $97,455,851 net income earned in the fiscal one member had made partial payment on account year ended June 30, 1964, the Executive Directors on of its increase. July 30, 1964 allocated $47,455,851 to the Supple- As of December 31, 1963, the authorized Capital mental Reserve Against Losses on Loans and Guar- Stock of the Bank was increased by $1,000,000,000 to antees and have recommended to the Board of $22,000,000,000. 73 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Opinion of Independent Auditor 1710 H STREET, N.W. WASHINGTON, D. C. 20006 July 30, 1964 To INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WASHINGTON, D. C. In our opinion, the accompanying financial statements present fairly, in terms of United States currency, the financial position of International Bank for Reconstruction and Develop- ment at June 30, 1964, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination of these statements was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary. PRICE WATERHOUSE & CO. FINANCIAL STATEMENTS COVERED BY THE FOREGOING OPINION Balance Sheet . . . . . . . . . . . . . . . . . . . appendix A (page 60) Comparative Statement of Income and Expenses . . . . . . . . . appendix B (page 62) Statement of Currencies Held by the Bank. . . . . . . . . . . appendix c (page 64) Statement of Subscriptions to Capital Stock and Voting Power . . . . . appendix D (page 66) Summary Statement of Loans . . . . . . . . . . . . . . appendix E (page 68) Funded Debt of the Bank . . . . . . . . . . . . . . . appendix F (page 70) Notes to Financial Statements . . . . . . . . . . . . . . appendix G (page 72) 74 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPENDIX H Administrative Budget of the Bank FOR THE FISCAL YEAR ENDING JUNE 30, 1965 Actual Expenses Budget 1963 1964 1965 REGULAR OPERATIONS BOARD OF GOVERNORS . . . . . . . $ 309,040 $ 419,024 $ 790,000 EXECUTIVE DIRECTORS . . . . . . . 797,477 869,554 975,000 STAFF Personal Services . . . . . . . $7,235,713 $7,471,444 $8,226,000 Staff Benefits . . . . . . . . . 1,141,115 1,223,760 1,359,000 Travel . . . . . . . . . . 1,526,490 1,425,915 1,667,000 Consultants. . . . . . . . 356,660 342,754 350,000 Representation . . . . . . . . 97,677 10,357,655 120,153 10,584,026 115,000 11,717,000 COOPERATIVE PROGRAM WITH FAO . . . 1,115 119,000 COOPERATIVE PROGRAM WITH UNESCO . . . - 50,000 OTHER ADMINISTRATIVE EXPENSES Fees and Compensation . . . . . . $ 118,028 S 165,273 $ 177,000 Supplies and Material . . . . . . 105,495 131,249 144,000 Office Occupancy . . . . . . . 733,918 954,231 953,000 Communications . . . . . . . . 413,146 514,674 546,500 Furniture and Equipment . . . . . 326,212 530,632 235,500 Printing. . . . . . . . . 139,579 158,927 228,000 Books and Library Services . . . . . 152,044 177,591 188,500 Insurance . . . . . . . . . . 114,164 77,776 87,500 Other . . . . . . . . . . . 9,801 2,112,387 7,249 2,717,602 10,000 2,570,000 CONTINGENCY . . . . . . . . . - - 200,000 Total Regular Operations . . . . $13,576,559 $14,591,321 $16,421,000 SERVICES TO MEMBER COUNTRIES Project and Sector Studies . . . . . $ 913,680 $1,503,202 $1,990,000 General Survey Missions . . . I . 128,468 293,043 270,000 Resident Missions . . . . . . . 549,251 670,222 940,000 Cooperative Program with FAO . . . - 12,625 147,000 Cooperative Program with Unesco. . . - 25,000 250,000 Economic Development Institute . . . 686,058 1,066,484 968,000 Training Programs . . . . . . . 71,097 71,396 87,000 Settlement of Investment Disputes . . . - 189,038 Other Services . . . . . . . . 481,160 473,561 418,000 Total Services to Member Countries . 2,829,714 4,304,571 5,070,000 Total . . . . . . . $16,406,273 $18,895,892 $21,491,000 The Administrative Budget for the fiscal year ending June 30,1965, was prepared by the President and approved by the Executive Directors in accordance with Section 19 of the By-Laws. For purposes of comparison, the administrative expenses incurred during the fiscal years ended June 30, 1963 and 1964 are also shown. 75 IDA Appenlices page A Statement of Condition . . . . . . . . . . . . . . . 77 B Comparative Statement of Income and Expenses . . . . . . . . 78 C Statement of Holdings of Currencies and Notes ..79 D Summary Statement of Development Credits . . . . . . . . . 81 E Statement of Subscriptions, Voting Power and Supplementary Resources. 82 F Notes to Financial Statements . . . . . .84 OPINION OF INDEPENDENT AUDITOR . . . . . . . . . . . . . . 85 G Administrative Budget of IDA . . . . . . . . . . . . . 86 76 INTERNATIONAL DEVELOPMENT ASSOCIATION APPENDIX A Statement of Condition JUNE 30, 1964 Expressed in United States Currency. See Notes to Financial Statements, Appendix F ASS ETS Due From Banks and Other Depositories (See Appendix C) Member currencies Unrestricted . . . . . . . . . . . . . $ 52,664,927 Subject to restrictions-NOTE B . . . . . . . . 44,162,404 $ 96,827,331 Investments Government obligations (at cost or amortized cost) Face amount $71,066,000 including $60,650,000 United States Government obligations . . . . . . $ 69,935,392 Time deposits maturing within one year United States dollars . . . . . . . . . . . 20,000,000 Accrued interest . . . . . . . . . . . . . 467,978 90,403,370 Receivable on Account of Subscriptions (See Appendix C) Non-negotiable, non-interest-bearing, demand notes Unrestricted . . . . . . . . . . . . . $291,919,470 Subject to rcstrictions-NOTE B . . . . . . . . 131,734,757 423,654,227 Receivable on Account of Supplementary Resources Non-negotiable, non-interest-bearing, demand notes Unrestricted . . . . . . . . . . . . . 