Report No. 935a                                                  FILE  COPY
Appraisal of
Caribbean Development Bank
March 3, 1976
Projects Department
Latin America and Caribbean Regional Office
FOR OFFICIAL USE ONLY
Document of the World Bank
This document has a restricted distribution and may be used by recipients
only in the performance of their official duties. Its contents may not
otherwise be disclosed without World Bank authorization.



CURRENCY EQUIVALENTS /
US$1.00   =   2.00 BD$                 (Barbados)
14= 1.46 B$                 (Belize)
=   237 EC$                 (Eastern Caribbean)  /
=   2.55 G$                 (Ouyana)
=  1.10 J$                  (Jamaica)
=   2.37 TT$                (Trinidad & Tobago)
-   1.00 -$                 (The Bahamas)
LIST OF ACRONYMS
CARICOM       Caribbean Cammunity
CARIFTA       Caribbean Free Trade Association
CDB           Caribbean Development Bank
DFC           Development Finance Companies
FIC           Farm Improvement Credit
FIO           Farm Improvement Officer
LDCs          Less Developed Countries
IDC0          More Developed Countries
OCR           Ordinary Capital Resources
SIC          &Sml Industry Credit
SiIL          Small Industry Loan Officer
SFR           Special Funds Resources
UK            United Kingdom
UNDP          United National Development Programme
USAID         US Agency for International Development
1/ As of December 1975.
t/Antigua, Dominica, Grenada, Montserrat, St. Kitts-Nevis-Anguilla,
St. Iucia, and St. Vincent.



FOR OFFICIAL USE ONLY
APPRAISAL
OF
CARIBBEAN DEVELOPMENT BANK
Table of Contents
Page No.
SUMMARY AND CONCLUSIONS  . . . . . . . . . . . . . . .*. . . . . . . .    i-iv
I,   INTRODUCTION   *                                                e
II.  THE ECONOMIC ENVIR1KMT   * ** ** * . . . . . . . . . . .               2
Background on the establishment of CARICOM   . . . . . . . . . .      2
The Agricultural Sector  . . .                                        4.  .  . . *0.  00 ..
The Industrial Sector         *      ..O O e**.*o****                 5
The Tourism Sector   *   * * * * * * O  O      . O  e   . . . . . .   6
The Transportation Sector  .      . ..        ..      0 0     e o 0   7
The Financial Sector:   .     .  .      .  . . .oo   o        * *     8
-  Monetary Cooperation and Coordination       a . O  . O  . e   .    8
-  Financial Institutions in CARICOM    . *           .   . e  e   0  9
-  Allocation of Financial Credit        * *      O * **e* o a * *    9
-  The Development of Specialized Financial Institutions  , . .       9
III.  THE CARIBBEAN DEVEILPMENT BANK   . . . . . . . . . . . . . . . .    10
Shareholders   . . . . . Q . .   . . . .   . . . . . . . .   . .    10
Objectives     .       . . . . .   . . .   . . . . . . . . . . . . . .    10
Policies   . .                 0 .a 0 . . .0 . . .0 .     0 . . .                 11
Board of Governors   . .     .   . . . . . §           a .  a .  a    11
Board of Directors   **.*.* ....*...*                                12
Management   . . * a .                                 . . . . .    12
Personnel and Organization      *.....   . a a        .....a        12
UNDP Project   . a     . . . . . . . . * *  .a . . . . o.            13
Promotion and Froject Identification   . . . . . . .      . . . . . .    13
Project Appraisal  *....... ....... 0   0.......... ...........      14
Project Implementation and Supervision   . . . . . . . . . . . .    14
procurement  . . . . . . .   .   . . . . . . . . o   . . . .  . .    15
Disbursements    . . . . . . . .   . . . 0  . . . . . . . . . . .    15
Accounting and Auditors  . . . . .   . .  . . .* a 0 .& .   a . . .  15
This document has a restricted distribution and may be used by recipients only in the performance
of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.



Table of Contents (cont.)                                            Page No.
IV.  CODB OPERATIONS AND FINANCIAL PERFORMANCE . . . . . . . . . . *15
Agricultural Operations  .  ,.    . .a. .. . 0     . . . . .      18
Infrastructure Project Lending . . . . . . . . . . a . . .   0    20
Industry and Tourism Lending  .. . . .  . . .   . .   . . .. ..   20
Commitments and Disbursements  .      .   ...... *. . .    .      20
CDB Resources  . * ... ....a..a..a....  . . . .. . .. . .* .      22
Financial Condition  . . . . ... .. ..... .a . * ..  * . . *      23
Projections of CDB Operations  . . . . . . . . . . . . . . .      23
CDB Interest Rate Policy . . . . . . .   .   . . .    . . . . .25
Projected Financial Condition  . . . . . . . . . . . . . . .      26
V.    THE PIJECT  ... ....  .. .. . .             . . . . .  .          27
Guarantees   . ........ .             . . .  . . . .    . *       27
Eligibility of Recipient Countries . . . . . . . . . . . . .      28
Free Limits  . . . . . . .  . .......... .                        28
Disbursements  . . . *  ..*. * * .                                28
VI.   RECOMNDTIONS  . . . . . . . ...              .                    29
This report is based on the findings of several preparatory missions between
1973 and 1975 and of an Appraisal Mission in June 1975 by Messrs. Ludvik,
Reich and Vidalon with assistance from Messrs. Calika, Greening and Goldberg
who were present at certain times to undertake specific activities related to
the mission's work.



List of Annexes
1.   Basic Indicators for CARIFTA/CARICOM Countries, 1971
2,    Organization Chart - CDB
3.    Board of Governors - CDB
4.    Board of Directors and Voting Groups - CDB
5.    Statement of Subscription of Capital Stock and Voting Power - CDB
6.    Loan Terms and Conditions - CDB
7.    Summaxy of Operations 1970/1974 - MDB
8.    Loans to the Agricultural Sector - CDB
9.    Loans for Infrastru.cture Projects - CDB
10.    Loans for the Industry and Tourism Sector - CDB
11.    Agricultural Lending Operations - Appraisal Mission Review
12.    Agricultural Loans by Kind of Program  - 1970/1974
13.   Loans to Agricultural Sector - Projected Commitments - 1975/1979
14.    Hotel Investments in the Caribbean
150    The LDCs Industrial Survey - Selected Statistics of CARICOM Manufacturing
16.    Summarized BaElance Sheet and Profit and Loss Statements - 1970/1974 - GDB
17.    Special Fund Resources
18.    Projected CDB Operations - 1975/1979:
-   Balance Sheet
-   Profit and Loss Statement
-   Analytical Ratios
-   Foreign Currency Allocation and Disbursements by Source of Funds
-   Foreign Currency Loans by Activity and by Year of Approval
-   Disbursement and Repayment Schedule
-   Assumptions for Projections
19.    Estimated Approvals and Disbursements of IBID (Conventional Bank Loan)
20.    Estimated Approvals and Disbursements of IBRD (Third Window Loan)
Map.  IBRD 10611






APPRAISAL OF
C J-IBEAii DBVEIPMENT BANK
SUIIARY AND CONCLUSIONS
i.        This reDort appraises two loans to the Caribbean Development Bank
(C Eb  tu ass-St _i t. .i_ancing of public and private sector projects in
agriculture, agro-industr, manufacturing industry, tourism, transportation,
public utilities, sites and services, and technical and vocational training
in CDB member countries.  The proposed conventional Bank loan of US$17 million
and Third Window loan of US$3 million would help to strengthen this important
regional instlitution and thereby assist in the economic development and inte-
gration of t e Caribbean region.  Furthermore, the Bank will increasingly look
to CDB, subject to its concurrence and that of the member countries concerned,
as a channel for its funds for projects which the CMB has the technical capa-
bility and staff resources to support and which the Bank would otherwise have
to finance directly,
ii.       The Bank has maintained a close relationship with the CDB since
its establishment in 197?.  CDB has since been designated an Associate
Instittuti.on of the Caribbean Community (GARICOM) with -wihich it shares the
central puapose of supporting the regional economic integration movement
mith special emphasis on the development needs of less developed mem-ber
countries.  The Ltnk is also the executing agency for a highly successful
Dl'DP technical assistance program which has been instrumental in identifying
and attracting West Indians for key 0DB staff positions.  CDB has quickly
and fixmly established itself as a going regional institution and has made
considerable progress during its first four years of operations in the re-
cruitment of a well-qualified and effective staff team, the building up of
a portfolio of prom˘ising projects, the providing of technical assistance to
borrcfwors,, and in the creation of a network of national development finance
institutions,  In the process, it has assumed an important catalytic role
in mobilising bi-lateral development aid to its Caribbean member countries.
C1B is now turning its attention to the problems of project implementation
and to assisting its me Qber countries in the formulation and implementation
of coherent national development strategies within a regional context.
iii *     Twelve English-speaking Caribbean territories I/ have joined
CARICOM in an. effo rt      in-tegrate and develop their economies by pooling
resources, by combini g market and bargaining power, and by coordinating
national development policies.  In this endeavor, the Caribbean countries
face the challenging obstacles of small size, geographic dispersion, the
vulnerability anxd openess of their economies and the persistent problems of
poverty and une.m^ployment. For the region as a whole, however, the resource
base, includng tourism assets and proximity to major markets, is good in
relatien to the size of the poulation.
1 fie gmp compURses-. five independent countries--Jamaica, Trinidad and
Tobago, Guyana, Barbados, and Grenada; five Associated States--St.
Vincent, St. Lucia, Dominica, Antigua and St. Kitts-Nevis-Anguilla;
and two Grown Colonies--Belize and Montserrat. The first four are
termed More Developed Countries 'MDCs) while the remaining eight are
called Less Developed Countries (LDCs).



