The World Bank Fo0 OmaAL USE ONfLY flpt No. P-6393-M - HORAIDUl AND OF THE PRESIDENT OF THE TIITENATION DEVEOPM ASSOCIAION TO THE E UTIVE DIRECTRS ON A PROPOSED CREDIT OF SDR 6.9 MILLION TO THE PEOPLE'S REPUBLC OF CHIA FOR AN ECONOMIC LAW REFORM PROJECT SEPTEMBER 20, 1994 MICROGRAPHICS Report No: P- 6393 CHA Type: M)OP Tls docment bas a resticted dstibution and may be used by reciens oly bi the perfomne of thr ofrical dus Its content may not otherise be disised *w W,M Bak at_ an. CURRINCY EOOtJIVALINF (As of July 1, 1994) Cirrency Unit =Yuan (Y) $1.00 = Y8.50 YL.OO = $0.12 ABBREVIATIONS AND ACRONYMS BLA - Bureau of Legislative Affairs (State Council) CLA - Commission on Legislative Affairs (NPC) EDA - Interational Development Association MOF - Miistry of Finance MOFTEC - Miistry of Foreign Trade and Economic Cooperation MOJ - Ministry of Justice NPC - National People's Congress SCRES - State Commission for the Rrcturing of the Economic System SETC - State Economic and Trade Commission UNDP - United Nations Development Programme FISCAL YEAR January 1 - December 31 FOR OFFICIL USE ONLY EC:ONOMIC L gR= Borrower - - People's Republic of Chin Bzificiarha: Not applicable ovetyg: - Not applicable Amount: SDR 6.9 million ($10 miion equivalent) Terms: Standard, with 35 yeas'maturity Commignent Fae: 0.50% on undisbursed credit balances, beginning 60 days after sidg , less any waiver. EIjancing Plan: See Schedule A. NetresnL YValu: Not applicable echnica Annex: No. T-6393-CHA This document has a reticted disl_ibin and may t e used by recipents only in te pefume n te offialddte Its cont ynot otheawlsbe dia,dvithWWoukaWoldatln MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVEIOPMENT ASSOCIATION TO THE EXE PEC'ORS ON A PROPOSED CREDIT TO THE PEOPLE'S REPUB1IC OF CHINA FOR AN ECONOMIC LAW REFORM PROJECT 1. I submit for your approval the following memorandum and recommendaton on a proposed development credit to the People's Republit of China for SDR 6.9 million, ±Ue equivalent of US$10 million, on standard IDA terms, with a maturity of 35 years, to help finamce aa Economic Law Reform Project. 2. Background. As China makes its transition to a market economy, fundament and corresponding changes in its legal system are also taking place. Central to a market systm is reliance on a fair, knowable and credible legal framework that provides the 'nles of the game". Legal norms and procedures are needed to substitute for governmental control of economic decisions and to demarcate government's reguatory role in many areas of economic activity. In China, priority areas include: organization of econeomc entities (company laws and revision of state, collective and private enterprise legilation); creation of a competiive, frely-opeating market (bankruptcy law, competition and consumer protection legislation; revision of contract laws and improvement of commercial laws; laws and regulations governing securities regulation, issuance and trading); separtng employee befit systems from the obligaton of enerpri (housing and real estate laws and introduction of social welare legislation); and s the dispute reseoluton mechans (courts, arbitration and mediation processes) to make the legal framework reliable and enforceable. 3. Over the past decade, China has put into place many elements of the legal framework for economic reform, and the process has accelerated in recent years as the tempo of economic reform has quickened. Hr lever, the enonnity of the task that remains has heightened the need to set priorties in the legislative agenda - almost as many laws are scheduled for consideration in the 1993-98 five-year session of the National Peoples Congress (NPC) (152) as were enacted between 1949 and 1992. The initiation and stregthening of laws in all these areas would be facilitated - and the resulting legislation improved - by giving China's legal reformers access to the experience of other countries, developed and developing, those with civil law systems and common law systms, and other socialist economies in transition. 