The World Bank ' INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D. C. October, 1960 THE WORLD BANK IN ASIA A Summary of Activities OCTOBER, 1960 THE WORLD BANK IN ASIA A Summary of Activities Table of Contents Pages Introduction 1 - 6 Burma 7 - 9 Ceylon 10 - 13 India 14 - 26 Japan 27 - 39 Malaya 40 - 42 Pakistan 43 - so Philippines 51 - 52 Thailand 53 - 58 The Indus Water Tr eaty, 1960 59 - 72 THE WORLD BANK IN ASIA Introduction In t his booklet Asia has been arbitrarily defined as extending fr om Japan and the Philippines t o the western border of Pakistan. The r egion incl udes t hirteen member countries of the Bank, which has been active in all of them, and has made loans in ei ght. The total lent up to t he end of September 1960, net of cancellations or r efundings , was made up as follows: Amounts ne t of Country Cancellations or r efundings Burma 19,350, 000 Ceyl on 23,900,000 India 662,100,000 Japan 337,400,000 Malaya 35,6oo,ooo Pakistan 241,300,000 Philippines 18, 500, 000 Thailand 106, 650 , 000 ~1,444,800,000 This lending, amounting to well over a quarter of t otal Bank loans in all member countries , has been concentrated on the development of basic services . For exampl e , loans for transporta t ion by r oad , r a i l , sea and air amount to near l y two- fifths of the tota l . Electric power and industrial development each account for about a quarter, with agriculture taking the -2- balance. Agriculture also benefited under many of the l~ans for transpor- tation and for electric power generation, for example where irrigation and flood control works were associated with hydroelectric schemes . Thr ough these high priority investments, the Ban.K has helped the expa nsion of basic services which have both permitted and stimulated industrial and colll~ercial expansion. Purpose Amount Transportation $ 562,800,000 Power 396, 650, 000 Agriculture 49,750,000 Industry 345,600,000 Indus Waters Development 90 , 000 , 000 $1 , 444, 800 , 000 Transportati on Loans have bee n made for railways and ports in Burma, India, Pakistan and Thailand, for roads in Japan, and in India for the purchase of jet aircraft. The Bank has l e nt $328 million for the development of the Indian railways , mor e than for a ny other single project : by 1961 freight - carrying capacity in India will have risen by 60 per cent in five years . In Paki stan the Bank has financed the improvement of track and r epair f aci l i- ties and signalling and other equipment , and the acquisition of l ocomotives and rolling stock . In Burma , a Bank loan helped t o pay for t he purchase of -3- new freight cars, diesel railcars , bridge construction materials and other equipment for the war- damaged railway system. In rhailand, the Bank has financed the replacement of railway workshops destroyed during the war , and has assisted in a five - year railway development program . The same four countries have all received loans for port improvement . Severe congestion existed in the principal ports of India , Pakistan and Burma . In India, with Bank help, berthing capacity, handling and storage facilities at the ports of Calcutta and Madras are being improved . In Pakistan, cargo berths and handling facilities at the Port of Karachi have been reconstructed and modernized, and goods are now moving faster through the port , reducing the turn- around time of vessels . In Burma, wharves and warehouses at the Port of Rangoon are being rec onstructed, and new harbor vessels have been purchased . The Port of Bangkok in Thailand, previously accessible only to sha l low- draft vessels , has now been opened to ocean- going ships by the dredging of its approach- channel with Bank- financed equipment. The Bank assisted the introduction of jet transportation in India by financing part of the purchase by Air India International Corporation of three long- range jet aircraft and ancillary eouipment . These now link India with London, New York and Sydney. In Japan, the Bank is helpi ng to finance the country ' s f i rst express highway, the Amagasaki- Ritto Expressway . Power The Ban!{ has made power loans in seven countries, helping to finance the constructi on of thirteen major dams and hydroelectric stations , ten -4- thermoelectric stations , thousands of miles of transmission lines and extensive distribution facilities. The additions to generating capacity planned to result from projects in the various countries are as follows : Added capacity Country of kilowatts) ( 1 000s Ceylon so .a India 902 . s Japan 1 , 221.4 Malaya 80 . s Paki stan 104.5 Philippines 100 . 0 Thailand 140 . 0 TOTAL 2, 598 . 9 Power supplies in Pakistan have also been augmented substantially by means of a Bank loan for a pipeline which brings natural gas 350 miles from the Sui gas field t o Karachi and intermediate towns . Industr y The Bank has made loans totaling over ~300 milli on to expand the output of private steel companies in India and Japan. A total of ~159 mil lion lent to two Indian companies has helped to raise production of finished steel by 1-1/4 million tons . In Japan, loans totaling ~144 million have helped six companies to complete their share of the vigorous expansion programs of the Japanese steel industry , assisting the construction and instal lation of -5- six blast furnaces, three strip mills, seven converters, two open-hearth furnaces and much other equipment. Other loans in Japan have financed machines and machine t ools needed by three engineering companies, while in Pakistan a Bank loan of $4.2 mil lion assisted in the construction of a paper mill which now meets all of Pakistan's domestic needs for the types of paper it produces . Apart from these loans for pa rticular projects, the Baru< has made loans of $34. 2 million for industrial development to development banks in India and Pakistan. These banks help to stimulate private industry in their respective countries by financing the expansion of existing industries and the setting up of new ones. Agriculture Lending for agriculture has helped increase f ood production in India through the reclamation of lands from weed i ni'estation and from the jungle. In West Pakistan, BanK lending has assisted in preparing land for settlement in the Thal irrigation area; in Japan, it has paid for machinery to clear and stock new farms established in remote areas and for imported cattle . A multipurpose project in Japan is helping to expand agricultural output through irri gation and flood control, and similar works carried out in conjunction with hydroelectric schemes in India and in Thailand have also benefited agriculture. Technical Assistance and other Activities In addi tion to its lending, the Bank has provided advice and assistance to its members in Asia on development problems, General survey mis sions have -6- made economic surveys i n Ceylon, Mala ya and TI1a iland . These surveys have been published i n book form by the Johns Hopkins Press , Baltimore, Md ., U.S .A. Bank missions have also been in close touch with Indian pr oblems and have advised the Indian Government on various aspects of its Five- Year Plans . In the same way the Pakis t ani Government has been advised on its development plans . Studies organized by the Bank preceded the setting up of devel opment banks in India and Pakistan; the Bank also has resident representatives in both countries . Over the past five years, 43 officials from all 13 Asian member countries have attended the six-month courses of the Econoinic Development Institute in Washington, D.C. TI1e Institute was established by the Bank in 1955 with the object of improving the quality of economic management in government in the less developed countries . It pr ovides for selected gr oups of key officials an in t ensive course in economic policy and administrat ion, designed t o broaden their experi ence and enhance their useful nes s to their gove rnments. A further 58 officials have unds r gone training at the Bank itself. Twenty-five persons ( mostly junior career officials) from 11 countries in the area have been t hr ough a six-month general training program designed to provide an opportunity for t hose in positi ' ns related t o the Bank's wor k to become ac quainted with the organization and functions of the Bank, and with certain aspects of economic devel opment. In addition, 33 senior officials from 8 Asian membe r countries have received training at the Bank i n general probl ems of public finan ce and economic development, through special c ourses l asting for t hree months . -7- BURMA Purpose and number of l oans Amount Port 8 1 $14,000, 000 Railways 1 5,350, 000 $19, 350, 000 The Bank has made two transportation loans in Burma: one to modernize the Port of Rangoon, the principal seaport of the country, and the other to provide new rol ling s tock and bridge mater ials for the war- damaged r ailway system. Port Loan In Hay 1956, the Bank made a loan of .,,,14 million t o t he Commissioners of the Port of Rangoon to assist a moderniza tion program. Rangoon i s one of the major ports of Southeast Asia , hand.ling f our- fifths of Burma ' s imports and ex~orts, but its operations were hampered by war damage which was only partl y made good after 1945, and by insufficient wharf and cargo- handl ing capacit y and ~b sol ete harbor equipment . The modernization program provided for the r eco~s truc ti o n of a wharf with three general cargo berths; for ancillar y r oads and railway tracks , 580, 000 square f eet of covered storage and also open storage for lead exports; for the purchase of car go- handling equipment; and for the re- placement of tugs , dr edges and other harbor vessel s . The new wharf is now compl ete and construction of storage facilities is ahead of schedule . Most of the cargo- handling equipment and harbor craft have been delivered and ar e i n operation. - 8... BURMA Port moderniz.atiion project Bnnk-(inanced reilway rehabilitation and development - - - - - - E"isting roads StpUtnbtr 1960 IBRO- 730 -9- Railway Loan Burma 1s state- owned railway system, which radiates from Rangoon, covers some 1,800 miles and carries the bulk of the country 1s freight and passenger traffic . Most of the war damage was made good in the immediate postwar years , but by 1955 it had become necessary for the Union of Burma Railway Board to embark on a program of rehabilitation and devel opment. This call ed for the purchase of new freight cars, passenger coaches and diesel locomotives to cope with growing traffic and to replace obsolete and damaged equipment; the relaying of 200 miles of light or worn track with heavier rail; and further bridge repairs and reconstruction, including the building of a new bridge across the Sittang River to restore the rail link between Rangoon and Southeast Burma which had been broken during the war . The Bank made a loan of $5 , 350,000 to Burma in May 1956 to assist in f i nancing the program . It has been used to pay for new freight cars , for diesel railcars for suburban passenger services and for bridge con- struction