- ii -
T-  e agJculuraX sector -ln th e Caribbean region is of strategic
iiportance as a source of foreign exchange, employment and income but it
has been characterized. paZticularly in recent years, by stagnation and
ever, decdlirnŽg OUtput,  TA e co-ntrzLes of the Caribbean region recognize the
mportarnce of revitalizinll  the ag ricultural sector. There are opportunities
for import substitution, and the recent strengthening of demand and prices
nr. the world mark&e  'or most Caribbean traditional export crops also provides
a  o-pptrnity for rehab..i ˝>  ^he export subsector.
The averagse         tion of the manufacturing sector to 1971 GDP
in aths MCs was about    can ad An the :DCs about 8%. The manufacturing sec-
tor consists largely of izgh .er industry and small-scale production
G- hi.1gh weighttto-alue racio goods (due to the protective element of trans-
port Cots).e  Heavy indwsr'v,  based  pon petroleum and bauxite resources is
fcru,d in the 1E!Cs, bu31t the  t.-nkage  ±th the rest of the economies is minimal.
The best; Toug-ter  prospecte aor industtrial growth lie in exporting outside
the region; increasing linkages ~etb, other sectors of the economy., particu-
ZarJt, agriculture; and restctior. of the heavy dependence on imported inputs.
industrializat-ion has been an important government policy objective in all
the islands since the 19$Os and the establishment of the Caribbean Free
Trade Association has contrVouted to an expanded volume of output and trade
based on highly protected production of consumer goods. Through CARICOM,
the countries of the region have agreed to work toward greater harmonization
of investmesnt and export incentives with built-in preferential elements for
the ILCs as a reans of ancouraging industrial development.
Vie       The tourism sector has led the growth of the economies of the region
and has provided the Caribbean countries with an important source of foreign
exchange and employment. Tourism arrivals rose at an average annual rate
of 12X during 1968-72 and are expected to increase at a similar rate in the
longer term. The CARICOM countries, development objectives in tourism are
to increase the backward linkages in the industry and to decrease the large
f>oreign exchange and income leakage by reducing the high import content in
hotel construction and operation. There is considerable scope for the
regional cooperation envisaged by the CARICOM agreement in planning, import
substitution, marketing, training and improvement in transportation,
vii.      CDB operations cover a wide range of development activities in
agriculture, industry, tourinsm and infrastructure. By year-end 1974, CDB
had approved 146 loans totalling US$83.6 million.  Agricultural and infra-
structure projects have predominated in CDB operations, reflecting CDB's
concern for the need to rehabilitate the important agricultural sector and
to continue improving infrastructure in the region.  CDB approvals also
demonstrate the special regard for IDC economic development that is called
for in its Charter, LDC proiects account for 87% of the total number of
approvals and 625% of the total amount, A large part of LDC operations



i ii -
consists of loans to national develonment finance institutions for the
financing of small. indust`y and the grant-Ing of small farm credits.
viii.     Commitments and disourswients, which have lagged considerably
behind approvals, are expected to be brought into a satisfactory relation-
ship with the volume of approvals in the near future.  The ccmritment lag
(i.e., delay in the siging of loan agreements) has largely resulted from
operating prosedares which led to Board approval at too early a stage in
the processing of a loan. These procedures have recently been modified.
The lag in disbursements, however, reflects fundamental problems in project
management, the long gestation period of infrastructure projects, and the
limited capacity of the IDCs for providing counterpart funds.  CMB, working
closely with the borrowing countries, has taken steps to speed up the imple-
mentation of approved projects.
ix.       The operating policies and procedu-res of CDB are modeled on those
of the Bank and other international lending agencies and CDB staff have been
conscientious in tne application of these standards in their work. The
continued observance of sound development banking practices will be an
important factor in attracting additional resources from bilateral and in-
ternational agencies.
Xo        ODBls sound financial condition is supported by a relatively high
paid-in capital base and by its policy of handling bilateral contributions
and loans as special funds separate from its ordinary operationso  0DB's
net income is expected to remain at a satisfactory level diring its projected
five-year lending program. However, additional technical assistance grants
from bilateral and interational agencies should be sought and CMB's interest
rate  policies shou ld be periodically reviewed in order to assure CDB's
ability to continue providing the substantial technical assistance to its
borrowers that is a neceseary part of its development activities.
xi.       The propesed Bank loans would be made available to CDB for support
of public and private sector projects in the Caribbean exluding types of
projects which the Ba k itself does not finance. The foreign exchange risk
will be borne by the ultimate subborrowers. The proposed US$3 million Third
Window loan will be available on terms and conditions set forth in Resolution
No. 75.111 of the Executive Directors. The interest rate subsidy of 4% will
be applied to the Third Window loan and amortization will be over 18 years
beginning in 1983. CDB will relend the proceeds of the Third Window loan to
eligible governments at the same interest rate, commitment fee, maturities
and grace period set by the Bank with the provision that CDB will charge the
borrowing government a comission, presently set at 1% and required by its
Articles, to be credited to a Specal2  Reserve.  The proceeds of the CIE sub-
loans may be relent by govern-ments, in  hich case the government subloans
would have an amortization and grace period appropriate to the subproject and



- iv -
would bear an interest rate consistent with CDB's present interest rate stLr,c-
ture. The US$17 million conventional loan will be subject to standard Bank
terms. The amortization of the conventional loan will be a composite of CDPs
subloans, subject to a maximum of 25 years, including 10 years of grace, to
be determined on project grounds with the exception of public sector projects
in the LDCs,where country considerations may be taken into accounte  CLE is to
be permitted to use Bank funds from the conventional Bank loan for retroact_ve
financing up to US$4 million for disbursements which meet the Bank3s usual
eligibility criteria and its rules for procurement.  The period of coriEtment
will be two years and the closing date for disbursements will1 be Dcenrber 315
1979.
1 7
xii.      There are several features of the proposed loans that arise irom
COE's role as a regional development finance institution.  COM member count:lies
and the UK will guarantee repayment by CDB of the Bank loan up to the amuolu` o<t'
CUB subloans from Bank funds for projects within a member country, or in the
case of the UK guarantee, within the UK Associated States and UK Dependencies.
Regional projects financed by CDB from Bank funds will be jointly and severally
guaranteed by the CDB members who participate in the project.  The eligibility
of countries for relending by CDB of Bank funds will be determined from time to
time by the Bank after consultation with CEB. In the event a member country'
becomes ineligible for direct Bank financing, the commitment of Bank funds by
CDB in that country would also be.suspended.  In view of CDB's strong appraisal
capabilities, strengthened by IBRD-recruited UNDP staff, the normal require-w
ments of "free limits" would be dispensed with for the proposed loans. The
Bank will reimburse CiB up to 65% of total project costs, representing the
average foreign exchange component, except that in those cases in which the
foreign exchange component could be clearly identified, the Bank, at CDB2s
request, would reimburse the actual foreign exchange cost. In the case of
public sector projects in the LDCs, the Bank could reimburse up to b0% of prcO
jects costs.
xiii.     In the last two or three years, the mDvement towards Caribbean regional
economic integration has gained increased momentum, and CDB can play an important
role in helping its member countries to overcome the obstacles to economic de-
velopment. The proposed loans would help strengthen this important regional.
institution and thereby assist in the economic development and integration of the
region.
xiv.      The project is suitable for a conventional Bank loan of US$17 milliorn
and a Third Window loan of US$3 million on the terms and conditions listed in
Chapter V.



APPRAISAL
OF
CARIBBEAN DEVELOPNENT BANK
I.  INTRODUCTICN
1.01      The Caribbean Development Bank (CDB), a regional development finance
institution, has requested a first Bank loan to assist it in financing public
and private sector projects in agriculture, agro-industry, manufacturing indus-
try, tourism, transportation, public utilities, sites and services, and tech-
nical and vocational education training in CDB Caribbean member countries.
This report appraises C0B and recommends a conventional Bank loan of US$17 mil-
lion and a Third Window loan of US$3 million.
1.02      The Bank has maintained a close relationship with the CDB since its
inception in 1970.  CDB was founded by 16 regional members,/ and Canada and the
UK as non-regional mebers, with financial assistance from the US. Venezuela
joined CDB in 1973 and Colombia in 1974. CDB has since been designated an
Associate Institution of the Caribbean Coimiunity (CARICOM) with which it shares
the central purpose of supporting the regional economic integration movement
with special emphasis on the development needs of the less developed member
countries. The achievements of CDB in its first four years of operations are
already considerable. It has recruited well-qualified staff and welded them
into an effective team with assistance from a UNDP-financed technical assis-
tance project for which the IBED is the executing agency; it has built up a
portfolio of promising projects; it has provided technical assistance to bor-
rowing countries for project identification and preparation; and it has assisted
in the establishment and the strengthening of national development finance
institutions. CDB has also assumed an iMportant catalytic role in mobilizing
bilateral development aid to its Caribbean member countries. In the last two
or three years, the movement towards Caribbean regional economic integration
has gained increased momentum, and CDB can play an important role in helping
its member countries to formulate and implement coherent national development
strategies with a regional perspective designed to overcome the many obstacles
to economic development (Chapter II - The Economic Eavironment). The proposed
loans would help to strengthen this important regional institution and thereby
assist in the economic development and integration of the region.
1.03      The proposed Bank loans are designed to achieve additional important
objectives:
a) the Bank will increasingly look to 0DB as a channel for its funds
to projects for which CDB has the technical capability and staff
resources to support and that the Bank would otherwise have to
handle directly. The Bank's objective will be to turn over to
CDB national and regional projects where the Bank's financial
contribution is estimated at less than US$6 million, with the con-
currence of CDB. This goal cannot be fully met imediately and
lJ See Annex 5 for a complete list of CDB members.