4. Moreover, to implement the new legal frmework requires more and better-trained lawyers, judges, law professors, government legal officials and public prosecutors. Legal education was revived only in 1978 after more than a decade; today, there are numerous full-time law faculties and countless ether institutions providing legal education and trawiing. Still, of China's 70,000 lawyers, many do not have formal legal training. Further, lawyers and judicial personnel alike need traing in the new laws and procedures of the market economy. This, in turn, calls for stengthening legal education and training, developing new curricula and new methodologies of teaching them, and promoting (and ruating) the development of the legal profession. -2- 5. The changes under way in the legal sector. call for the development of new taining mechanims. For example, where lawyers were once exclusively. state fimctionaries, there are now rapidly increasing numbers of non-state law firms seving the legal.needs of Chinew and foreign businesses and individuals. These lawyers need i-servico, focused training in new laws, in specalized areas and inmanagin legal practie, a need that establibhed formal -degee programs are not likely to meet. Judges faced with complex fiacial cases and armed wit little economics, finance or financal law traning need short-term ontent-focussed courses, not reseach in juripudence. Law pr teaching graduates destined for a hfe of client representation, rather than teaching or b, need teaching materials and method that will teach advocacy skills and sharpen analytical capabilities. - And legal ethics must be developed and taught to all of these legal professionals. 6. Reltiively few donor agencies are providing China with tchni assistance in helegal field, especiaLly in comparison with transition economies in Eastern Europe and the former Soviet Union or Viet Nam. The United Nations Development Programme (UNDP) is fundig a $2.1 milion project in Legislative Drafting to Suort Economic Reform, a five year project that began in 1992. This project is impemented by the State Council's Bureau of Legislative Affairs (BLA), and includes training in legislaive drafting as well as provision of expertise in the preparation of 22 specffied laws. The activities for the remining years of the project have already been defined; however, requests for future UNDP funding in this area are under discussion and would be coordinated with any assistance provided under the proposed Project. In addition, the Ford Foundation is assisting in specific areas (administative law, training of judges, human rights issues); the Asia Foundation has provided assistance in training judgea ad in environmental law training; and the Asian Development Bank is providing for technical assistance in emvironmental law to the NPC, among other activities. Small amounts of assistance are being made available by a few bilateral donors. There remains, however, an unfilled need for comprehensive, sustained technical assistance in preparation of legislation and strengthening human resources to prepare and implement it. 7. Objectives. The Project would assist China n improving the legal fimework to support economic reform by: (a) strengthening the preparation of economic legislation in priority areas; (b) enhancin training methods, curricula and opportunities for law teachers, legal practitioners and legal, judicial and other government pe.sonnel in the theory and practice of the new legal framework; and (c) strengthening the key legal institutions responsible for legislation and the implementation of economic laws. 8. Descrmtion. The Project would consist of three parts: sub-projects to support preaation of legislation; sub-projects to support legal training; and institutional support. A detailed description of the Project and implemeation a gements is presented in the Technical Annex and summarized below. (a) Sub-projects under the legislative conmonent (about $5.5 million) would support the preparation of laws (and their supplementary regulations and implemeng rues) included in the NPC five year (1993-98) legislative agenda, which would assist in the development of a market economy (about 54 laws are considered in this category). Each legislative sub-project would consist of a package of assistance, designed to