CiZ 2r7,1- c,-u7Documat of

The World Bank

`)R OFFICIAL USE ONLY

Rqept No. P-6169-CRA

MEMORANDUM AND RECOMOFNDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL DEVELOPMENT ASSOCIATIOE

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED CREDIT

OF SDR 148.5 MILLION

TO

THE PEOPLE'S REPUBLIC OF CHINA

FOR A

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

FEBRUARY 1, 1994

MICROGRAPHICS

Report No: P- 6169 CHAType: MOP

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authonzation.

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CURRENCY gQUIVALENTS(as of January 1, 1994)

Currency unit - Yuan (Y)$1.00 - Y 8.7Y 1.00 - $0.115

WEIGHRI AND MEASURES

1 meter (m) = 3.28 feet (ft)

1 kilometer (km) - 0.62 mile (mi)1 hectare (ha) - 15 mu1 ton (t) = 1,000 kg

- 2,205 pounds1 kilogram (kg) 2.2 pounds

- 2 jin

ABBREVIATIONS AND ACRONYMS

ABC - Agricultural Bank of ChinaPEPB - Provincial Environmental Protection Bureau

PLC - Project Leading GroupPMO - Project Management OfficePPMO - Provincial Project Management Office

FISCAL YEAR

January 1 - December 31

FOR OMCIAL USE ONLY

CHINA

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Credit and Proiect Summary

Borrower: People's Republic of Cbina

Beneficiaries: Liaoning and Jilin Provinces

Amounts SDR 148.5 million ($205 million equivalent)

Terms: Standard, with 35 years' maturity

Financina Plan: Local Forei2n Total----- ($ million) ---------

IDA 18.2 186.8 205.0Provincial, prefecture,

municipal and countygovernments 62.6 0.0 62.6Commercial banks 57.8 0.0 57.8Enterprises and farmers 56.9 0.0 56.9

Total 195.5 186.8 382.3Economic Rate

of Return: 32 percent

Poverty Catexorys Not applicable

Staff AppraisalReport: Report No. 12374-CHA

MaDs: IBRD 24858, 24859

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT BANK

TO THE EXECUTIVE DIRECTORSON A PROPOSED CREDIT

TO THE PEOPLE'S REPUBLIC OF CHINAFOR A SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

1. *I submit for your approval the following memorandum and recommenda-tion on a proposed development credit to the People's Republic of China forSDR 148.5 million ($205 million equivalent) to help finance the Songliao PlainAgricultural Development Project. The proposed credit would be on standardIDA terms, with a maturity of 35 years. The proceeds of the developmentcredit would be onlent to Jilin and Liaoning provinces for 15 years, including5 years of grace, with interest at 5.3 percent per year. The foreign exchangerisk and commitment charges would be borne by the provincial governments.

2. Backaround. China's sustained rural reform progrsm, with itsintroduction of the production responsibility system, has revitalized theagricultural sector, increased producer prices and enlarged the role of themarket. Agricultural GNP increased at 6 percent per year during the 1978-92period in real terms. While significant growth in grain production wasachieved in the early part of the period, stagnatin8 grain production duringthe latter years has been the Government's central concern, and more effortshave been made to increase grain production. They appear to have had consid-erable success and production has recently risen to a new plateau of around440 million tons in 1992. The Government's strategy to increase grain produc-tion includes diverse measures, such as increasing state investment in irriga-tion rehabilitation and expansion, restoration of saline and alkaline land,and introduction of reforms in grain procurement, distribution, prices andsubsidies. The reform program to date, involving the steady elimination ofgrain consumption subsidies, the substantial reduction of grain procurementquotas, the opening of the internal grain trade to all intere.ted units andindividuals, the commercialization of grain wholesaling and retailing enter-prises and the establishment of a futures market in grain, all aim eventuallyat market-determined pricing of virtually all grain in China. These reformshave changed the grain balance from shortage to surplus in several regions ofthe country, including the proposed project area in respect cf corn, and thishas determined the design of the project.

3. The proposed project would be located in the Songliao plain, whichlies in central Liaoning and western Jilin Provinces. The plain is an impor-tant food and feed production area but suffers from serious waterlogging,salinity, seasonal drought and flooding, and wind- and sandstorms, which con-tribute to low crop yields and rural poverty. The project area would belocated in 40 counties of the plain (among which are 12 classified among thepoorest counties in China) and covers 2.4 million ha of arable land farmed by2.5 million farm families. Corn is the major crop, with wheat, paddy andsoybeans as the minor crops. Long cold winters limit the growing season anddroughts during the critical spring period frequently lead to crop failure.