-2-
The Bank shoul.l be prepared to ccntinu c tfinance directly-
proiects f^alling below the lini`t if the-U are hig hly innovat-ive,
are in sectors in ;.hich CDB lacks sta-ff or Cgei-ence t-o evalu-
ate adequately, or are projects for which the Bank, CDB and the
borrower agree tha-t direct BanIk financ-ing would be preferable; and
b)   the Bank, by assisting CDB, would con-ribut-e to its effective-
ness as a catalyst in the transfer of external funds, both private
and public, to the Caribbean region.
1.04    This report is based on the findings of several preparatory missions
between 1973 and 1975 and of an Appraisal Mission in June 1975 by 1fessrs. Ludvik,
Reich and Vidalon with assistance from Messrs. Calika, Greening and Goldbe-rg
-Aho were present at certain tLmes to under-take specific activities related to
the mission's work.
II.    THE ECONONIC E-TVELO1 'T
Back,ground on the establishment of CARICO0I  1/
2.01    Twelve English-speaki ng Caribbean Territories have embarked on an
effort to integrate their economies.  The principal instrument of the integrathon
movement, the Treaty Establishing tuhe Caribbean CoimunitLr (C9JCPI ), represents
a deepening of the integration effort tiEich took hold in 1960 with the creation
of the Caribbean Free Trade Associatvi4on (C.LRIFTA), a free trade agreement
modeled after the European Free Trade Associat-on.  The Eastern Caribbean
Islands were developing closer fcrnms of cooperation which culninated in the
Lastern Caribbean Co5mon Ikarket, also in 1968.
2.02    The four Iore Developed Countries (PIDCs) of the Caribbean--Jamaica,
Trinidad and Tobago, Guyana and Barbados--signed the CAPICOM Treaty °n August 1,
1973.  Within a year, CARIOM w-as expanded to include the Caribbean Less Developed
Countries (LDCs) of Grenada; five UK Associated States--St. Vincent, St. Lucia,
Dominica, kitigua and St. Kitts/Mevis/nguilla; and two UK Crown colonies--
Belize and Montserrat.  All excep' Guyana and Belize are island states.
2.03    The =TICOH agreement calI sfor far-reaching conmit-ments on the part of
the member states which include:
a)  the adoption of a co mm on external tariff and com_mon protective
policy to integrate the regional market for goods;
1/ Detailed infcoation is given in the Ca-ibbean Regional Stuady (eighU
volumes), June 9, 1975, Report No. 566a.



- 3 -
b) the adoption of common policies among member countries to
promote coordinated regional development. This would include:
(i) coordination of national development planning, regional
industrial programming, the rationalization of regional agri-
culture, the joint development of regional natural resources,
as well as regional cooperation in the development of tourism;
(ii) cooperation and consultation on monetary, payments and
exchange rate policies; (iii) harmonization of fiscal incentives
to industry; (iv) harmonization of intra-regional tax and double
taxation agreements; and (v) the harmonization of commercial
and corporate legislation;
c) the negotiation of external trade agreements on a joint basis;
and
d) the granting of a special regime for the less developed coun-
tries, including the creation of the Caribbean Investment
Corporation to facilitate the flow of private capital from the
YDCs to the LDCs.
CARICOM also provides for cooperation in non-economic areas such as health,
education, culture, sea and air transport and meteorology, and the coordination
of the foreign policies of independent member states.
2.04      The central purpose of the CARICOM integration movement is to pool
resources, market and bargaining power, and to coordinate national development
policies. In this endeavor the Caribbean states face a number of challenging
obstacles. First, the total population of the twelve states amounts to barely
4.5 million with a total GDP of only $3.3 billion. While the average per capita
income of the region is about $650, the per capita income of the LDCs, exclud-
ing Belize, is estimated at less than US$375. Second, all the economies are
extremely vulnerable and open depending heavily on a few export commodities
but a broad range of imports including food. The LDCs'and Barbados' exports
are largely two or three agricultural products and tourism, while raw and
processed minerals--bauxite, alumina, petroleum and related products--dominate
the exports of Jamaica, Trinidad and Tobago and Guyana. For the region as a
whole, however, the resource base, including tourism assets and proximity to
major markets, is good in relation to the size of population. Third, within
the group of "mini-states," Jamaica and Trinidad and Tobago are the economic
giants, accounting for about three-quarters of the regionts GDP and the value
of intra-regional trade. Under these circumstances, an equitable distribution
of the gains from integration is all the more difficult to attain. Fourth,
integration requires yielding some degree of sovereignty which, having only
recently been acquired, is very jealously guarded. Finally, the region has
to contend with vexing problems of poverty, unemployment, and racial and ethnic
tensions which represent a potential threat to its political stability. The
Bank,through its Caribbean Regional Study, has entered into an active dialogue
with Caribbean regional and national institutions on their approach to finding
solutions to these problems.



The Agricultural Sector
2.05      The agricultural sector in the Caribbean region is of strategic
importance as a source of foreign exchange, employment, and income but it
has been characterized, particularly in recent years, by stagnation and even
declining output. The relative significance of the agricultural sector in
the economies of members of CARICOM varies widely, ranging in terms of 1970 1/
GDP from an average of 22% in the LDCs, down to 5% in Trinidad and Tobago.
The region depends on agricultural exports for a significant proportion of
its export returns. In 1972, that share averaged 76% for the LDCs, 51% for
Barbados, 48% for Guyana, but only 169 and 18% for Jamaica and Trinidad and
Tobago respectively. Output of export crops fell sharply between 1965 and
1972 and although the value of agricultural exports simultaneously rose at
3.3% p.a. due to price increases, the value of imported foodstuffs increased
at a higher rate. Thus, the region switched from an agricultural surplus
area to a deficit area, with net imports amounting to about US$50 million in
1972. The proportion of the labor force in agriculture has also decreased
and in some countries, including Guyana and Jamaica, the absolute number of
people classified as employed in agriculture has fallen.
20o6      Abnormal weather conditions have contributed to the decline in agri-
cultural output in recent years; however, the sector also suffers from struc-
tural, technical, and infrastructural deficiencies, many of which are histori-
cal in origin. Landholding patterns in the Caribbean are highly skewed, with
very large estates involved in commercial export-oriented agriculture on the
one hand and inefficient small holdings worked (frequently on a part-time
basis) by peasant farmers on the other.  Full-time, medium-scale family
farming has not developed on an appreciable scale. Comparatively high wages
for agricultural labor, seasonality of work., and social stigma constitute
major constraints to agricultural development built on hired labor. Unit
production costs have increased faster than export prices (until very recent-
ly). The agronomic standards of farmers and the quality of management have
been low,in part due to historical reasons but also as a result of inadequate
agricultural extension services, and education and research, particularly with
regard to the smaller farmer. Improvements in infrastructure have been substan-
tial in such areas as road systems and marketing facilities although the achieve-
ments, so far, fall short of requirements.
2.07      The countries of the Caribbean region recognize the seriousness of
the underlying problems and the importance of revitalizing the agricultural
sector so as to increase employment and raise incomes in the rural areas, check
the rural-urban drift, and assist the balance of payments by increasing exports
and substitui.ng imports. The recent strengthening of demand and prices in the
world market for most traditional crops, especially sugar, and the prospects
that a firmer market will prevail during the remainder of the 1970s provide
an opportune period for rehabilitating the export subsector and at least
restoring the pre-1970 production levels. There are opportunities for import
The Bank is cooperating with Caribbean regional institutions in the
compilation of reliable and more up-to-date statistical information.



- 5 -
substitution through increases in food and feedgrain production, perhaps by
bringing back into cultivation farmland abandoned in the last decade. The
CARICOM Treaty recognizes that there is scope for a regional approach to the
sector's problems, and calls for a comprehensive rationalization of regional
agriculture through an integrated regional plano However, regional integra-
tion of agriculture is not a realistic objective unless committed efforts
are made at the national level to remove or ameliorate the fundamental
structural, technical and infrastructural problems of each country's agri-
cultural sector. The economic difficulties experienced by the countries in
recent years provide strong incentive to make such an effort.
The Industrial Sector
2.08      The manufacturing sector in the MDCs consists largely of light
industries. Only Trinidad and Tobago, Jamaica and Guyana have some heavy
industry based upon their petroleum and bauxite resources. The linkage
between their heavy industries and the rest of the economies is, however,
minimal. In 1971 manufacturing accounted for more than 12% of GDP in the
MOcs, the range extending from 13.8% in Jamaica to 8.4% in Guyana. The
average growth rate of the output of the sector in 1966-71 was 6.5%, faster
than GDP.
2.09      The growth of manufacturing output--mostly of consumer goods--in
the past decade in the IDCs has been accompanied by some undesirable features,
including: unduly heavy dependence on imported inputs; excessive capital
intensity of the imported technologies; lack of linkages with the other
sectors of the econony; and insufficient expansion of extra-regional exports.
The combination of small size and highly protective inward-looking industri-
alization policies has led to an inefficient and high-cost industrial sector
that has failed to provide solutions to the pressing employment problem.
2.10      The pattern of LDC manufacturing production is largely explained by
the constraints of small size on the one hand, and the protective element of
transport costs on the other. Apart from resource-based industries, local
production largely comprises high weight-to-value ratio goods (i.e., semi-
nontradables), such as cement blocks, low-cost furniture and bottled drinks,
rather than the more labor-intensive low weight-to-value goods such as cloth-
ing. These undertakings are typically very small scale (5-20 employees).
There are some establishments engaged in the processing of agricultural raw
materials. Since the late 1960s, a small number of enclave exporting firms
have been established in some of the islands.
2.11      The average contribution of the manufacturing sector to GDP in the
IDCs was about 8% in 1971, but most of this is to be attributed to Belize,
where the contribution was about 16% of GDP. The average growth rate of the
output of the sector in 1961-71 was 5.3%, faster than GDP. The condition of
extreme diseconomies notwithstanding, industrialization has been an important