provide comparative legal experiences and advice on legislative drafting in a specific field of law. Each package would include as necessary: acquisition and -3 - translation of materials (pardicarly foreign laws and regulations); employment of international and local legal experts to advse on drfti outine and detailed provisions; seminars to discuss initiWl directions and subsequent drafts; and short, focussed study tours by drafting group members to investigate specifi ssues arisig i the draftg proess. (b) -Sub-projects under the ttaii cmnenl (about $6.5 million) would provide support for key activities which would either: (i) have a broad impact on legal and other professionals teaching, .traiing or implementing economic laws; or (ii) where the impact is more limited, demonstate unovativo approaches to meeting -the chngn needs of the legal profession and legal system in the market economy. Particular focus would be given to the developmen of new forms of tachn materials and training methods and to the development of legal information systems; Sub-projects would be expected to assist short-term needs in practical training of legal peronnel as well as long-term strengthning of the legal training s,,--.i, -uch as through curriculum developmen. Training sub-projects would be exwy'4ted to addres4 TmLily in-country training and would not be limited to training at the natio-;- zvel in 3tijipn. (c) The institutional support conmonent (about $1.3 million) wouid provide targeted assistce to key legal imstitutions whose fumctions will expand and grow in importance in a market economy. The NPC's Commission on Legislative Affairs (CLA), which reviews and revises all drafts submitted to the NPC and is also responsible for the drafting of selected laws, would modernize its document processing and circulation with new office equipment and technology and would upgrade its databases of foreign laws, for reference purposes. The State Council's Bureau of Legislative Affairs (BLA) would upgrade and eend its database of Chinese laws, State Council regulaons, ministerial circulars and provincial legislation and regulations and funds would be provided for various government agencies to be joined in a legal information network. Assistance to the Ministry of Justice (MOJ) in re-designing the lawyers examiation system and continuing legal education will also be provided. 9. The total project cost is esmimated at $13.3 million equivalent, with a foreign exchange component of $10 million equivalent (75 percent of total costs). Tbe Association would finance $10 million equivalent, representing all of the foreign ex ge component. To facilitate drfting of laws scheduled for consideration by end-1994 and early 1995, retroactive financing of up to SDR 200,000 is proposed for expenditures made after June 27, 1994. A breakdown of project costs and the financing plan are shown in Schedule A. Procurement methods, disbursement amounts, 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. 10. Project Dm90lentation. The World Bank Department of the Ministry of Finance (MOP) would be the overall Project Coordinaing Agency, responsible for the day-to-day project coordinating work. Sub-projects would be prepared and impl_emed by agencies (for the legislative and institutonal support components) and by traiinstitutions (for the tainng component). MOF would be assisted in the substantive legal aspects of this work by a local legal consultant. For legislative sub-projects, a Legislative Advisory Group would be constituted of senior representatives of the CIA, the NPC Economic and Finance Committee, the BLA and the State Commission for the Reruring of the Economic System (SCRES). MOF would convene meetings of the Legislative Advisory Group as need- -4- ed, but at least semi-annually. For training sub-projects, MOP would maitain a roser, agreed with IDA, of experts in legal education and training (includig foreign expertise as needed), and would consult with at least three eWerts in the review of each sub-project. To ensure effective implemen n, annial work programs would be agreed in advance and a midterm review would be scheduled for end-1996. 