materials and equipment. The freight cars have been i n service since 1957, and the passenger railcars were delivered in 1959 . The remainder of the program is going forward despite delays caused by insurgent activities and technical difficulties . -10 ... CEYLON i Hydroelectric projects Main roads Railways Sotttr1.1Ht 1960 IBRO · n l -11- CEYLON Purpose and number of loans Amount Power 2 $23,900 ,000 Ceylon needs more electric power -- for industrial development, for domestic consumption, and for processing tea, rubber and coconut, the traditional products which still account for about 90 per cent of exports . Much existing power equipment is obsolete, and many plantations have to rely on their own small generating sets. The government is now developing the countr y's hydroelectric power potential to meet these needs and also reduce Ceylon's previous dependence on thermoelectric power. The Aberdeen- Laksapana scheme is harnessi ng the power of the Kehelgamu and Maskeliya rivers at a point about 50 miles east of Col ombo, the capital, t o supply southwestern Ceylon, the most productive and populous part of the country. Eventual ly the total generat ing capacity of this scheme will be 150, 000 kilowatts . The first stage, completed in 1951, consisted of the con- struction of a 25 , 000- kilowatt plant in the Laksapana Valley, a diversion dam and tunnel to conduct water from the Kehelgamu to the plant, and a transmission line to Colombo. The next state of the development was financed with the aid of a $16.5 million Bank loan of July 1954. This stage, the total cost of which is estimated at the equivalent ~f $31.5 million, called for the construction of a second dam to store additional water from the Kehelgamu and to r egulate its flow to the power station; the addition of 25 , 000 kilowatts to the - 12- generating capacity of the existing power plant; and the construction of transmiss i on lines and distribution facilities . The main works were compl eted by the end of 1959 . A second Bank loan of ~7 . 4 milli on was made in September 1958 for a 25 , 000- kil owatt thermoelectric plant at Grandpass , a district of the city of Colombo, and for the expansion of transmission and distribution facilities . The Grandpass plant will solve the immediate problem of bringing more power int o this area of rapidly gr owing demand, pending completion of later stages of the Aberdeen- Laksapana scheme . The expanded generating capacity is already being drawn upon heavily . Of recent years power sales have increased at an average yearly rate of about 15 per cent. Other Activities In 1951, a general survey mission was organized to study Ceylon ' s economic potentialities and to make recornmencations to assist the Government i n drawing up a l ong- range development program. The mission gave priority in its report to an increase in agricultural production which would reduce Ceylon ' s dependence on imports of food . The report emphasized the need for i mprovement of agricultural techniques and for putting new lands under cul tivat ion through irrigation, jungle clearance and settleme nt; it pointed out that the substantial i nvestments proposed for electric power, indus try and the improvement of transport would themselves lead to higher output f rom the land. The mi ssion also s tressed the need for resource surveys in many sector s -- in particular , water and irrigation, electric power , land use , soils and forests -- and urged that , until these studies were completed, -13- new l arge- scale schemes be deferred in favor of a greater numb 2r of smaller projects . 'I'he Government tooK into acc ount the recommendations of the mission in preparing a six- year development plan which started in 1953-54, and in setting up a Planning Commi ssi on of the Cabinet as sisted by a Planning Secretariat. A further r ecommendation of the mission was put into effect in 1955 when the Government set up an Institute of Sci entific and Industrial Research with the joint hel p of the Bank and the United Nations Technical Assistance Administration . The Institute undertakes resear ch designed to develop new uses for Ceylon 1 s natural resources and to improve the processes and equipment used in industrial pl ants . The Bank als ~ assisted Ceylon in drawing up plans for the establishment of a Development Finance Corporation, which was founded by an Act of Parliament in October 1955 . ~14- ..-.i!!I IAMSHEDPUR .....i GUA INDIA R e pre • enta tive patte r n o( r a ilway• r eh.abihtated a nd modernu.ed th r ouah lBRD loan• IBRD~linanced comrne rc:ial a ircraft A ( Port p r ojects / Land clea rance project • Ele ctric p0wer projecu Jndu• t r iaJ projecu Sn tt ""Mr !KO -1) - INDIA Purnose and number of loans ~Jll.Q.ld.D.t Transportation 11 ~376,410 ,000 Power 5 90,470 , 500 Industry 6 177,520,000 Agriculture 1 7,203,813 Multipurpose -1 _10,500,000 24 [!;2~2 ,1Q4,31J The Ba nl<: has made twenty- "our loans to India, aggregating over $662 million. Even before the Government drafted the First Five-Year ~lan in 1950, the Ba nk had lent fun:l.s to assist the improvement of the national r a ilways, the reclamation of large tracts of lan:l. in central India and for a thermal power project which was the first step in a larger scheme for d eveloping the Damodar Valley of eastern India . Later loans financed high ;-iriority projects within the fra mework of the Plan . Details of Ba nk lending to In:l.ia follow . Tra :1sportation ( 1) RalJ:~ays The Indian r a ilway system, the fourth l urgest in the world, compri ses nearly 35 ,000 route miles a nd is the country 1 s most important for m of tra nsport . Heavy c1.emands made by military transport , together with a l ack of materials and labor for adequate mainte na nce, ca used the system to deterior a t e considerably during ':orld War II and it , proved unable to cope with the rising volume of tr.::ffic in the post- war years. -16- To avoid delays in transport which would retard the general development of the econonw, the Government embarked on a large- scale pr ogram of investment for the rehabilitation of the system. The Bank's first loan to aid the Indian Railways was made in August 1949, and provided t32.8 million to finance part of the cost of importing 653 locomotives and spare parts, and 350 tank cars. This program enabled the railways to reduce or eliminate delays in the movement of essential freight, and permitted such important conunodities as manganese and iron, coal and coke, copper and pigiron, to move more fr eely in India's internal and export trade . During the First Five- Year Plan (1951- 56) freight carried by the railroads grew by one- fifth, reaching 115 million tons in the final year. Increasing pressure on the railways was bound to arise from the Second Plan (1956-61), as production and trade continued to grow; in particular,more movement would be needed of coal and mineral ores, which account for 40% of freight, to feed new steel capacity and to move iron ore for export . A program wa s drawn up aiming at increasing f reight capacity by about 4Cf!, to 162 million tons a year and passenger capacity by about 15% . Among its objectives, the program included the acquisition of about 2,400 locomotives, 9,240 passenger cars and 112,000 ireight cars; the replacing of 8,000 miles of rails and sleepers; the doubling of about 1,300 miles of main-line tracks; the construction of about 800 miles of new lines to improve transportation from coal and ore fields and to relieve congested areas; improvements in yards and signalling f a cilities; and the electrification of certain main lines . -17- The program envisaged the expenditure of ' 2.3 billion, including $700 million of foreign exchange . Bank loans provided ~:~,295 million: ~, 90 million was lent in July 1957, ~ 85 million in September 1958 , ~50 million in July 1959, and rl' 70 million in August 1960 . The Bank's loans are e.pplied to expenditures on imported equipment, materials and services. The program moved forward ap9roximately on schedule and during 1958, for the first time in many years, the railways were able to handle all the f reip,ht offered. (2) Ports Port improvement was also given high priority in India's Eecorrl. Five-Year Plan. Calcutta arrl. Madr as are two of the main ports where measures are being taken to relieve ship congest i on, e:xpedite the han- dling of cargo and improve general operating efficiency . Port of Calcutta The Fort of Calcutta , on the !fooghly River some 120 miles from the Bay of ~ enga l, serves not only Irrlia's larg ~ st city but also some of the most importa nt industrial a nd agricultural regions in the country the Damodar Valley and nn.ich of the Gange s Valley . Tra.ffic through the port is now about 10 million tons annually and accounts f or perhaps half the value of India's i mports and exports other than petroleum. In June 1958, the Corrrnissioners for the Port of Calcutta received a loan of r 29 million for a r ehabilitation program to r elieve congestion and enable the port to handle an additional two million tons of traffic annually. The program called for the i filprovement of berthing capacity, -18- extension of the railway marshalling yard, replacement of harbor craft, the building of additional transit and storage facilities, the provision of electric cranes and mechanical cargo- harrlling equipment. In addition dredges wer e to be purchased and dredging and river training works con- structed, to deal with navigational difficulties created by shoaling in the Hooghly . In the past two years, however, shoaling conditions have worsened in the river and the Cmnmissioners have decided to postpone part of the port improvements in order to devote more resources to an intensified dr edging program . Additional dredges are to be bought arrl the Commissioners recuested the Bank to allow disbursement of part of the loan for this pur pose . The Bank revie\red these requests and decided that the proposals should be accepted . Port of Madras Madras~ on t he southeast coast , is the third largest port in India, now harrlling a bout 2- 1/2 million tons of traffic annually; the number of ships using the port has increased by 30% since the war. Bulk eAJJOrts of manganese ore have gr own to about half a million tons a year and imports of general cargo have risen markedly, especially iron and steel, machinery , chemicals and fertilizer s. This growth has caused serious congesti on, necessitating new methods of handling . In June 1958 , simultaneously with the Port of Calcutta loan , the Bank lent ~~14 million to the Tr ustees of the Port of Hadras for the modernization of the port . The port is being exparrled to accornmocl.ate the expected growth in traffic during the next ten years . The harrlling -19- capacity is expected to be about four million tons of traffic annually, or half as rruch again as current traffic . The ma.in improvements include the construction of a new ship basin large enough to accorrunodate six new berths , of which only two are being fully equipped initially; construc- tion of two other new berths , for coal and ore; r econstruction arrl re- equipning of two general cargo berths ; improvement of a third berth to accommodate both passenger and car go; the building of a new railroad ma.rshalling ya~d, new transit sheds arrl other buildings; acquisition of modern cargo-handling equipment arrl of additional floating craft. The total cost of the project is expected to be equivalent to ~ 33.6 million; the Ban~ 's loan of ~ 14 million will cover the fore i gn exchange require- ments. (3) Airways In Har ch 1957, the Bank made a loan of f 5 . 