7,891,703 Effective DevelopmentCredits Held byAssociation (including undisbursed balanceof$390,358,265) (SeeAppendix D)-NOTE C 582,849,855 Accrued Service Charge on Development Credits-NOTE C 358,945 Total Assets . . . . . . . . . . . $1,201,985,431 LIABILITIES, SUBSCRIPTIONS, SUPPLEMENTARY RESOURCES AND ACCUMULATED NET INCOME Liabilities Accounts payable and other liabilities . . . . . . . $ 293,215 Undisbursed balance of effective development credits (See Appendix D) . . . . . . . . . . . 390,358,265 Subscriptions (See Appendix E)-NOTE D Amounts subscribed . . . . . . . . . . . $987,445,000 Less portion for which payment is not yet due-NOTE E Unrestricted. . . . . . . . . . . . . $146,402,975 Subject to restrictions-NOTE B . . . . . . . 43,983,000 190,385,975 797,059,025 Prepayment . . . . . . . . . . . . . . 46,250 Supplementary Resources (See Appendix E)-NOTE D . . . $678,727,000 Less portion for which payment is not yet duc NOTE F . 668,637,000 10,090,000 Accumulated Net Income At June 30, 1963 . . . . . . . . . . . . $ 2,454,898 The period from July 1, 1963 to June 30, 1964 . . . . 1,683,778 4,138,676 Total Liabilities, Subscriptions, Supplementary Resources and Accumulated Net Income . . . . $1,201,985,431 1 77 INTERNATIONAL DEVELOPMENT ASSOCIATION APPENDIX B Comparative Statement of Income and Expenses FOR THE FISCAL YEARS ENDED JUNE 30, 1963 AND JUNE 30, 1964 Expressed in United States Currency. See Notes to Financial Statements, Appendix F July 1 to June 30 1962-1963 1963-1964 Income Income from investments . . . . . . . . . . . . . . . . $2,357,119 $3,308,511 Income from development credits . . . . . . . . . . . . . 236,337 1,017,017 Gross Income . . . . . . . . . . . . . . . . $2,593,456 $4,325,528 Expenses Administrative expenses: Personal services . . . . . . . . . . . . . . . . . . $ 907,245 $1,517,570 Contributions to staff benefits . . . . . . . . . . . . . . 127,211 213,032 Fees and compensation . . . . . . . . . . . . . . . . 152,504 171,450 Representation . . . . . . . . . . . . . . . . . . 1,517 2,593 Travel . . . . . . . . . . . . . . . . . . . . 200,755 335,319 Supplies and materials . . . . . . . . . . . . . . . . 15,323 22,328 Office occupancy . . . . . . . . . . . . . . . . . 82,209 161,740 Communication services . . . . . . . . . . . . . . 51,158 84,374 Furniture and equipment . . . . . . . . . . . . . . . 38,970 79,075 Printing . . . . . . . . . . . . . . . . . . . . 24,991 26,372 Insurance. . . . . . . . . . . . . . . . . . . . 13,993 21,563 Handling of gold . . . . . . . . . . . . . . . . . 172 149 Total Administrative Expenses . . . . . . . . . . . $1,616,048 $2,635,565 Exchange adjustments . . . . . . . . . . . . . . . . . 11,548 6,185 Gross Expenses . . . . . . . . . . . . . . . . $1,627,596 $2,641,750 Net Income . . . . . . . . . . . . . . . . . . . . $ 965,860 $1,683,778 78 INTERNATIONAL DEVELOPMENT ASSOCIATION APPENDIX C Statement of Holdings of Currencies and Notes JUNE 30, 1964 Fxpressed in United States Currency. See NVotes to Financial Statements, Appendix F AVon-negotiabte, non-inierest-bearing, Member Unit of currency Currency demand notes Total Afghanistan . . . . . . Afghani $ 424,200 $ 303,000 $ 727,200 Algeria . . . . . . . . Dinar - 2,901,600 2,901,600 Argentina. Peso - 13,557,600 13,557,600 Australia . . . . . . . Pound 1,377,278 8,965,216 10,342,494 Austria . . . . . . . Sehilling 346,154 2,237,646 2,583,800 Bolivia . . . . . . . . Peso Boliviano - 763,200 763,200 Brazil . . . . . . . . Cruzeiro 13,557,600 - 13,557,600 Burma . . . . . . Kyat - 1,454,400 1,454,400 Bilrundi .Franc - 547,200 547,200 Cameroon . . . . . . . Franc - 727,198 727,198 Canada. . . . . . . . Dollar 2,599,253 16,822,090 19,421,343 Central African Republic . . Franc - 360,000 360,000 Ceylon . . . . . . . . Rupee - 2,181,600 2,181,600 Chad . . . . . . . . Franc - 360,000 360,000 Chile . .Esedo 2,541,600 - 2,541,600 China . . . . . . . . New Taiwan Dollar - 21,787,200 21,787,200 Colombia . . . . . . Peso 2,541,600 - 2,541,600 Congo (Brazzaville) . . . . Franc - 360,000 360,000 Congo (Leopoldville) . . . Franc 2,174,400 - 2,174,400 Costa Rica . . . . . . Colon 144,000 - 144,000 Cyprus . . . . . . . . Pound - 547,200 547,200 Dahomey . . . . . . . Franc - 360,000 360,000 Denmark . . . . . . . Krone 600,393 3,885,814 4,486,207 Dominican Republic . . . . Peso 288,000 - 288,000 Ecuador . . . . . . . Sucre 468,000 - 468,000 El Salvador . . . . . Colon 216,000 - 216,000 Ethiopia . . . . . . . Dollar - 360,000 360,000 Finland. . . . . . . . Markka 1,963,220 - 1,963,220 France . . . . . . . . Franc 3,645,895 23,435,000 27,080,895 Gabon . . . . . . . . Franc - 360,000 360,000 Ghana . . . . . . . . Pound - 1,699,152 1,699,152 Greece . . .Drachma 1,814,400 - 1,814,400 Guatemala . . . . . . Quetzal 288,000 - 288,000 Haiti . . . . . . . . Gourde 136,800 410,400 547,200 Honduras . . . . . . . Lempira 216,000 - 216,000 Iceland . . . . . . . Krona - 72,000 72,000 India . . . . . . . . Rupee 72,000 28,980,029 29,052,029 Iran . Rial - 3,268,800 3,268,800 Iraq . . . . . . . . Dinar - 547,200 547,200 Ireland . . . . . . . Pound - 2,157,540 2,157,540 Israel . . . . . . . . Pound - 1,209,600 1,209,600 Ivory Coast . . . . . Franc - 727,200 727,200 Japan . . . . . . . . Yen 2,279,783 14,850,089 17,129,872 Jordan . .Dinar - 216,000 216,000 Kenya . . . . . . . . Shilling - 1,209,600 1,209,600 Korea . . . . . . . . Won 907,200 - 907,200 Kuwait . . . . . Dinar 230,720 1,493,492 1,724,212 Laos . . . . . . . Kip 360,000 360,000 79 (Continued) INTERNATIONAL DEVELOPMENT ASSOCIATION APPENDIX C Statement of Holdings of Currencies and Notes (continued) .Von-negotiable, non-interest-bearing, Member Unit of currency Currency demand notes Total Lebanon . . . . . . Pound S 324,000 S - S 324,000 Liberia. . . . . . . . Dollar - 547,200 547,200 Libya . . . . . . . Pound - 727,200 727,200 Malagasy Republic . . . . Franc - 727,200 727,200 Malaysia . . . . . . . Dollar - 1,814,400 1,814,400 Mali . . . . . . . . Franc 626,400 - 626,400 Mauritania . . . . . . Franc 29 360,000 360,029 Mexico . I . . . . Peso 6,292,800 - 6,292,800 Morocco . . . . . . Dirham - 2,541,600 2,541,600 Nepal . . . . . . . . Rupee - 360,000 360,000 Netherlands . . . . . Guilder 1,901,754 12,329,540 14,231,294 Nicaragua . . . . . . . Cordoba 216,000 - 216,000 Niger . . . . . . . . Franc - 360,000 360,000 Nigeria. . . . . . . . Pound - 2,419,200 2,419,200 Norway . . . . . . Krone 461,580 2,986,759 3,448,339 Pakistan . . . . . . Rupee - 7,264,844 7,264,844 Panama . . . . . . . Balboa 3,598 - 3,598 Paraguay . . . . . . . Guarani 216,000 - 216,000 Peru . . . . . . . . Sol - 1,274,400 1,274,400 Philippines. . . . . . . Peso - 3,628,800 3,628,800 Rwanda . . . . . . . Franc 547,200 547,200 Saudi Arabia . . . . . . Riyal - 2,664,000 2,664,000 Senegal. . . . . . . . Franc - 1,209,600 1,209,600 Sierra Leone . . . . . . Pound - 547,200 547,200 Somalia . . . . . . . Shilling 547,199 - 547,199 South Africa . . . . . . Rand 5,178,342 - 5,178,342 Spain . . . . . . . . Peseta 5,448,600 1,816,200 7,264,800 Sudan . . . . . . . . Pound - 727,200 727,200 Sweden. . . . . . . . Krona 1,384,194 (') 12,374,527 (1) 13,758,721 (1) Syrian Arab Republic . . . Pound 342,000 342,000 684,000 Tanganyika . . . . . Shilling - 1,209,600 1,209,600 Thailand . . . . . . . Baht - 2,181,600 2,181,600 Togo . . . . . . . . Franc 7 547,193 547,200 Tunisia. . . . . . . . Dinar - 1,087,200 1,087,200 Turkey. . . . . . . . Lira - 4,176,000 4,176,000 Uganda . . . . . .. Shilling - 1,209,600 1,209,600 United Arab Republic . . . Pound - 3,657,601 3,657,601 United Kingdom . . . . . Pound 8,984,395 58,170,000 67,154,395 United States . . . . . . Dollar 21,711,937 142,261,000 163,972,937 Upper Volta . . . . . . Franc - 360,000 360,000 Viet-Nam . . . . . . . Piastre 1,087,200 - 1,087,200 Yugoslavia. . . . . . . Dinar 2,908,800 - 2,908,800 Totals . . . . . . . . . . . .$ 96,827,331 5431,545,930 528,373,261 (2) (1) 1n-luding Supplementary Resources. (2) Of this amount the equivalent of 5352,476,100 is unrestricted and the equivalent of $528,275,725 is subject to maintenance of value (see Note G). 8 0 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ INTERNATIONAL DEVELOPMENT ASSOCIATION APPENDIX D Summary Statement of Development Credits JUNE 30, 1964 Erpressed in United States Currency. See NAotes to Financial Statements, Apetendix F Fffective development credits held by Association D)evelopment MViember in whose lerritories development Disbursed Undisbarsed credits not yet credit6 have been made (') portion porlisn(2) T'otal effective (0) Chile . . . . . . . . . . . . .$ 3,437,813 $ 15,562,187 $ 19,000,000 $ - China. . . . . . . . . . . . . 8,513,170 6,786,830 15,300,000 Colombia . . . . . . . . . . . 7,351,396 12,148,604 19,500,000 - Costa Rica . . . . . . . . . . . 1,172,241 4,327,759 5,500,000 Ecuador . . . . . . . . . . . . - - 8,000,000 El Salvador . . . . . . . . . . 307,806 7,692,194 8,000,000 - Ethiopia ..2,243,037 11,256,963 13,500,000 - Haiti ..349,855 - 349,853 Honduras . . . . . . . . . . . 4,413,904 4,586,096 9,000,000 India . . . . . . . . . . . . . 133,735,150 166,264,850 300,000,000 90,000,000 Jordan . . . . . . . . . . . . 725,634 7,774,366 8,500,000 - Korea. . . . . . 13,778,812 221,188 14,000,000 - Nicaragua . . . . . . . . . . . 421,679 9,578,321 3,000,000 - Niger . . . . . . . . . . . . . - - - 1,500,000 Pakistan . . . . . . . . . . . 1,976,133 89,523,867 91,500,000 87,500,000 Paraguay. . . . . . . . . . . . 201,833 9,398,167 9,600,000 Sudan . . . . . . . . 3 . . . 5,131,209 7,848,791 13,000,000 Syria . . . . . . . . . . . . . - - - 8,500,000 Tanganyika . . . . . . . . . . . 459,747 18,140,253 18,600,000 Tunisia . . . . . . . . . . . . 507,961 4,492,039 5,000,000 Turkey . . . . . . . . . . . . 5,008,261 21,691,739 26,700,000 - United Kingdom, Swaziland . . . . . . 2,735,949 64,051 2,800.000 - Totals. . . . . . . . . . . $192,491,590 $390,338,265 $582,849,855 $t95,500,000 (I) All dc-rlop-cnt credits havc been nadc to member governments (3) Agreements providing for these development credits have been or to the goscevoncnt of a tcrritory of a rtschber. signed, but the development credits do not become effective and (: Of the -,odisbursed balance the Association Las entered into ir- disb-urmsenc- thereunder do not start Until thc borrower takes ccrtain revocable co-mitments to disburse $3,454,100. action and fornishes certa-n documents to the Association. 81 INTERNATIONAL DEVELOPMENT ASSOCIATION APPENDIX E Statement of Subscriptions, Voting Power and Supplementary Resources JUNE 30, 1964 Expressed in United States Currency. See Notes to Financial Statements, Appendix F Subscriptions Voting Power ~~SupplementaryTta Subscriptions Voting Pow" ~~~~ResourcesToa ______________________________________________ -- ~~ ~~Sub scssi tions Amounts Amounts Amounts Amounts and Total Percent paid in not yet due Numober Percent paid in not yet due Supplementary Member (Note D) of total (Note G) (Notes B and E) of votes of total (Note G) (Note F) Resources Australia . ..8 . 