11. -Poject Sustainaility. The institutional support ompon will strengthen two key drafting agencies, the CLA and BLA, both of which play an inmportant role in ensuring the consistency of proposed legislation with exist legislation and in enhncing the echnical drafting of the legislation. To the extwt that legislation finally enacted reflects the comparave inputs provided under the Project, a legal firamework better suited to the experience of market economies should result. More importantly, the suppont for iMnvatiVe trainig mechaism would help cre additional opportunities for tring of the legal professionals implemet that legal framework. 12. Lessons Learned from Previous BanklIDA Involvement. While the-Bank Group has no previous operations in the legal field in China, there have been six technical assistmce projects: two Tecnical Cooperation Projects (Cr. 1412-CHA, Cr. 1664-CHA), a Plaming Support and Special Studies Project (Cr. 1835-CHA), a Reform, Institutional Support and Preinvestmnent Project (Cr. 2447-CHA), a Financial Sector Technical Assstance Project (Cr.2423 CGA) and an Env_Inmental Technical Assistance Project (Cr. 2522 - CHA). Among the lessons learned about Bank Group techical assistance in China are: the need for the pre-identification of sufficient project activities to provide for a good start on implementtion; he need to avoid excessive fiancing of buildings, hardware or unfocussed overseas training; and the need to reach agreement on internal on-lending arrangements wel before imple on begins. In the legal field, lessons leamed in Bank Group legal technical assistance activities elsewhere suggest tailoring project scope to avoid overmbitious and unatainable goals, paying careful attention to the country's own legal reform agenda, institutonal structre and capacity as well as to what is relevant and attainable in the country context of law reform. 13. Rioale for IDA . The prposed prqject complies with the Bank's Country Assitance Strat .r China, as presented to the Board on August 3, 1993. Legal reform is an integral part of the strategy, as a program of comprehnsve legal techical assistce to support market refom would stengten the framework for other reform elements in the strategy, including enterprise reform, markeiaor and private sector developmenm. Indeed, a potntia economic law reform project is specifically identified in the strategy. 14. Legal reform would serve to enhance the stability, predictability and transparency of economic transactions. As legal reform is essential for the success of the economic reforms and the development of the market economy, addressing China's current needs for legal reform would add a vital component to Bank Group assistance to China in promoting economic reform and the development of a maket economy. Until now, legal tecnical assistance has followed a piecemeal approach, as Bank Group lending operations in China and economic and sector work have increasingly included support for legal reforms in project-specific or topic-specific areas. Now the breadth of reforms, and the connectivity of the laws and regulations required, argue for a comprehensive package of assistance for China in its economic law reform process rather than a law-by-law approach. Moreover, strngthening the central law-making bodies (NPC, State Council) to enhance consistency of laws is of special importance in the Chinese system, a result which separate, sectoral projects could not achieve. The Bank Group has developed experience in recent years m a wide range of member coun in supportig smilar endeavors in- legal reforms, espeially in transition economies.; TMs experince would be brought to assist Cha in estblishing priorties in economic law reform and in implementig the proposed Project. The Bank Group's overal support for, and familiatity with, China's economic rform program would help maiain a strong connetion- between economic remm and legl reform activities. 