;Docaunet of lThe World Bank FOR OMCLAL USE ONLY MICROFICHE COPY Report No. P- 5215-CHA Type: (PM) R o P-5215-CBA X O / AS3DR MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO $82.7 MILIoti TO THE PEOPLE'S REPUBLIC OF CHINA FOR A REGIONAL CEMENT INDUSTRY PROJECT FEBRUARY 18, 1992 This document has a resticted distribution and may be used by recipients only In the performance of their official duties. Its contents may not otherwise be dislosed without World Bank authorization. CURRENCY EOUIVAUTLY (As of December 31, 1991) Currency Unit - Yuan (Y) I Yuan - 100 Pen $1.00 - Y 5.36 Y 1.00 - $0.187 WEIGHTS AND MEASURES 1 metric ton (ton) - 1,000 kilograms (kg) - 2,204 pounds ABBREVIATIONS AND ACRONYMS APG - Anhui Provincial Government ATCC - Anhui Tongling Cement Company GOC - Government of China ICBC - Industrial and Commercial Bank of China NE3G - Ningbo Municipal Government RCC - Ningbo Cement Company NJUG - Nanjing Municipal Governmnt SABMI - State Administration of Building Materials Industry SR - Shanghai Economic Region tpy - tons per year 2CC - Zhongguo Cement Company January 1 - December 31 FOR OFFCIL USE ONLY CHNA REGIONAL CEMENT INDUSTRY PROJECT Loan and Proiect Summary Borrower: People's Republic of China Beneficiaries: Anhui Tongling Cement Company (ATCC, Anhui Province); Ningbo Cement Company (NCC, Ningbo Municipality); Zhongguo Cement Company (ZCC, Nanjing Municipality); State Administration of Building Materials Industry (SABMI) Amount: $82.7 million equivalent Terms: 20-year repayment, including five years of grace, at the Bank's stardard variable interest rate Onlendiux Terms: The Government would onlend $79.1 million equivalent of the loan proceeds through the governments of Anhui Province, Niingbo Municipality, and Nanjing Municipality (APG, NBEG, and NJMG) to the three project companies, at an onlending rate equal to 110 percent of the IBRD variable loan rate, with a repayment period of 15 years, includirg five years of grace. The commitment charge and foreign exchange risk would be passed on to the companies. The remaining loan amount of $3.6 million equivalent would be made available, through SABMI, to four cement industry research and design institutes, on terms and conditions satisfactory to the Bank. Financing Plan: Local Foreian Total ------- $ million - IBED loan - 82.7 82.7 Equity provision by five investment companies 59.7 - 59.7 Internal funds 13.7 - 13.7 Nanjing Provincial Government 13.2 - 13.2 China Petrochemical Corporation 7.5 - 7.5 Loans from two investment companies 60.9 - 60.9 ICBC loans 27.4 - 27.4 Total 182.4 82.7 265.1 Economic Rate of Returns 182 Staff Appraisal Report: Report No. 8260-CHA Mas: IBRD 21'J21i This document has restricted diL -i .--on and may be used by recipients only in the performance of ther official duties. Its contents may not othterwise be disclosed without World Bank authorization. MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE PEOPLE'S REPUBLIC OF CHINA FOR A REGIONAL CEMENT INDUSTRY PROJECT 1. I submit for your approval the following memorandum and recommenda- tion on a proposed loan to the People's Republic of China for the equivalent of $82.7 million to help finance a Regional Cement Industry Project. The loan would be at the Bank's standard variable interest rate, with a maturity of 20 years, including five years of grace. The Government would onlent $79.1 mil- lion equivalent of the loan proceeds through the governments of Anhui Province, Ningbo Municipality and Nanjing Municipality to the three project companies tt an interest rate equal to 110 percent of the Bank variable rate, vith a repayment period of 15 years, including five years of grace. The com- mitment charge and foreign exchange risk on the on-lent proceeds would be borne by the project companies. The balance of the loan proceeds ($3.6 mil- lion equivalent) would be made available to four cement industry res2arch and