- 6 -
government policy objective in all the islands since the 1950s but it has
rarely been pursued in a concerted or coherent manner. The LDCs moreover
are poorly endowed with raw materials and trained human capital.
2.12    The CARIFTA trade liberalization mechanism has contributed to an
expanded volume of output and trade in a limited range of consumer goods.
The establishment of the free trade area resulted in trade creation rather
than trade diversion because CARIFLA countries tend to protect highly (through
quota restrictions) manufactures that they produce while imposing low tariffs
on imported manufactures.
2.13    An inportant adjunct to CARICOM is the agreed harmonization of invest-
ment and export incentives, with built-in preferential elements for the
weaker countries.  The incentives legislation offers tax holidays from five
to ten years, and there are few controls on foreign investment.  The investment
incentives can be criticized, however, for being unnecessarily generous. The
export incentives, on the other hand, are relatively weak and are unlikely to
stimulate a major expansion of exports especially since the exchange rates
are often determined on the basis of the most efficient sectors.  The best
long-term prospects for industrial growth lie in exporting outside the region.
In 1971, the CDB commissioned the Economist Intelligence Unit to carry out an
industrial survey in the IDCs. Several investment opportunities were identified
in the framework of their investment incentives (see Annex 15).
The Tourism Sector
2.l4    The tourism sector has been leading the growth of the economies of
the region and has provided the Caribbean countries with an iuportant source of
foreign exchange and employment. Tourist arrivals in the CARICOM countries
rose at an average annual rate of 12% during 1968-72 and in 1972 gross foreign
exchange earnings from tourism totalled about US$190 million (Annex 14). Ex-
ternal leakages are large, ranging from about 35% in Jamaica to perhaps 50% in
the smaller islands. *The tourism sector, encouraged by investment incentive,
has been largely developed by foreign firms. *The tourist boom (Annex 14) led
to over-investment in hotel acconmiodation, resulting in a drop of the average
occupancy rate from 52% in 1968 to 46% in 1972.
2.15    The supply of tourism services has typically responded to the character-
istics  of the country of tourist origin rather than the entrepreneurship
and environmental characteristics of the islands. Thus, backward linkages in
tourism are minimal and the high irport content in hotel construction and
operation results in the large foreign exchange and income leakage already
noted. Also, the fact that many of the Caribbean countries are natural
competitors in tourism may have obscured some of the important benefits which
might be obtained from a more regional approach to the industry.



- 7 -
2.16    The main constraint of the tourism sector growth in the IDCs and
to a lesser extent in the  CDGs is the lack of ready air access to all IDC
islands, except Antigua and St. Lucia, from major tourist generating markets.
Although the availability of direct access does not guarantee growth, expe-
rience in the Caribbean indicates that an adequate access is indispensable
for a major expansion of the sector.  Mfost of the IDCs are served by short-
haul carriers with high operating costs due to the take-off and landing
frequency, complicated scheduling pioblems and a high percentage of cancelled
flights.  The dependence on air service of passenger traffic to, from and
betiween the islands warrants a greater participation by government in the air-
lines' operation.  The present system tends to Jreeze tourist travel patterns
to and from Barbados or Antigua and a single TDC. An improved air service
could greatly encourage the growth of tourism in the IDC islands.
2.17    Although the growfth in touriFt flow may weaken in the short term,
compared with the high rate of growth in recent years, as a consequence of
the energy crisis and the world recession, the Caribbean may achieve a longer
term rate of growth in tourist arrivals as high as 13% per azmm. On the
basis of accommodations presentvly under construction, supply growth should
average about 4.4% p.a. until 1977. Average occupancy rates should, therefore,
increase from their present level of about 44% to between 55% and 60%. The
latter is near the break-even level for most accemmodations but bele,w investors'
expectations.
2.18    The CARIO M countries should endeavor to secure for themselves a
greater share of the benefits of this growth industry by identifying and
promoting segments of the market that provide the most economic benefits with
the least disruptive social effects. The demand structure should be matched
with the Caribbean's natural resources and economic and social characteristics.
On the supply side, consideration should be given to the establishment of
clusters of relatively small, locally owned and managed hotels with conmon
service and entertainment facilities to take advantage of the economies of
scale. Moreover, in tourism there is considerable scope for regional
cooperation in the field of planning, import substitution, marketing and
training.  Technical expertise in tourism planning, which is available in
certain islands, could be pooled for the benefit of the region.
The Transportation Sector
2.19    An optimal regional transport system is an essential part of the
regional integration process. The two fundamental problems of the individual
CARICOM states&_isolatiOn and smallness--can be alleviated only by efficient
efficient and reliable transport systems, by both sea and air.  The IDCs in
particular will be dependert on efLicient sea transport for encouraging
industrial and agricultural investment and developing merchandise trade, and
an efficient air transport for the development of tourism. There are several
areas where regional cooperation may be instrumental in improving intra-
regional and extra-regional transport services, and in reducing transport
costs. Coordinated plamning of investment in physical facilities and equipment
is urgently needed in order to avoid duplication and over investment and minimize



- 8 -
operating transport costs.  In respect of physical facilities, a rational regional
approach would call for the develcpment of perhaps two large regional trans-
shipment ports and two or three regional trunk airports capable of handling
the largest jet passenger aircraft. In order to minimize possible conflicts
between regional and national interests, the region as a whole would have to
guarantee an adequate system of feeder routes and services both for shipping
and for air transport.
2.20      A regional shipping system would depend heavily on the inter-island
shipping service provided by small, privately owned vessels and a regional
shipping line. An improvement in the inter-island small vessel service is a
high priority. The West Indies Shipping Corporation (WISCO) provides a good
base on which to develop an effective regional shipping line. However, WISCO
could benefit from improvements in such areas as routing and scheduling,
management and tariff structure and, above all, equipment. The regional
shipping line would establish links to and from the various islands and the
major container ports, where foreign liners increasingly tend to call. The
extension of services extra-regionally may be found advantageous in the longer
term.
2.21      At present, the Commonwealth Caribbean countries "own" four airlines.
The Eastern Caribbean islands are now serviced by Leeward Islands Air Transport
(LIAT-1974, Ltd.), a ccapany owned by all CARICOM Governments except Belize.
On the face of it, the objective of implementing an optimal air transport sys-
tem argues for some form of amalgamation at least in management,and the pro-
vision of services to satisfy passenger and cargo demand within and outside the
region. A coordinated effort in air transport could strengthen the bargaining
position on air fares and sched0les with international carriers.
2.22      The road network in the LDCs has been developed by gradual improve-
ment and adaptation of old paths to motor vehicle traffic. In the past, the
emphasis has been on constructing main roads, and generally the main road net-
work is adequate, in that it covers all the appropriate main geographic areas.
The most urgent need now is to complement the primary system with improved
feeder roads in areas that have been neglected thus far and that have an impor-
tant agricultural potential. The improvement and development of feeder roads
in the LDCs offer potentially very high economic returns. Feeder road policy
should generally be aimed at: (i) improving the quality of present access
roads; (ii) providing feeder links from productive areas and settlements to
the main roads; and (iii) opening up new agricultural lands.
The Financial Sector
2,23      Monetary Cooperation and Coordination.  The CARICOM member countries
currently participate in a modes degree of monetary cooperation comprising
mutual consultation on exchange rate matters and a regional clearing arrange-
ment among the Central Banks and the Eastern Caribbean Currency Authority.
The CARICOM Treaty expresses intentions to extend and deepen this monetary
cooperation and adopts the view that "exchange rate stability as between



- 9 -
themselves is necessary to promote zmooth functioning of the Common M4arket."
The Treaty envisages recourse to nationally inposed quantitative restric-
tions to safeguard the balance of payments during tenporary fluctuations.
In cases of more "fundamental" balance of payments disequilibria, CARICOM
members may rely on some form of effective exchange rate adjustment.
2.24    Financial Institutions in the CARICOM.  The diversity of Caribbean
financial institutions would indicate a mature, integrated financial system
in each of the MDCs. Commercial banks, life insurance coDpanies, general
insurance companies, government savings banks, building societies, special
purpose development banks, trust companies, post office savings and merchant
banks may all be found in the larger Commonwealth Caribbean nations, with
the financial enviromaent being mainly regulated in each nation by a central
bank wjith considerable legal powers.  In fact, Caribbean financial institutions
and practices mirror a long history of dependence on metropolitan centers;
a legacy which continues to hamper the effective deployment of locally
generated financial resources for economic development. It is only in the
past fifteen years -When independent central banks were created (Jamaica's
in 1960, Trinidad and Tobago in 1964, Guyana's in 1965, and Barbadost in
1973), that serious efforts have been made to reduce this historical
dependence.
2.25   Allocation of Financial Credit.  Despite the diversity of financial
institutions throughou  the region, cammaercial banks dcoinate the intermedia-
tion of credit to the productive sectors of the economies.  The allocation of
credit by commercial banks has been viewed by Caribbean Governments as too
heavily weighted in favor of "non-productive" areas such as distributive trades
and personal loans, and against "prodnctive" areas such as agriculture and
manufacturing. Commercial bank lending to priority sectors such as agricul-
ture and indigenous and small-scale industry is considered inadequate in
quantity. The agricultural sector, for example, has generally received less
than 5% of the stock of funds intermediated by commercial banks. Further-
more, banks have tended to eaphasize short-term overdraft financing, following
British banking tradition, and there is, consequently, considerable unsatisfied
demand for long-term credit, particularly in agriculture and even in the
customarily preferred sectors of manufacturing and tourism.
2.26    The Development of 2Recialized Financial Institutions.  One method
employed by Caribbean Governments to improve the allocation of credit has
been the creation of government-owned development financial institutions.
These institutions may be multi-purpose development finance institutions or
may be specialized in certain types of lending such as general agriculture,
mmall farmer credit, manufacturing and tourism, small-scale industry, or
housing. The role of the new financial institutions is to compensate for
the inability of commercial banks to satisfy the need for long-term lending
to priority sectors. They are also premised on the need to build-up nodes
of technical expertise to identify, appraise, monitor, and service projects
to help overcome the Short supply of qualified personnel in the Caribbean.