15. - ActAg ions. The following are the main nces obned atneotiations: (a) sub. projects would be selected by agreement between the Borrower and IDA to meet eligibility criera; (b) annual work plans for the Project for each calendar year would be furnished to IDA for review and approval by October 31 of the preceding year, (c) MOP would convene a; least semi-annual meetings of the Legislative Advisory Group to provide guidance on priorities and progress in the Borrower's legislative affairs; (d) training sub-projects would be reviewed by at least three experts from a rostr agreed between the Borrower and IDA; (e) Credit fumds would be made available to impleming entities and agencies on terms and conditions satisfactoy to IDA, including the provision of funds on a grant basis to iiqplementing entities and agencies funded frm the Govement budget; and (f) MOP would undertake with IDA a mid-term review of the progress of and prospects for implementation by Decmber 31, 1996. 16. Envirornmental Aspects. The Project is expaeted to nave no direct effect on the environment (Category C). 17. Program Obiective Categories. The economic legislation prepared with the technical assistance provided under the Project would promote private sector developmest, as would the trinig for lawyers under the Project. 18. Participatory Approach. The training sub-projects are expected to incluke a mmlber of non- governmental and quasi-governmental traming entities, which would broaden the opporties for legal taining beyond the official sector. The legislative drfting process also provides opportuaites for academicians and other non-government expers to offer their views, such as in symposia planned under legislative sub-projects. 19. Proiect Benefits. The Project would provide Chinese law-makers with a readily-available source of funding for specilized expertise and advice in the diverse areas of law necessary for economc law reform. It would also provide training opportunities for legal personnel that would not only benefit the individuals trained but would be designed in a way that could be replicated for others. The Project would have the added benefit of strengthening the mechanism for legal reforms that are essential to the design and implemenation of Bank Group projects which themelves support selected economic reforms. Long-term benefits would include a better legal basis for the market economy and a better-trained cadre of personnel able to make it finction. 20. Risks. In view of the complexity of responsibilities for law reform, there is a risk that some of the specializded advice and training provided under the Project may not extend beyond the immdia beneficiaries, or that some of the legislation prepared with assistance under the Project might not be enacted or, if enacted, may not be applied. The first risk has been addessed to the extent possible in Project design, the second risk is inherent in legal technical assistance of this type. Moreover, the Project would be subject to the same set of risks of delayed or slow implemettion as other "umbreila" technical assistance projects in China and elsewhere. However, the advanced preparatiou and prior agreemnt on a number of sub-projects minimis the poten risk of a delay in the iniial implementation of the Project. - 6- 21, Reonndati I am satsfied that the proposed development credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve it. Lewis T. Neston President Attachments Washington, D.C. September 20, 1994 -7 - E D 'A C7- £CONMIC ^W FORM PPOEC Es-tmatd Costs and Fiancbu P ($ mln Lo-. Fotrcgn Total. Estimated Project udonal Support 0.24 1.08 1.32 Sub-projects 3.06 8.92 11.98 Total Mroect Cost /a J103 Fnancnag Plan IDA - 10.00 10.00 Goverment and sub-project entites 3.30 - 3.30 Total100 13.30 /a Project is exempt from taxes and duties. Total project cost includes price contingencies averging about 5% of base costs. - 8 - SCHEDULE B Page 1 ECONOMIC LAW REFORM PROJECr Summua of Proposed Procument Arre ($ million) -Procueent method___. Project element ICB Other(l) Total Equipment and materials - 5.3 5.3 (3.0) (3.0) Consultants' services and _.0 8.0 study tours - (7.0) (7.0) Total - 13.3 13.3 (10.0) (10.0) Note: (1) Other procurement methods include: local competitive bidding; local shopping and direct purchase of proprietary goods and materials; consulants' services following Bank Guidelines; and direct arrangements for study tours. (2) Figures in parentheses