4. Lessons Learned from Previous Bank QRerations. Completed projectssimilar to the one proposed have indicated the most effective approaches to

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correcting waterlogging and salinity problems and the organizational and man-agement requirements of integrated rural development operations. In light ofthe lessons learned in these projects, the design of thid project incorpo-atesthe following features: (a) the use of proven irrigation and drainage tech-nologies to correct waterlogging and soil salinity; (b) carefully balanced,joint use of ourface and groundwater and alfalfa planting for salinity con-troll (c) rational vater resource management and effective operat&on and main-tenance of facilities to ensure sustainability; (d) supply of sufficientinputs to maintain the agricultural productivity of reclaimed areas; (e) pro-vision of technical experts to assist in the design and management of agropro-cessing facilities; and (f) effective coordination of organization units atall levels.

5. Rationale for Bank Groui Involvement. The Bank's Country Assis-tance Strategy presented to the Board in August 1993 highlighted an intentionto support interventions in the agriculture sector aimed at income enhancementand poverty alleviation in regions of concentrated absolute poverty. Theproposed project is a direct outgrowth of that strategy as it is designed topromote sustainable agricultural practices in impoverished and environmentallyvulnerable regions. The project would address the key constraints limitingagricultural productivity in the project areas: soil salinity and waterlog-ging problems, wind- and sandstorm damage, the shortage and poor quality ofirrigation water, inadequate crop diversification, poor inputs and feed qual-ity, limited availability of extension services, and weak linkages betweenproduction, processing and marketing activities. During the project prepara-tion process, IDA involvement resulted in a change in project design fromprimarily an irrigation and grain production project to one that emphasizeslivestock and agroindustrial production and, thus, results in stronger income-generation potential. IDA's continued involvement would promote the efficientuse of limited resources, introduce appropriate new production and processingtechnologies, and promote better planning and management to respond to marketdemands. It would do this by strengthening research and extension, supportingtraining for farmers, researchers, extension agents and managers, and provid-ing technical assistance. IDA participation would also be instrumental inintroducing environmental standards in the design of agroprocessing plants,developing monitoring systems and promoting environmental protection prac-tices.

6. Project Obiectives. The main objectives of the project would be toincrease agricultural production, farm-family incomes and rural employw*at.The proposed project emphasizes the effective use of existing resources toincrease agricultural production and processing in response to market demands.The project would increase the hectarage of productive lands by expandingirrigation and drainage facilities, developing unutilized wastelands, anddeveloping intertidal areas for aquaculture production. In the course ofdeveloping hilly wasteland into fruit orchards, programs of soil and waterconservation would be introduced. The project would also diversify crop pro-duction away from corn to rice and wheat and would invest in livestock pro-duction and agroprocessing activities to make use of surplus corn andby-products. It would include components where women are the primary benefi-ciaries.

7. Proiect DescriDtion. Over a five-year period, the project would:(a) reclaim wastelands for paddy production, convert low-yield corn areas into

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irrigated wheat hoctarage and solve waterlogging problems by financing invest-ment in new and rehabilitated low-lift surface irrigation and drainage net-works; (b) construct check dams, gully head protectors, intercepter channelsand associated cross-drainage works; carry out afforestation with larch andpoplar; (c) provide farm inputs, support purchases of farm machinery by farmergroups, improve management and facilities of farm machinery stations andstrengthen crop extension services; td) support development of marginal landsfor orchards, improve existing orchards of apples, pears, apricots and apple-pears and finance construction of fruit cold stores; (e) provide for the inte-grated prcduction and processing of cattle, sheep, rabbits, deer, pigs andgeese; end strengthen livestock support services; (f) develop low-lying mud-flat wastelands for shrimp, shellfiah and river-crab production; and constructand equip hatcheries and cold stores; and (g) construct or rehabilitate andequip various agroprocessing and agroindustrial facilities that utilize agri-cultural outputs or by-products and produce corn starch, industrial alcohol,gelatin, fruit juice, edible oil, paper (from straw and dogbane), textiles,leather, other products. The proposed project would also strengthen overallproject management, resesarch and extension, and the environmental protectionprogram by providing equipment, technical assistance and train:.ng.