10 -
2.27      Generally these institutions do not mobilie private sector finan-
cial savings but operate mainly as conduits for funds alreaJy mobilized by
the government, comuercial banks, or external development agencies.  The
heavy reliance on "captive funds"s has permitted them to grant implicit
interest rate subsidies to most of their borrowers and emphasizes their
selective credit function as distinct from any genuine resource mobiliza-
tion potential.
2.28      In the LDCs, government intermediary institutions were often
established with encouragement and assistance from CDB and in many cases
their resources for lending come almost exclusively frca CDB. These inter-
mediary institutions, as might be expected, have experienced far more dif-
ficulty than the MDC intermediaries in attracting qualified staff and find
it necessary to lean on other institution; such as CDB, for technical assis-
tance. Undercapitalization is fairly common among LDC intermediary institu-
tions and this structural deficiency combined -with interest rate policies
that produce little or no income for the institutions usually makes them
dependent on government budgetary assistance to cover operating costs.
III   THE CARIBBEAN DEVEIPMENT BANK
Shareholders
3e01    CDB's Charter provides that each member shall subscribe to shares
of its capital stock and that the regional members must hold not less than
60% of its shares.  The authorized capital of the CDB as of December 31  1974
was US$192 million, 1/ of which US$59 million had been subscribed -- UiS29.5
-illion in subscriptions of paid-in capita-l, and US$29.5 million in
subscriptions of callable capital which is subject to call only as and when
required by the CDB to meet its obligations incurred on borrowings or on
guarantees (Annex 5). Its membership rose from 19 to 20 in November 1974, when
Colombia became a member. Puerto Rico has applied for membership and CDB
understands that other Western Hemisphere countries are considering applica-
tions for membership. The Board of Governors, at the l975 Annual Meeting,
appointed a conmittee to consider the implications of expanding membership
of CDB before deciding on further new members.
Objectives
3.02    The Charter states that CDBts main objective shall be to contribute
to the harmonious economic growvth and development of the member countries in
the Caribbean and to promote economic cooperation and integration among them,
having special and urgert regard to the needs of the less developed members
of the region. In fulfilling this objective, the CDB is required to assist
its regional members in the coordination of their development programs, in
the provision of apprcpriate technical assistance and in the financing of their
11/ This amount is expressed in terms of United States dollars of the weight
and fineness in effect in September 1969, which is used as CDB's standard
of value. *henever the par value in the flIF of the currency of a member
is reduced or the value of such currency depreciates, that member shall
pay to the Bank an additional amount of its currency to maintain the value
of the capital subscription.



- 11 -
projects and programs. The CDB shall also cooperate with national, regional
and international organizations or other entities concerned with the develop-
ment of the region.
Policies
3.03      CDB's Charter states that it will be guided by sound development
banking principles and that it shall finance only economically sound, techni-
cally feasible and properly appraised projects.  In making or guaranteeing a
loan, the MDB has to pay regard to the prospects that the borrower will be able
to meet the obligations under the loan contract. CDB is required to supervise
its investments and to make certain that its funds are *sed with due attention
to econonm and efficiency.
3.o4      In addition to general guidelines, the Charter contains a number of
operating limitations designed to safeguard CDB's financial soundness. These
limitations, which are reasonable and prudent, are complemented by CDB's
Financial Policies which were revised in March 1975 to: (i) reduce the
collateral requirement for loans to the private sector from twice the loan
amount to 'tadequate" security either in the form of a first mortgage or some
other form acceptable to CDB, (ii) give a higher priority than before to the
financing of regional projects, (iii) increase MDB's mininun loan commitment
from US$50,000 to US$100,000 equivalent and (iv) increase GDBts maximum con-
tribution for goverrment projects. In April 1974, the Board of Directors, in
considering the effect of the world-wide inflationary trends on its borrowers,
approved of changes in the financial policies by agreeing to lend up to 90% of
the increased costs of projects in the stage of implementation prior to the
award of contracts for construction and subject to a project reappraisal in the
light of the escalated costs.  At the sam&etime, the Boar-dalso increased the-
limits for which it will lend from ordinary capital resources to not more than
70% of the cost of government projects in the case of MDCs and 80% in the case
of LDOs. For soft fund operations or projects mixing soft funds and ordinary
capital resources, the Bank now lends not more than 90% of the project cost.
3.o5      CDB is precluded by its Charter from taking a foreign exchange risk.
CDB loan agreements with its borrowers allow CDB to denominate the borrcwers'
liability in the currency of CDB disbursement, or any other currency. This
procedure, which ensures GDB's good financial standing, should not impose any
problems for Bank disburseients since the subborrower will always bear all
foreign exchange risks.
Board of Governors
3.06      The Board of Governors is the highest policy-making body of CDB.
Each member country I/ is represented on its Board of Governors by appointing,
for an indefinite period, a governor and an alternate, The Board of Governors,
chaired by the Governor of St. Kitts/Nevis/Anguilla for the period May 1975to
April 1976, is composed of 17 Governors (Annex 3), who meet at least once a year
or whenever suimmoned by a majority of members of CDB.  Voting power Is rough37
j/ Except for Montserrat, British Virgin Islands, Cayman Islands and Turks
and Caicos Islands, who jointly elect one governor.



- 12 -
proportional to shares subscribed, with a slight weighting in favor of the
smaller member territories. All the powers of the CDB, other than those
specifically assigned to the Board of Directors (Article 30 of the CDB
Charter), are vested in the Board of Governors which may delegate them to
the Board of Directors except for admission of new members, changes in
authorized capital, charter amendments, suspension of members and approval
of CDB's annual financial stateaents.
Board of Directors
3e07      The Board of Directors is composed of 10 members (Annex 4), appointed
for a renewable two-year period, of whom eight represent the regional members
of MDB and two the non-regional members. The Board of Directors which meets
at least every two months is responsible for the general policy and directions
of the operations of the Bank. The Board exercises all powers delegated to it
by the Board of Governors and, in conformity with the Charter, takes decisions
concerning loans, guarantees and other investments by the MDB. It also approves
the administratiye budget and submits accounts pertaining to each financial
year for approval by the Board of Governors.
Management
3.08      The President of CDB conducts, under the guidance of the Board of
Directors, of which he is Chairman, -the current business of the Bank.  He serves
for a five-year term and may be re-elected. The first President, Sir Arthur
Lewis, was responsible for CDB having quickly and firmly established itself as
a going regional institution. Sir Arthur Lewis left the CDB at the end of
1973, and was succeded by Mr. William Demas in September 1974. Mr. Demas--an
able West Indian economist and dedicated Caribbean integrationist--was formerly
Secretary-General of both CARIFTA and CARICOM. Management has been successful
in (i) establishing CDB's reputation as a bank that lends for well formulated,
appraised and executed projects, (ii) attracting highly qualified staff, and
(iii) establishing 0DB, through its Board of Governors' meetings, as a forum
for discussion of the region's economic problems.  On the other hand, MDB's
lending procedures are often viewed by borrowing members, particularly
the LDCs, as being too cumbersome, although their procedures are in fact
modeled on those of established regional and international lending agencies.
Personnel and Organization
3.09      CDB has a total staff of 106, of which 53 are professionals.  To prop-
erly perform its future tasks, CDB will have to continue expanding its staff.
Key staff members, working under the capable leadership of Mr. Demas, are ener-
getic, highly motivated and individually competent. The CDB organization
(Annex 2) is comprised of three project and four support Divisions, all of
which report directly to the President. The administrative burden that this
organizational structure imposes on the President could become onerous as CDB
expands its operations, and scme restructuring of the organization may become
necessary.



-  3 
3.10    The largest project division in terms of staff number and lending
volume is the Agriculture Division.  It is headed by a West Indian who is
one of the expert-s assigned under the UNDP project.  He is smpported
by ten professionals who are assisted m- eight Farm Improvement Officers
(para. 14.O5).  The Agriculture Di}U.˘i,. n staff is well-qualified in terms
of academic trgmining and professional experience.  The twofo other project
Divisi^.ns are the recentl-y -formed Industry and Tourlsm DJLvlsion and the
Technical Division.  The Industry and Tourism D-inision  s headed by a MTDP-
assigned WJest Indian who joined CD3 in late 1974 and has a team of five
professionals.  The Technical Division with a staff of ten, including tuo
specialists from USAID (para. 41l3), iS in- charge of mnfrastructure, transport-
ation and housing projects and alsc assistathe otner divisions in teclhical
matters.  The four support divisions are:  Economics and Project Analysis
Division, in charge of general and project esonomic analysis; Financo  )ivision,
irtcharge of accounting and cash management; Axinirt_-ative Divi- on; anC.
Legal Division.
3.11    Ihe Economics and Project Analysis Division was -recently further
strengthened with the recruitnent under the 11ThP program of a West Indian
as Division Head. He is currently formulating a plan of action for 'his staff
of eight, two of wihom are also under the -1DP program.  The plan includes
the detailed analysis of the economies o- i.ts nember coiuntries, -vith a
particular view to their creditwor-thiness; sector studies; and identification
of integratiOn projects--ail of thase conducive to the formulation of a
more effective MDB lending strategy. The divisilon is also in char-e of the
economic appraisal of projects, a task that they perform satisfac-borily.
TDPD Projeact1
3.12      At present, nine staff members, including three division heads, are
employed under a PNDP technical assistance program. IBRD is the executing agency
for this highly successful program, UNDF assistance has been instrumental in
attracting qualified experts to CDE, including West Indians, who might other-
wise not have beer. motivated to join CDB. Tne Bank coope-ates with CDB in the
training of staff through visits to headquarters and through EDI courses.
Another significant benefit to 0DB has been the financial assistance provided
by UNDP. In view of the importance to CDB of retaining UNDP experts, the Bank
has reccmmended and received approval from UNDP to- utilize UNDP assistance to
top up CDB salaries to a ccmpetitive level.  CDB's ability to retain UNDP-
sponsored West Indians in key positions and to recruit new staff has thus been
substantially enhanced. UNDP assistance is scheduled to expire in 1977, but
discussions with UNNDP on a new five-year project have already been initiated
and the prospects for formal approval by mid-1976 are considered good by UNDP
staff.
Promotion and Froject Identification
3.13      CDB's project promotion is in the hands of project officers.  These
officers, supported by Field Officers, ensure that MDB has an adequate flow of
project applications from the member countries.  Field Officers also keep the
0DB infoxmed of the latest ecnomic events in the country to which they are
attached.