6 million to Air Irrlia International Corporation, as a part of a joint operation with f i ve United States barks, which at the same tine exterrled credits totaling ' 11.2 million to the Corporation . The purpose of the combined t r ansac- tion was to finance the foreign exchange cost of buying three long- range jet airplanes, nine spare engines arrl other spare parts , a flight s imulator arrl ancillary equipment . Air Irrlia I nternational Corr oration is a government enterprise operating internati onal air services . The new air craft were put into operation in the first half of 1960, arrl now link India with London , New York arrl Sydney . -20- Agriculture The Bank's second loa n to India, made in September 1949, helped to finance the i mport of agricultural machinery for the r e clamation of farm lands infested with a weed known as kans gr ass , and for the experimental clearing of jungle lands . The Central Tractor Organization, a unit of the ;'1inistry of Agri- culture, used the proceeds of the loan (about f ?.2 million) for the purchase of heavy tractors, ancillary eouipment and spare parts . These were required for the deep plowing of a large area of central India in- fested with kans grass, and for clearing and plowing the jungle lartls . The jungle clearance program, although primarily a pilot scheme, was also expected to make some contribution to Irrlia's food supoly . The loan was fully disbursed by 1951 and repaid by the errl of 1956. Under the program, somewhat more than a mil lion acres were cleared arrl there was un estimated i ncrease of 350,000 tons armually in the amount of wheat going to rmrket from the kans area. Damodar Valley Development The Damodar River drains a valley extending northwestward some 340 miles from its junction with the Hooghly River near Calcutta. The Valley has a population of five million artl has long been one of the richest agricultural areas of India . Over r ecent decades it has also become the heartof India 's irtlustry and one of the greatest manufacturing centers of Asia . The Valley provides almost all of India's iron and cop~er and three-quarters of its coal, mica and chromite. Most of the steel, - 21- chemical, fertilizer, engineering and other heavy industries , as well as a wide variety of light and small- scale industr ies including cable , glass , ceramic and bicycle manufacture have grown up in t he Valley. In the late 1940 1 s the Indian Government dr ew up a unified scheme to develop and distribute electric power, control flooding and improve irrigation in the Valley . Sxecution of the scheme was entrusted to the Damodar Valley Corporation (DVC), created in 1943 on the pattern of the Uni ted States Tennessee Valley Author ity . The Bank has made three loans totaling over ~52 million to the DVC to increase electricity gener a ting capacity , a key factor in the indus- trialization of the Valley . Upon it depend the electrification of coal mines with resultant benefits of increased pr oduction and lower unit costs . Also dependent is the developme nt of iron, steel and other basic and secondary industries . The first l oan , made in April 1950 , provided about ~ 17 million of the finance for a project consisting chiefly of a large new thermo- electric power station at Bokaro . A second loan of Jaruary 1953 provided $10 . 5 million for multipurpose projects intended to provide flood control , irrigation structures and el e ctric power . The most r ecent loan of ~25 million made in July 1958, was made to finance (1) the installation of an additional 75 , 000 kilowatts of generating capacity at the Bokaro ther mal plant , and (2) the construction of a new 150 ,000 kilowatt thermal power station at Durgapur, together with addi - tional transmission a nd distribution facilities . -22- Apart from the loans made directly to the Damodar Valley Corporation, Bank lending for railways, for expanded steel production and for the improvement of the Port of Calcutta have greatly contributed to the indus - trialization of the Valley . ~lectri.Q Po~!: In addition to the loans made for electric power generation in the Darnodar Valley, the Bank has made three loans for power in the Bombay- Poona region on the west coast . Electricity consumption in this region is about 390 kwh per head or about 16 times the national average . The region is best known for its textile industry but it is also important for a wide variety of other manufactures. The heavy demand for electric power for commercial and residential as well as industrial purpose s in the area has made it necessary to ration consumption. The Bank 's loans have been aimed at removing the r esulting curb on industrial expansion . Two loans were negotiated in November 1954 and i1ay 1957 and made available sums of $13.95 million and $9 .80 million . The borrowers were three private companies forming part of the Tata group of enterprises . The first loan ass isted the construction of a 125,000- kilowatt thermo- electric station on Trombay Island near Bombay . The second loan financed the foreign exchange costs of adding a third generating unit to give the plant a capacity of 187,500 kilowatts . The third Bank loan was of $25 million and was made in April 1959 to the Government of India . The loan will cover most of the foreign eYchange r eq uirements of constructing the Koyna hydroelectric power - 23- plant, 130 miles southeast of Bombay. The plant will be equipped ini - tially with four 60,000-kilowatt generators and will be the main source of additional power supplies in the Bombay- Poona area during the 1960 1 s . Its construction is the keystone of the further development of the area . 1.£2~nd~teel Rich deposits of iron ore, coal, manganese arrl limestone, allied to a plentiful supply of labor , enable India to produce steel at costs as low as any in the world . Bank loans to two priva te companies , the Indian Iron and Steel Company (IISCO) and the Tata Iron and Steel Company have assisted in a large- scale e:ypansion of iron and steel production in India . An increase in iron arrl steel pr oduction was part of the founda- tion of the first two Five-Yea r Plans . Iron was required for plows and other farm equipment; steel for the construction of large irrigation and flood- control works, for housing, for hydroelectric works and for the extension of roads and railroads. One important Plan objective was to equate domestic i r on and steel production with demand by 1961 a~. thus eliminate the heavy drain on foreign exchange brought about by the need to import steel to meet steeply rising consumption. By early 1960 this objective had been sub- stantial ly achieved, partly because of Bank assistance to India's two privately-owned steel plants and partly through the coming into operation of parts of three new Government- owned mills . Two loans were made by the Bank to IISCO. The first was of $30 mil- lion in December 1952 , enabling the company to expand its integrated -24- steel mill a t Burnpur in the Damod&r Valley, to modernize its iron plant at Kulti, a f ew miles away, arrl to mechanize operations in its iron mines at Gua. The secorrl loa n was of ~ 20 million arrl was made in Dec e~ber 1956. This helped to increase rolling mill capacity at Burnpur and also to add new genera ting capacity of 20 , 000 kilowatts. Together , the two loa ns enabled the company to r aise its capacity for producing finished steel from 350 ,000 tons to 800 ,000 tons a year. The Tata Iron and Steel Company possesses, at Jamshedpur in the Damodar Valley, the largest integrated steel mill in Asia , arrl accounted for two- thirds of India's total steel production in 1957. In the past de cade the company has been engaged in successive expansion programs, the most r ecent of which aimed at doubling capacity for the production of steel ingots and increa sing finished steel capacity from 700 ,000 tons to l ,4CO ,000 tons a year. The Bank made two loans toward this program, one of '~, 75 million in June 1956, and the se cond of :'t-32 . 5 million in November 1957, thus meeting r a ther less than half of the total cost of the progr am . Installa tions financed with the help of the Bank i ncluded a new battery of coke ovens, a n ore crushing and sintering plant, a bl ast furnace , more converter and open hearth capacity, a blooming mill , a continuous sheet bar and billet mill, arrl a structural mil l. All these have now been installed and a r e in operation . !2~~lopment of Private Industry The Bank has ~de two loans, each of ~ 10 million, to the Industrial Credit arrl Investment Cor poration of Irrlia (ICICI) to provi de foreign -25- exchange for private industrial pr ojects financed by the Corporation. ICICI was established in June 1955 by private investors of India, the United Kingdom and the United States. It nakes long and medium-term loans to industrial enterprises, purchases shares, urrlerwrites new i sf ues of securities, and helps to obtain managerial and technical advice. Its total rupee resour ces at the end of 1959 amounted to about 230 million rupees ($ 48 million approximately), arrl there was also 1 20 mi l lion in foreign exchange µrovided by the Bank loans, The Corpor ation's activities as underwriter arrl investor have hel ped to fill a ~ap in the structure of investment banking in India, The principal sectors of private industry assisted by the Corporation ha ve been t he ele ctrical, mechanical a rrl automotive industries, paper, chemicals and pharmaceuticals, wood products, sugar and shipping . At the end of August 1960 , Bank loan funds were on loan from I CICI to 18 e nterprises in the shiprying, chemical, fertilizers, electrical, mecha n- ical, food processing, sanitary ware and timber processing sectors of Indian industry. Further projects were pending and the demands for foreign exchange are expected to grow. Other Ass istance to India In 1958 , the success of the Five-Year 0 lan was threatened by an acute shortage of foreign exchange, and India was using up its foreign exchange reserves at a dangerously rapid rate in order to maintain imports essential to the Plan . Under the auspices of the Bank, repre- senta tives of five nations (Canada, Germany, Japan, the United Kingdom - 26- and the United States) me t in "lashington, D.C . in Auzust 19)8 to discuss the situation. After these talks , the Bank and the Govern:ients began bilateral negotiations with t~1e Indian Gover nment of arrangeinents for aid which covered the foreign exchange needed in the third year of the Second Five- Year Plan. The Bank itself undertook to continue its series of loans for the railuays and other p rojects in India. The p articipants ~.1et again in 1..