design institutes, and the State Administration of Building Materials Industry (S&IMI), on terms and conditiori0 satisfactory to the Bank. 2. Background. China is the world's largest consumer and producer of cement. During 1970-90, China's cement consumption grew from 25 million tons to 204 million tons, an average annual growth rate of 11.3 percent. During the same period, China's cement production increased from 26 million tons to 210 millions tons, against an annual average increase of 11.1 percent. Under the Chinese Government's conservative assumption that future consumption will grow at 3.9 percent per annum, cement consumption would reach about 320 mil- lion tons by the year 2000.1/ During the past decade, the demand for high- grade cement has increased dramatically as China's construction industry shifted toward more sophisticated urban and industrial buildings. As a consequence, China experienced chronic shortages of high-grade cement, except in 1990 when the ongoing three-year economic austerity program resulted in major cutbacks in capital construction. As the suspended construction work is now being resumed and economic activity is returning to normal, the demand for high-grade cement has been growing stronger again in recent months. 3. China is expected to continue facing difficulties in meeting the growing demand for high-grade cement because of several supply constraints. They include: (i) the predominance of medium- and low-grade cement produc- tion, which accounts for over 90 percent of toral production; (ii) the prolif- * eration of small-scale, inefficient cement plants, which cannot be economi- cally converted to high-grade cement production, and the lack of investment coordination across local jurisd-ictions; (iii) inadequate design capabilities and the inability of the cement equipment manufacturing industry to produce high-grade cement manufacturing equipment; and (iv) the system of cement price _/ The assumed low growth rate of consumption is based on slower projected economic growth, improvements in product quality, and technology improve- ments in cement application. - 2 - controls, particularly for high-grade products,2/ which has depressed the financial returns for large-scale plants and reduced the incentives for such investmonts. Shortages of high-grade cement are expected to be particularly acute in the Shanghai Economic Region (SER),3/ where industrialization and urbanization have 'oeen progressing at a much faster pace than in the rest of China. 4. Lessons Learned from Previous Bank Operations. Since 1982, the Bank has been active in China's industrial sector through some 14 lending opera- tions. These include DFC operations, the fertilizer industry, machine tools, the pharmaceutical sector, light industry development, and development of China's dynamic non-state enterprises. The implementation record generally has been satisfactory, in particular with regard to the physical componeI;ts, although implementation of some projects was affected by economic austerity measures initiated after 1989. More important has been the Chinese authori- ties' resolve at improved efficiency in the industrial sector via the adoption of substantial sector reforms. This, concomitant with the pursuit of more market-oriented macroeconomic reform policies, has led to an enhanced emphasis in Bank operations on enterprise reform and subsector-wide restructuring, rationalization of sector development strategies, trade reform, structured technology policies, and creation of an environment conducive for sound finan- cial sector development. The status of the ongoing policy dialogue with the Chinese authorities on enterprise reform is reflected in the design of this proposed project where, among other significant features, two of the three beneficiary enterprises have been officially desig-Rted as pilot enterprises for experimentation with the "joint stock" company system, one of the most important elements of the current phase of enterprise reform. 