20,180,000 2.04 $ 16,295,350 8 3,884,650 4,536 1.86 S - 819,800,000 S 39,980,000 Austria. ..... 5,040,000 .51 4,069,800 970,200 1,508 .62 - 5,040,000 10,080,000 Canada.- ... 37,830,000 3.83 30,547,725 7,282,275 8,066 3.31 - - 37,830,000 Denmark. ..... 8,740,000 .89 7,057,550 1,682,450 2,248 .92 7,500,000 16,240,000 Finland. ..... 3,830,000 .39 3,092,725 737,275 1,266 .52 - - 3,830,000 France. ...... 52,960,000 5.36 42,765,200 10,194,800 11,092 4.55 - 61,872,000 114,832,000 Germany .. ~ 52,960,000 5.36 42,765,200 10,194,800 11,092 4.55 - 72,600,000 125,560,000 Italy.18,160,000 1.84 14,664,200 3,495,800 4,132 1.69 - 30,000,000 48,160,000 Japan. ...... 33,590,000 3.40 27,123,925 6,466,075 7,218 2.96 - 41,250,000 74,840,000 Kuwait. ..... 3,360,000 .34 2,713,200 646,800 1,172 .48 -- 3,360,000 Luxembourg .375,000 .04 - 375,000 575 .24 - 375,000 750,000 Netherlands. 27,740,000 2.81 22,400,050 5,339,950 6,048 2.48 - - 27,740,000 Norway .. . . . . 6,720,000 .68 5,426,400 1,293,600 1,844 .75 - 6,600,000 13,320,000 South Africa . . . . . 10,090,000 1.02 8,147,675 1,942,325 2,518 1.03 -- 10,090,000 Sweden . . . . .. 10,090,000 1.02 8,147,675 1,942,325 2,518 1.03 10,090,000 15,000,000 35,180,000 United Kingdom ....131,140,000 13.28 105,895,550 25,244,450 26,728 10.95 96,600,000 227,740,000 United States . . . . .320,290,000 32.44 258,634,175 61,655,825 64,558 26.416 - 312,000,000 632,290,000 Total Part I Members . $743,095,000 75.25 8599,746,400 $143,348,600 157,119 64.40 St10,090,000 $668,637,000 $1,421,822,000 Afghanistan ..... $1,010,000 .10 s 815,578 $ 194,425 702 .29 5 - - $ 1,010,000 Algeria. ..... 4,030,000 .47 3,254,225 775,775 1,306 .54 - -4,030,000 Argentina. ..... 18,830,000 1.91 1 5,205,225 3,624,775 4,266 1.75 - 18,830,000 Bolivia. ...... 1,060,000 .117 855,950 204,050 712 .29 - -1,060,000 Brazil. ...... 18,830,000 1.91 15,205,225 3,624,775 4,266 1.75 - -18,830,000 Burma ....... 2,020,000 .20 1,631,150 388,850 904 .37 - -2,020,000 Burundi ...... 760,000 .08 613,700 146,300 652 .27 - -760,000 Cameroon.. . . .. 1,010,000 .10 815,575 194,425 702 .29 - -1,010,000 Central African Republic . 500,000 .05 403,750 96,250 600 .24 - -.500,000 Ceylon... . . .. 3,030,000 .31 2,446,725 583,275 1,106 .45 - .-3,030,000 Chad... . . .. 500,000 .05 403,750 96,250 600 .24 - 500,000 Chile... . . .. 3,530,000 .36 2,850,475 679,525 1,206 .50 - -3,530,000 China... . . .. 30,260,000 3.06 24,434,950 5,825,050 6,552 2.69 - -30,260,000 Colombia.. . . .. 3,530,000 .36 2,850,475 675,525 1,206 .50 --3,530,000 Congo (Brazzaville)... 500,000 .05 403,750 96,250 600 .24 - 500,000 Congo (Leopoldville) ... 3,020,000 .30 2,438,650 581,350 1,104 .45 - -3,020,000 Costa Rica .. . . . 200,000 .02 161,500 38,500 540 .22 - -200,000 Cyprus... . . .. 760,000 .08 613,700 146,300 652 .27 - -760,000 Dahomey.. . . .. 500,000 .05 403,750 96,250 600 .24 - -500,000 Dominican Republic ... 400,000 .04 323,000 77,000 580 .24 - -400,000 Ecuador.. . . .. 650,000 .07 524,875 125,125 630 .26 . 650,000 El Salvador.. . . . 300,000 .03 242,250 57,750 560 .23 - - 300,000 Ethiopia.. . . .. 500,000 .05 403,750 96,250 600 .24 - - 500,000 Gabon... . . .. 500,000 .05 403,750 96,250 600 .24 - - 500,000 Ghana. ...... 2,360,000 .24 1,905,700 454,300 972 .40 - -. 2,360,000 Greece. ...... 2,520,000 .25 2,034,900 485,100 1,004 .41 - - 2,520,000 Guatemala. .... 400,000 .04 323,000 77,000 580 .24 - - 400,000 Haiti. ...... 760,000 .08 613,700 146,300 652 .27 - 760,000 Hondurasu. .... 300,000 .03 242,250 57,750 560 .23 - - 300,000 82 Iceland ....... 100,000 .01 80,750 19,250 S20 .22 - - 100,000 (Continued) INTERNATIONAL DEVELOPMENT ASSOCIATION APPENDIX E Statement of Subscriptions, Voting Power and Supplementary Resources (conti'nued) Supplementary Subscriptions Votinkg Power Resources Total Subscriptions Amounts Amounts Amounts Amnounts and Total Percent paid in not yet due Number Percent paid in not yet due Supplementary Member (Note D) of total (Note G) (Notes B and E) of votes of total (Note G) (Note F) Resources India . ......$ 40,350,000 4.09 $ 32,582,625 $ 7,767,375 8,570 3.51 $ 40,350,000 Iran. ..... 4,540,000 .46 3,666,050 873,950 1,408 .58 --4,540,000 Iraq. ..760,000 .08 613,700 146,300 652 .27 --760,000 Ireland ....... 3,030,000 .317 2,446,725 583,275 1,106 .45 -- 3,030.000 Israel ....1,680,000 .77 1,356,600 323,400 836 .34 - 1,680,000 Ivorv Coast . . 1,010,000 .10 81 5,57 5 194,425 702 .29 --1,050,0003 Jordan.300,000 .03 242,250 57,750 560 .23 --300,000 Kenya .1,680,000 .17 1,356,600 323,400 836 .34 - 1,680,000 Korea . ....1,260,000 .13 1,017,450 242,550 752 .31 1,260,000J Laos . ....500,000 .05 403,750 96,250 600 .24 - .500,000 Lebanon 450,000 .04 363,375 86.625 590 .24 --450,000 Liberia ....760,000 .08 613,700 146,300 652 .27 --760,000 L.ibya 1,010,000 .10 815,575 194,425 702 .29 --1,010,000 Malagasy Republic 1,010,000 .10 815,575 194,425 702 .29 --1,010,000 Malaysia .. . ... 2,570,000 .25 2,034,900 485,100 1,004 .47 2,520,000 Mali ... . ... 870,000 .09 702,525 167,475 674 .28 -870,000 Mauritania . . . 500,000 .05 403,750 96,250 600 .24 -- 500,000 Mexico. 8,740,000 .89 7,057,550 1,682,450 2,248 .92 --8,740,000 Morocco ...... 3,530,000 .36 2,850,475 679,525 1,206 .50 --3,530,000 Nepal ....... 500,000 .05 403,750 96,250 600 .24 - 500,000 Nicaragua ..... 300,000 .03 242,250 57,750 560 .23 - 300,000 Niger ....... 500,000 .05 403,750 96,250 600 .24 - 500,000 Nigeria ....... 