Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-6564-CHA MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXEGCUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO $7.0 M1ILLION AND A PROPOSED CREDIT OF SDR 12.7 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR AN IODINE DEFICIENCY DISORDERS CONTROL PROJECT JUNE 6, 1995 This document has a restricted distribution and may be used bv recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (as of May 1995) Currency Name = Rerniminbi Currency Unit = Yuan (Y) 1 Yuan = 100 fen $1.00 Y 8.45 Y 1.00 = $0.12 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS CNSIC - China National Salt Industry Corporation ICB - International Competitive Bidding IDD - Iodine Deficiency Disorders IDDC - Iodine Deficiency Disorders Control MCH - Maternal and Child Health NIDDEP - National IDD Elimination Program PIU - Project Implementation Unit PSIA - Provincial Salt Industry Administration SDB - State Development Bank SDR - Special Drawing Right SIDF - Salt Industry Development Fund SPC - State Planning Commission UNDP - United Nations Development Program UNICEF - United Nations International Children's Emergency Fund UNIDO - United Nations Industrial Development Organization WHO - World Health Organization FISCAL YEAR January I - December 31 FOR OFFICIAL USE ONLY CHINA IODINE DEFICIENCY DISORDERS CONTROL (IDDC) PROJECT LOAN/CREDIT AND PROJECT SUMMARY Borrower: People's Republic of China Implementing Agency: China National Salt Industry Corporation (CNSIC) Beneficiaries: CNSIC, and enterprises engaged in iodizing and packaging of salt Poverty: Not applicable Amount: Loan: $7.0 million equivalent Credit: SDR 12.7 million ($20 million equivalent) Terms: Loan: 20 years, including 5 years of grace, at the Bank's standard variable interest rate Credit: IDA standard terms with 35 years' maturity Commitment Fee: Loan: 0.75 percent on undisbursed loan balances, beginning 60 days after signing, less any waiver. Credit: 0.50 percent on undisbursed credit balances, beginning 60 days after signing, less any waiver. Financing Plan: See Schedule A. Economic Rate of Return: Not applicable Staff Appraisal Report: 1403 1-CHA Map: IBRD 26853 Project ID Number: CN-PA-37156 This document has a restricted distribution and may be used by recipients only in the performance of their |oficial duties. Its contents may not otherwise be disclosed without World Bank authorization. I MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN AND PROPOSED CREDIT TO THE PEOPLE'S REPUBLIC OF CHINA FOR AN IODINE DEFICIENCY DISORDERS CONTROL PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan of $7.0 million and a proposed credit of SDR 12.7 million ($20.0 million equivalent) to the People's Republic of China to help finance an Iodine Deficiency Disorders Control Project. The loan would be at the Bank's standard variable interest rate, with a maturity of 20 years, including 5 years of grace. The credit would be on standard IDA terms with 35 years' maturity. The proceeds of the credit and loan would be onlent to the China National Salt Industry Corporation (CNSIC) for a period of 15 years, including 5 years of grace, with interest at 5.0 percent per year. CNSIC will bear the foreign exchange risk. 2. Sector and Project Background. Insufficient intake of iodine, an essential micronutrient in human and animal diet, causes a variety of physical and mental disabilities, collectively known as iodine deficiency disorders (IDD). Among humans, the best-known effects of iodine deficiency are goiter, an enlargement of the thyroid gland, and cretinism, a severe form of mental retardation that may be associated with deaf-mutism, dwarfism, and spastic palsy of lower limbs. It is now increasingly recognized that iodine deficiency also causes less severe but more widespread intellectual impairment, as well as spontaneous abortion, still births, and newborn deaths. IDD is the leading known preventable cause of intellectual handicap. While women and children are particularly at risk of IDD, the combined effects cause loss of productivity and dynamism in whole communities. Therefore, IDD is now regarded not only as a public health issue but also as an impediment to human and economic development. 