5. Rationale for Bank Involvement. The Bank's main role in the cement industry in China is to support implementation of the Government's strategy for the sector. Its overall strategy during the Seventh and Eighth Five-Year Plans (1986-95) is considered sound and centers on: (i) building large-scale plants which will produce high-grade and special cement, using up-to-date technologies; (ii) modernizing existing medium-scale cement plants via the modern dry process to upgrade their products and improve production effi- ciency; (iii) gradually transforming the technical capacity of selected small plants; (iv) phasing out most mini plants with capacities below 20,000 tons per year; (v) improving cooperation across jurirdictions to achieve scale economies in production; (vi) improving the capabilities for research, design, and manufacturing of cement-related equipment, processes, and facilities; and (vii) experimenting with further price liberalization of cement. The Bank has already helped the Government in identifying the major issues and constraints 2/ In 1989/90, about 74 percent of high-grade cement was sold at controlled prices under the state allocation plan. At The Shanghai Economic Region consists of Shanghai Municipality and the Provinces oE Anhui, Jiangsu, Zhejiang, Fujian, and Jiangxi. The Region accounted for 25 percent of the country's total cement consumption in 1987. in implementing this strategy for the sector through two studies AI carTried out at GOC's request in 1984-85. Further Bank assistance is aimed at provid- ing financial and technical resources to implement key aspects of this strat- egy. The project would provide a model for the design and construction of large-scale plants based on cross-provincial/municipal cooperation and would introduce for the first time in China a system for bulk transport of cement by river. It would also provide a model for upgrading medium-scale manufacturing facilities as well as support for key subsector design and research insti- tutes. In addition, a study to be carried out under the project would inves- tigate possible measures to optimize small cement plants. 6. The project would also be used as a vehicle to help GOC experiment with the "joint stock" ownership system for major Government-sponsored invest- ments, an important step in the GOC's enterprise reform program. Under the ongoing economic reforms, specific enterprise reform measures undertaken by the Chinese government to improve the efficiencj of enterprises include a system of contract management responsibility, wage incentives for workers, and higher profit retention by enterprises. While these measures have enabled the state-owned enterprises to expand their scope for making operation-related decisions, their management autonomy is still constrained, largely due to various regulations and interventions by supervisory government agencies, which in turn provide disincentives for these enterprises to improve their efficiency. Main topics on the agenda for further enterprise reforms being considered by the Government include, inter alia, alternative forms of enter- prise ownership, and the introduction and implementation of company and bank- ruptcy legislation. In particular, the Chinese government has been actively investigating theoretical and practical issues relating to adapting a share- holding system to the state enterprises in recent years, and is launching controlled "joint stock" experiments at selected locations. Two of the proj- ect companies have been designated officially by the *..ate Reform Commission as pilot enterprises for experimenting with main features of the "Joint stock system" for state enterprises, which include a structure of ownership shared by state and local investment companies, establishment of board of directors for major corporate decisions, and sharing of profits in the form of divi- dends. The project companies would experiment with additional features of the joint stock system, such as issuance and trading of shares to institutional and individual investors in the organized stock exchange, when such activity becomes legally and practically feasible. This approach would, as a result of a more rational capital and management structure, serve to promote greater enterprise autonomy and accouftability, and serve as a model for broader application. 