3,360,000 .34 2,713,200 646,800 1,172 .48 - 3,360,000 Pakistan. ..... 10,090,000 1.02 8.147,675 1,942,325 2,518 1.03 - 10,090,000 Panama ... . . . 20,000 (1) 16,150 3,850 504 .21 -. - 20,000 Paraguay ...... 300,000 .03 242,250 57,750 560 .23 - - 300,000 Peru . ...... 1,770,000 .18 1,429,275 340,725 854 .35 - - 1,770,000 Philippines. 5,040,000 .57 4.069,800 970,200 1,508 .62 - - 5,040,000 Rwanda ...... 760,000 .08 613,700 146,300 652 .27 - - 760,000 Saudi Arabia .. . 3,70)0,000( .37 2,987,750 712,250 1 '240 .51 - - 3,700,000 Senegal .. . ... 1,680,000 .17 1,356,600 323,400 836 .34 - - 1,680,000 Sierra Leone .. . .. 760,000 .08 613,700 146,300 652 .27 - - 760,000 Somalia .. . ... 760,000 .08 613,700 146,300 652 .27 - - 760,000 Spain .. . .... 10,090,000 1.02 8,147,675 1,942,325 2,518 1.0,3 - 10,090,000 Sudan ... . ... 1,010,000 ./0 815,575 194,425 702 .29 - - 1,010,000 Syrian Arab Republic 950,000 .10 767,125 182,875 690 .28 - - 950,000 Tanganyika . .1,680,000 .17 1,356,600 323,400 836 .34 - - 5,680,000 Thailand ...... 3,030,000 .31 2,446,725 583,275 1,106 .45 - - 3,030,000 Togo ....... 760,000 .08 613,700 146,300 652 .27 - 760,000 Tunisia ...... 1,510,000 .15 1,219,325 290,675 802 .33 - - 1,510,000 Turkey ...... 5,800,000 .59 4,683,500 1,116,500 1,660 .68 - - 5,800,000 Uganda .3... ,680,000 .17 1,356,600 323,400 836 .34 - - 1,680,000 United Arab Republic . 5,080,000 .51 4,102,100 977,900 1,516 .62 - - 5,080,000 Upper Volta .. . .. 500,000 .05 403,750 96,250 600 .24 - .- 500,000 Viet-Narm.. . ... 1,510,000 .15 1,219,325 290,675 802 .33 - - 1,510,000 Yugoslavia .. . ... 4,040,000 .41 3,262,300 777,700 1,308 .54 - - 4,040,000 Total Part II Members. $244,350,000 24.75 $197,312,625 $ 47,037,375 86,870 35.60 $ - $ .- 3 244,350,000 Grand Totals. ....$987,445,000 100.00 $797,059,025 $190,385,975 243,989 100.00 $10,090,000 $668,637,000 $1,666,172,000 (1) Less than .005 percent. 183 INTERNATIONAL DEVELOPMENT ASSOCIATION APPENDIX F Notes to Financial Statements JUNE' 30, 1964 NOTE A NOTE E Amounts in currencies other than United States Payment of this portion of the subscriptions of mem- dollarshavebeentranslatedintoUnitedStatesdollars: bers, with the exception of $375,000, being the sub- (i) In the cases of 57 members,at the par values scription of Luxembourg, is due on November 8, 1964 as specified in the "Schedule of Par Values", pub- as follows: One and one quarter percent of the lished by the International Monetary Fund; subscription of each member is payable in gold or (ii) In the cases of the remaining 36 members freely convertible currency; eighteen percent of the [Algeria, Argentina, Bolivia, Brazil, Burundi, subscription of each member is payable (a) in gold or Cameroon, Central African Republic, Chad, Chile, freely convertible currency by Part I members and China, Colombia, Congo (Brazzaville), Congo (b) in the currency of the subscribing member by (Leopoldville), Dahomey, Gabon, Ivory Coast, Part II members. Thc amount due from Luxembourg, Kenya, Korea, Laos, Malagasy Republic, Mali, a Part I member, is payable in gold or freely con- Mauritania, Nepal, Niger, Paraguay, Peru, vertible currency in three equal instalments on or Rwanda, Senegal, Sierra Leone, Tanganyika, before November 8 in each of the years 1965, 1966 Togo, Tunisia, Uganda, Upper Volta, Viet-Nam and 1967. In Julv 1964, Belgium became a Part I and Yugoslavia], at the rates used by such mem- member with a subscription of 38,250,000 payable on bers in making payments of subscriptions to the the same terms and timing as the subscription of Association. Luxembourg. NOTE B NOTE F Pursuant to Article IV, Section 1 (a), these amounts These supplementary resources are to be paid by the may be used by the Association for administrative members in freely convertible currencies in three equal expenses incurred by the Association in the territories instalments on or before November 8 in each of the of any Part II member whose currency is involved years 1965, 1966 and 1967. InJuly 1964, Belgium, in and, insofar as consistent with sound monetary poli- addition to its subscription described in Note E,and cies, in payment for goods and services produced in Kuwait agreed to make supplementary resources avail- the territories of such member and required for able of $8,250,000 and $3,360,000 respectively, pay- projects financed by the Association and located in able on the same basis as the above. The Board of such territories; and in addition when and to the Governors has authorized the Association to accept extent justified by the economic and financial situa- from four other Part I members supplementary re- tion of the member concerned as determined by sources aggregating S64,488,000 also payable on the agreement between the member and the Association, same basis as the above. In addition, in July 1964, such currency shall be freely convertible or otherwise Sweden paid to the Association a further contribution usable for projects financed by the Association and equivalent to $5.045.000. located outside the territories of the member. NOTE G NOTE C Under Article IV, Section 2, each member is required, The principal disbursed and outstanding on develop- if the par value of its currency is reduced or the foreign ment credits and the accried service charge are exchange value of its currencv has in the opinion of expressed in terms of United States dollars of the the Association depreciated to a significant extent weight and fineness in effect on January 1, 1960 and within that