8. Prolect Implementation. The Liaoning and Jilin provincial govern-ments would be responsible for overall project implementation. In each prov-ince, a project leading group (PLG) headed by a vice-governor would be com-posed of members from the bureaus of planning, finance, water conservancy,agriculture, livestock, aquatic products, environmental protection and audit,the women's federation, and the Agricultural Bank of China (ABC). The provin-cial PLGs would formulate policy guidelines, examine and approve projectplans, oversee project activities and facilitate interagency coordination atthe provincial level. Provincial project management offices (PPMOs) would beresponsible for project design, planning and execution. The PPMOs would beassisted by the provincial government's technical bureaus in planning, orga-nizing, executing, monitoring and evaluating project activities. The provin-cial PLGs and PMOs would be assisted by PLGs and PMOs set up at the prefec-ture/municipal and county levels to supervise project activities at thoselevels. The project cost is estimated at $382 million equivalent, with aforeign exchange component of $187 million (49 percent). The Associationwould finance $205 million equivalent (54 percent). To facilitate earlystart-up activities of the project, retroactive financing of up to $14.5 mil-lion equivalent is proposed for expenditures made after July 15, 1993. Thebreakdown of project costs and the financing plan are shown in Schedule A.The amounts and methods of procurement and disbursement and the disbursementschedule are shown in Schedule B. A timetable of key project processingevents and the status of Bank Group operations in China are presented inSchedules C and D, respectively. Maps IBRD Nos. 24858 and 24859 are alsoattached. The Staff Appraisal Report, No. 12374-CHA, dated February 1, 1994is being distributed separately.

9. Proiect Sustainabilitv. Project components have been rigorouslyevaluated for their financial, economic and environmental viability. Theproject would promote technical sustainability by financing research andtraining programs and promoting research and extension linkages through theestablishment of techrical committees. It would provide management sustaina-bility by providing training to the PM08 and technical staff. Managers of theenterprises financed under the project would also be trained in modern manage-

ment and marketing techniques. The project would promote coat recovery in andcommercialization of a range of support services that would be self-financingover time. Three revolving funds for inputs financed by the project wouldensure sustained availability and finance of essential inputs. The projectwould set up a water monitoring and evaluatlon system and develop a waterresources plan for the provinces. An environment monitoring program isincluded for each province te monitor agroindustrial effluent and, inLiaoning, to monitor water quality in the Bo Sea. Sustainability of the irri-gation and agroindustrial capital would be enhanced by maintenance and opera-tion programs to be established under the project.

10. APreed Actions. The main assurances that were obtained at negotia-tiono are as followss (a) Jilin -ould construct the farm-level drainage net-works related to the Songqi irrigation scheme in accordance with constructionplans satisfactory to IDA; (b) dams and reservoirs supplying the irrigationsystems under the project would be maintained and inspected periodically inaccordance with sound engineering practice, under arrangements satisfactory toIDA; (c) the Liaoning PMO would provide an annual report on groundwater moni-toring and assessment in each of the different project areas during the periodHay 1 to April 30 by October 31 of each year; (d) Jilin and Liaoning Provin-cial Environmental Protection Bureaus (PEPBs) would approve the final designsof the treatment facilities for each agro- and livestock-processing plantprior to constr-iction, and these enterprises would implement and maintaineffluent monitoring and treatment systems according to the final designsapproved by the PEPBs; (a) the provinces would ensure that any persons whowould be involuntarily resettled or whose rights to land are compulsorilyacquired as a result of the project development would be provided compensationfor assets, logistic support and relocation assistance; (f) the Jilin PMOwould prepare a plan for operation and maintenance of the pumping stations inthe irrigation and drainage schemes and submit it to IDA for review byJune 30, 1996; and (g) the PMOs would charge farmers the full cost of importedfertilizers and pesticides.

11. Environmental Asgects. Some project components would have positiveeffects on the environment. Others would generate pollutant emissions whichwould require management and treatment. The irrigation and drainage componentwould reduce the effects of drought, flooding, waterlogging and salinity. Thesoil and water conservation measures would provide a model for the managementof watersheds to reduce soil erosion. Livestock manure would reduce theamount of chemical fertilizer used and improve soil fertility and texture.Possible adverse environmental impacts from agrochemicals and effluent dis-charged from agroprocessing plants w_-ald be minimized by careful monitoringand specific treatment programs designed under the project.