indicate Bank Group financing. (3) All amounts include price contingencies. No physical contingencies contemplated. -9- SCHEDULE B Page 2 CHINA - ECCNOMC LA-W REFORM PROJECT ;:- MDsbursemen^ Category Amount of Credit % of expenditures ($ million) to be financed Goods 2.7 100% of foreign expenditures, 100% of local expenditures (ex-factory cost), and 75% of -ocal expendintres for other items procured locally Consultants' Services 4.5 100% Study Tours 1.8 100% Un-aocate 1.0 Total 10.0 Estimated Disbursements IDA FY 1995 1996 1997 1998 1999 ( million)- Annual 1.0 3.1 2.5 1.8 1.6 Cumulative 1.0 4.1 6.6 8.4 10.0 - 10 - SCHEDU,LE C CIA ECONOMIC LAW REPORM PROJEC Timete of Key Project ProcessimgEventE (a) Time taken to prepame the projeat: 12 months (July 1993-uy 1994). (b) Prepared by: Government with Association assistance (c) First IDA mission: Jly 1993 (d) Appraisal mission departure: June 1994 (e) Negotiations: September 1994 (t) Planned date of effectiveness: November 1994 (g) List of relevant PCRs and PPARs: none The project was prepared by: Natalie Lichtenstein (Principal Counsel, LBEOBA; task manager), Feng Wang (LEGEA, consultant), Anthony Ody (Principal Country Officer, EA2CO, thru 5/94), and David Rix (Senior Country Officer, EA2CO). The peer reviewers were Ian Newport (Chief Counsel, LEGSA), Andrew Vorkink (Chief Counsel, LEGEC) and Paul Cadario (Chief Adminis ve Officer, ECACA). The Division Chiefs are Sherif Hassan (Chief Counsel, LEGEA) and Zafer Ecevit (CMief, EA2CO) and the Dqeatent Director is Nicholas C. Hope. Schedlte 0 Pag I-of 3 STATUS OF UAK GROP OPERATIONS Ill THE PEOPLE' REPUBLIC OF CNUNA A. STATENENT OF BK LOANS AND IDA CIEDITS (As of Jim 30, 1994) Low Mouit (USS iton) Credit Bor- (net of canceltations) ,iupr FT roamt Pupoe S IDA hidfab.( a) 24 loans and 39 erdits haw been fulty disbAved. 2,300.9 2,339.9 - Of fAzCI- SECAL. 2967/1932 88 PRC'. Rur5t Sector Adj. 200.0 93.2 -- ............ ............... 2540 85 PRC Raftway II 220.0 - IA 1664 86 PRC Technical Cooperation Credit lI - 20.0 1.9 2678/1680 86 PRC Third Railaty 160.0 (70.0)(b) 23.2 2689 86 PRC Tianjin Port 130.0 4.6 2706 86 PRC Beitungang Thermal Power 225.0 - 5.2 2707 86 PRC Vantan Hydroelectric 52.0 - 0.2 2723/1713 86 PRC Rural H alth & Prevent! ye Ned. 15.0 65.0 15.2 1764 87 PRC Xinjiang Agricultural Dev. - 70.0 2.9 2794/1779 87 PRC Shanghai Sewerage 45.0 (100.0)(b) 22.1 2811/1792 87 PRC Befijng-Tianjin-Tanggu Expressway 25.0 125.0 10.3 2812/1793 8t PRC Gansu Provincial Dev. 20.0 150.5 36.9 1835 87 PRM Plarming Support & Special Studies - 20.7 6.2 2838 8 PRC Fertilizer Ratfonalization 97.4 - 1.1 2852 87 PRC VuJtino Thermal Power 190.0 - 20.4 1871 88 PRC Rural Credit tII - 170.0 0.1 2877/1845 88 PRC Huanspu Port 60.0 (25.0)Cb) 20.6 1885 88 PRC lorthern Irrigation - 103.0 16.9 292411887 88 PRC Coastal Lands Dev. 40.0 (60.6)(b) 2.2 2943 88 PRC Pharmaceuticals 1 no 2.2 2951/1917 88 PRC Sichuan Highway 75.0 050.0)(b) 32.4 2952 88 PRC Shaanxi Hihway 50.0 - 0.5 2955 88 PRC Belitugang lI 165.0 - 24.3 2958 88 PRC Phosphate Oev. 62.7 - 11.7 2968 88 PRC Raftway IV 200.0 24.1 1984 89 PRC Jiangxi Provincial Highway 61.0 5.1 1997 89 PRC Shaanxi Agriculturat Dew. 106.0 22.9 2006 89 PRC Textbook Development - 57.0 2.1 2009 89 PRC Integrated Reg. Nea1th - 52.0 17.4 3006 89 PRC Ningbo & Shanghai Ports 76.4 21.2 3007 89 PRC kdamsn Port 36.0 - 6.9 3022 89 PRC Tianjin Light industry 154.0 72.4 3060/2014 89 PRC Inner Nongolia Railway 70.0 (80.0)(b) 19.1 2097 89 PRC Shandong Agriculture Dev. - 109.0 1.0 3066 89 PRC Rubel Phosphate 137.0 - 83.9 3073/2025 89 PRC Shandong Prov. Highway 60.0 (50.0)(b) 26.4 3075 89 PRC Fifth Industrial Credit 300.0 92.6 2097 90 PRC Jiangxi Agorc. Dev. - 60.0 9.4 2114 90 PRC Vocational & Tech. Educ. - 50.0 11.2 2145 90 PRC National Affor station - 300.0 117.6 2159 90 PRC Rebei Agricultural Dev. - 150.0 56.1 2172 91 PRC N Nid-Yangtze Agricultural DvW. - 64.0 17.? 