7. Proiect Obiectives. Specifically, the project would support the Chinese cement industry through: (i) implementation of a regional cement production and distribution scheme that would include state-of-the-art large- scale cement production facilities, together with the first integrated cross- provincial bulk shipping and distribution network in China; (ii) model reha- bilitation of a medium-size plant, designed to improve energy efficiency and product quality; (iii) strengthening of the capabilities of four major cement 4/ The Regional Cement Sector Study (white cover) and the Cement Machinery Sector Study (Report No. 6551-CHA). - 4 - industry institutes for plant design and related research; (iv) a study to examine measures to improve operational efficiency, product quality and pollution control in small plants; and (v) promotion of reform of the cement pricing system through the sale of thp entire output of project facilities at market prices. 8. Proiect Description. The project would consist of three components. (i) The Tongltng cement vroduction and distribution component would involve installation of a cement plant with a clinker capacity of 1.2 million tons per year (tpy), a cement grinding capacity to produce 690,000 tpy of high-grade cement at Tongling (Anhui), and a 600,000 tpy clinker grinding capacity (equi- valant to 690,000 tpy of cement) at Ningbo (Zhejiang). The river bulk cement transport systam, which would include a bulk cement and clinker loading ter- minal at Tongling and a clinker receiving terminal at Ningbo, both of which would be carried out under the project, would also comprise two bulk cement receiving terminals at Nantong (Jiangsu) and Wenzhou (Zhejiang), respectively, and required bulk carriers to complement the distribution network for Tongling's output. (ii) The Zhongguo cement plant rehabilitation component would support the first phase of rehabilitation of a medium-scale cement plant at Nanjing (Jiangsu), to replace two outdated wet-process production lines by a 640,000 tpy modern dry-process line, to improve production efficiency and product quality. (iii) The technical assistance component would consist of financial and technical suoport for fou- national cement industry research and design institutes, and a study to improve the efficiency and pollution control of small-stale cement plants. 9. 'rolect Implementation. The proposed project would be carried out by the b ficiary companies--Anhui Tongling Cement Company (ATCC), Ningbo Cement CoL any (NCC), and Zhongguo Cement Company (ZCC)--and SABMI. The proj- ect cost is estimated at $244.9 million equivalent, with a foreign exchange component of $74.0 million (30.2 percent). Imported equipment and materials would b_; exempt from duties. The total financing required, including interest during construction, is $265.1 million, of which the Bank would finance $82.7 million equiralent (100 percent of the foreign exchange and 31.2 percent of the total). To avoid delays in project implementation, the Bank loan would retroactively finance up to $500,000 of eligible expenditures for interna- tional travel for technical surveys incurred between October 31, 1991 and the date of loan signing. A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursements, and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in China are given in Schedules C and D, respectively. A map of China's large and medium cement plants is also attached. The Staff Appraisal Report, No. 8260-CHA, dated February 11, 1992, is being distributed separately. 