12. Program Oblective Categories. The project would be carried out inpoor counties and would provide opportunities for women to participate inincome-generating enterprises, such as pig, rabbit and geese production. Theproject would increase participation of women in all types of project-relatedtraining activities, especially as candidates for in-service training in vet-erinary, agriculture, livestock and aquaculture extension. Women farmer tech-nicians and women farmers would also be selected for 40 percent of the techni-cal training opportunities under the project. The environmental monitoringprograms in the project areas along the Bo Sea would reduce contamination ofshellfish industries. Commercialization of enterprises and cost recovery for

support services under the project would reinforce the government's ongoingreform program.

i3. Proiect Benefits. The project would directly increase incomes,employment and living standards of some 518,000 farm families. At full devel-opment, crep development under the project would generate incremental sanualproduction of 177,000 tons of grain (paddy, wheat and soybean) valued at $30.5million in 1993 dollars and 187,600 tons of fruit (apples, pears, apricots andapple-pears) valued at $56.1 million. In aggregate, crop and orchard develop-ment would provide incremental value, after adjusting for the associatedreduction in corn output ($2 million), of $86.6 million annually. The live-stock component, including the value of processing, would provide incrementalproduction of beef, mutton, rabbit mest, goose meat and deer antlers togethervalued at $37.5 million annually. The aquaculture component would generateincremental production of shrimp, shellfish and crabs valued at $24 millionannually. The agroindustrial plants would produce total value-added of $40.2million per year. The project's total incremental annual production would be$188 million. At full development, average net farm income from crop produc-tion would be tripled (from $55 to $175) or quadrupled for orchard development(from $290 to $1,150). The project would provide substantial employment forthe rural labor force, in particular, income earning activities and job oppor-tunities for women. The project economic rate of return would be 32 percent.

14. Risks. The project faces no unusual technical or organizationalrisks. Under the project, management of project entities would be strength-ened, and farmers who already have experience and basic knowledge would befurther trained. The potential risks to effective livestock production, i.e.,ineffective straw ammonification and pasture development, would be minimizedby applied research and monitoring. The risk of insufficient inputs for cat-tle fattening [live cattle and brewery wastes (for feed)) has been minimizedby sizing the cattle subcomponent according to verified input availability andfarmer-group contracts with breweries. The risk that shellfish areas would becontaminated by industrial waste has been minimized by careful site selectionand strict monitoring programs. The potential marketing risk for agroindus-trial and livestock products would be minimized by provision of technicalassistance and improved processing technology, quality and design.

15. Rec_mendatqons. I am satisfied that the proposed developmentcredit would comply with the Articles of Agreement of the Association andrecommend that the Executive Directors approve the proposed credit.

Lewis T. PrestonPresident

Attachments

Washington, D.C.February 1, 1994

- 6 - Schedule A

CHINA

SONGLIAO PLAIN AGRI?ITLTURAL DEVELOPMENT PROJECT

Estimated Cogts and linancina Plan

($ million)

Local Foreign Total

Estimated CostsIrrigation & drainage 16.9 12.5 29.4Field crop development 4.7 16.8 21.5Orchard developmern 17.9 12.4 30.3Soil & vater conservation 2.7 1.3 4.0Livestock development 39.3 19.9 59.2Livestock processing 15.9 16.2 32.1Aquaculture 11.5 8.9 20.4Agropro.cessing 37.0 69.5 106.5Institutional support 1.7 3.6 5.3

Base Costs .a 147.6 161.1 308.7

Physical contingencies 7.3 14.2 21.5Price contingencies 40.6 11.5 52.1

Total Project Costs 195.5 186.8 382.3

Financina PlanIDA 18.2 186.8 205.0Provincial, prefecture, municipal andcounty goverrnments 62.6 G.0 62.6

Comercial banks 57.8 C.0 57.8Enterprises and farmers 56.9 0.0 56.9

Total finencint 195.5 186.8 382.3

La Project is exempt from taxes and duties.