-1 r-
3.lh    Loan applications3, which often reach CDB in rather vague form, are
handled initially by a technical officer who specializes in the sector of
the economr to which they belong.  If the project is found suitable for CDB
financing, a rough estimate is made of the marpower necessary to prepare the
project for appraisal.  CDB rill help prepare projects, for both private and
public applicants.  if mampower is estimated -to be beyond the capacity of
CDB, the work iF referred to outside consultants.
aroject AMraisal
3.15    Thhe appraisal of a well-formulated project takes between three and
six weeks. To this end, the President nodminates ad-hoc, multi-disciplinary
teams of officers, one of whon is designated coordinator and is responsible
for the expeditious processing of the loan.  The Loan Committee, conposed
of the Division Heads and the President, meets every two weeks to monitor the
progress oL the appraisals.  Before a project is presented to the Board of
Directors, it must obtain the Loan Committee's approval.  DB' s appraisals are
generally of high quality and thorough. Project appraisal is done entirely
by a CDB staff team consisting of an econorist, a financial analyst, technical
and legal specialists all worlkng under a project officer who is responsible
for issuing the appraisal report. CDB's appraisal technique is sound and
includes thorough analysis of the technical and economic feasibility of a
project, its organization and tlhe management problems that can be foreseen,
services that can be provided by supporting orgarLizations, soundness of
marketing and legal arrangements on wdhich the project is based, and rate of
retur-n as compared with alternative projects.  Projects are well described
and project costs and returns are studied in detail.  Project benefits
and j,ustification are adequately discussed, and terms and conditions proposed
by the appraisal team are presenJted. In view of CDB' s strong appraisal
capabilities, strengthened by  =-recruit ed UTOP staff (para. 3.12), the
normal reouirements of "free limits" would be dirpensed with for the proposed
loant.
Project LInlementat-ion and Supervi-ion
3.16    The project iuiplementation work after loan approval by the Board of
Directors is shared between the project division, the General Counsel and the
Treasurer on behalf of the Investment Co'rraittee, under the responsibility of
the project division.  The General Counsel attends to projects until all
conditions precedent to disbursement are satisfied, the project divisions are
responsible for the construction stage and the Treasurer disburses, acting in
consultation with the project divisions.  A Loan Supervision Unit has recently
been established to advise and assist the project divisions in expediting
project inplementation after Board approval and in the supervision and inspection
of projects irL operation.  The unit is headed by an expert recruiued tmder the
.J\KDP program. and is expected to contribute to CDB's effort to accelerate its
disbursements (para. 4.15).  The Investment Comi-dttee, couprising the President
and Heads of Divisions, meets weekly to review project iiplementation reports,
in addition to handling CDB financial matters.



- 15 -
Procureznent
3.17    CDB's procurement policies c,nd procedures are modeled on those of
tLhe Bank. CDBts Char-ter normally liii-&s the countries of procurement to
BDB members and those countries witich contriblute substantiallyr to its
rescurces; l/  however, the CDB Board of7 Directors agreed on Oc'tober 27.,
1975 to pe=rit proctrweent fron thLe proceeds of -the proposed Bank loanr in
IT'cr.d Banko membe-r countries and Swhi-'zerland.
Disbursements
3.18    CDB's disbursement procedures are good and diligently applied.  CDB
has laid down clear- disbursement procedures which require the borrower to
present evidence that approved investments are actually being made. Each
indiviCual disbursement has to be approved by a project spervisor.
Aount-ing3mdAuditorc
3.19    The CDB naintains its accounting records in cu=rent UTnited States
dollars. As prescribed in CDB's Charter, entirely separate accounts are kept
for ordinary cperations and for each of CDB special funds.  The accounting
work undertak;en by CDB staff is meticulous and adequate,  Since inception,
Price Wgaterhouse have been CDB1s auditors.  No.ne of their reports have had
ary qualifi  cation.
IV.  CDB OP_ ATIONS A) FTNACIAL P WI_ OPI  CE
4.Ol   CDB operations are far reaching and reflect its regional development
orientaticn.  The lending programs in each sector are soundly based on the
priority of needs and the resources available to CIDB Projects approved for
I'inancing by CDB cover a iride range oj de.r lopmer±t activities including
(i) agriculture  livestock, processing of agri ,ulural products and marketin-g
facilities; (ii3 ports, roads and bridges, water, electricity and airort
'ouildings; (iii) industrial estates, hotels and tourists facilities; and
(iv) loans to national development finance companies (DF0s) and other
intermediaries for agricultural credit, smiall and nediiur in dust'ry credit
residential mortgages an-d student loans. CDBts lending is divided in two
major categories: ordinary operations on hard terms financed fron Ordinary
Capital Resources (OCR) and special operations on soft terms financed from
Special Fund Resources (SFR).  OCR are made up of authorized capi-tal stock
subscribed and borrowings supported by callable capital and may be used
for amy operat,ion permitted by the 0DB Articles of Agreement  SFL? corTrise
(a)  the Special Development Fund (S)F) which is established under the Charter
and into which CDB may receive contributions or loans which are used in financing
1/  Goods and services which cannot be procured in these couLntries may be
procured elsewhere.



- 16 -
projects of high developmental priority at softer interest rates and terms
than those for OCR operations and (b) other Special Funds which CDB may accept
as contributions or loans to be administered on terms agreed with the donor,
provided that these are consistent with CDB's objectives and functions. The
resources and accounts of OCR and SFR must be kept entirely separate, and
within SFR each special fund must be kept separate from other special funds.
OCR may not be charged with or used to discharge losses or liabilities arising
out of activities of any SFR special fund.
4.02      By year-end 1974, CDB had approved 52 loans under Ordinary Operations
with a total value of US$37-9 million and 94 loans under Special Operations
with a total value of US$45.7 million. Agricultural and infrastructure projects
have predominated in MDB operations, as shown in Table I, which clearly indicates
CDB's concern for the need to rehabilitate the important agricultural sector
(para. 2.07) and the need for improvements in infrastructure (para. 2.06).
TOgLE I
Summary of CDB Operations - 1972/197.
Number and Amount of Loans (in millions of US$)
CARICOM             CARICOM
LDCs          MDCs & Others La               Total
No,     $           No.     $             No.     $     %
APPROVALS
OCR:
Agriculture        29     4.5           4    16.1            33    20.6   25
Infrastructure     6      1.8           6    10.2            12    12.0   14
Ind. & Tour.       5      1.5          2      3e8             7     5.3    6
Subtotal     40     7.8          12    30.1            52    37.9   45
SFR:
Agriculture        30     6.2           2     1.2            32     7.4    9
Infrastructure    33    32e2           3       .6            36    32.8   39
Ind. & Tour.      24      5.3          2       .2            26     5.5    7
Subtotal     87    43.7           7      2e0           94    45.7   55
TOTAL       127    51.5          19    32.1           146    83.6  100
/a   "Others" include Cayman Islands, British Virgin Islands, Turks and Caicos
Islands, and the Bahamas.



- 17 -
4.03    In both its ordinary and special operations, CDB has demonstrated
the special regard for IDC economic development that is called for in its
Charter. While only 20% of the amount of OCR approvals involved IDC projects,
the number of approved OCR-loans to the IDCs--40 out of a total of 52 (77%))--
more accurately reflects the major effort made and the substantial technical
assistance provided by CDB. With regard to soft funds, the IDCa have been
the beneficiaries of 96% of the amount of SFR loans.  Eligibility to receive
soft loans frcm SFR was restricted to the IDCs until the end of 1974 1/ when
the Board of Governors lifted this restriction subject to any CDB rules of
eligibility.  The countries donating to SR will also have to agree to MDC
eligibility before soft loans can be made to MDC projects.
4.04    A  characteristic of CDB cperations is that a high proportion of
lending has been channelled through intermediary institutions--local DFCs and
and government entities, as sumiarized in Table II.  Nearly one half of both
the total number of loans and the total amount of loan approvals was handled
through intermediaries. CDB loans to intermediaries are available for relending
to private agricultural and industrial borrowers (66% of total intermediary
operations) in amounts not exceeding US$50,000 2/ for worLing-class urban
housing loans (31%), and for student loans (3%5. Agricultural and industrial
lending through DFCs also includes a 9mall Industry Credit Scheme and a Farm
ITxrovement Credit Scheme, both for b°rrowers with a net worth of less than
US$50,000. 3/
TABLE II
CDB approved Loans to Intermediaries, 1970-74
Number and Amount of Loans (in millions of US$)
CARICOM        CARICOI                         % of
IDCs          IMDCs           Total           t°tal
No.    us$      o.     Us$    Lo                CDB °ps.
OCR:
Agriculture      9      1.7      3     12.6    12    14.3          17
Infrastructure   2      0.6      4      8.3     6     8.9          11
Ind. & Tour.     -       -       _       _      -      -
Subtotal        ll      2.3      7     20.9    18    23.2          28
1/ An exception was made for an agricultural project in Barbados for US$1.1
million.  SR loans to "others" (Table I) included the Brit. Virgin Islands,
Turks and Caicos Islands, and the Cayman Islands (non-CARICOM members of
CDB).
2/  Recently increased to US$100,000 (para. 3.04).
3/ Recently increased to US$75,000.