3. An estimated 1.5 billion people worldwide, including over 400 million in China, live in areas which put them at risk of IDD. Large tracts of land and freshwater bodies in China are seriously deficient in iodine, and consequently, dietary iodine intake through agricultural and animal foodstuffs is insufficient. Until recently, it was believed that IDD, as measured by the prevalence of goiter and cretinism, was restricted to defined endemic areas, located in specific counties in all provinces and municipalities of China except Shanghai. However, recent biochemical evidence from communities in areas hitherto considered nonendemic, and better understanding of the spectrum of disorders, indicate that a much higher proportion of the total population is at risk, and that the delineation between endemic and nonendemic areas is inappropriate. The Government of China, with the active support of other UN organizations and the Bank Group, wants to achieve universal iodization of salt by end-1996 on an emergency basis. 4. Since the 1950s the Government of China has conducted programs for protection against goiter. These programs achieved good progress, but were hampered by: lack of - 2 - appropriate mechanisms to prevent the sale of noniodized salt; inadequate control of iodized salt quality; and lack of community awareness about 1DD and the benefits of iodized salt. The current National IDD Elimination Program (NIDDEP) began with a National Advocacy Meeting in Beijing in September 1993, convened by the State Council with UN support, and attended by national representatives of all relevant sectors and by all provinces. The meeting affirmed the Government's strong commitment to taking urgent actions to achieve the goal of elimination of IDD by the year 2000, and resulted in adoption of a program to adopt universal iodization of all edible salt by end-1996 as the principal intervention to reduce IDD; mobilize society in support of the Program through multisectoral coordination and management at different levels; educate the population on the impact of IDD and methods of prevention; and strengthen the legal framework to prevent production and consumption of noniodized salt. The proposed project would support these initiatives. 5. In January 1994, the Government asked the Bank Group to finance salt iodization (production, packaging and distribution) as a component of the Comprehensive Maternal and Child Health (MCH) Project (Cr. 2655-CHA) and the Bank Group accepted the request, as IDDC particularly benefits women and children and is in line with the country and sector assistance strategy. However, at appraisal of the MCH Project, some important technical and financial aspects of the IDDC component were not resolved to both Bank Group and government satisfaction. The Government and the Bank Group therefore agreed that the MCH and IDDC components would be processed as two separate projects. The MCH Project was presented to the Board on October 18, 1994. The IDDC Project, which complements the MCH project activities, is now being presented. 6. Bank Group Assistance Strategy and Rationale for Bank Group Involvement in the Project. Within the overall objective of supporting the Government's poverty alleviation and human resources development programs, Bank Group assistance in the health sector is geared to: assist the Government meet the basic health needs of the population-particularly those living in absolute poverty; and reinvigorate initiatives in disease prevention, by retaining the gains made against endemic diseases and by implementing innovative programs against noncommunicable and chronic diseases. The proposed project incorporates these objectives as it aims at preventing iodine deficiency disorders in all parts of China through effective, sustainable and replicable programs. The project, through support of NIDDEP, aims at improved provision of basic health services with particular emphasis on maternal and child health, and prevention of disease. The project is consistent with the Bank Group's Country Assistance Strategy, presented to the Board on June 1, 1995. 7. Studies in many countries have demonstrated the efficacy and cost-effectiveness of targeting deficiencies in micronutrients (iodine, iron and vitamin A) to improve health status, including salt iodization to prevent IDD. The Bank Group is now preparing or supporting a total of 30 such projects including 10 projects related to universal salt iodization. In these projects, the Bank Group's contribution is typically to support policy dialogue for multisectoral involvement and improved regulatory framework for salt iodization, and financing of iodization equipment and consumer education. The Bank Group also provides financial support to international organizations for advocacy and technical support for the global program of IDD elimination. In China, the Government is seeking the Bank Group's - 3 - support on an emergency basis to help it achieve universal iodization of salt by the end of 1996 to respond to this major public health problem. As it is estimated that China has up to 40 percent of the world burden of IDD, this project would make an important contribution to the reduction of this preventable health problem, complementing the Bank Group's global efforts in addressing malnutrition. 