-ashin6ton in :·iarch 19)9, and as a result similar bilateral arrange1.1 ent s were made for aid in the fourth year. Tlm other ii1eeti!l6s have since taken pl ace, both in 1960; at the second i1eeting , in Septembe r, a p r elimina ry discussion took pl ace of financial aid for the Third Five- Year Plan, beginning in April 1961. Another initiative toward securing well informed consideration of the economic p ro':>lems of the sub- cont inent took the form of a sug2estion 'Jy Mr. ·~ugene R. Black, President of t he Bank , to t hre e i nternationally known bankers that t hey visit India arrl Pakistan to gain first - hand ~npressions of the current situation arrl prospects there . As a result ~Ir . nermann .\~JS of the Deutschebank of Fra.1kfurt, Sir Oliver Franks of Lloyds Bank of London and dr, Allan Sproul, for;ierly Cl1airman of the !'Tew York Federal Reserve Bai.ck, visited the two countries fo r six ueeks early in 1960. fo r ecor ding their general :L11pr essi ons in a joint letter to Hr . i3lack, the t hree bankers urged support for tne efforts of 'Joth countries , ~Jut warned of the many diffi culties which must be resolved cooperatively between India and Pakistan and the industrialized coun- tries to which t hey were l ooking for support . -27- JAPAN Purpose and number of loans Amount Agriculture 1 y 4,300,000 Industry 9 149, 689,000 Multipurpose 1 4,900,000 Power 7 138,484,000 Transportation 1 40,000,000 19 J337,373,000 In Japan the Bank has made nineteen l oans totaling $337 million - more than in any other country except India. The loans have been of wide variety-- for power, iron and steel, land clearance, irrigation, and the construction of Japan's first express highway. Industry Nine loans to industry, totaling ~150 million, have been channeled through the Japan Development Bank, a public agency which supplies long-term credit for reconstruction and development projects . Most of t his sum has been used to help in modernizing and enlarging Japan' s steel capacity. An important share of Japan 1 s foreign exchang e income is ear ned by the steel industry, while in the domestic market the maintenance of adequate supplies of iron and steel has been a major factor pe r mitting the rapid post- war growth of the Japanese economy . In recent years t he steel producers have undertaken capital investment programs designed to modernize and enlarge their plants, and, in particular, to reduce their dependence upon imported scrap by expandi ng t heir pig iron capacity. The current -28- .:SH.KAR \ALL Y ~ , JAPAN ~ Steel plants Q lndustria l equipment i Hydroelectric projects tf'{. I.And reclamation Irrigation Amageuki-Ritto Expre uway Exi1tlng main highways Kl.RO:JE #. JOGANJ .-ARI!.! NE #.. ,,( MlDORO NADAHAMA ~......,) MIZUC .....,)YAWA1A -...._~CHI A \ MTO 0 p 0 \If"\ f AICHI fA!>AGAWA ~ -29- five-year program of the industry, running to 1962, provides for an increase of 9. 4 million t ons , or nearly 85 per cent, in crude steel capacity. The first Bank loan f or the Japanese steel industry was made in October 1955 to help the Yawata Iron and Steel Company Limited, the largest steel firm in Japan, to modernize its pla te- r olling plant. The loan of ~5 . 3 million covered more than a t hird of the cost of installing a f our- high 160- inch stee l plate mill at Yawata on Kyushu Island t o replace three machines built between 1905 and 1928 . It was estimated that its ins talla- tion would sub stantially reduce operating costs and improve the quality of the products . Modificatic.ns to be completed dur ~ ng 196o are expected to raise the mill ' s initial capac ity of 36o,OOO t ons to 540,000 t ons a nnually. Yawata also r eceived ~ 20 million through a Bank loa n made t o t he Japan Development BanK in November 1959. This l oan is covering part of the cost of additions t o the company ' s Tobata works in northern Kyushu which will make Tobata a fully integrated steel plant. Two blast furnaces , each capable of producing 1, 500 t ons of pig iron a day, a sintering plant with an output of 3,500 tons a day, three 6o- ton oxygen top-blowing converters, two coke- oven batteries and a 48-inch s labbing mill are be ing i nstalled . A steel loan of ~2 . 6 million formed part of a l arger l oan of w8 .l million made i n Februar y 1956 through the Japan Development Bank f or four separate industrial projects . It financ ed imported machinery for a seamless tube mill f or the Japan Steel and Tube Corporation Limited (Ni ppon Kokan Kabushiki Kaisha) , the t hird l ar gest company in the Japanese steel industry, - 30- and one of the country ' s biggest producers of pipes and tubes . The new mill, with a capacity of about 120,000 tons a year, came into operation at the end of 1957, replacing two obsolete mills. The company received a second loan, this time of ~22 million, in September 1958 . A small part of this sum financed the extension of the new tube mill; the greater part, however, covered the foreign exchange costs of the first stage of building a completely integrated steel mill at Mizue near Tokyo . Here, with the Bank's assistance, the company has erected two 60- ton converters, both using the modern oxygen top- blowing process, a 46- inch slabbing mill, a 68- inch semi- continuous hot strip mill and a 66- inch reversing cold strip mill . In December 1956 the Bank lent $20 million to the Kawasaki Steel Corporation to cover the foreign exchange cost of imported equipment for a semi- continuous hot and cold strip mill at the compa ny's new Chiba plant near Tokyo . The completion of the new mill, over six months ahead of schedule, meant that Kawasaki no l onger had to ship steel some 300 miles from Chiba to its old works at Kobe where rolling was done in obsolete hand mills. Because the plant cost less than expected, the company was able to buy further auxiliary equipment . A second loan, of $8 million, was made to Kawasaki in January 1958 . It covered about two- fifths of the cost of a new blast furnace at Chiba capable of producing 1 , 000 tons of pig iron a day . This furnace was completed by !'lay 1959 . In July 1958 the Bank made it s biggest single loan for the Japanese steel industry - a credit of ~33 million toward a program of modernization -31- and expansion, costing :tP83 million altogether, undertaken by Sumitomo Metal Industries Limited . The Bank1s loan is financing work at Wakayama in central Honshu, where Sumit omo is constructii1g wharves and other harbor facilities to handle ships of up to 15,000 tons, a blast furnace with a daily capacity of 1,200 tons, two open- hearth furnaces, a coke oven and a 47- inch blooming mill. The program should be completed by March 1962. A loan of ~10 million was made in August 1958 t o assist the Kobe Steel Works Limited in incr easing its production. This project, completed in 1959 , included the construction at Nadahama on Osaka Bay of a blast furnace with a capacity of 800 tons a day, together with harbor and loading instal- lations, a sinterir.g plant, arrl a 16,400-kilowatt thermoelectric povrer plant . Nadahama is close enoug~1 to the c ompany1 s main works in Kobe to allow pig iron made in the new furnace to be transported to Kobe and used while still molten. Previously the company had been put to much extra expense by the need to re- heat cold pig iron brought from a plant twelve miles away . The Fuji Iron and Steel Company Limited, which in si ze r a nks second as a producer only to Yawata, also borrowed fr om the Bank in November 1959 . Fuji i s using its l oan of ~24 million at Hir ohata on the inland sea, where it is constructing a blast furnace with a capacity of 1, 500 t ons a day, a sintering plant capable of handling 2, 000 tons a day, t wo 60- ton oxygen top-blowing converters and a slabbing mill . This equipment should earn a particularly high economic return, as it will allow Fuji to use its existing rolling mills more i ntensively. Work on the project is now well advanced . -32- Three companies outside the steel industry shared wit h Japan Steel and Tube Company in the ~8 .1 million l oan made in February 1956 t hr ough the Japan Development Bank. The ~5 . 5 million they received paid for macht pes and machine tools i mported f r om six countries . Mitsubi shi Shipbuilding and Engineering Company Limited , the largest Japanese company i n its field, r eceived ~1. 5 million to cover the foreign exchange cost of fifteen heavy machine s and machine tools needed to manufacture turbo-superchargers and heavy diesel engines . These machines, most of which were installed at the company's Nagasaki shipyards, made it possible for Mitsubishi to meet a shift in demand from comparatively small diesel engine s to higher-powered superchar ged units. Ishikawajima Heavy Industries Co1npany Limited, which borrowed $1,650,000, bought machine tools needed in manufacturing steam tur bines and other heavy i ndustrial machinery . The remainder of the loan was made to the Toyota Motor Company Limited, and covered the foreign exchange cost of 42 machines needed to modernize the company 's production of trucks and bus chassis. Toyota's progress since the loan was made has been particu- l arly impressive: monthly output is DOW more than three times as great as in 1956. El ectric Power Although Japan has greatly enlarged its electrical generating capacity since 1945, it has found it difficult to keep pace with the gr owing demands of industr y . Between 1952 and 1957 , power consumption gr ew at an annual rate of 8 or 9 per cent. To assist the genera ting companies in meeting -33- t his demand, the Ba nk has lent over ~138 million through the Japan Develop- ment Bank since 1953 for both hydroelectric and thermoelectric projects. The Bank 1 s firs t power l oan, made in October 1953, was also its first loan in Japan . Three privately-owned companies received loans t otaling $40 . 