- 18 -
TABLE II (cont.)
CARICOIT       CARICOI4                       % Of
IDCs          INDCs           Total          total
lf°.    u_$    No.    US$    No.      US$      CDB Ops.
SFR:
Agriculture      14     3.5      3     1.2     17     4.7         6
Infrastauoture   13     2.7      2    0.2      15     2.9         3
Ind. & Tour.     18     4.0      2    0.2      20    4.2
Subtotal         45    10.2      7    1.6      52    11.8        14
TOTAL         56   12.5      15    24.7     70    35-.        42
4,05  In the case of the IDCsa CDB has actively encouraged and assisted in the
establishment of national DFCs to help reduce the heavy administrative burden
and make the various credit schemes responsive to local needs. This undertaking,
however, has proven to be difficult in terms of both GDB's staff time and
expenses. Qualified staff for the DFCs have been hard to attract.  The DFCs
and their governments were unfamiliar with and initially reluctant to accept
the lending procedures of CDB. The national DFCs also lack financial strength.
Most have only a limited share capital base and are dependent on budgetary
assistance from the government to cover operating deficits (para. 2.28).  In
spite of these problems, CDB has contributed much to the progress of these
intermediaries by appointing Farm Improvement Officers and maLing available
Small Industry Loan Officers and Field Officers and by providing financial
resources. However, GDB staff must still spend a substantial portion of their
time in DFG subproject work. In view of the importance to the LDCs of creating
a network of viable internediaries and to CDB of lending through them, CDB
management now plans to concentrate on the institution-building aapects of
their DFM operations to help make them independently viable financial institu-
tions.
Agricultural Operations
4.06  Agricultural projects accounted for-45h of the number of total approved
loans and 34% of the total amount at year-end 1974. CDB has in its agricultural
lending thus far concentrated on the IDCs but, since 1974, it has begun to
assist the MDCs as well. GDB approved 65 agricultural loans (59 to IDCs and
6 to IDCs) totalling US$28 million (US$10.8 million to IDCs and US$17.2 mnillion
to MDCs). Details of these loans by countries are presented in Annex 8.



- 19 -
4.07  CDB agricultural lending strategy ai=s at:  (i) Btabilizing agri-
culture, especially by attracting young people to family-size farnas; (ii)
increasing food production to substitute imports, and (iii) increasing prodac-
tion of commodities suitable for export.  To these ends, CDB assists its member
countries in financing a variety of projects under the several programs
shown in Table III.  The individual programs are discussed in detail in
Annex 11.
TABLE III
CDB Agricultural Lending Programs - 1970-74
Approvals
No.    US$ million
Estate Development               (14)         1.62             6
Land Settlement                   (13)         2.14            8
Ilarketing/Processing             (9)          4.98           18
Agricultural Credit              (29)        18.97            68
Regional Ag. Projects               -           -              -
Ag. Feeder Roads                  -            -     a         _
Total                     (65)        27.97           100
m -   _
/a   US$4.87 million under Technical Division (Infrastructure)
4.o8 Estate development projects are designed to increase production and
prodcbCtivity of privately owned, medium- to large-size comercial farms which
specialize in export comnodities (para. 2.07). The borrowers are generally
good managers and for these traditional export commodities there exist well-
organized marketing channels and services.
4.09 The objective of land settlement projects is to develop viable family-
size farms (para. 2.06). Public land is contributed by the governments, mho
also provide the basic infrastructure, and CDB lends for on-farm investments.
The concept of the program appears to be sound; however, disbursements have
been slow due to difficulties in setting up properly managed project units
and in establishing or restructuring institutions to provide required services.
4.10 Agricultural marketing and processing projects are urgently needed in
the Caribbean region, particularly for non-traditional commodities in the LDC9.
CDB has initiated a lending program for this purpose designed to provide
marketing facilities and to improve processing and packing facilities for
agricultural products. Again, project management is a limiting factor in the
ixmplementation of the program.



- 20 -
4.11    Agricultural credit to the private sector accounted for 68% of
total agricultural lending and most (84%) was channeled through intermediary
institutions to borrowers for investment in productive enterprises covering
a wide range of agricultural activities.
Infrastructure Project Lending
4.12    Infrastructore projects, exclusive of housing sector loans, accounted
for 20% of the total number of CDB operations and 40% of the total value,
Most of these projects (32 out of 37 projects) were located in the IDCs and
were financed largely (94%) from SM.  Loans totalling US$19.7 million were
approved for deep water port projects in Dominica, Belize, St. Lucia, St. Kitts-
Nevis-Anguilla, Montserrat and the Cayman Islands (60% of infrastructure
lending). Road and feeder roads projects accounted for an additional 25% of
infrastructure lending (US$8.2 million), with the emphasis again on IDC projects.
CDB's Technical Division which handles infrastructure projects, has begun to
concentrate on project inplementation aspects by providing a considerable
amount of technical assistance to the goverments of the IDOs in the execution
of infrastructure projects.
4-13    Housing sector loans are made from the SPR Housing Fund and also from
OCR. The Housing Fund amounts to US$10.3 million from a USAID loan contracted
in November 1972. US$6.3 million of this fund is to be used for the building
of urban working-class houses, while US$4 million will be used for financing
aecondary mortgage markets. As part of the agreement with USAID, CDB has
cTmaitted US$3 million of its OCR to provide additional support for the
secondary mortgage scheme. All housing sector lending is channelled through
government intermediaries.
Industry and Tourism Lending
4.14    The volume of CDB indastrial lending has been low compared to other
lending programs. CDB industrial lending has centered on the promotion of
industrial estates (13 loans, US$4.4 million) and small industry credit (SIc)
channeled through national development banks (12 loans, US$2.6 million).
Financing of tourism projects, primarily small hotels, is provided directly
by CDB and through the SIC scheme, through overcapacity (para. 2.14) has limited
demand. CDB'. decision to give a high priority to regional industrial projects
and large national projects and the establishment of realistic collateral
requirements (para. 3.04) should enable the newJly established Industry and
Tourism Division to increase industrial lending substantially.
Conmitments and Disbursements
4.15    CDB showed loans not committed (i.e. loan agreements not signed) of
US$4o.9 million out of US$83.6 million total approvals as of December 31, 1974;
and undisbursed cczmirtted loans of US$32.8 million (77% of total conmdtted loans).



- 21 -
The large amount of loans not committed is largely the result of CDB's past
practice of obtaining Board approval of loans prior to satisfying itself
that the borrower was in agreement with the terms of the loan and with all
the coaditions precedent to signing.  DB recently amended this aspect of
their approval procedure and the amount of loans not committed is expected to
drop sharply. Since 62% of loans not committed (Table IV) involves projects
in the MDCs where project management is less of a problem than in the LDCs,
disbursements on these loans is expected to be rather prompt. The existing
disbursement lag on committed loans (82% of the amount in LDCs), on the other
hand, is largely due to the limited capacity of the LDCs to implement projects.
The relatively high proportion of IDC cammitments in respect of port projects,
which have a long gestation period has also contributed to this disbursement
lag and another major reason for delays in the implementation of CDBts projects
in the LDCs is their very limited capacity for providing agreed counterpart
funds. To ease this latter constraint CDB secured a US$5 million soft loan
from Trinidad and Tobago to finance the LDC need for counterpart funds. MDB
has also taken steps to speed up the implementation of projects and agreed
with representatives of the LDCs, at a meeting held to analyze these problems,
on specific measures for this purpose, particularly with regard to improvements
in project management. 2/
TABLE IV
CDB Operations as of December 31, 1974
A.  Distribution of Loans Not Committed
MDCs &
LDCs              Others              Total
OCR                 6%               62%                  68%
SFR                32%                 _                  32%
Total          38%               62%                100%
B.  Distribution of Undisbursed Committed Loarm
CD˘s &
LDCs              Others              Total
OCR                 7%                13%                 20%
SFR                75%                5%                  80%
Total          82%               18%                100%
/ Pro forna financial statements as of December 31, 1975 show that CDB dis-
bursed US$22.3 million during 1975 compared to total cumulative disburse-
ments of US$7.0 million during 1970/1974.  New Loan approvals dulring 1975
amounted to only US$20.2 million compared to US$40.3 million during 1974.
These figures reflect the priority given to improving project implementation
and the success of MDB staff efforts in achieving this objective.