member's territories, to maintain the the equivalent is payable by the borrowers in cur- value of the Association's holdings of its ninety percent rencies which the Association determines to be freely currency, including the principal amounit of any notes convertible or freely exchangeable by the Association substituted therefor, and the Association is required for currcncics of other mcmbers of the Association, if the par value of the member's currencv is increased, except that such amount would be reduced if (a) or the foreign exchange value of the member's cur- there is a uniform proportionate reduction in the par rency has in the opinion of the Association appreciated values of the currencies of all members of the Inter- to a significant cxtent within that member's terri- national Monetary Fund or (b) the Association so tories, to return to the member the increase in the decides because of a substantial reduction in the value value of such ninety percent currency held by the of one or more major currencies of members. The Association; provide d, however, that the foregoing foregoing does not apply to a credit of $9,000,000 shall applv only so long as and to the extent that such which is expressed and is repayable in legal tender currency shall not have been initially disbursed or dollars. exchanged for the currency of another member. NOTE D Supplementary rcsources of the Association have, by Subscriptions and supplementary resources are ex- agreement, the same respective rights and obligations pressed in terms of United States dollars of the weight as to maintenance of value as are set forth in Article 84 and fineness in effect on January 1, 1960. IV, Section 2, of the Articles of the Association, INTERNATIONAL DEVELOPMENT ASSOCIATION Opinion of Independent Auditor t710 H STREET, N.W. WASHINGTON, D. C. 20006 July 30, 1964 To INTERNATIONAL DEVELOPMENT ASSOCIATION WASHINGTON, D. C. In our opinion, the accompanying financial statements present fairly, in tcrms of United States currency, the financial position of International Development Association at June 30, 1964, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination of these statements was made in accordance with generally accepted auditing standards, and accord- ingly included review of the allocation of expenses incurred jointly with International Bank for Reconstruction and Development, tests of the accounting records and such other auditing procedures as we considered necessary. PRICE WATERHOUSE & CO. FINANCIAL STATEMENTS COVERED BY THE FOREGOING OPINION Statement of Condition . . . . . . . . . . . . . . . . appendix A (page 77) Comparative Statement of Income and Expenses . . . . . . . . appendix B (page 78) Statement of Holdings of Currencies and Notes . . . . . . . . . appendix c (page 79) Sumrnary Statement of Development Credits . . . . . . . . . . appendix D (page 81) Statement of Subscriptions, Voting Power and Supplementary Resources . appendix E (page 82) Notes to Financial Statements . . . . . . . . . . . appendix F (page 84) 85 INTERNATIONAL DEVELOPMENT ASSOCIATION APPENDIX G Administrative Budget of IDA FOR THE FISCAL YEAR ENDING JUNE 30, 1965 Actual Expenses Budget 1953 1954 1965 STAFF Personal Services . . . . . . . . . . . . . . 907,245 $1,517,570 $1,812,000 Staff Benefits . . . . . . . . . . . . . . . 127,211 213,032 259,000 Travel . .. . ... .... . . . . . . 200,755 335,319 400,000 Consultants . . . . . . . . . . . . . . . 146,889 158,386 200,000 Representation . . . . . . . . . . . . . . 1,517 2,593 3,500 $1,383,617 $2,226,900 $2,674,500 COOPERATIVE PROGRAM WITH FAO . . . . . . . . . . - 3,250 34,000 COOPERATIVE PROGRAM WITH UNESCO . . . . . . . . . - - 100,000 OTHER ADMINISTRATIVE EXPENSES Fees and Compensation . . . . . . . . . . . . 5,615 9,814 12,000 Supplies and Materials . . . . . . . . . . . . 15,323 22,328 31,000 Office Occupancy . . . . . . . . . . . . . 82,209 161,740 178,500 Communications . . . . . . . . . . . . . . 51,158 84,374 118,500 Furniture and Equipment . . . . . . . . . . . 38,970 79,075 50,500 Printing .... . . . . .. . ..... 24,991 26,372 28,000 Insurance . . . . . . . . . . . . . . . . 13,993 21,563 19,500 Other . . . . . . . . . . . . . . . . . 172 149 500 $ 232,431 $ 405,415 $ 438,500 CONTINGENCY . . . . . . . . . . . . . . . - - 50,000 Totals . . . . . . . . . . . . . $1,616,048 $2,635,565 $3,297,000 The Administrative Budget for the fiscal year ending June 30, 1965, was prepared by the President and approved by the Executive Directors in accordance with Section 8 of the By-Laws. For purposes of comparison, the administrative 86 expenses incurred during the fiscal years ended June 30, 1963 and 1964 are also shown. Other Appendices page I Governors and Alternates of the Bank and IDA . . . . . . . . 88 2 Executive Directors and Alternates of the Bank and IDA and their Voting Power . . . . . . . . . . . . . . . . . 90 3 Principal Officers of the Bank and IDA . . . . . . . . . . . 