2 million to build thermoelectric generating plants . Although these companies were responsible for over a third of all power gener at ed in Japan, much of their capacity consisted of run- of- the-river hydroelectric plants whose output fell when the rivers were seasonally low. The thermoelectric plants were needed t o make good thi s seasonal shortfal l . More than half the loan went to the Kansai Electric Power Company, Inc . , one of the largest privately-owned power companies in the world, which recei ved ~20 , 578 , 000 to cover the foreign exchange cost of a 150, 000- kilowatt plant built at Tanagawa on Osaka Bay in central Japan . The plant, completed in 1956, serves the most important industrial area of Japan, including the cities of Osaka, Kobe , Sakai and Amagasaki . It provides power for the manufactur e of metals , machinery, chemicals, cer amics , textiles and ships . The.operating efficiency of its two high- temperature, high- pressure generating units is far higher than that of earlier Japanese install ations . Kansai was l ent a further i37 million in June 1958 t oward the cost of a dam and a 258, 000- kilowatt underground power station on the Kurobe River i n a remote part of the cent ral range of the Japanese Alps . To provide access to the site, which otherwise is inacces sible for heavy equipment, it has been necessary to drive a 3- 1/2 mile tunnel through a mountain range from a parallel valley . Another tunnel, six miles l ong, - 34- will connect the dam to the power station . Because the dam will also regulate the flow of the Kurobe River, a substantial increase is expected in the output of existing pl ants further downstream . The Kyushu Electric Power Company , Inc ., received ~11,200 , 000 from the l oan of October 1953 toward the foreign exchange cost of a 75,000- kilowatt thermoelectric station at Karita on the northea st coast of Kyushu . This plant, a single unit of the type installed by Kansai at Tanagawa , serves an area where more than half Japan ' s output of coal is mined , and which is also a center of basic metal and chemical manufacturing . The third borrower was the Chubu ~ lectric Power Company, Inc ., which received ~7 , 500 1 000 to meet the foreign exchange cost of a 66, 000- Kilowatt, single- unit plant at i"Jie on Ise Bay in central Japan. It serves the Nagoya area, pr oviding power for companies making chinaware, textiles , and sewing and textile machinery . Both Kyushu and Chubu spent less o~ these stations than had been expected, and were able to cancel ~750 , 000 and i~l,044 , 000 re - spectively of their original l oans . Chubu returned to the Bank in Septembar 1958 to borrow ~ 29 milli on for i ts 170,000-kilowatt Hatanagi hydroelectric project in central Honshu. This consists of a high dam and reservoir to direc t the flow of the Ohi River successively through an upper power station, a second reservoir, a l ong tunnel and finally a lower station . A pump- back installation at the upper station will permit i ncreased output during hours of peak demand, while sil t control and regulation of the river ' s flow by the reservoirs -35- should improve the operations of power plants furth er downstream. The project should be completed during 1963 . In June 1958 a loan of $25 million was made to the Hokuriku ~lectric Power Company, a privately- owned company serving an area cent ered on Toyama , on the west coa s t of Honshu . Four-fifths of this company ' s output is consumed by industry, which has been attracted into the area by the cheap electricity generated by t he run- of-the- river hydr oelectric plants f orming the greater part of Hokuriku ' s capac ity . Power restricti ons made necessary by the reduced flow of water during the winter months have forced many of these consumers to work only part-time . The Joganji-Arirnine project, for which the loan was made, will provide r eliabl e supplies of powe r throughout the year. On the Joganji River, in the Japanese Alp s , the company has nearly completed construction of the 450- foot hi gh Arimine Dam . Further downstream,five new power stations are being built at succe ss ively l ower levels t o use the water s tored behind the dam, and an existing power station is being enlarged to add a total of 261,000 kilowatts to Hokuriku ' s capacity. The three l argest of the new stations came into full operati on early in 1960. The most r ecent power loan was made in February 1959 . This was the fir st loan the Bank had made in Japan as part of a joint borrowing operation with t he United States private inve stment market , the Bank lending $10 million to the Japa n Development Bank a t the same ti ne t ha t the Japanese Government issued $30 million horth of bonds on the New York market . The comb ined proceeds were re-le nt to the Electric Power Development Company, an agency almost wholly owned by the government, to finance its Miboro -36- hydroelectric project on the Sho River, near the west coast of Honshu . At Miboro the company is constructing a large rockfill dam and an underground powerhouse with a capacity of 215, 000 kilowatts . The output of this plant, estimated at 544 million kilowatt hours annually, will be sold to t he ~ansai Electric Power Company. Kansai will ga in a further 220 million kilowatt hours each year through increased out~ut from its own hydroelectric plants below Miboro, as regulation of the flow of the river by the new dam will all ow them to operate more efficiently. The project should be completed i n 1961 . Agriculture Japan ' s population of over ninety million, growing at the rate of a mil lion a year, l i ves in an area a twentieth the size of the United States . By intensive cultivation, the country produces four- fifths of the food it needs, but great efforts must be made to increase agricultural output to match population growth . One hope of higher output lies in developing some 2. 5 million acres of rsmote or scrub- cove r ed la nd where, for some years, the Japanese Government has been settling farmers and supporting them whil e they cl ear and prepare the land by their own hand labor to make it capable of growing satisfactory crop s . F"ollowing a vi sit by a Bank agricultural mission in 1954, t he Agricultu ral Land Development Machinery Public Corpo- ration was establi shed to experiment with modern heavy clearing and ear thmoving machinery to find out whether this would be a practical way of reclaiming the land more quickly . In December 1956 the Bank made a loan of ~4.3 million to assist the Corporation in carrying out several pilot - 37- reclamation projects, and also t o finance imports of dairy cattle from Australia . By the end of 1959, crawler tractors and other equipment fina nced by the Bank had reclaimed a total of over 22 , 000 acres, mostly on the islands of Hokkaido and Honshu . A further 24 , 000 acres is to be cleared under the present program, and the useful working life of the e~uipment should permit r eclamation of at ledst another 25 ,000 acres beyond t l1 is. About 1,000 new farms have been established so far, and 2,000 existing far ms have received additional land . On average, most of the new farms have covered their expenses in their fourth year of settlement, against the original expectation that they would ope r·ate profitably only in their seventh year . A separate project in the Ishikari Valley of wester n Hokkaido, where the climate is milder, is usi11g Bank- financed raachinery to drain, top dress , and irrigate nearly 30,000 acres to grow rice and other crops . Demand for dairy products has grown too r apidly to be met by the natural r ate of increase of Japan's herds of domestic cattle . Part of the Bank ' s loan made it possible for the Government to import 7, 500 head of Jersey breeding cattle from Australia for use on existing farms and on the new settlements . These imports are continuing. Multipurpose Project Agriculture will also benefit f r om a loan of *'7 milli on made in August 1957 . In the Aichi r egion of central Japan, the Bank is supporting a project which will irrigate more than thirty thousand far ms, supply drinking -38- water for many towns and villages, increase the suppl y of water for industrial use to three cities (including Nagoya) , and provide 10, 000 kilowatts of electric power . The project will irrigate 42,000 acres of land already under paddy and 40 , 000 acres of upland areas, thus, it is hoped, increasing crops by about 200 , 000 tons annually . This is Japan ' s first attempt to irrigate ridge lands, where drought causes severe damage in the summer and only a narrow range of crops can be gr own. In the lower- lying areas, perennial irrigation wi ll allow farmers to gr ow crops throughout the year on fields which must now be flooded i n winter to store water . The borrower, the Aichi Irrigation Public Corporation, is building a dam at Makio Bridge on the Otaki River whose outflow will drive the turbines of a 10, 000- kilowatt power station for the Kansai El ectric Power Company, and feed a 68- mile main irrigation canal and some 780 miles of secondary canals on the Chita Peninsula. Because foreign exchange costs were lower than expected, $2.l million of the original loan has since been cancelled . Transportation In March 1960 the Bank made a loan of ~40 million to the Japan Highway Public Corporation toward the cost of the Amagasaki- Ritto Expressway. This new 45- mile road, to link the OsaKa and Kyoto metropolitan areas, forms par t of a highway development program calling for government expenditure of ~2.8 billion over the period 1958-1963 . With the railways already overl oaded, Japan 1 s inadequate road system (only 10 per cent of the 93,000- mile network is paved) must bear the burden of a 15 to 20 per cent annual -39- increase in truck and bus traffic , and an even gr eater increase in the use of automobiles . To overcome congestion and delays , particularly serious in the industrial areas , the government plans to build limi ted- access high- speed roads between a number of the most important manufactur ing cities . The Amagasaki- Ritto Expressway is the first part of a 118- mile toll highway which will eventually link Kobe and Nagoya . It traverses an area which contains near ly a tenth of t he population of Japan, about 57, 000 factories and wor kshops whose products cover the whole r ange of Japanese output, and many farms . The new road will be a four - lane, divided highway, bypassing all towns . To avoid densely- populated or rice- gr owing areas , it will be necessary to drive several lo ng tunnels, while br idges and viaducts will be needed to carry the road across areas subject to fl ooding, sever al major rivers, and existing roads and railways . When it i s completed, probably early in 1963, the Expressway should hal ve the travel ing time between Arnagasaki and Ritto . Tolls should repay its cost wi thin 25 years . -40- MALAYA Hydroelectric project 0 ,Uor Stor Projected transmh•ion line1 - - - - - - Existing transmission linea • Existing power planu I( o,m9un SoteMber 1960 -41- MALAYA Purpose and number of loans Amount Power 1 $35, 6oo,ooo In 1954, a Bank survey mission was invited to visit Mal aya to assess the country ' s r es ources , and to suggest measures for economic and social development . The f ourteen member s of the mission included four specialis ts in agriculture and related fields nominated by the Food and Agric ulture Organization of the United rlations . Their r eport, published i n 1955, r ecommended that ~ 258 million be spent on development over the five years 1955-1959 . It emphasized that public expenditure on social and economic development must remain hi gh in order to keep pace with the grow th in population: although Malaya ' s average standard of living i s the hi ghest in the Far East , it is threatened by one of the highes t birth rates i n the world . The mission thought it particula rly important that assistance should be given to rubber gr owers to help them to repl ant with high- yielding stock which could compete