8. In line with the Bank Group's partnership principle, the Bank Group's role in the project will complement the leadership role being played by UNICEF and UNDP, to assist the Government with the formulation and implementation of the NIDDEP. UNICEF and UNDP will continue to help the Government with the regulatory, educational, and monitoring aspects of the NIDDEP. UNIDO will provide technical assistance to the salt industry. WHO will support training. Within a framework of shared responsibilities for international assistance, the Bank Group is focusing on financing the iodization of salt activities. The Bank Group's involvement, to date, with its strong cross-sectoral and policy dialogue with the Ministry of Finance, Ministry of Health, CNSIC, and State Planning Commission, has already lent valuable weight to the support of other UN agencies, and provided useful leverage in the establishment of intersectoral arrangements and procedures that are needed for NIDDEP's success. The Government has furnished a letter to the Bank Group describing the NIDDEP and action plan for its implementation. The letter provides the linkage between the project and the Programn, required for the project's success. 9. Lessons Learned from Previous Bank Group Assistance. The Bank Group has supported five health sector projects in China, two of which are largely completed. The Bank Group has also completed two sector studies (in 1984 and 1990) in health and one in poverty alleviation (1992). Lessons learned from these projects include the need to: ensure weli- organized and adequately staffed project management offices at all levels; provide clear guidelines for implementation supervision; and ensure adequate and high-quality equipment for the intended project activities. The project design reflects these lessons as well as those learned from the implementation of two industrial projects in China, including: avoiding overly ambitious project scope; ensuring adequate implementation management arrangements; reducing delays in ICB procurement through attention to the learning needs of the borrower; and careful estimation of capital requirements and adequacy of local financing arrangements. The design of the proposed project has addressed these lessons as follows: (a) estimates for total financing requirements have been built up by making adequate allowances for physical and price contingencies, and working capital; (b) sources of counterpart financing have been identified, and agreements reached that the funds would be available for the project; (c) selection has been made of procurement agencies that are familiar with Bank Group guidelines for procurement of goods and of consultants; and (d) CNSIC would be provided with consultants and advisors for project management, costs and financial control systems, and information systems. The Bank Group's analysis of salt iodization programs in other countries has identified the following critical success factors: (a) iodization of all salt for human and animal consumption; (b) multisectoral involvement in planning and administration of the program; (c) strong advocacy with salt manufacturing and trading agencies; (d) supporting legislation and enforcement; (e) monitoring of iodine levels in salt at plant and retail level; (f) consumer education on benefits of iodized salt, product recognition, etc.; (g) strong links to and support from the global initiative; (h) extemal technical and financial support in key -4 - aspects of the program; and (i) efficient program monitoring and dissemination of progress data. The project addresses these needs, directly or indirectly, by ensuring regular dialogue on progress of NIDDEP. 10. Project Objective. The project's objective is to reduce the incidence of IDD in China by supporting the NIDDEP through financing investments in production, iodization, and packaging and distribution of iodized salt. The project design and implementation arrangements reflect the emergency nature of the operation. 11. Project Description. The project would comprise two components: (a) support for iodization and packaging facilities; and (b) technical assistance (TA). Under the first component, the salt iodization capacity in China would be increased from about 3.5 million tons per year (Mtpy) to about 8.2 Mtpy, by modernization of existing capacities and creation of additional capacities. In addition, the project would finance creation of a total packaging capacity of about 6.1 Mtpy to ensure that the salt reaching the consumers meets the minimum iodine level standards. A total of 182 enterprises are expected to participate in the project. 