91 [ 87 APPENDIX 1 Governors and Alternates of the Bank and IDA JUNE 30, 1964 Member Go&ernment Governor Alternate Afghanistan . . . . . . . . Abdullah Malikyar Algeria . . . . . . . . . . Bachir Boumaza Seghir Mostefai Argentina . . . . . . . . . . Fe6ix Gilberto Maria Elizalde Enrique Garcia Vazquez Aistralia . . . . . . . . Harold Holt Sir Roland Wilson Austria . . . . . . . . . . . Wolfgang Schmitz Hugo Rottky Belgium**. . . . . . . . . . Andr6 Dequac Hubert Ansiaux Bolivia . . . . . . . . . . . Rauil Lema Pelaez Adolfo Linares Brazil . . . . . . . . . . . Octavio Gouvea de Bulhoes Denio Chagas Nogueira Burma . . . . . . . . . . . U Kyaw Nyein U Kyaw Nyun Burundi. . . . . . . . . . . E. Manirakiza F. Dupont Cameroon . . . . . . . . . . Laurent Ntamag Jacques Kuoh Moukouri Canada . . . . . . . . . . . Walter L. Gordon A.F.W. Plumptre Central African Republic . . . . . . Charles Bornou Louis Kpado Ceylon . . . . . . . . . . . N. M. Perera H. Jinadasa Samarakkody Chad . . . . . . . . . . . Michel Djidingar Georges Diguimbaye Chile . . . . . . . . . . . Felix Ruiz Alvaro Orrego Barros China . . . . . . . . . . . Ching-yu Chen Tse-Kai Chang Colombia . . . . . . . . . . Diego Calle-Restrepo Jorge Mejia-Salazar Congo (Brazzaville) . . . . . . . Paul Kaya Bernard Banza Bouiti Congo (Leopoldville) . . . . . . . Dominique Ndingal Alfred Jean Roux Costa Rica . . . . . . . . . Alvaro Castro Alvaro Vargas Cyprus . . . . . . . . . . . Renos Solomides M.E. Guven Dahomey . . . . . . . . Francois Aplogan Marcel Tokpanou Denmark . . . . . . . . . . Otto Muller Poul Bjorn Olsen Dominican Republic . . . . . . . Di6genes H. Fernandez Luis Scheker Ecuador . . . . . . . . . Enrique Amador Marquez Jos6 Corsino Cardenas El Salvador. . . . . . . . . Francisco Aquino h. Abelardo Torres Ethiopia . . . . . . . . . . Menasse Lemma Bulcha Demeksa Finland. . . . . . . . . . R.v. Fieandt Esko Rekola Fraiice . . . . . . . . . . . Minister of Finance Mauricc Perouse Gabon . . . . . . . . . . Andr6 Gustave Anguile Roland Bru Germany, Federal Republic of . . . . Kurt Schmiickert Rolf Dahlgrtn2 Ghana . . . . . . . . . . K. Amoako-Atta W.M.Q. Halm Greece . . . George Mavros John Paraskevopoulos Guatemala . . . . . . . . . Carlos E. Peralta Mendez Jorge Lucas Caballeros Mazariegos Guinea* . . . . . . . . . Ousmane Baldet Mamadou Fofana Haiti . . . . . . . . . . . Herv6 Boyer Antonio Andr6 Honduras . . . . . . . . . . Edgardo Dumas Rodriguezl Luis Bogran Fortin Iceland . . . . . . . . . . . Petur Benediktsson Thor Thors India . . . . . . . . . . . T.T. Krishnamachari L.K. Jha Indonesia* . . . . . . . . . . Arifin Harahap Soerjono Sastrohadikoesoemo Iran . . . . . . . . . . . . Amir Abbas Hoveyda Jahangir Amuzegar Iraq . . . . . . . . . . . Mohammed J. Oboosy Khair El-Din Haseeb Ireland . . . . . . . . . . Seamas 0 Riain T.K. Whitaker Israel . . . . . . . . . . . David Horowitz Jacob Arnon Italy . . . . . . . . . . . Guido Carli Donato Menichella Ivory Coast . . . . . . . . . . Raphael Saller Mohamed Diawara Jamaica* . . . . . . . . . D.B. Sangster G. Arthur Brown Japan . . . . . . . . . . . Kakuei Tanaka Masamichi Yamagiwa Jordan . . . . . . . . . . Adeeb Sughayer Nijmeddin Dajani 88 Kenya . . . . . . . . . . . J.S. Gichuru John Henry Butter APPENDIX 1 Governors and Alternates of the Bank and IDA (coniinued) Member Government Governor Alternate Korea . . . . . . . . . . . Jung Han Rhi Se Ryun Kim Kuwait . . . . . . . . . . . Sheikh Jabir Al-Ahmad Al-Jabir Abdlatif Y. Al-Hamad Laos. . . . . . . . . . . . Phouangpheth Phanareth Oudong Souvannavong Lebanon . . . . . . . . . . Elias Sarkis Raja Himadeh Liberia . . . . . . . . . . . Charles Dunbar Sherman James Milton Weeks Libya . . . . . . . . . . . Mansur Ben Gaddara Ali A. Attiga Luxembourg . . . . . . . . . Pierre Werner Pierre Guill Malagasy Republic . . . . . . Ralison Rakotovao Louis Rakotomalala Malaysia . . . . . . . . . . Tan Siew Sin Dato' Abdul Jamil bin Abdul Rais Mali. . . . . . . . . . . . Louis N&gre Mauritania . . . . . . . . . Mohamed Lemine Ould Hamoni Mamadou Kane Mexico . . . . . . . . Antonio Ortiz Mena Jose HernAndez Delgado Morocco . . . . . . . . Driss Slaoui Mohamed Amine Bengeloun Nepal . . . . . . . . . Surya Bahadur Thapa Yadav Prasad Pant Netherlands . . . . . . . . . H.J. Witteveen S. Posthuma New Zealand* . . . . . . . . . H.R. Lake E.L. Greensmith Nicaragua . . . . . . . . . . Guillermo Sevilla-Sacasa Andres Garcia Niger . . . . . . . . . . . Courmo Barcourgne Lucien Bayle Nigeria . . . . . . . . . . . Chief Festus Sam Okotie-Eboh E.O. Ogbu Norway . . . . . . . . . . . O.C. Gundersen Christian Brinch Pakistan. . . . . . . . . . Mohamed Shoaib S.A.F.M.A. Sobhan Panama. . . . . . . . . . . Julio Ernesto Heurtematte Carlos A. Velarde Paraguay . . . . . . . . . . Cesar Romeo Acosta Oscar Stark Rivarola Peru . . . . . . . . . . . . Celso Pastor Tulio De Andrea Philippines . . . . . . . . . Andres V. Castillo Rafael S. Recto Portugal* . . . . . . . . . . Antonio M. Pinto Barbosa Luis M. Teixcira Pinto Rwanda. . . . . . . . . . Gaspard Cyimana J.B. Habyarimana Saudi Arabia . . . . . . . . . Ahmed Zaki Saad Senegal . . . . . . . . . . . Karim Gaye Ibrahima Tall3 Sierra Leone . . . . . . . . R. G. 0. King Sheikh Batu Daramy Somalia . . . . . . . . . . . Abdulcadir Mohamed Aden Francesco Palamenghi-Crispi South Africa . . . . . . . . . T.E. Donges Gerard Rissik Spain . . . . . . . . . . . Mariano Navarro Rubio Sudan . . . . . . . . . . . Mamoun Beheiry Saved Abdel Rahim Mirghani Sweden . . . . . . . . . . . G.E. String N.G. Lange Syrian Arab Republic. . . . . Moustafa Chammaa Abdul Hadi Nehlawi Tanganyika. . . . . . . . . . Paul Bomani C. de N. Hill Thailand . . . . . . . . . . Sunthorn Hongladarom Chalong Pungtrakul Togo . . . . . . . . . . . Antoine M6atchi Jean Tevi Trinidad and Tobago* . . . . . . John F. Pierce4 F. A. Francis4 Tunisia . . . . . . . . . . Ahmed Ben Salah Ali Zouaoui Turkey . . . . . . . . . . . Ferit Melen Ziya Kayla Uganda . . . . . . . . . . . A. Kalule Sempa A.J.P.M. Ssentongo United Arab Republic . . . . . . Abdel Moneim El Kaissouni Hamed Abdel Latif El Saych United Kingdom . . . . . . . . The Earl of Cromer Sir Denis Rickett United States . . . . . . . . . Douglas Dillon George W. Ball Upper Volta . . . . . . . . . Edouard Yameogo Pierre Damiba Uruguay* . . . . . Raul Ybarra San Martin Roberto Ferber Venezuela* . . . . . . . . . Rafael Alfonzo Ravard Luis Vallenilla Meneses Viet-Nam . . . . . . . . . . Nguyen Xuan Oanh Yugoslavia . . . . . . . . . . Kiro Gligorov Zoran Zagar | 89 Menvnber of thy Barsk only **Became a mem,ber of IDA on July 2, 1964 'Appointed as of July 23, 1964 2Appointed as ofJulv 10, 1964 iAppointed as of Julv 7,1964 'Appointed as of July 6, 1964 APPENDIX 2 Executive Directors and Alternates of the Bank and IDA and Their Voting Power JUNE 30, 1964 Director Alternate Casting Votes of Total Votes APPOINTED Bank IDA John C. Bullitt United States. . . . . 63,750 64,558 Sir Eric Roll N. M. P. Reilly United Kingdom . . . . . . . . . 26,250 26,728 Rene Larre Jean Malaplate France . . . . . . . . . . . . 10,750 11,092 Otto Donner Helmut Abramowski Germany, Federal Republic of . . . . . 10,750 11,092 K. S. Sundara Rajan Arun K. Ghoshl India . . . . . . . . . . . . 8,250 8,570 ELECTED John Mamman Garba Mohamed Nassim Kochman Nigeria, Congo (Leopoldville), Senegal, Tan- (Nigeria) (Mauritania) ganyika, Uganda, Trinidad and Tobago* Cameroon, Guinea*, Ivory Coast, Malagasy Republic, Mali, Burundi, Liberia, Rwanda, Sierra Leone, Togo, Central African Republic, Chad, Congo (Brazzaville), Dahomey, Gabon, Mauritania, Niger, Upper Volta . . . . 11,056 15,624 John M. Garland A. J. J. van Vuuren Australia, South Africa, New Zealand*, Viet- (Australia) (South Africa) Nam . . . . . . . . . . 10,297 7,856 Gengo Suzuki Eiji Ozaki Japan, Ceylon, Thailand, Burma, Nepal . 9,610 10,934 (Japan) (Japan) Mumtaz Mirza Ali Akbar Khosropur Pakistan, United Arab Republic, Iran, Saudi (Pakistan) (Iran) Arabia, Kuwait, Syrian Arab Republic, Sudan, Iraq, Jordan, Somalia, Ethiopia, Lebanon. . . . . . . . . . . 9,539 12,300 A. F. W. Plumptre L. Denis Hudon' Canada, Ireland . . . . . . . . . 8,600 9,172 (Canada) (Canada) Pieter Lieftinck Aleksandar Bogoev Netherlands, Yugoslavia, Israel, Cyprus . . 8,383 8,844 (Netherlands) (Yugoslavia) Andre van Campenhout Franz Oellerer Belgium**, Turkey, Austria, Korea, Luxembourg 8,350 4,495 (Belgium) (Austria) Joaquin Gutierrez Cano Sergio Siglienti Italy, Spain, Portugal*, Greece . . . . . 7,900 7,654 (Spain) (Italy) Reignson C. Chen China . . . . . . . . . . . . 7,750 6,552 (China) Alice Brun Eino Suomela Sweden, Denmark, Norway, Finland, Iceland . 7,226 8,396 (Denmark) (Finland) Jorge Mejia-Palacio Jose Camacho Brazil, Philippines, Colombia, Ecuador, Domini- (Colombia) (Colombia) can Republic . . . . . . . . . 7,167 8,190 Abderrahman Tazi Ismail Khelil Indonesia*, Morocco, Malaysia, Ghana, (Morocco) (Tunisia) Afghanistan, Tunisia, Libya, Laos. . . . 6,767 5,988 Luis Machado Rufino Gil Mexico, Venezuela*, Peru, Haiti, El Salvador, (Cuba) (Costa Rica) Costa Rica, Guatemala, Honduras, Nicaragua, Panama . . . . . . . . . . . 6,524 7,058 Fernando Illanes Carlos S. Brignone Argentina, Chile, Bolivia, Uruguay*, Paraguay. 6,291 6,744 (Chile) (Argentina) In addition to the Executive Directors and Alternates shown in the foregoing list, the following also served as Executive Director or Alternate after June 30, 1963: Executive Dir.ctor End of Period of Service Aternsate Executive Director End of Period of Service David B. Pitblado September 17, 1963 Lempira E. Bonilla (Honduras) January 15, 1964 (United Kingdom) M. Kumashiro (Japan) March 27, 1964 Erle Cocke, Jr. (United States) May 4, 1964 Jacques Waitzenegger (France) May 24, 1964 *Member of the Bank only **Became a member of IDA as of July 2, 1964 with 2,150 votes, raising group total for IDA from 4,495 to 6,645 votes ,Resigned as of June 30, 1964 90 2To be succeeded by S. J. Handfield-Jones effective August 1, 1964 APPENDIX 3 Principal Officers of the Bank and IDA JULY 3 1, 1964 GEORGE D. WOODS S. R. COPE President Director of Operations-Europe J. BURKE KNAPP HAROLD N. GRAVES, JR. Vice President Director of Information GEOFFREY M. WILSON HOWARD C. JOHNSON Vice President Director-New York Office SIMON ALDEWERELD M. M. MENDELS Director of Technical Operations Secretary A. BROCHES JOHN D. MILLER General Counsel Director-European Office RICHARD H. DEMUTH PIERRE L. MOUSSA Director of Development Services Director of Operations-Africa JOHN H. ADLER ESCOTT REID Director-Economic Development Institute Director of Operations-South Asia and Middle East GERALD M. ALTER LEONARD B. RIST Director of Operations-Western Hemisphere Special Adviser to the President I. P. M. CARGILL ORVIS A. SCHMIDT Director of Operations-Far East Special Adviser to the President ROBERT W. CAVANAUGH DRAGOSLAV AVRAMOVIC Treasurer Assistant Director-Economic Department (in charge) BERNARD CHADENET RAYMOND J. GOODMAN Associate Director of Technical Operations Assistant Director-Administration Department (in charge) 91 4 4. . A- 1 4, \\ ,  V - N N Na // --, 4<  *4.4 , j\ 4 t  I -4-- I A-- .- -4c st> - /~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 114~~~~~~~~~~~~~~~~~~~~~~~ _IX~~~~~~~~~~~~~~~~~~1 At~~~~~~~~~~~~~~~ WORLD BANK AND IDA HEADQUARTERS 7818 H Street, N. W. Washington, D.C. 20433, U.S.A. NEW YORK OFFICE 20 Exchange Place New rork, N.Y. 10005, U.S.A. EUROPEAN OFFICE 4 Avenue d' lena Paris 16e, France LONDON OFFICE New Zealand House Haymarket London S. W. 1, England