succes sfully with synthetic rubber . Comprehensive geol ogical and l and- use surveys were suggested to try t o find ways of reducing ~a laya 1 s excessive dependence upon rubber and tin, and pr opos als were also put for ward in the fields of agriculture , transportation, power and t he social services . The mission recommended the establishment of a central bank and an industria l credit organization t o serve both Malaya and Si ngapore . -42- One loan has been made in Malaya. In 1958, the Bank lent $35 .6 million to the Central Electricity Board t o meet t he foreign exchange cost of its Cameron Highlands hydroelectric proj ect -- the bigges t single development project in the Federation . This scheme will increase the capacity of the ce ntra l power network operated by t he Board by 50 per cent, making it pos sible to meet rising demand in its present service area of Kuala Lwnpur and the stat es of Selangor, Negri Sembilan and Malacca, while also enlarging the network to serve ot her areas. Total consumption of electric power in Malaya has been rising by about 7-1/2 per cent annually, although t he tin industry, t he largest consumer, has been depressed by output restrictions . The Camer on Highlands scheme is the first stage of a pr ogram designed t o develop the hyoroelectric potential of Malaya's combination of high rainfall and mountainous terrain. The waters of four small rivers -- t he Telom, Kial, Habu and Bertam -- on the Camer on Hi ghlands plateau, some 100 miles north of Kuala Lumpur , will be combined and used to drive t he turbines of two power stations -- a 5,500- kilowatt intermediate station at Habu and a much bigger under ground station (with three 25 , 000- kilowatt generat ors, and provision for a fourth) at Jor. Besides buildi ng the two power stations, the contr act ors will have to drive about t hirteen miles of tunnels, construct a dam 400 feet l ong and 120 feet high at Ringlet Falls on the Bertam River, and erect 217 miles of trans- mission lines . The whole project should be completed in 1964 . -43- PAKISTAN Purpose and number of loans Amount Transportation 5 $ 99 , 500,000 Power 3 30,17 6, 585 Industry 3 18,400,000 Agriculture 1 3, 250 , 000 Indus Basin 1 90,000, 000 13 $241, 326, 585 The Bank has assis ted Pakistan in its development efforts both with loans and by providing technical assistance and advice . In November 1953, the Bank stationed a special r epresentative in Pakistan to advise on the execution of Bank financed proj ects; in 1958 the functi ons of the special representative were extended; he was to be avail able for advice to the Government on economic and financial policy. The three bankers who visited India early in 196o at the Bank ' s suggestion also visited Pakistan and reported their impressions of both countries . The Bank has lent ~241 million in Pakis tan for basic utilities , industry, agriculture, and the Indus Basin Settlement Plan. Transportation (1) Railways The Bank has made three l oans, totaling $70.7 million, for the rehabilitation, improvement and expansion of the railways of Pakistan. The country has two systems, the North Western Railway, which is the main form of transport in West Paki stan, and the Eastern Bengal Railway, which -44- PAKISTAN Reh• btl he tlon, tmprovot>ment end expension of exiahng reilw•y• Port impr ovement Natu ral g•• pipeline Electric power expension tllt()>740 -45- serves East Pakistan. Like the Indian railways,they were left by the war years with a legacy of obsolete and worn out locomotives and rolling stock, track in need of maintenance and inadequate workshop facilities . The first Bank loan of ~27 .2 million, made in March 1952, was used in a program to rehabilitate both systems and convert them to diesel power . It helped buy abroad 42 diesel electric loc omotives and 39 shunting locomotives , 12 locomotive boilers, 206 passenger cars, 1194 freight cars, sleepers, spare parts and workshop equipment . The second loan of $31 million was made in October 1957. About half the amount was for freight cars and most of the bala nce for s l eepers and rails . A sum was set aside to replace the Landsdowne Bridge, which spans the Indus River about 250 miles upstream from Karachi . The third loan of 'lt>l2 . 5 million was made in November 1959 for a program t o meet the minimwn requirements of the railways pending the formulation of a program of railway development to be carried out during the Second Five- Year Plan beginning in 1960. The loan is being used to obtain rolling stock , signaling equipment and track materials . (2) Port of Kar achi Karachi is the only port in lriest Pakistan, and the East Wharves handle about 6o% of its traffic . The Wharves, built around the turn of the century, had deteriorated so much that reconstruction was needed to avoid serious interruption in the flow of goods to and from West Pakistan. In August 1955, the Bank made a loan of ~14.8 million to the Trustees of the Port, to help finance the reconstruction and modernization of cargo berths -46- and handling facilities at the East Wharves. By 196o, 13 existing berths had been repl aced by new ones. The work also included the construction of a concrete quay wall, new storage facilities, access roads and railway tracks, the provision of portal cranes and the construction of workshops and an adGitional office building. The project is speedii1g up the move,nent of freight, shortening the turn-around time of ves sels, and increas i ng the capacity of the port. Natural Gas Pakistan has meager supplies of coal and oil, and a large part of its annual requirements of fuel have to be imported. The discovery in 1952 of a huge reservoir of natural gas at Sui about 350 miles north of Karachi was therefore of vital importance to the economy . It promised an abundant and economical fuel for Pakistan's developing industries, and would effe ct large savings of foreign exchange by displacing coal and oil as industrial fuels. The Bank, through a loan of ~14 million made in June 1954 to the Sui Gas Transmission Company, helped bring the gas from the remote Sui field to consuming centers in Karachi and elsewhere. The project which the l~an helped to finance consisted of layi ng a 16- inch pipeline from Sui to Karachi via Sukkur and Hyderabad through the lower Indus River Valley, toge ther with connecting lines to several large consumers. The 350- mile pipeline was laid i n five arrl a half months arrl was completed in April 1955: gas sales started in September. By the end of 1959 Sui gas was supplying over two- t hirds of West Pakistan ' s industrial fuel needs . -47- Consumers include electrical and cement plants and textile mills as well as other en~erprises and domestic users . The largest user is the Karachi Electric Supply Corporation . Electricity In the last decade or so Karachi has become one of the chief manu- factur ~ng centers of PaKistan and its popula tion has quadrupled . With this growth has come a much greater demand for powar for industrial and re sidential purposes . ·r o relieve the consequent shortage the Kara chi Electric Su~ply Cor pora tion Ltd . (.t\ESC) , has greatly expanded generating capacity with the assistance of three Bank loans totaling ~30 . 2 million. The first loan,of ~13 . 8 million, was made in June 1955, and helped to finance an expansion of power t o meet the most urgent needs . A 30, 000- kilowatt thermal power station was built in Karachi and went into commercial operation early in 1957; existing power plants were rehabilitated; trans- mission and distribution facilities were extended and improved and equipment for offices and stores was acqui red . The second loan was for the amount of ·:;i4 million and was made in April 1958 . This loan is being used in a KESC project for the construction of a new ther mal station with two turbo- generati11g uni ts of 30, 000- kil owatt capacity each, adjacent to the existing station. The second loan is also helping to extend transmission and distri- bution facilities . Commercial ope1·ation of the two uni ts in the second station is expect ed to start in the first half of 1962 . In the meantime KESC is taking emer- gency measures to expand output and relieve the scar city of power in - 48- Karachi. A 14, .500-kilowatt diesel gener ating station is :)eing installed and is expected to start operating i n 1960. This plant will ena')le t he Corporation to meet industrial dein.and until t he new 60, 000- kilowatt plant goes into operation in 1962; thereafter t l1e diesel ?l ant will be used to meet peak loads and for stand- by capacity. A t hird Bank loar. of $2 . 4 million was 1.iade i n August 19.59 t o finance t he foreign exchange cost of the diesel plant , Industry (a) I ndustrial Development Corporation Two Bank loans totaling $14. 2 million made to the Pakist an Indus- trial Credit and Investment Corporation Limited (PICIC) have aided the growth of private industry in Pakistan. PICIC is a corporation formed in 19.57 by Pakistani, British, American and Japanese private investors after Bank and other experts had explored the possibilities of industrial development in Pakistan and had studi ed ways in w:1ich an industrial financ e i nstitution could be established. The principal objectives of PICIC are to assist in the expansion or modernization of S-~all and medium- sized industries and to help create new ones . It makes loans and equity investin.ents , and underwrites and distributes s ecurities . In late 19.59 its total r esources were Rupees 18.5 mill ion ($38. 9 mil l ion) made up of pai d- up share capit al, a 30-year interest free rupee advance from the Gover runent and foreign exchange from World i3ank and U.S . Development Loan Fund loans . -49- By the end of 1959 PICIC had corrunitted itself to 73 l oans for a total amount of Rupees 76 .9 million (almost $16. 1 million) and, in conjunction with some of its larger credit operations, had ac quired small amounts of equity participations and option rights . Apart from one new sugar mill and a number of small and medium- sized new pl ants, PICIC 1 s financing has been mainly for the improvement of existing enterprises. Sugar and textile industries have been the largest borrowersj other s include food processing, chemicals and pharmaceuticals , mechanical, glass and cer amic industr ies . The first Bank loan to PICIC was of ~4 . 2 million and was made in December 1957j the s econd of ~10 million was made in September 1959 . Both loa ns were made to meet the foreign exchange requirements of projects financed by PICIC . (b) Pulp and Paper In Augus t 1955 the Bank made a loan of ~4 . 