12. Technical assistance would be provided to CNSIC to support the Project Implementation Unit (PIU) through provision of short-term specialist consultants in the areas of general project management, project accounting and finance management systems, information systems, and market promotion and quality control. This assistance would complement a much larger TA program for CNSIC, developed by UNIDO in consultation with UNICEF, UNDP and the Bank Group, and would be implemented separately from, but concurrently with, the project. Coordination arrangements have been made with UNIDO. 13. The total project cost is estimated at $152.29 million equivalent. The credit and loan, totaling $27.0 million equivalent, would finance 100 percent of the foreign exchange requirements of the project, or 18 percent of the total project cost. The local currency component of $125.29 million equivalent would be financed as follows: 18 percent would be provided by the State Development Bank (SDB) to CNSIC to be onlent to the individual enterprises; 18 percent would be provided by the Salt Industry Development Fund (SIDF); and the balance, 64 percent, would be raised through local provincial salt industry funds and participating enterprises. In order to facilitate efficient and prompt startup of the project, retroactive financing of up to SDR 1.7 million equivalent is recommended to cover payments for eligible expenditures after February 25, 1995. A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement, and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in China are given in Schedules C and D, respectively. A map (IBRD 26853) is also attached. The Staff Appraisal Report, No. 1403 1-CHA dated June 6, 1995, is being distributed separately. 14. Project Implementation. The salt industry in China is a state monopoly with all salt resources owned by the State. The project would be implemented by CNSIC, a state enterprise, under the administrative control of the China National Council for Light Industry and the overall coordination of the State Planning Commission. CNSIC is responsible for supervising and administering the processing and marketing of the salt industry, including - 5 - enforcing regulations applicable to salt producers, planning and ensuring execution of production capacities, production volumes, distribution arrangements, and administering research and development facilities, in accordance with State Council plans for the industry as a whole. CNSIC has selected the participating enterprises according to criteria acceptable to the Bank Group. The Bank Group has reviewed the technology and procurement arrangements. The Provincial Salt Industry Administrations (PSLAs) would handle the day-to- day matters of implementation with the participating enterprises. 15. Project Sustainability. Universal iodization of salt is the most sustainable method to prevent IDD. The project directly supports this key intervention, through creation of physical facilities for iodizing and packaging salt, and ensuring appropriate quality of the iodized salt. The NIDDEP and the associated action program contain appropriate measures for education and surveillance activities. Successful salt iodization under the project, combined with the enhanced public awareness of the advantages of iodized salt consumption, would contribute to a gradual and significant reduction in the incidence of IDD in China. The Project's support for creation of physical facilities for salt pretreatment, iodization, and packaging through introduction of modem technologies and equipment, together with quality control systems, would assist in ensuring a constant supply of iodized salt of required quality. The organizational structure for implementing the NIDDEP, as well as its staffing is expected to be maintained through the year 2000, the target year for achieving the objective of virtual elimination of IDD. 16. Agreed Actions. Assurances have been obtained from the Borrower that it would: (a) carry out the action plan described in the Government Letter on NIDDEP; (b) prepare and furnish to the Bank Group, annual monitoring and evaluation reports on progress in implementing the plan; and (c) exchange views annually with the Bank Group on progress and key actions for the forthcoming year, to ensure achievement of NIDDEP objectives. 