10. Prolect Sustainability. The technical design of the project empha- sizes scale optimization for the modern large scale plants, and maximum oper- ating efficiency for the smaller plants. Detailed demand analysis and projec- tions as well as confirmed marketing arrangements indicate that the cement produced under the project will be easily absorbed by the marketplace. The promotion of expanded free market based pricing arrangements is a key element, and will further assure the financial viability of the beneficiary enter- prises. Under the project, large discretionary powers and autonomy are con- ferred to enterprise management. The project thus includes a technical assis- tance and training component in support of this objective. Particular atten- tion has been paid during project preparation to assure environmental sustain- ability cf the project investments. 11. aMreed Actions. The Government has agreed to the following major actions: (i) allow the output of project facilities to be marketed directly by the project companies (ATCC, NCC, and ZCC), based on free market pricing; (ii) ensure that the construction of the two bulk cement receiving terminals at Nantong and Wenzhou and the necessary clinker and bulk carriers, is com- pleted by December 31, 1994; and (iii) maintain a Project Coordination Group during project implementation. The three project companies have agreed to take a set of project-related actions, the more important of which are to: (a) build and operate the project plants with due regard for safety, ecologi- cal and environmental factors and in accordance with environmental standards satisfactory to the Bank; (b) maintain long-term debt to equity ratios of 75:25 or better; (c) maintain current ratios of at least 1.2; (d) maintain debt service coverage ratios of at least 1.2; and (e) inform the Bank promptly of any changes in their charters, joint venture agreement, or management structure (ATCC and NCC only). The conditions of loan effectiveness are: (i) signing of contracts for the sale and transport of ATCC's output; and (ii) signing of subsidiary loan agreements between GOC and the Anhui Provin- cial Government (APG), GOC and Ningbo Municipal Government (NBMG), GOC and Nanjing Municipal Government (NJMG), APG and ATCC, NBMG and NCC, and NJMG and ZCC on terms and conditions satisfactory to the Bank. 12. Environmental Aspects. The significant environmental impacts of the proposed cement plants stem mainly from: (i) the limestone quarries; (ii) construction; and (iii) the operation of the plants. The project addresses comprehensively issues of occupational and environmental safety in the design, location, construction, aud operations of the proposed cement plants. Appro- priate environmental protection measures for dust, air quality, flue gas emis- sions and water pollution have been incorporated for each project component. The project will include training of local staff in modern environmental pro- tection skills to ensure the quality of future environmental management. The beneficiaries have agreed to institute environmental management and monitoring programs with standards satisfactory to the Bank. In addition to the environ- mental issues outlined in the EAs and SAR documentation, such programs will cover, inter alia: ground-water resource management at the quarries; waste water monitoring; health monitoring; and agricultural soils monitoring. The Environmental Assessment Summary, dated January 27, 1992, has been distributed separately. 