- 7 - Schedule BPage 1

CHNA

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Procurement Methods and Disbursements(S mAillion)

Procurement meth' TotalICB LCB Other NIP project cost

Land acquisition & - - - 3.6 3.6crop compensation (0.0) (0.0)

Works - 42.9 18.2 - 61.1(20.6) (8.8) (29.4)

Machinery & equipment 60.0 24.8 28.5 - 113.3(55.8) (19.0) (18.3) (93.1)

Vehicles 7.4 - 1.5 0.9 9.8(6.3) (1.1) (0.0) (7.4)

Materials 32.1 21.0 34.7 - 87.8(28.9) (16.4) (22.7) (68.0)

Overseas training & - - 1.6 1.6technical assistance- (1.6) (1.6)

Domestic training & - - 5.5 - 5.5research (5.5) (5.5)

Design, engineering & - - - 33.2 33.2management (0.0) (0.0)

Labor - - - 20.0 20.0(0.0) (0.0)

Working capital - - - 46.4 46.4(0.0) (0.0)

TotaI 99.5 88.7 104.1 382.1(91.0) (56.0) (58.0) (0.0) (205.0)

Notess (1) kigures in parentheses represent the amounts financed by IDA,including contingencies.

(2) NIF - Not IDA-financed.(3) Others - Other procurement methods include force account for

works, direct purchase and shopping for small equipment and mate-rials, Limited International Bidding (LIB) for specialized vehi-cles, equipment and pesticides, training and consultant con-tracts.

- 8 - Schedule BPage 2

Disbursements

Category Amount Percent($ million)

Liaonina ProvLnce

Works 10.7 451

Goods 68.8 1001 of foreign expenditures; 1001of local expenditures (ex-factorycost) and 75Z of local expendituresfor other items procured locally

Training, study tours &technical assistance 2.2 100X

Unallocated 3.3

.Total 85.0

Jilin ProvInco

Works 18.7 502

Goods 91.8 1002 of foreign expenditures, 1002of local expenditures (ex-factorycost) and 752 of local expendituresfor other items procured locally

Training, study tours &technical assistance 4.4 1001

Unallocated 5.1

Total IV20.0

Egtimated Disbursements:IDA FY 1995 1996 1997 I199 1999 2000 2001

-------------------- ($ million) ---- …-_____________

Annual 30 42 41 41 24 19 8Cumulative 30 72 113 154 178 197 205

- 9 - Schedule C

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Timetable of Kev Prolect Processint Event_

(a) Tlime taken to prepares 19 months

(b) Prepared bys Government with FA0/CP and Associationaceistance

(c) First IDA Mission: November 1991

(d) Appraisal mission departure: June 1993

(e) Date of negotiations: January 1994

(f) Planned date of effectiveness: July 1994

(g) List of relevant PCRs and PPARss

Credit/Loen no. Pr*iect PCR date PPAR no.Cr 1261-CIA North China Plain 04/28189 7736Cr 1347|Ln 2261-CHA Heilongjiang Land Reclamation 03/06/90 -Cr 1577-CHA Seeds 10/05/91 -

This report was prepared by the following: R. Jaist -d (Mission Leader),W. P. Ting, U. El-Eanbali, C. De Haan, M. Sharma (TDA), D. Gue, A. Kaelin andG. Franzen (Consultants). Also involved in the preappraisal was Mr. A. Nell.Peer reviewers comprised Messrs. De Haan (AGRTN), Pritchard (SA2AG), Ochs(ACRNR), Chobanian, and Zweig (ASTEN). The Division Chief is Joseph Goldbergand the acting Department Director is Zafer Ecevit.

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Schedule DPage 1 of 3

STATUS OF 84NK GROUP OPERATIONS IN THE PEOPLE'S REPUBLIC OF CHINA

A. STATEMENT OF BANK LOANS AND IDA CREDITS(As of December 31, 1993)

Loan/ AMount CUSS ai llion)Credit Bor- (net of cancellations)Number FY rower Purpose Bank IDA Undisb. Ca)

21 loans and 38 credits have been fully disbursed. 1950.4 2190.9Of which SECAL:

2967/1932 88 PRC Rural Sector AdJ. 200.0 3.2

2501 85 PRC Changcun (Luan) Coal Mining 79.5 - 10.62540 85 PRC Railway II 220.0 - 6.41664 86 PRC Technical Cooperation Credit It 20.0 4.2

2678/1680 86 PRC Third Railway 160.0 (70.0)Cb) 34.62689 86 PRC Tianjin Port 130.0 11.02706 8S PRC 8elLungang Thermal Power 225.0 - 6.12707 86 PRC Yaritan Hy4roelectric 52.0 0.5