17. Assurances have been obtained from CNSIC that it would: (a) carry out an acceptable program of actions, designed to achieve the objective of ensuring the adequate iodization of all edible salt, by end-1997; (b) maintain the Project Implementation Unit with its core staff and budget; (c) provide to each project province the goods and services procured by CNSIC for the enterprises in that province and financed under the loan/credit under Provincial Implementation Agreements with the project provinces on terms and conditions agreed with the Bank Group; (d) strengthen its PIU's capabilities in the areas of project management, accounting and finance, quality control, project information systems and marketing according to a time-bound action plan satisfactory to the Bank Group; and (e) require each project province to make the goods and services procured for enterprises in that province and financed under the loan and credit available to the enterprises under implementation agreements with the enterprises, on terms and conditions acceptable to the Bank Group. 18. Confirmations from SDB and SIDF of their intent to provide their respective shares of counterpart financing have been obtained. Signing of a subsidiary loan agreement between CNSIC and the Borrower and project implementation agreements between CNSIC and all 29 participating project provinces, according to terms and conditions satisfactory to the Bank Group, are conditions of effectiveness of the loan and credit. - 6 - 19. Environmental Aspects. The project would have no significant impact on the environment. Project salt iodization and packaging facilities would be established mostly in existing enterprises. Creation of such facilities would involve relatively small areas and would not involve displacement of land use for agriculture, aquaculture or human resettlement. There would be very little, incremental liquid effluents from the industrial work, none of them considered toxic or hazardous. There are no recognized serious occupational hazards or negative health impacts from salt processing. 20. Project Benefits. Salt iodization is a cost effective means to provide the small amount of iodine required for human health and development. The project's support for universal salt iodization in China will provide social and economic benefits by: (a) reducing infant mortality and severe congenital deformity; (b) improving work capacity/work output; and (c) improving intellectual capacity. Other benefits of the project include: (a) reduction of the cost to society of handicapped and completely dependent people, resulting in a cost savings for the health care and welfare systems; (b) reduced expenditures in the education system from fewer learning disabilities and grade repetition; (c) strengthening of coordination between industry and health sectors; and (d) improved planning, execution, and management capabilities. 21. Risks. The project's main risk is that the population will continue to consume noniodized salt because of: lack of awareness of IDD risks, availability of low-cost raw salt in markets near production areas, and affordability of higher-cost packaged iodized salt. The Government, already aware of the risk from past experience, has promulgated regulations that would forbid sale of noniodized edible salt for general consumption in IDD endemic areas, to be extended throughout the country under the project, with enforcement and penalty regimes to ensure conformance. As a part of the IDD Elimination Progran, the Ministry of Health, with the assistance of UN agencies, would mount public awareness and information campaigns that would, over time, create a 'demand-driven" market for iodized salt. It is expected that the population would, over time, accept the benefits of iodized salt. At present, there is no price differential between the iodized and noniodized salt. The Government's objective is to increase the price of iodized salt to fully cover the costs. This would mean that, eventually, the price of iodized salt would be higher than the noniodized salt. The incidence of the incremental higher price of salt as a proportion of household expenditure, as well as absolute cost per household, is very small, at 0.24 to 0.76 percent, and Y 5.00 per year per household. However, there is always a risk, at the margin, that some sections of the population may prefer lower-priced noniodized salt, notwithstanding any legal prohibition on production and sale of noniodized salt. Complete elimination of such a risk would require continuation of current subsidies until such time as the public awareness campaigns are well under way and it is judged that the population would be prepared to pay the higher price for the benefits of iodized salt consumption. The Government is aware of this view. From the project's