13. Proiect Benefits. The quantifiable benefits of the project derive from: (i) the high-grade cement production from the new facilities to be established (the Tongling component); (ii) increased high-grade cement produc- tion from the capacity expansion of a.. existing operation (the Zhongguo compo- nent); and (iii) improved economic efficiency of production through the reha- bilitation of inefficient facilities (the Zhongguo component). The economic rate of return for th. two investment components is estimated at 18 percent. In addition, these components would serve as models for optimizing future subsector investments and promoting interregional cooperation and market inte- gration. The "Joint stock" system, apart from the economy-wide benefit - 6 - expected in the longer term, would also provide a good example of mobilizing resources across administrative boundaries to support large, optimal invest- ments. Application of strict environmental standards for the new large plants, and environmental improvements for the existing Zhongguo plants, would also be a model for similar investments. The economic benefits from the tech- nical assistance component, although unquantifiable, would be large and would affect the entire sector. 14. Risks. Given the chronic and projected deficit of high-grade cement in the SER and elsewhere in China, shortfalls in future projected demand for project output are not perceived as a risk, even with the current cutbacks in capital construction resulting from the Government's ongoing austerity program. The main technical risk for the Tongling component is the need for cross-provincial coordination of plant construction and operations, and the transport of the project output after start-up. This risk has been minimized by contracts designed to ensure timely installation of production and related facilities, the market diversification of output to several cities, and flexi- bility at the bulk-handling facilities of the receiving terminals. Further, a delay in the construction of any one bulk cement terminal could be absorbed by consumers within Anhui Province where the cement plant will be located. Another technical risk for both the Tongling and Zhongguo components is the lack of Chinese experience with the plant design associated with these invest- ments. This risk would be reduced by the design of procurement packages, where the contracte- will be responsible for process and detailed design, supply of equipment, supervision of erection and overall performance warran- ties for equipment and process performance. 15. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve the proposed loan. Lewis T. Preston President Attachments Washington, D.C. February 18, 1992 Schedule A -7- REGIQNAL CEMENT INDUSTRY PROJECT Estimated C0sts and Pinancinz Plan ($ million) Local Foreign Total _etimated Costs /a lb Tongling (ATCC) 88.8 34.3 123.1 Tongling (NCC) 11.1 6.0 17.1 Zhongguo (ZCC) 37.7 17.8 55.5 Technical assistance 0.9 3.0 3.9 Incremental working capital 7.3 - 7.3 Base Cost (06/91) 145.8 61.1 206.9 Fhysical contingencies 13.0 6.1 19.2 Price contingencies 12.1 6.8 18.9 Total Prolect Cost /c 170.9 74.0 244.9 Interest during construction 11.5 8.7 20.2 Total Financing Required 182.4 82.7 265.1 FiU4ncina Plan gauicts Anhui Provincial Construction Investment Co. 28.0 - 28.0 State Raw Materials Investment Company 18.9 - 18.9 Tongling City Investment Company 7.4 - 7.4 Ningbo Investment Company 3.8 - 3.8 Beilun District Investment Company 1.7 - 1.7 Nanjing Municipal Government 13.2 - 13.2 China Petrochemical Corporation 7.5 - 7.5 Internal funds 13.7 - 13.7 Loans: IBRD - 82.7 82.7 Anhui Provincial Construction Investment Co. 40.8 - 40.8 State Raw Materials Investment Company 20.1 - 20.1 Industrial & Commercial Bank of China 27.3 - 27.3 Total 182.4 82.7 265.1 la Including applice.ble sales taxes on locally manufactured machinery and equipment. lb The project is exempt from import duties. IS Assumes a Bank lending rate of 7.73 percent. -8- Scheduule S CHINA REGIONAL CEMENT INDUSTRY PROJECT Procurement Method and Disbursements (S million) Procurement Method la Total Project Element ICB Other