2723/1713 86 PRC Rural Health & Preventive Med. 15.0 65.0 28.82784 87 PRC Shanghai Machine Tools 100.0 3.81764 87 PRC Xinjiang Agricultural Dev. - 70.0 2.8

2794/1779 87 PRC Shanghai Sewerage 45.0 100.0 36.22811/1792 87 PRC 8eiJing-Tianjin-Tanggu Expressway 25.0 125.0 16.42812/1793 87 PRC Gansu Provincial Dev. 20.0 150.5 40.7

1835 87 PRC Planning Support & Special Studies - 20.7 7.42838 87 PRC Fertilizer Rationalization 97.4 - 2.22852 87 PRC Wujing Thermal Power 190.0 - 24.91871 88 PRC Rural Credit III 170.0 2.0

2877/1845 88 PRC Huangpu Port 63.0 (25.0)Cb) 30.42907/1875 88 PRC Oalian Port 71.0 (25.0)Cb) 3.7

1885 88 PRC Northern trrigation - 103.0 20.12924/1887 88 PRC Coastal Lands Dev. 40.0 C60.0)Cb) 6.4

2943 88 PRC Pharmaceuticals 127.0 4.62951/1917 88 PRC Sichuan Highway 75.0 (50.0)(b) 48.4

2952 88 PRC Shaanxi Highway 50.0 - 1.11918 88 PRC Daxing An Ling Forestry - 56.2 3.12955 88 PRC Beilungang II 165.0 - 25.62958 88 PRC Phosphate Dev. 62.7 13.22968 c.8 PRC Railway IV 200.0 50.51984 89 PRC Jiangxi Provincial Highway 61.0 7.01997 89 PRC Shaanxi Agricultural Dev. - 106.0 35.22006 89 PRC Textbook Development - 57.0 2.02009 89 PRC Integrated Reg. Health 52.0 19.73006 89 PRC Ningbo & Shanghai Ports 76.4 - 21.23007 89 PRC Xiamen Port 36.0 - 13.63022 89 PRC Tianjin Light Industry 154.0 93.9

3060/2014 89 PRC Inner Mongolia Raihway 70.0 80.0)b) 30.72097 89 PRC Shandong Agriculture Dev. - 109.0 7.73066 89 PRC Hubei Phosphate 137.0 97.1

3073/2025 89 PRC Shandong Prov. Highway 60.0 (50.0)(b) 26.43075 89 PRC Fifth Industrial Credit 300.0 - 134.02097 90 PRC Jiangxi Agric. Dev. - 60.0 19.72114 90 PRC Vocational & Tech. Educ. 50.0 11.52145 90 PRC National Afforestation 300.0 133.52159 90 PRC Hebei Agricultural Dev. - 150.0 72.42172 91 PRC Mid-Yangtze Agricultural Dev. - 64.0 24.1

3265/2182 91 PRC Rural Credit IV 75.0 200.0 81.03274/2186 91 PRC Rural Indust Tech (SPARK) 50.0 64.3 61.73286/2201 91 PRC Medium-Siz:1 Cities Dev. 79.4 52.9 79.5

3288 91 PRC Shanghai Industrial Dev. 150.0 - 147.92210 91 PRC Key Studies Development - 131.2 57.72219 91 PRC Liaoning Urban Infrastructure - 77.8 20.8

- II -

Schedule 0Page 2 of 3

Loan/ Amount (USS million)Credit Bor- (net of cancellations)Number FY rower Purpose Bank IDA Undisb.ta)

3316/2226 91 PRC Jiangsu Provl. Transport 100.0 (53.6)(b) 54.72242 91 PRC Henan Agricut. Dev. - 110.0 79.7

3337/2256 91 PRC irrig. AgricuL. Intensif. 147.1 187.9 176.23387 92 PRC Ertas Hydroelectric 380.0 115.32294 92 PRC Tarim Basin 125.0 88.22296 92 PRC Shanghai Metro Transport - 60.0 36.03406 92 PRC Railways V 330.0 238.?