point of view, the potential impact of the above risk on marketability of the entire production at the prices that would keep the enterprises financially viable is reduced to a minimum. Lesser risks lie in the areas of: manufacturing technology, timely equipment delivery, and project management. The technologies to be used for raw salt quality improvement and iodization are relatively simple and proven. The high priority status accorded to the project by the Government, coupled with the strengthening of project implementation capabilities of CNSIC, should minimize the risk and ensure timely completion. - 7 - 22. Recommendation. I am satisfied that the proposed loan and credit would comply with the Articles of Agreement of the Bank and the Association and recommend that the Executive Directors approve the proposed loan and credit. James D. Wolfensohn President Washington, D.C. June 6, 1995 Attachments - 8 - Schedule A CHINA IODINE DEFICIENCY DISORDERS CONTROL PROJECT ESTIMATED COSTS AND FiNANCING PLAN ($ million) Local Foreign Total Estimated Project Cost Engineering, Other Services 3.68 3.68 Civil Construction 27.90 - 27.90 Equipment, Materials and Spares 18.23 24.28 42.51 Duties and Taxes 7.77 - 7.77 Commissioning & Installation 1.61 0.67 2.28 Inspection 1.27 - 1.27 Plant & Equipment Insurance 1.32 - 1.32 Training 1.24 0.70 1.94 Project Management 2.31 - 2.31 Technical Assistance 0.34 0.15 0.49 Subtotal, Base Cost 65.67 25.80 91.47 Physical Contingencies 4.53 - 4.53 Price Contingencies 11.75 1.20 12.95 Subtotal, Installed Cost 81.95 27.00 108.95 Interest During Construction 14.53 - 14.53 Incremental Working Capital 28.81 - 28.81 Total Project Cost 125.29 27.00 152.29 Financing Plan Government of China: State Development Bank 22.54 - 22.54 Salt Industry Development Fund 22.54 - 22.54 Provincial Government 51.40 - 51.40 Enterprises 28.81 - 28.81 IDA - 20.00 20.00 IBRD - 7.00 7.00 Total 125.29 27.00 152.29 - 9 - Schedule B Page 1 CHINA IODINE DEFICIENCY DISORDERS CONTROL PROJECT PROCUREMENT METHODS AND DISBURSEMENTS ($'000 equivalent) Procurement method Project component ICB Other/a NBGF/b Total Engineering and Other Services - - 4,708 4,708 Goods Equipment and materials Ic 1. Iodization equipment - 1,500 2,182 3,682 (712) (712) 2. Packaging machines 37,506 81 12,198 49,785 (24,646) (52) (24,698) 3. Salt quality upgrading equipment - - 4,737 4,737 Installation and commissioning 701/d - 2,064 2,765 (701) (701) Training on new equipment 732/d - 1,586 2,318 (732) (732) Works Iodizing - - 12,163 12,163 Packaging - - 19,889 19,889 Salt quality upgrading - - 3,660 3,660 Plant and Equipment Insurance - - 1,696 1,696 Project Management - - 2,960 2,960 Technical Assistance (PIU) - 157 431 588 (157) (157) Subtotal 38,939 1.738 68 274 108.951 (26.079) (921) (27,000) Interest During Construction - - 14,533 14,533 Incremental Working Capital - - 28,808 28,808 Total 38,939 1,738 111,615 152,292 (26,079) (921) - (27,000) /a Other procurement methods include ISP, direct contracting and consultant services (recruited in accordance with the Bank Group's Guidelines). Aggregate amount for ISP procurement: $1,500,000. /b NBGF denotes non- Bank Group financing. /c The cost estimate for Equipment & Materials includes 32 percent duties and taxes, 5 percent inspection charges on imports, 1 percent spares cost, 6 percent international freight cost and 8 percent domestic freight cost, and all the applicable contingencies, which are not financed by the Bank Group. /d This cost of $701,000 for installation and commissioning and $732,000 for training on new equipment are included in the ICB package for Type I retail packaging machines, and will form part of that supply contract. Notes: 1. Figures in parentheses are the respective amounts financed by the Bank Group. 2. All amounts include contingencies. - 10 - Schedule B Page 2 DISBURSEMENTS Category Amount Expenditure to be Financed (%) ($ million) (1) Goods 25.65 100% of foreign expenditures, 100% of local expenditures (ex- factory), and 75% of expenditures on other items procured locally (2) Consultants' Services 0.15 100% of total expenditures (3) Unallocated 1.20 Total 27.00 ESTIMATED DISBURSEMENTS ($ million) Bank/IDA Fiscal Year 1996 1997 1998 Annual 9.59 10.89 6.52 Cumulative 9.59 20.48 27.00 - 11 - Schedule C CHINA IODINE DEFICIENCY DISORDERS CONTROL PROJECT TIMETABLE OF KEY PROJECT PROCESSING EVENTS (a) Time taken to prepare the project: 14 Months (b) Prepared by: Government of China with Bank Group Assistance (c) First Bank mission: February 1994 (d) Appraisal mission departure: February 1995 (e) Negotiations: May 1995 (f) Planned date of effectiveness: September 1995 (g) List of relevant ICRs: Not applicable This report is based on the findings of an appraisal mission that visited China in February 1995. Appraisal team members included: N.C. Krishnamurthy (Senior Industrial Specialist/Task Manager), L. Raina (Industrial Specialist, IENIM), J. Hohnen (Public Health Specialist, EA2HR), and Dingyong Hou (RMC). J. McGuire (PHN), N. Dewitt (LEGEA), D. Dorkin (EA2HR), and a number of Government and Bank Group officials also helped in the design and preparation of this project. Peer reviewers are N. Hughes (EA2IE) and J. Upadhyay (EA2HR). The Division Chief is Mr. Vinay K. Bhargava and the Director is Mr. Nicholas C. Hope. Schedule D Page 1 of 3 STATUS OF BANK GROUP OPERATIONS IN THE PEOPLE'S REPUBLIC OF CHINA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of March 31, 1995) Loan/ Amount (USS million) Credit Bor- (net of cancellations) Number FY rower Purpose Bank IDA Undisb.(a) 34 loans and 42 credits have been fully disbursed. 3,124.3 2,702.0 - Of which SECAL: 2967/1932 88 PRC Rural Sector Adj. 200.0 93.2 - 267811680 86 PRC Third Railway 160.0 (70.0)(b) 3.3 2723/1713 86 PRC RuraL Health & Preventive Ned. 15.0 65.0 11.4 1764 87 PRC Xinjiang Agricultural Dev. - 70.0 0.1 2794/1779 87 PRC Shanghai Sewerage 45.0 (100.0)(b) 4.1 2811/1792 87 PRC Beijing-Tianjin-Tanggu Expressway 25.0 125.0 7.8 2812/1793 87 PRC Gansu Provincial Dev. (20.0)(b) 150.5 13.3 1835 87 PRC Planning Support & Special Studies - 20.7 2.4 2852 87 PRC Wujing Thermal Power 190.0 8.1 2877/1845 88 PRC Huangpu Port 63.0 (25.0)(b) 6.0 1885 88 PRC Northern Irrigation - 103.0 7.6 2943 88 PRC Pharmaceuticals 127.0 - 0.4 2951/1917 88 PRC Sichuan Highway 75.0 (50.0)(b) 12.3 2955 88 PRC Beilungang II 165.0 - 21.4 2958 88 PRC Phosphate Dev. 62.7 - 4.9 2968 88 PRC Railway IV 200.0 - 6.2 1984 89 PRC Jiangxi Provincial Highway - 61.0 0.8 1997 89 PRC Shaanxi AgriculturaL Dev. - 10'.0 13.6 2006 89 PRC Textbook DeveLopment - 57.0 0.3 2009 89 PRC Integrated Reg. Health - 52.0 13.5 3006 89 PRC Ningbo & Shanghai Ports 76.4 7.1 3007 89 PRC Xiamen Port 36.0 - 1.3 3022 89 PRC Tianjin Light Industry 154.0 - 39.0 3060/2014 89 PRC Inner Mongolia Railway 70.0 (80.0)(b) 6.0 3066 89 PRC Hubei Phosphate 137.0 - 29.1 3073/2025 89 PRC Shandong Prov. Highway 60.0 (50.0)(b) 21.8 3075 89 PRC Fifth Industrial Credit 300.0 - 0.3 2097 90 PRC Jiangxi Agric. Dev. - 60.0 1.3 2114 90 PRC Vocational & Tech. Educ. - 50.0 2.9 2145 90 PRC National Afforestation - 300.0 71.9 2159 90 PRC Hebei Agricultural Dev. - 150.0 45.5 2172 91 PRC Mid-Yangtze Agricultural Dev. - 64.0 13.6 3265/2182 91 PRC Rural Credit IV 75.0 200.0 23.4 3274/2186 91 PRC Rural Indust Tech (SPARK) 50.0 64.3 22.5 3286/2201 91 PRC Medium-Sized Cities Dev. 79.4 52.9 35.3 2210 91 PRC Key Studies Development - 131.2 35.5 2219 91 PRC Liaoning Urban Infrastructure - 77.8 9.5 3316/2226 91 PRC Jiangsu Provl. Transport 100.0 (53.6)(b) 24.5 2242 91 PRC Henan Agricul. Dev. - 110.0 65.0 3337/2256 91 PRC Irrig. Agricul. Intensif. 147.1 187.9 94.3 3387 92 PRC Ertan HydroeLectric 380.0 32.2 2294 92 PRC Tarim Basin - 125.0 59.1 2296 92 PRC Shanghai Metro Transport - 60.0 17.7 3406 92 PRC Railways V 330.0 - 85.2 3412/2305 92 PRC Daguangba Multipurpose 30.0 37.0 10.2 2307 92 PRC Guangdong ADP - 162.0 109.0 3415/2312 92 PRC Beijing Environment 45.0 80.0 76.6 2317 92 PRC Infectious and Endemic Disease Cont - 129.6 111.1 3433 92 PRC Yanshi Thermal Power 180.0 - 23.4 2336 92 PRC Rural Water Supply and Sanitation - 110.0 70.0 2339 92 PRC Educ. Development in Poor Provs. - 130.0 70.9 3443 92 PRC Regional Cement Industry 82.7 - 26.6 ScheduLe D Page 2 of 3 Loan/ Amount (USS million) Credit Bor- (net of cancellations) Number FY rower Purpose Bank IDA Undisb.(a) 3462 92 PRC Zouxian Thermal Power 310.0 - 190.0 3471 92 PRC Zhejiang Provincial Highway 220.0 - 131.2 2387 92 PRC Tianjin Urban Devt. & Envir. - 100.0 74.7 2391 92 PRC Ship Waste Disposal - 15.0 17.1 2411 93 PRC Sichuan Agricultural Devt. - 147.0 98.0 3515 93 PRC Shuikou Hydroelectric II 100.0 - 67.2 2423 93 PRC FinanciaL Sector TA - 60.0 57.4 3530 93 PRC Guangdong ProvinciaL Transport 240.0 - 165.5 3531 93 PRC Henan Provincial Transport 120.0 - 78.7 2447 93 PRC Ref. Inst'l and Preinvest. - 50.0 45.2 3552 93 PRC Shanghai Port Rest. and Devt. 150.0 - 125.1 2457 93 PRC Changchun Water SuppLy & Env. - 120.0 125.3 2462 93 PRC AgricuLture Support Services - 115.0 99.0 3560/2463 93 PRC Taihu Basin Flood Control 100.0 100.0 135.5 2471 93 PRC Effective Teaching Services - 100.0 105.4 3572 93 PRC Tianjin Industry 11 150.0 - 150.0 3582 93 PRC South Jiangsu Envir. Prot. 250.0 - 229.9 2475 93 PRC Zhejiang Multicities Devt. - 110.0 104.6 3581 93 PRC Railway VI 420.0 - 340.4 3606 93 PRC Tianhuangping Hydroelectric 300.0 - 277.5 3624/2518 93 PRC Grain Distribution 325.0 165.0 486.6 2522 93 PRC Environmental Tech. Assist. - 50.0 48.4 2539 94 PRC Rural Health Workers Devt. - 110.0 105.9 3652 94 PRC Shanghai Metro Transport 11 150.0 - 60.0 3681 94 PRC Fujian ProvinciaL Highways 140.0 - 121.9 3687 94 PRC TeLecommunications 250.0 - 238.4 2563 94 PRC Second Red Soils Area Devt. - 150.0 146.2 2571 94 PRC SongLiao PLain Agric. Devt. - 205.0 201.4 3711 94 PRC Shanghai Environment 160.0 - 155.0 3716 94 PRC Sichuan Gas Devt & Conservatn. 