2 million to Karnaphuli Paper Mill Ltd . to help finance a paper mill at Chandraghona , on the Karnaphuli River downstream from the bamboo forests of the Chittagong Hill Tracts in East Pakistan . The mill manufactures pulp and paper from bamboo and i s designed to produce 30,000 t ons of writiP-g and wrapping paper annually . The plant cost the equivalent of ~20 million; the Bank ' s loan provided about one third of the foreign exchange component. In the past Pakistan has had to import all of its paper requirements , but now the Karnaphuli plant is meeting present domestic nseds for the types of paper it produces . The plant has also provided a new market for -50- bamboo and given enployment to about 3,000 people, most of whom were previously engaged in traditional agriculture. The Karnaphuli Paper lvtill Ltd. was established in 1952 by the Pakistan Industrial Development Corporation as a government-owned institution. The Corporation subse- quently sold a majority of the shares to private investors . ~~riculture A Bank loan of ~3 . 25 million, made in June 1952, was used in paying for ~~ports of tractors and ancillary equipment to level and plow land for settlement in the Thal irrigation area in the north- eastern part of West Pakistan. By the end of liay 1959, nearly 430,000 acres had been prepared. Large areas have been brought under cultiva- tion, families are being settled and new communities are being established. The Incl.u s Basin On September 19, 1960, the Indus '·ater Treaty was signed in Karachi by the Prime : iinister of India, the President of Pakistan and a Vice President of the Bank. An account of t he ne3otiation which culminated in this Treaty is given on pages 59- 72, which also contain a descrip- tion of the gi gantic system of replacement and development works embodied in the settlement . As part of the financing of these works, t he Bank made a loan of )90 million to Pakistan; .?80 million of the loan is being paid into the Indus Basin Development Fund, and the balance of ·~10 million will be available to meet i nterest and other charges on the loan during the first eight years of the period of construction of the works . -.51- 0 PHILIPPINES i Power project 0 p 0 0 Septe mber 1960 18R 0·74 1 - 52 - PHILIPPINES Purpose and number of loans Amount Electric power 1 $18,500,000 Demand for electric power in the Philippines has been growing rapidly. In the Manila area, which has a population of over a million, it has increased by 12 per cent annually, with indus trial demand rising twice as fast. In surrounding areas demand is also rising quickly. The Bank made its first loan, of ~21 million, in the Philippines in November 1957 to help to finance hydroelectric plants to meet these demands. The Philippines has large unused res ources of water power, whose development is the responsibility of the National Power Corporation, a government agency . The Corporation is engaged on a program of six projects to exploit the hydroelectric potential of the Agno and Toboy Rivers, on the northern island of Luzon . The Bank 's loan assisted the second of these projects --the construction at Binga on the Agno River of a dam and reser- voir, an underground powerhouse with an installed capacity of 100,000 kilowatts, and transmission lines t o Manila and other towns. Because imported equipment cost less than had been expected, $2 ,500,000 of the loan was later cancelled. The four 25,000-kilowatt generators came into operation in the first half of 19CD. -53- THAILAND Purpose and number of loans Ai"Tlount Agriculture 1 $ 18 , 000,000 Multipurpose 1 66, 000 , 000 Ports 2 7,659,000 Railways 2 15, 000 , 000 6 $106, 659, 000 Loans totaling nearly ~107 milli on have been made in Thailand , which was the first country in southeast Asia to receive a loa n from the Bank . Two loans were made t o rehabilitate and moder nize tbe railway system; two more have helped to open the port of Bangkok t o l arger ships; one has assisted in financing a scheme for irrigation of the rice-growing Central Plain; and one -- the l ar gest and most rec ent -- i s paying for i mported equipment, material and services f or a multipurpo se project whi ch will genera te power f or half of Thailand and control the river's flow to help irrigation and to reduce flooding on the Central Plain. Railways The railways are vital to Thailand, serving many areas which are remote from navigable waterways and which have few r oads . Heavy war damage to the railway system i ncluded the destruction of its workshops, so that for some years the permanent way and rolling stock could not be properly maintained . Meanwhile traffic increa sed as exports and t he population grew, so that by 1950 the system was in need both of r ehabilitation and expansion. -54- THAILAND Modernization and rehabilitation of existing railways Po r t improvement and dredging Hydroelectric project Irrigation project -55- In October 1950 the Bank lent $3 million to the Kingdom of Thailand , to help r ebuil d and re- equip the Makassan wor kshops of the State Railway, to i nstall mechanical signall ing equipment and to acquire spare parts to r epair r oll ing stock . The workshops had been completed and the signalling equipment instal led by the end of 1956 , By 1955 further expansion of the Thai economy made further moderni- zation and rehabilitation necessary . The Bank made a loan of ~12 million to the State Railway in Augu st 1955 to assist a five - year i nvestment progr am including renewal of rails on 875 miles of track , the purchase of 30 diesel l ocomotives, 170 passenger coaches, and about 850 freight cars, and repl ace- ment of obsolete couplers wi th a moder n automatic type-- assembly of the l atter being carried out in the wor kshops bui lt with the help of t he earlier Bank loan. Ports Two Bank loans , totaling ~7 , 659 , 000 , have hel ped to develop Klong Toi, the port of Bangkok . Four- fifths of Thailand ' s exports , including al l rice shipments , pass through Bangkok, and almost all imports enter the country there . The port lies some distance up the Chao Phya River, the major waterway of Thailand . Alt hough the r iver i tsel f is deep , sil t deposited at its mouth has bui lt up a bar extending more than nine miles into the gulf of Thailand. Until recently this bar could not be cr ossed by ships of more than about 4,000 tons deadweight . Al l larger ships had to load and unload with the help of light ers -- an expensive and dangerous - 56- operation -- near a coastal island some distance from t:1e mouth of the Chao Phya, the li;;hters carrying the goods t he 55 miles to or from 2an~kok. In October 1950 the Bank made a loan to the Kingdom of Thailand of % . 4 million, the greater part of which (nearly .~3 million) was used to finance t he dredging of a deep channel through the sandbar in order to permit ships of up to 10, 000 tons deadweight to use the port . The r e1.1ainder of the loan assisted in the purchase of port equipment, including a tugboat, cargo -handlin~ equipment, buoys and a 1,500- kilowatt diesel power plant. In spite of great difficulties experienced because of iauch heavier silting than e}..-pected, and a typhoon in October 1952, which set work back by several months, the channel was opened early in 1954. By 1956 the proportion of total imports handled by lighter had fallen from two- fifths to less than two percent, and t :1e time taken to load and unload ships had ~een nearly halved . Sil ting in the channel has continued to be 1110re serious than had originally been e:>..-pected, and in October 1956, t:1e Bank lent ~>3 . 4 milli on to the Port Authority of Thailand for t l1r ee dredges and auxiliary equipment needed to keep t he port open to large vessels , These have been delivered and are now operatin5 satisfactorily. As t :1eir cost p roved to be l ess t han had. been forecast, <)141, 000 of t hi s second loan was subsequently canceled, Agriculture The Bank made a loan of ) 18 million in October 1950, to the Xingdom of Thaila.nd toward the cost of a project to develop rice !)reducti on , Thailand ' s output of rice is not used solely to feed its people; a large -57- quantity is exported, helping to meet the needs of other southeast Asian countries and providing almost half of Thailand's export earnings . As the most important of several projects, the Government embarked on a scheme to provide an assured water supply to an area of 2,260,000 acres in the Central Plain of Thailand . This called for the construction of a reinforced concrete barrage across the Chao Phya River near Chainat, about 100 miles north of Bangkok, together with a complete irrigation system of canal and water distribution channels. Besides yielding a surplus for export, it should eventually allow consumption of an extra 350,000 tons of rice and 75,000 tons of soya beans at home • .lhe Bank's loan has helped to meet the foreign exchange cost of con- struction plant, permanent and workshop equipment and materials for the barrage, of equipment for the Central Workshops of the Royal Irrigation Department of Bangkok, and of the contractor 's and consulting engineer ' s fees. The barrage was built by August 1956, and most of the major structures were completed by the end of that year. Multipurpose Project 1.0rtage. For some years Thailand has sui'fered from an acute power s1 With a total public generating capacity of a little over 100,000 kilowatts, most large consumers have been obliged to install their own generators. The Yanhee hydroelectric proj ec t is designed to relieve the power shortage, by the installation in its initial stages of 140,000 kilowatts of generating capacity to serve Bangkok and eleven other communities . By the installation of a further 420,000 kilowatts of capacity, Yanhee will eventually meet most -58- of Thail and ' s expected needs of electrici ty up to about 1975. It should al so make it possibl e to contr ol floods in the Centr al Plain, and will pr ovide water to :naintain a flow to the Chao Phya i r rigation system, thus maki ng possible a further increase in a gricultl1.ral production. Another i ncidental benef it should be the improvement of the Chao Phya River as a navigable waterway. The Bank is meeting about two- thirds of the t otal cost of the first stage of the project with a loan of $66 mi llion, 'nade in September 1957, to the Yanhee Electricity Authority. This will assist construction of the Bhumi phol dam on the Ping 'liver 260 miles northwest of Ean:skok . The 500- foot high ar ch dam will create a reser voir capable of storing twelve billion cubic meters of water . The Ban.k loan will also finance the first two generating units, each of 70, 000 kilowatts, in a powerhouse desi~ned for an ultimate capacity of eight units, and will help to finance trans - mission lines and di stribution equipment between Yanhee and :Sangkok. Other Acti vitie s A Bank survey mission went to Thailand in 1957 , spending a year there working in close cooperation with a group of Thai experts 1·1ho later formed the nucleus of an economic development council established on t:1e mission 1 s recommendation, The mission 1 s report, presented to the Thai Government early in 1959, stressed the need for increased revenues, ilnproved economic administration, and a more careful use of natural resources , An important consequence of the report was the establishment of a new policy for attracting foreign private capital to investment in industry , -59- 1'.HF. INDUS WATER TREATY A Tre.:-. ty governing the use of the waters of the Indus system of rivers, entitled 11 The Irrlus \foter Treaty 196011 , was signed on 19th September in Karachi, by Shri Jawc.harlal Nehru (Prime :finister of India) on behalf of India and by Field '.'1arshal ~fohammad Ayub Khan (?resident of Pakistan) on behalf of Pakistan. The Treaty was signed on behalf of the World Bank by Mr . W. A. B. Iliff, Vice President of the Bank. Signature of the Treaty marked the end of a critical and long- standing dispute between India and Pakistan, and opened the way to the peaceful use and development of water resources on which depends the livelihood of some 50 million people in the two countries . Simultaneously with the signing of the Indus 1,Jater Tr eaty , an international financial Agreement was also executed in Karachi by repre- sentatives of the Governments of Australia, Canada, Germany, New Zealand , Pakistan, the United Kingdom and the United States , arrl of the World Bank . This Agreement created an Indus Basin Development Fun:i of almost 1900 million to finance the construction of irrigation and other works in :Oakistan consequential on the Treaty settlement. The Furrl i s being financed with the equivalent of about t640 million to be provided by the participating governments, with a contribution of approximately r 174 million payable by India under the Water Treaty , and with ~· so million out of the proceeds of a World Ban!c loan to Pakistan. -60- INDUS BASIN SETTLEMENT PLAN \ ~ t N RAWALPINDI 0 1 TAIMMU.'