costs Equipment/materials 68.8 51.0 119.8 (68.8) (3.2) (72.0) Technical services 23.5 23.5 (0.6) (0.6) Land, civil works 92.3 92.3 Training 2.0 2.o (1.4) (1.4) Other / 27.5 27.5 (8.7) (8.7) Total financinz 68.8 196.3 265.1 (68-.8) (1 3.9) TM27T) Disbursements Cateaorv t to be financed Equipment/materials 72.0 1001 of foreign expendi- tures, 1001 o local expen- ditures (ex-factory), and 752 of local expenditures for other items procured locally Technical services 0.6 100X Training 1.4 1001 Others le 8.7 Total 82.7 Estimated Disbursement IBRD Fiscal Year 1992 1993 1994 1995 1996 Annual 0.5/c 10.8 46.9 19.5 5.0 Cumulative 0.5 11.3 58.2 77.7 82.7 L Figures in parentheses are the respective amounts to be financed by the Bank loan. lb Including incremental working capital and interest during construction. le Interest during construction on the Bank loan. _ 9 _ Schedule C CHINA REGIONAL CEMENT INDUSTRY PROJECT Timetable of Kev Project Processina Events (a) Time taken to preparet 7 years (b) Prepared by: Government with Bank assistance (c) First Bank mission June 1985 (d) Appraisal mission departs: October 1989 (e) Negotiations January 1992 (f) Planned date of effectiveness: June 1992 (g) List of relevant PCRs and PPARs: L1anICrodit No. Proiect PCR Date PPAR No. 2226/1313-CHA China Investment Bank June 21, 1990 2434!1491-CHA China Investment Bank II May 21, 1991 9945 2659/1594-CHA China Investment Bank III May 21, 1991 9945 - 10 - Scheule D Page 1 ot 3 STATUS OF BANK ROP OPATIONS IN THE PEOPES REPIC Of CNIMA A. STATMET Of SNK LOANS AND IDA CR83It1 (As of 0ece¢r 31, 1991) Loawv Amimt (USS million) Credit Bort* (net of cancellttions) Ntur FT rwer Pwupose tA Undieb. (a) fourteen lwn aid sevetn credits have been fully dis led. 1320.94 983.9 Of which SECAL 2967/1932 83 P.C Rural Sector AdJ- 200.0 100.0 ,.............. 1411 84 PRC Polytechnic/TVUniv"rsity -5.0 16.5 2382 04 PIC Ltu. lnydroeltrie 141.4 - 1.0 1471 64 PKC Rura JeIth & Meical caf. * 85. 2.2 2444/1500 84 Pet Agricultur lidmatn It 453 (23.5)(b) 3.3 1516 85 PKC Agriculttura Reserc It -5.0 1.1 1551 aS PC univwsity eveoe twl - 145.0 I.O 2493 85 P.C PoMWri 117.0 - 7.4 20 Ss o Cumn (Luen) Cost ainft 79.5 41.0 I57s 8 PlC Ral hator Suply 8.0 0.0 2540 85 PRC Railway It 20.0 - 74.1 1605 as P.C Fortry ceelove aI t - 47.3 7.1 2579/1606 85 fRC PfShiNanu*Chah Ar Ow. 17.0 (75.0)(b) 0.8 230 85 P.C w1eiW.n Gm field Tecdical 25.0 - 4.5 Assist 16 86 PRC Tecdnicat Cooperation Credit II 20.0 15.3 1671 86 PRC Provincial Univesities - 120.0 11.5 2678/1680 86 PRC Third Railway 160.0 70.0 109.5 2689 86 P.C Tianjin Port 130.0 * 53.4 1489 86 PRC Freshwater Fisheries - 60.o 1.8 2706 86 PRC Beilungan Therml Power 225.0 38.1 2707 86 PRC Yantan Hydroelectric 52.0 14.5 27M3/1713 86 PRC Rural Health & Preventive Med. 1S.0 65.0 43.2 1733 8? PRC Red Solls 40.0 0.8 2m 87 PRC Shuikou Hydroetectric 140.0 39.4 2783/1763 87 PRC Industrial Credit IV (CI8 IV) 250.0 50.0 76.6 2786 87 PRC Shanghai Machine Tools 100.0 - 30.1 1764 87 PRC Xinjiang Agricultural Oev. 70.0 20.4 2794/1779 87 PRC Shanghai Sewerage 45.0 100.0 94.9 2811/1792 87 PRC 8eijing-Tianjin-tanggu Expressway 25.0 12S.0 S5. 1 2812/1793 87 PRC Cansu Provincial Oev. 20.0 150.S 93.4 1835 87 PRC Planning Supprt & Speciat Studies - 20.7 14.1 2838 87 PRC Fertilizer Rationalization 97.4 17.4 2852 87 PRC WuJing Thermel Power 190.0 60.4 1871 88 PRC Rural Credit III - 170.0 15.3 2877/1845 88 PRC Huangpu Port 63.0 25.0 66.4 2907/1875 88 PRC DOalian Port 71.0 25.0 40.3 1885 88 PRC Northem Irrigation 103.0 49.3 2924/1887 88 PRC Coastal Lawds Oev. 40.0 (60.0)(b) 24.1 1908 88 PRC Teacher Training 50.0 11.0 2943 88 PRC Pharm couticals 127.0 29.1 2951/1917 86 PRC S(chuan Highway 75.0 50.0 90.6 952 U PRC Shoauul Highway 50.0 16.7 1918 88 PRC Daoing An Ling Fore try 6 56.9 23.3 295 as PRC Seluwun 11 165.0 43.4 295 88 PRC Phesphate ev. e2.7 S.