3265/2182 91 PRC Rural Credit IV 75.0 200.0 53.6 3274/2186 91 PRC Rural Indust Tech (SPARK) 50.0 6C.3 38.2 3286/2201 91 PRC Nedius-Sized Cities Dev. 79.4 52.9 59.6 3288 91 PRC Shanghai Industrial Dev. 15.0 * 147.9 2210 91 PRC Key Studies Bevlopment - 131.2 50.1 2219 91 PMC Lsfoning Urban Infrastructure 77.8 10.6 3316/226 91 PRC Jiengsu Provl. Transport 100.0 (53.6)(b) 44.0 2242 91 PRC Renan AgrScul. Oev. - 110.0 68.9 3337/2256 91 PRC irrig. Agricul. Intens1f. 147.1 187.9 136.3 Schedule 8 Page 2 of 3 LoanJ Amount (tUS miflion) Credit Bar- (net of cancellations) Nuber FT iower Purpose Bank DA Undiab.() 3387 92 PRC Ertan Hydroelectric 380.0 85.6 2294 92 PRC Tarim Basin - 125.0 77.4 2296 -92 PRC Shanghai Netro Transport 60.0 27.S 3606 92 PRC Railways V 330.0 - M96.1 3412/2305 9Z PROC Daguasbe Kultipurpose 30.0 37.0 24.8 230? 92 PRC Guangdong ADP 162.0 125.1 341512312 92 PRC Beijing Envirormnt 45.0 80.0 82.9 2317 92 PRC Infectious and Endomic Disease Cont - 129.6 107.4 3433 92 PRC Yinshi Thermal Power t80.0 77.8 2336 92 PRC Rural-Water Supply and Sanitation M A 110.0 71.5 2339 92 PRC Educ. Development in Poor Provs. 130.0 83.3 3443 92 PRC Regional Cement Industry 82.7 - 70.9 3462 92 PRC Zouxian Thermal Power 310.0 - 269.6 3471 92 PRC Zhejfang Provineial Highway 22.0 - 152.5 2387 92 PRC Tianjin Urban Devt. & Envir. - 100.0 83.9 2391 92 PRC Ship Waste Disposat - 15.0 15.9 2411 93 PRC Sichuan Agricultural Dewt. ^ 147.0 106.8 3515 93 PRC Shuikou Hydroelectric it 100.0 72.4 2423 9 PRC Financial Sector TA 60.0 56.6 3530 93 PRC Guangdong Provincial Transport 240.0 - 198.6 3531 93 PRC Henan Provincial Transport 120.0 - 88.8 2447 93 PRC Ref. Inst'l and Preinvest. * 50.0 46.4 3552 93 PRC Shanghai Port Rest. and Dewt. 150.0 - 143.9 2457 93 PRC Changchun Water Supply & Ev. 1 120.0 118.0 2462 93 PRC Agriculture Support Services 115.0 102.9 3560/2463 93 PRC Taihu Basin Flood Control 100.0 100.0 145.7 2471 93 PRC Effective Teaching Services 100.0 98.0 3572 93 PRC Tianjin Industry It (e) 150.0 - 150.0 3582 93 PRC South Jiangsu Envir. Prot. 250.0 - 250.0 2475 93 PRC ZheJiang Multicities oevt. 110.0 105.1 3581 93 PRC Railway VI 420.0 - 389.6 3606 93 PRC Tianhuangping Hydroelectric 300.0 - 279.5 362412518 93 PRC Grain Distribution 325.0 165.0 475.9 2522 93 PRC Environmentat Tech. Assist. 50.0 45.9 2539 94 PRC Rurat Health Workers Devt. - 110.0 108.4 3652 94 PRC Shanghai Metro Transport It 150.0 - 101.8 3681 94 PRC Fujian Provincial Highways tc) 140.0 - 140.0 3687 94 PRC TelecamLmnications (c) 250.0 - 250.0 2563 94 PRC Second Red Sol s Area Oevt. * 150.0 156.8 2571 94 PRC Songliao Plain Agric. Devt. - 205.0 214.8 3711 94 PRC Shanghaf Environment Cc) 160.0 - 160.0 3716 94 PRC Sichuan Gas Devt & Conservatn.Cc) 255.0 - 255.0 3718 94 PRC Yangzhou Thermal Power (c) 350.0 - 350.0 3727 94 PRC Xiaolangdi Nultipurpose (c) 460.0 - 460.0 2605 94 PRC Xiaolangdi Resettlement (c) - 110.0 115.6 2616 94 PRC Loess Plateau Watershed Devt. (c) - 150.0 153.8 2623 94 PRC Forest Resource Devt. & Prot. Cc) * 200.0 205.0 3748 94 PRC National Highway (c) 380.0 380.0 Total 11,575.6 7, 787.8 8,956.0 of which has been repaid 920.0 9.3 Total now held by Bank and IDA 10.655.7 7,773.5 Amunt sold: Of which repaid Total Undisbursed 5,973.7 2,982.3 8,956.0 (a) As credits are denominated in SDRs (since IDA Reptenishment VI), uidisbursed SDR credit balanmes am comverted to dot lrs at the current exchange rate between the dol ar and the SON. In some cases, therefore, the undisbursed balance indicates a doltar amount greater than the original principal credit amount expressed in dollars. (b) Credit fully disbursed. Cc) Not yet effectiwv. Schedate D Page 3 of 3 S. STATENENT OF IFC IIVESENTS (As of JUFe 30, 1994) lnvest- o Type of Loam Equity Total emat me. Fn Borroweu Busingu( -----t- USS ------- 813/2178 85/86/Guanoxhou and Peugeot Autombile 15.0 4.5 19.5 91 974 87/88 China Investment Co. Investment 3.0 - 3.0 1020 88/92lShenzhen China Bicycle 1T.5 3.4 20.9 94 Bicycles Co. Ltd. Manufacture 1066 89 Crawn Electronics Electronics 15.0 - 15.0 1119 89/93 Shnahen Chronar Solar Solar Ca) 2.0 1.0 3.0 Energy Energy 3423 93 Sh.nzhen PCCP Manufacturing 4.0 1.0 5.0 3150 - 93 Yantai Cement Cement 28.7 2.0 30.7 3s81 94 China WaLdmn Ngt. Capital Mkts. - 7.5 Totat Gross Commitments 85.2 19.4 104.6 Loss cancllattons, terndnations 23.0 - 23.0 repa_ment and sales Total Cmitmmnts now Held by IFC 62.2 19.4 81.6 Total Undfsbwrsed 28.7 5.0 33.7 (a) Loan subsequenttly cancelled. 07/0194 EA2DR