.M EROZEPOAE 1 I I / ,, ,, S~J-{IMANl N UHT1I.D ITATU ntrs 140 BA Port ticvtlopmcnt . May 4, 19S6 1960-1976 4%~ 14.000.000 284,(h)() 13.716,000 10,814.660 J,18S,140 TOTAL 19.3SO.OOO 614,000 18,726,000 IS,S70,l 13 3,779,887 <'WYLO"" IOI CE Beane pov.u- devdoprnent • JuJy 9, 1954 19S9-1979 •~CC 19,110,000 2.610.000 990,000 IS,SI0.000 14,363.1•9 2,ll6.8Sl 209 CE Ekctnc pov.'CI" de-.doprncnt . Sepe . 17, 19S8 1961 -1978 HiCC 7.400.000 717,00) 6,683.000 732,012 6.667,91tS TOT4'L 26,llO.OOO 2,610.000 990,000 717,000 22.19l000 IS,095,161 S.804.8'9 l"'OlA 17 IN Railway rchabtl11a11on Aua. 18, 1949 19S0-1964 •"C )4,000,000 1,200,000 8,276,840 17,743,630 13.S2J,S82 6,779,SlO 32,800.000 19 IN Agncul1ura1 dcvtlopment Sep!. 29, 1949 19l2·19S6 Hi% 10.000.000 2,796,187 2,263,000 4,940,813 •.940,813 7,203,813 2J IN 1:.lectnc po""cr development . Apr. 18. 19SO 19H·l 970 43 18,500.000 1,779,500 1,339,CY.X> l.869,000 3,Sl4,000 9,5 12,SOO 16,720,SOO 721N Damodar mult1·purpose projCCt Jan 23. !9S3 19,6-1977 4Ji°'(, 19,J00,000 9.000,000 1,061,000 84S,OOO 318,000 8,594,000 10,500,000 167 IN Railway 1mprO\cmcnu July 12,.19S7 1961-1972 S)1"0 24,000,000 24,000,000 24,000.000 168 IN Ra1l.,.ay 1mprovcmcnts July 12,.19S7 1961-1972 S)oa"(, 19,110,000 19,110.000 19,110.000 169 IN Railway imJ'f'O\'emcnts Jul) 12,.19S7 1961-1972 $)1% 11 ,200,000 11,200.000 11.200,000 1'70 IN Ra1l.,.-ay 1mprovcmcnu Jui} 12. 19S7 1961-1972 S\i'O ll.700.000 ll.700.000 35,700,000 203 l"il Ekctnc power dcvdopment • Jul) 2J, 19S8 1961-1978 Hi CC, ll.000.000 262.810 lA,737,190 16.879,971 8,120.0'9 207 IN Railway improvements • • Sc~. 16. 19S8 1963-1979 SS,4"(. 85.000.000 2,003,000 82,997,000 ss.000.000 223 IN Elcctnc powtr dc~lopmcnt . Apr. 8, 1959 196S-1984 S~"{, 2l,OOO,OOO 2l.OOO.OOO S,831,S38 19,168.462 233 IN Railway improvements July IS, 19)9 1963-1979 6% l0,000,000 ),762.000 ~.238.000 S0,000.000 262 IN R a1J.,.,ay 1mpro.,.cments July 29, 1960 1964-1980 S%% 70,000,000 70,000,000 'Ole J Ff'/lllA (Guarantor) I ndian Iron&. Steel Company 71 IN I ron and steel expansion . Doc. 18, 1952 19S9-1967 4% 3 3 1,J00,000 1,480,000 3,137,000 700,000 700,000 26,18.l,OOO 28,660,138 l,.)S9,862 I nd.an Iron &. Steel Company U9 IN Steel expansion Dec 19, 19S6 1960-1967 soa 20.000.000 1,032.000 1.0J2.000 18,968.000 16,7S0,196 1,249,804 Ta11 Group or H)dn'I Compania 106 11' E.kctnc po.,.~r development . ?-oov. 19, 19S4 19S8-1974 41.4°C 16,200.000 2.ll0.000 1.364.000 l,J6.1,000 12.'116.000 12.985.283 964,717 Tata Group of H)'dro Compamcs 164 IN Elcctnc Pl).,.~r dc\" 1.113,000 27.887,000 7.379.309 21,620,69 1 Trus1cu or the= Port of Madru 199 IN Port improvements June 2S, 1958 1963-1978 SY,% 14.000.00> l92,000 13,-408.000 2,782,392 11,217,608 TOTAL 680,610.000 70,000,000 18.~S.687 18,688,840 ~7.782,2S3 27.767,395 ~U.633.210 S1:,32S.946 79.778•.l67 '""..,.., (GcuranrM) J,aJ'ltln O.,"'CJormcnt Bank 89 JA Elet1nc poWC'I'" (Kansai) • Oct. IS. 19S3 19S7-1973 sc;. 21.J00.000 922,429 1')8 S.06S.113 J.SSl,773 t.S.Sll.000 20.sn.sn Japan Oc~k>pmcnt Bank 196 JA £Jeane poWC'I'" (Kansai) June 13 19S8 1962-198) Hi'O 37.000.000 1,070,000 ll.930,000 34,833,389 2.166.611 bpan Japain Japan Dc:~lopmcnt Oc..,clopmcnt Dcvtlopmcnt Bank Ba.nk Bank 90 91 JA JA 20S JA Ekctnc J)OWCf (Kyushu) . Ekctnc J)Ower (Chubu) £.lcctnc po"Wer (Chubu) Oct- IS. J9S3 Oct. 15, 1953 Sept. 10. 1958 19S7·1973 19S7-1973 1962-1983 '"' '"' H1-'1, 11.200.000 7.J00.000 29,000.000 749,680 1,00,611 63,627 147.389 2.lll,694 1.S?0.000 682.000 1,774,694 1,071,000 7,8)2,999 4,780.000 28.318,000 10,450,320 6,4S6.l89 17.423.144 I I ,'76.8~6 Jaran Dc-...clopmcnt BanJ. 133 JA Steel plate mill (Ya""ata) Oc.1. 2S, 19SS 19S8-1970 4%"' 0 l,300,000 171,142 1,l28,000 960.000 3.600.8l8 S,128,8S8 Japan Development Bank 239 JA St«l pr oduction (ac;1h1ics (Yawata) Nov. 12, 1959 1962-197l 6~ 20,000,000 2.0ll.000 17,945,000 13,231.160 6,768.840 Japan Oc~lopmcnt Bank 136 JA lndustnal pro.ieicu feb. 21, 19S6 19S8-1971 4'4% 8.100.000 l39.m 463.44S 2,118.000 1.190,000 4,979.000 7,S60,44.S Ja~n Dcwlopmcnt Bank IS7 JA Steel stnp mill (Kawasaki) Dec. 19, 1956 1%0-1971 S°"o 20.000.000 l.300.991 618,000 16,699,009 20,000,000 Jarsa.n lk\elopmcnt Bank 188 JA Steel producuon fac1hucs (Ka.,.asak1) Jan. 29. 19 '8 1960-1971 S\i('"'o 8.000.000 l.S31.000 238,000 6,469,000 8.000.000 Japan Oc~lopmcnt Bank 200 JA E.kctnc po...·cr (Hokunku) June 27, 1958 1961-19113 S)1% ll.000.000 936,000 24.064,000 ll.000.000 bpan Dc\ck>Jtmtnt Bank 201 JA Stttl produchon (aahtJCS (Sum11omo) July II, 19S8 1961-1973 s~co 13,000.000 J.OOl,000 29.997.000 27,696,970 S,JOJ.OlO Japan De\elopmcnt Bink ~JA St«I production (aohties ( Kobe) Aue- 18, 19S8 1960-1973 S'\O:- 10.000.000 7.000 1.l4~.810 2l0.000 8.6'4,190 10,000,000 bran f)c\·dopment &nk 206 JA St«I prOOuchon (Klimes (N1rpon Kokan). Sept. 10, 19~8 1960-1973 s1,.,c-; 22.000.000 2,913.000 19.087.000 19,826.91S 2,17l,Olll hpan Dcu·lopmcnt Bank 220 JA Electric power (M1boro) . Feb. 17. 19S9 197.. 1983 .514% 10.000,000 10.000.000 8,368,010 1,61 1,990 Japan Dc-...ctopment Bank 238 JA Steel production (ac1htics (FUJI) f'olO\. 12. 1959 1962-197$ 63 24,000,000 2,566,000 21,434,000 17,621,060 6,!78,940 Land l>cvtlopmcnt Corporation 1S8 JA Land rcclamauon . Dec. 19, 19S6 19S9-1971 S% 4,300,000 2SS,OOO 427,000 l,618,000 J,IS23,07S 476.92S Atehl lrriptinn Public Corp 171 JA Mult1-rurpnv proj«-c Au1. 9, 19S7 1961·1977 5\{i% 7,000.000 2,100,000 - 721.000 4.179.000 4,l.58,9ltJ 641.074 f'.o1hon Doro Kodan 248 JA H11h.,.;ty coru1ruction Mar. 17, 1960 1963-1910 6~% 40,000,000 l ,630,9S2 38,369.043 7,464.858 32,SH,142 TOTAL 342.900,000 _ _ _ S.S26,417_ _ 937,259 34,979,220 9,6S3,467 JOl,4S7,104 267:721,090 69.6S2.493 STATLME~T OF I OANS· SE:.PTEMRER JO, 1960 (con tin ued) l>.f'UMCO I~ L...-rn.o ST...TES ct.;t.t.£, C'Y ifo,ro•1r•...Jr11114r1111rtN· MA I.A YA ((i1.t<1T(Jlf/Qf') ...... ...... l'~ftmtwl'OJ«I .......,,,,,.,,,,., U.uef \to/MrWf'I llllt'f#JI ~" ('"''....., CW"'''""""") ._ Onruwl ,.,.j.. ..., ~/ '--~ - ! f f 'I tlttll..,. C111tedlo1~. ln...Ullt41Wltl ·"" HfiUdJWI ,.,_..,., ,,,,.._ ..,,, ,......re f#ffllW ... 4.luJtl ., ,,.,HJ'• H HfJ' TollflNlf'I flWl-••WHwNI' 'f.::!'t' .... 1.,1411,. ,.,Ute,,., -~ ..,._,ud .,.,., '"""'"'"~ ....... ,_.,. ''~'"' (cntral Uc.;:tnciry Boord 210 MA l:.lcctric oower dcvclopr~ Sept. 22, 19S8 1964-1 983 SW'(, s 3l.600.000 s s s - _ S_ l ,280.000 S s 34,320,000 s 3,606,944 s Jl,Y91,0~h 60 PAK Ra1lw~y ~hab1htation Mar. 27, !9S2 1954-1967 4,..% 27,200.000 - 10 .660.400 93l,600 9JS,600 IS,604,000 26.708,788 491.212 62 PAK Asncultur1I ~'Clopment June 13. 19S2 19S4-19S9 4 1il(""c 3.2$0,000 - 2.2ll.OOO 997.000 997,000 3.2l0.000 - 180 241 PAK PA K Ra1lv.-a) 1mpr0\cmcnts Ra1l11oa) 1mrr0\c:ncnts . Oct. 18. 1957 :"-O\ JO, 1959 1961-1973 196\-PHS 6''• 6(·, 31,000,000 12.~.000 - - 8l0000 949.000 30,llO.OOO 11.ss1.oco 2J.4CM.J29 , ~~.~71 IU00.01.'10 2b6 PA fl.. Indus B~\1n dc:'clormcm 5'f'OjCCI Sc:pt 19, 1960 197Q..l'XIO N{)t~ 90.000.000 90.000.000 P.O .. ISTA' (GuarlUl'/or) Sui Gu Tran1mmt0n Co. "'-Jrach1 Flrctric Suppl) Corp. 99 PAK 120 PAK "laiural ps pipchne FlectrlC po1.••cr dc'clopment . Ju~ Ju~ 20, 2. 1954 1955 1956-1974 1957-1970 4l4<'(: 4\)<"} 14,000,000 1).800,000 - - -23,41S 574,000 448.400 1,806.000 2.049,600 1,806,000 2.049,600 11,620.000 11,27!1.~MS 14,000,000 13,776.585 "'- ara,h1 I. lccmc Supply Corp !91 PAK Llccmc pov.tr dc,clopmcnt . Apr. 23, 1958 1963-1978 5'h,f'(. 14,000.000 - 198.000 13.802.000 2,458,994 I l,'\41.006 l\ ar;u.:h1 Llc<:1 nc Supply Corp. 234 PAK Eltttric powtr development . Aug. IJ. 19S9 1962- 1974 6% 2,400,000 - 31(),000 2 .070,000 940.237 1,4,9,76) Karnaphuh Paper Mills, Lid. Tru~t~ of the Port of Kar.J.i.:h1 125 126 PAK PAK Con1tru,t1on of papcr and pulp mill Port con1truc11on and dc\'clopmcnt A ua. Au11 4, 4, 1955 1955 19S6-1 970 1%0-1980 4\ll(i 4 1•3 .$,200,000 14,800,000 - - - 245.000 ll8 77S,000 216,842 775,000 216,842 ],180,000 14,581,000 4.200.000 10.318,773 - 4,4111.227 P I ( I. ( P I (' I (_ 185 236 PAK PAK De,·c1ormcn1 ~ pm·atc industf) lk\-clopmtnt of Pf"l\'BIC industry Ike. 17. ~pt. 25, 1957 1959 1962·1972 1962-1969 ....... 5 1 4C-: 4 ,200.000 10,000.000 - 4,200.000 10,000.000 2,873,293 1:!6,9('9 l ,\26.707 9.)l'"l.o->I TOTAL 241.HO.OOO 90,000,000 23.41S 14, 180.958 9,107,(M2 6., 780.04_2_ _12~.0J~tSU 102.147!908 4~. 1 11'- . ti77 - PHll.lf'f'l'l.S (Guarantor) '-.umn.11 Pqv.cr CorporalK>n 181 PH E.lcctrw.: pt).,...Cf Jc:,clopmcnt No\. 22, 1957 1%0-198: 6"r 21.000.000 2,l00,000 - 987,()(W) 17,SIJ,000 16,617.610 l,RCl!,lkO JS TH 36 TH Ra1lw-•y rchabd1t.at1on lma.a11on pro,ect . Oct. 27, 1950 Oct. 27, 1950 19S4-1966 19S6-1971 1% 3 43 3,000,000 18,000,000 - - - - 1.197,000 4,144.000 189,000 796.000 189,000 - 1,614,000 13,060,000 3,000,000 18,000,000 THAILA."'O (Guaranror) 37 TH Port cor.strucuon and de~-elopment Oct. 27, 1950 19S4-19'66 3¥4 3 4,400,000 - - 1.758,000 27S,000 275,000 2,367.000 4,400,000 S1a1e Railway of Thailand 128 TH Railway rchlbd1ta11on Aue. 9. 195S 1958-1910 4 )iie'} 12.000.000 - - 779,000 1,IOS,000 1.IOS,000 10,116.000 11,907,671 92.329 Pon Au1honty of Thailand ISi TH Port constructlOfl and ~'Clopmcnt Oct 12. 1936 1958-1971 4%~ 3,400,000 - 140.922 282,078 184.000 184,000 2.793,000 3,259,078 Vanhee I .lectncny Authonty 17S TH \1ult1'i)Utpose prOJ'(':t Scpl. 12, 1957 1%3- 1982 S'~C-C 66,000,000 - - 66.000.000 21,428,666 44,S71,JJ.4 TOTAL 106,800,000 140,922 8.160,078 2.$49,000 1.7SJ.OOO 9S.9l0.000 61.99S.41S 44.661.661 GRAND TOTAL $1 0474,120.000 SHi0.000.000 $29,306,441 S4J.S81,IJ5 SI07.401 .51S S4S,9H,904 Sl,IJJ,830,909 S99S.080, 197 S2R9,7JJ,362 ···~ ;. -