$ 2908 8s P.C Railway IV 200.0 - 102.8 1964 89 P.C Jianga Provincial Nfghway 61.0 41.0 197 8 9 P.C ShM oa i Agricultur Dev. - 106.0 87.5 2006 89 P.C TextWook OevelMmont - 57.0 4.2 2009 S9 PRC Integrated RNo. 8eltth 52.0 43.7 300 so PKC Mino. & 0 hel Ports 76.4 29.1 - 1 1 - Shie Page 2 of 3 Lon Amust (U MtS m l ion) CrOdit Br, (net of cenceltltionat mNer FT rower Purpose Bank IDA Undisb. (a) 3007 89 PRC Xiame Port 36.0 29.9 3022 89 PRC Tianjin Liht In*Atry 154.0 121.1 3060/214 89 PRC iswr Mo flle R luy 70.0 80.0 112.7 2017 69 PRC Shund Agricultre oev. * 109.0 50.4 3064 89 PIC Nubef Phoshte 137.0 - 132.5 3073/20 89 PRC Shando Prow. Highwy 60.0 50.0 91.1 307S 89 PIC Fifth 1nbatrial Credit 300.0 199.5 2091 90 PRC N.China EcrthqsakRecmnstr. 30.0 3.1 20W 90 PmC Jiai Agric. ov. - 60.0 50.7 2114 90 PRC Vocetiond & Tech. Educ. * 50.0 39.1 2145 90 PRC atfionl Afftrestftmn - 300.0 270.4 2159 90 PRC Nebel Agricultfral Ow. - 150.0 116.8 272 91 PRC NiTtangte Aricultual Dv. 64.0 S5.2 32182 91 PRC Rural Credit IV 73.0 200.0 205.0 3 M42186 91 PRC Rural Inrjt Tech (WAPK) 50.0 64.3 111.4 1201 91 PRC Medum-ized Cfties 0w. 79.4 89.0 154.0 31 91 P.tC Shanghai Inatrf*l Dow. 150.0 - 14.5 2210 91 PKc Key Studies Oeveep -- - 131.2 122.2 2219 91 PIC Lisning Ur, infrestnucture -7 64.2 33146/226 91 PRC Jiangsu Prowl. Transport 100.0 53.6 136.0 2242 91 PRC Hwen Agricul. Dov. 110.0 110.0 337/M2256 91 PRC trrif. Agrieul. Intensif. 147.1 187.9 305.4 3W36 92 PRC Ert4n Nydroelectric 380.0 261.7 2296 92 PRC Tarim Basin (ce) - 125.0 134.1 2296 92 PRC Shanghai Metro Transport 60.0 63.5 3406 92 PRC Railways V 330.0 330.0 3412/235 92 PRC Dauangbe Multipurpose (e) 30.0 37.0 70.2 2307 92 PRC Guanqdon ADP (e) - 162.0 174.0 3415f2312 92 PRC Beijing Environuant (c) 45.0 80.0 130.9 2317 92 PRC Infectious and Endemic Disease Cont.(c) - 129.6 137.1 ... ... ...... ........................... .. Totat 6489.1 5498.7 5670.1 of which has been repaid 408.0 0.4 Total now held by Bank and IDA 6081.2 5498.3 Amount soid: Of which repaid - Total Undisbursed 3015.1 2654.9 5670.1 (a) As credits are denominated in SORs (sinee IDA Replenishment VI) undisbursed SOR credit balances are converted to dollars at the current exchange rate between the dotlar and the SON. In sams cas, therefore, the undisbursed balance indicates a dollar amount greater than the orfetnal principal credit amount exprmessd In dollars. (b) Credit fully disbursed. Cc) Not yet effective. - 12 - Schedule 0 Pog" 3 of 3 . CTATZEWnET OF ItC !WMSMENTS (As of Oetember 31. 1991) Invest Type of Lout Equity Total ment No. FY Borrower Susiness (USS Nillion) .-- 81312171 85f91 Gu nphou and Peugeot Automobile 15.0 4.5 19.5 974 8 China Investment Co. lnvestiunt 3.0 0.0 3.0 1020 8T Shenthen China Bicycle 5.0 5.0 Bieycles Co. Ltd. Ninufacture 1066 88 Crown Electronics Electronics 15.0 15.0 119 89 Shemhen Chrowar Soar SolSr (a) 2.0 1.0 3.0 Energy fnerwy Total Gross Comuitmints 40.0 5.5 45.5 Les cancellations, terminations 2.0 2.0 repevmnt and sales Total Conwitments now Held by IFC 38.0 5.S 43.5 Total Undisbursed 0.0 0.0 Ca) Loan subsequently cancel lted. 01/10/92 EA2DR/md MAP SECTION IBRD 21752R 70 zo 0 90- 10°-i2C° -_, 13D' 1'40- Nr. \ FORMER SOVIET UNION FORMER SOVIET UNION /0' ' ' ' ' _ -<\ , J iRi__ ,_ 0 . ' ~~~~~~~M O N G O L I A y_,- T JA- A APAN /AFGHANISN A N G .,lnmJ...,4 C,. HSu$dMu I REPUBLIC REGIONAL CEM,ENT iNDUSTRY PROJECT U.l* ° -,', E lARGE AND MEDIUM/ CEMtENT PLAN,TS . -,t &f; i, AN (!'f_ Eu Ne,,,CementPlant Under Thepif Pr)oje ,c rj*,t_, QI Ceent rPlant Reho4biljmtot,n Under The Project ' z1 0 U rN o> Large Cen.eiT Plrints Or 1.000.OO0Otte.yerl,r rJIAer/f syt * Mediam Cement PinnIt 600,00 100,000 toOcns/yeour /i j< rf b 4 > ' >ttt ,* Hrlf * Medium Cement lantsi (2,000.o 600,000 taas/lyear) N Nf / z A 00 . . - Roads~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~O OE ~n De utoe GauQge Rilar X|). ,OGKCh .t stroad ------- Single G4ape Railroads VI 79AM H MCAO. poeH @ Mejor Parts MYANMAR ,- , Q Gl ronseea Capitols A.-