255.0 - 244.6 3718 94 PRC Yangzhou ThermaL Power 350.0 - 335.5 3727 94 PRC Xiaolangdi Multipurpose 460.0 - 384.9 2605 94 PRC Xiaolangdi Resettlement - 110.0 109.0 2616 94 PRC Loess Plateau Watershed Devt. - 150.0 148.3 2623 94 PRC Forest Resource Devt. & Prot. - 200.0 206.5 3748 94 PRC National Highway 380.0 - 364.0 3773/2642 95 PRC Ent. Housing/Soc Sec Reform 275.0 75.0 349.6 3781 95 PRC Liaoning Environment 110.0 - 103.0 3787 95 PRC Xinjiang Prov. Highways 150.0 - 150.0 2651 95 PRC Basic Ed for Poor/Minorities (c) - 100.0 107.7 3788 95 PRC Shenyang Industrial Reform (c) 175.0 - 175.0 2654 95 PRC Economic Law Reform - 10.0 10.4 2655 95 PRC Comp Haternal/Child Health - 90.0 92.3 3846 95 PRC Zhejiang Power Development (c) 400.0 - 400.0 3847 95 PRC Technology Development (c) 200.0 - 200.0 3848 95 PRC Sichuan Power Transmission (c) 270.0 - 270.0 Total 12,994.6 8,125.9 9,211.1 of which has been repaid 1,130.8 16.2 Total now held by Bank and IDA 11,863.8 8,109.7 Amount sold: Of which repaid - - Total Undisbursed 6,238.3 2,972.8 9,211.1 (a) As credits are denominated in SDRs (since IDA Replenishment VI), undisbursed SDR credit balances are converted to doLlars at the current exchange rate between the dollar and the SDR. In some cases, therefore, the undisbursed balance indicates a dollar amount greater than the original principal credit amount expressed in dollars. (b) Credit fully disbursed. (c) Not yet effective. Schedule D Page 3 of 3 B. STATEMENT OF IFC INVESTMENTS (As of March 31, 1995) Invest- Type of Loan Equity Syndicate Total ment No. FY Borrower Business --------- (USS Million) ---------- 813/2178 85/ Guangzhou Auto Automobile 15.0 4.5 - 19.5 86/91 974 87/88 China Investment Co. DFCs 3.0 - - 3.0 1020 88/ Shenzhen China Bicycle 17.5 3.4 - 20.9 92/94 Bicycles Co. Ltd. Manufacture 1066 89 Crown Electronics Electronics 15.0 - - 15.0 1119 89 Shenzhen Solar Electric 2.0 1.0 - 3.0 Light/Power 3423 93 Shenzhen PCCP Manufacturing 4.0 1.0 - 5.0 3150 93 Yantai Mitsubishi Cement Cement 28.7 2.0 - 30.7 3881 94 China Walden Mgt. Capital Mkts. - 7.5 - 7.5 4470 94 Dynamic Growth Fund Venture - 20.0 - 20.0 Capital 4534 95 Newbridge Inv. Securities Mk - 10.0 - 10.0 Financing Instit. 3746 95 Dalian GLass Glass 30.5 - 30.5 61.0 4755 95 Mantong Wanfu Food/ 7.9 3.4 10.2 21.5 Agribusiness Total Gross Commitments 123.6 52.8 40.7 217.1 Less cancellations, terminations, 28.5 - 10.2 38.7 repayments, write-offs, and saLes Total Commitments now Held by IFC 95.1 52.8 30.5 178.4 Total Undisbursed 13.4 32.8 16.5 62.7 4/19/95 EA2DR IBRD 26853 RUSSIAN FEDERATION 9', KAZAKHSTAN / eJ. -- / HEILONGJIANG MONGOLIA ,( , 319 ', KYRGYZ REPUBLIC - A j Uwoc 9JL U Z B EKIS TA N J \ A*e S 5h.nyo n JAPAN AC ~~~~~A-: A"hl ;5 r V LIAONNG3 t ~~tm$c ~ BEIJING t 0/ _ IAlo / TAJIKISTAN - _ KOREA c.AFGHANISTAN7 * 5XINJIANG l ) 3 ¾ OEA .~~~~~~~~~~~~~~~~~~~~~~~- -. a (~sr 0' -- - The boudarie, color, _ Nr.-N N, \ denomitna.h-tions3and an At / ' HEBEI -- REP OF other inorato dho. -n ®Sh,-h - KOREA mply. on thet port of a 5 15555k - The World Bank Group. . 0)HANDONG any judgmet onthe legal onr a.nyendorsmn -t X.ing\ '. SHANXI ND stts -fay teritoy -u.u'I ' or accetptance of such -) QINGHAI *S #7S * A r y ' .s;_G bHINAoundari. QINGHA A, 4 C h h't t J A- U/st - *V~~~~~iSJIANGSU N,2 * 67I ; \ / 2) H.fe J t . . S --4 DIT1UIO'EEENEPIE I ,~ 2 i SHANGHAI NEPAL Luau 319A A10A~~~~~~~~~~~~ ,~~. HLIBEI A> - g4~~~~~~~~~~ osAiosS ~~~~~~B22A NEPAL Lh.. I) Chmgu ih,doa SIHANJ~ - 9 37 ZHEJIANG, CHINA C , ABu JIAN.GX IODINE DEFICIENCY DISORDERS CONTROL(IDDC) PROJECT HU L } G HO H_-NAM AA * ' A52: ,\ j 1ausg®6FWIANJ LOCATION OF PROJECT ENTERPRISES U . k<-f1'" I O 8 PRODUCER. LEVEL ENTERPRISES O (9 ' )u DE R s ,AP LAN EM6 DISTRIBUTION - LEVEL ENTERPRISES GUNGON SD PROIANCE CAPITALS YUNA -g G A Gx--hj' ..M * NATIONAL CAPITAL A5*Nms- O4PDGO PRO VINCE BOUNDARIES ~ _..AS . VIETNNAM - INTERNATIONAL BOUNDARIES 2 '- ' i.QatS 0- w 8m )4 PEOCPLE?\ ~ Su . . . . . .___ __ __ __ . I E . E .d C "ra. PHILIPPINES - 01 QTHAILAND ' HAINAN 'es ________________ ,O_ 1_ ;_ THA300ILAN J '* is1 .INI -95 IMAGING Report No: P- 6564 CHA Type: MOP