3412/2305 92 PRC Daguangba Multipurpose 30.0 37.0 39.92307 92 PRC Guangdong ADP 162.0 129.5

3415/'312 92 PRC Beijing Environment 45.0 80.0 96.42317 92 PRC Infectious and Endemic Disease Cont - 129.6 103.13433 92 PRC Yanshi Thermal Power 180.0 104.02336 92 PRC Rural Water Supply and Sanitat. n 110.0 78.52339 92 PRC Educ. Development in Poor Prove. - 130.0 92.53443 92 PRC Regional Cement Industry 82.7 77.23462 92 PRC Zouxian Thermal Power 310.0 - 283.23471 92 PRC Zhejiang Provincial Highway 220.0 - 178.82387 92 PRC Tianjin Urban Devt. & Envir. 100.0 85.32391 92 PRC Ship Waste Disposal 15.0 15.22411 93 PRC Sichuan Agricultural Oevt. - 147.0 116.03515 93 PRC Shuikou Hydroelectric tI 100.0 - 82.72423 93 PRC Financial Sector TA - 60.0 54.13530 93 PRC Guangdong Provincial Transport 240.0 - 213.83531 93 PRC Henan Provincial Transport 120.0 - 100.52447 93 PRC Ref. Inst'l and Preinvest. 50.0 45.13552 93 PRC Shanghai Port Rest. and Devt. 150.0 - 147.02457 93 PRC Changchun Water Supply & Env. - 120.0 112.72462 93 PRC Agriculture Support Services - 115.0 110.4

3560/2463 93 PRC Taihu Basin Flood Control 100.0 100.0 171.12471 93 PRC Effective Teaching Services - 100.0 99.635?2 93 PRC Tianjin tndustry 11 (c) 150.0 150.03582 93 PRC South Jiangsu Envir. Prot. (c) 250.0 250.02475 93 PRC Zhejiang Multicities Devt. - 110.0 102.53581 93 PRC Railway VI 420.0 - 420.03606 93 PRC Tianhuansping Hydroelectric 300.0 300.0

3624/2518 93 PRC Grain Distribution 325.0 165.0 489.22522 93 PRC Environmental Tech. Assist. - 50.0 48.82539 94 PRC Rural Health Workers Devt. - 110.0 109.53652 94 PRC Shanghai Metro Transport It (C) 150.0 150.03681 94 PRC Fujian Provincisa Highways (c) 140.0 - 140.03687 94 PRC TeLecommunications CcO 250.0 - 250.0

Total 9870.6 6980.0 7378.9

of which has been repaid 790.2 5.6Total now held by Bank and IDA 9080.4 6974.4

Amount sold: Of which repaid - -

Total Undisbursed 4967.5 2411.4 7378.9

(a) As credits are denominated in SDRs (since IDA Replenishment VI), undfsbursed SOR creditbalances are converted to dollars at the current exchange rate between the dollar and the SDR.In some cases, therefore, the undisbursed balance indicates a dollar amount greater than theoriginal principal credit amount expressed in dollars.(b) Credit fulty disbursed.(c) Not yet effective.

- 12 -

Schedule 0Page 3 of 3

S. STATEMENT OF IFC INVESTMENTS(As of Decemrdber 31. 1993)

Invest- Type of Loan Equity Totalment No. FY Borrower Business ------ (USS Million) -----

813/2178 85/91 Guangzhou and Peugeot Automobile 15.0 4.5 19.5

974 88/93 China Investment Co. Investment 3.0 1.0 4.0

1020 88/92 Shenzhen China Bicycle 17.5 2.5 20.0Bicycles Co. Ltd. Manufacture

1066 89 Crown Electronics Electronics 15.0 15.0

1119 89/93 Shenzhen Chronar Solar Solar (a) 2.0 3.0 5.0Energy Energy

3423 93 Shenzhen PCCP Manufacturing 4.0 - 4.0

3150 93 Yantai Cement Cement 28.7 - 28.7

;4ot yet signed 93 JV Commercial Bank Banking - 7.5 7.5

Not yet signed 94 China Walden Ngt. Capital Mkts. - 7.5 7.5

Not yet signed 94 Dalian Glass Manufacturing 61.0 2.4 63.4

Total Gross Commitments 85.2 11.0 96.2

Less cancellations, terminations 17.9 - 17.9repayment and sales

Total Commitments now Meld by IFC 67.3 11.0 78.3

Total Undisbursed 28.7 2.0 30.7

(a) Loan subsequently cancelled.

12/31/93EA2DR

MAP SECTION

RUSSIAN FEDERATION

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