- 22 -
CDB Resources
4.16    The financial resources of CDB consist of (i) Ordinary Capital
Resources (OCR) and (ii) Special Funds Resources (SR). CDBts total OCR
as of December 31, 1974 amounted to US$2807 miLlion 21 represented by
subscribed and paid-in capital shares and US$1.8 million in surplus and
reserves. Additional subscription instalments totalling US$8.7 million 1/
will come due by 1979. Subscribed callable capital shares valued at
US$29.5 million 2/ at the end of 1974 were subsequently increased to
US$L25.2 million. Z/  CDB may borrow against its callable shares but the
maxiamm borrowing permissible is limited by Board of Governors Resolution
to the equivalent of UK and Canada callable shares oil about US$54 million
in current US dollars. In sunmary, OCR in current US dollars at the end of
1974 amounted to US$28.7 mnillion and by 1979 will increase by US$8.7 million
in the form of paid-in capital shares and can be further supplemented with
US$54 million in borrowings, bringing total OCR availability to about
Us$91.1  million by 1979. As ol December 31, 1974, US$37.9 million of this
amount had been approved for loans.
4.17    CDB is negotiating with the Govermnent of Venezuela for resources,
in addition to the proposed Bank loan. Venezuela has agreed to establish a
Trust Fund 3/ in the amount of US$25 million (US$12.5 million equivalent will be
denominated7in Bolivares) with a life of 25 years.  These resources will
be used to finance operations which would normally be financed from OCR;
however, the Trust Fund will be technically classified as a special fund
and will not be supported by CDB's subscribed capital. The trust agreement
--ill permit CDB to make loans from the fund at an interest rate no less than
8%. Payments WE' interest and commitment fees, and loan instalments will be
returned to the trustor. CDB will charge the borrower an administrative fee
not to exceed 3% o' the amount of the loan, and is also authorized to retain
a fee equal to o.05% of short-term investments related to the Traat Fund
from the yield on such investments. CDB also negotiated a line of credit
with the Export-Inport Bank of Japan for about US$7-1 million equivalent
at 8% repayable in 15 years with a grace period of four years.
4.18    SF are presently conprised of six separate special funds.  These
funds are each characterized bry specific rules for procurement and use which
are negotiated with the donor country. The six special funds are: (i) the
Special Development Fund, (ii) the Agricultuwal Fund, (iii) the Housing Fund,
(iv) the Counterpart Contribution Fund, (v) the Commercial Livestock
Production Fund and (vi) the Non-Reimbursable Contribution for Livestock Feed
Study. SFR available to CDB as of December 31, 1974 totalled US$70 million,
which by July 1975 had been increased to US$84 million.  The SER special funds
are detailed in Annex 17.
1/  In 1974 US dollars.
7/ In 1969 dollars.
it The Trust Agreement between CDB and the Venezuelan Investment Fund waa
signed on August 21, 1975.



- 23 -
Financial Condition
4.19      CDB's total OCR assets had reached US$28.7 million by December 31,
1974 (Annex 16). During the first five years Of CDB operations, funds used
for ordinary Operations came entirely from paid-in capital and reserves. Most
Of CDB's available funds have been placed in short-term deposits and invest-
ments since disbursements lagged behind the volume of approved operations.
Short-term investments, though, dropped from 91% of total available OCR funds
in 1972 to 77% in 1974, as disbursements began to pick up (para. 4.15). Finan-
cial ratios essentially are yet those of a start-up operation and do not reflect
sustained operating policies. SFR assets had reached US$141. million by year-
end 1974 and, as in the case of OCR, most (81%) of the available funds were
placed in short-term deposits and investments.
4.20      CDB's liquidity policy for ordinary operations as set by its Board
requires that liquid assets equivalent to two year's projected OCR disbursements
be maintained at all times. CDB management is cOnsidering recolaending to its
Board that the liquidity requirements be reduced to the equivalent of nne year's
projected disbursements, which should still provide adequate liquid reserves as
long as CDB approves loans against firm commitments for resources.
4.21      Consolidated (OCR and SFR) gross income in 1974 was 7% of average
total assets and consolidated net income was about 4% (Axmex 16). During 1974,
871% of gross income was earned on short-term investments which yielded an
average rate of return of 10% p.a.  Interest expense was negligible. Net
administrative expenses in 1974 were about 2.7% of average total assets, after
deducting technical assistance contributions from Canada, UK, and the UNDP.
Expenses are reasonable taking into account CDB's early stage nf development.
The ratio of expenses to assets is expected to decline (para. 4.26) as operat-
ing volume increases. CDB allocated only 21% of its administrative expenses
to the Special Development Fund in 1974 although special operations from the
Special Development Fund accounted for 54% of both the total amount and the
number of operations. The allocation of administrative expenses was reviewed
by CDB management and beginning in 1975 administrative expenses charged to SFR
operations will be in accord with actual expenditures incurred in these opera-
tions.
Projections of CDB OperatiOns
4.22      The CDB five-year lending program forecasts about a 100% increase
each in its agricultural lending programs and in the financing of infrastructure
projects (including housing schemes) and nearly a five-fold increase in lending
for industrial and tourism projects. The basic strategy which has guided CDB agri-
cultural lending (para. 4.07) is sound and remains unchanged except for adjastments
in the allocatinn of funds. A larger share of total agricultural lending will be
channeled to the LDCs; however, a smaller proportion Of LDC agricultural credit
will be handled through intermediary institutions. The emphasis on infrastructure
lending will continue in the area of improvements in the transportation sector and
continuation of housing programs. Industry and tourism operations will include



- 24 -
regional projects and large nati°nal projects (para. 4.14) in addition to c°n-
tinuation of the small industry credit and industrial estate programs. During the
five-year program (1975-1979), agricultural lending will account for about 40% of
total lending, infrastructure lending will account for 32% and industry and tourism
lending, 28%. The Bank will not impose sector limits in the proposed loan
as the risk of overconcentration is minimal. OCR funds will be used to finance
One-third of the agricultural lending, one-third of the infrastructure lending
and two-thirds of industry and tourism lending. SFR will continue to be used
largely to finance LDC projects, although some SFR may be channeled tO MDCs
with the concurrence of the donor countries. The LDCs will also receive about
30% of available OCR and the balance will be used tO support IMDC projects and
regional projects.
4.23      Table V  shows 1975/1979 projected OCR apprOvals, commitments and
disbursements on a cumulative basis. The President of CDB pOinted out at
the Annmal Meeting of the Board Of Governors in May 1975 that the rate of loan
approvals will temporarily slow down, particularly during 1975, while the new
approval procedures (para. 4.15) are implemented and as CDB staff concentrate
their efforts on project implementation. Commitments and disbursements will
thus be brought into a more satisfactory relationship with the vOlume of
approvals during the next two to three years.
TABLE V        /a
Cumulative CDB Projected °R DFieratiOns      (million of US$)
Approved                 Projections - Cumulative
OCR ILans
12-31-74      1975      1976        1977         1978        1979
Approvals          37.9        42.3/     60.6       80.9          98.4      118.7
Commitments        10.0       32.4       50.1       70.4          87.9      108.1
Disbursements       3.4        13.2      31.2       47.3          68.4       86.5
Includes Venezuelan Trust Fund operations amounting to US$25 million.
E   As noted in footnote to paragraph 4.15 approvals of new loans frnm OCR funds
in 1975 totalled only US$21.2 million as compared to the US$42.3 million
projected. This shortfall was due to a conscious decision on the part of
CDB management to consolidate the bank's operations during 1975 by con-
centrating on improved project implementation and more rapid disbursement.
Having achieved this objective, CDB expects to increase its operations during
the forecast period as projected in Table V.
4.24     Borrowings will provide funds to finance OCR disbursements from late
1975 Onwards. The amount of required borrowings is shown in Table VI.   These
amounts could vary with changes in CDB's liquidity policy (para. 4.20). CDB
will have to use borrowed funds to finance disbursements on loans that were
approved before the arrangements for borrowing were made,  Since CDB's lending
procedures are nearly identical with those likely to be required by its probable
creditors, namely IBMD and Venezuela, the problen of eligibility for reimburse-
ment is not expected to arise. However, it will also be necessary for CDB to



- 25 -
finance frOm borrowings soae disbursements made prior to the signing of the
loan agreement with the Bank in order to preserve internally generated funds
for short-term liquidity. For this reason the proposed loan would allow up to
US$4 million of retr°active financing for eligible disbursements after October
27, 1975, for g°ods and services procured under the Bank's usual guidelines
from the standard term cOmpOnent of the loan.
TABLE VI                           /
CDB Projected Annual OCR Disbursements and SOurce of Funds
(millions FT US$)
1975     1976     1977      1978       1979    Total
Disbursements:
On lans apprOved prior
to 12/31/74                    9.4      14.1      6.1       5.2        -      34.8
On loans approved after
12/31/74                       0.4       3.9      9.9      15.9       18.1    48.2
SubtOtal                  9.8     18.0      16.0      21.1      18.1    83.0
Internal cash generation  b        (3.0)    (604)    jt-7)      (3.4)     (2-7)  (2.2
Annual borrowings required          6.8     11.6     11.3       17.7      15.4    62.8
IBRD                                2.0      3.8      4.5        7.1       2.6    20.0
Venezuela Trust Fund                2.8      4.6      4.3        6.7       5.7    24,1
Other                               2.0      3.2      2.5        3.9       7.1    18.7
6.8     11.6     11.3      17.7       15.4    62.8
/a Includes Venezuelan Trust Fund Operations.
After required investments for liquidity.
CDB Interest Rate P0licy
4.25      CDB interest rates differentiate between bOrrOwers. Present interest
rates on OCR loans are shown in Table VII:
TABLE VII
CDB Interest Rates as Of June 30, 1975
OCR                  SFR
Government                                           8.5%                 4.0%
Government Financial Intermediaries                  7.5%  La             4.0%
PrOductive Industrial Enterprises                    10.0%                 -
Productive Agricultural Enterprises                   9.0%
L    Increased to 8% on December 12, 1975 by  CDB Board Of Directors.



- 26 -
A cormitment fee of 3/4% is charged on undisbursed balances 60 days after
the signing of the loan agreement. These rates give a composite OCR average
lending rate of about 8 1/2% based on the distribution of existing and
projected operations, while the interest rate on soft loans from SFR for all
borrowers is 4%. CDB's interest rate structure was approved by its Board
in May 1975, and represents an increase from the previous 8% composite OCR
average lending rate. Therefore, CD)Bs average lending rate for OCR is about
equal to its cost of borrowed funds from IBRD, a situation which, in spite of
the lack of an interest rate spread on loans from borrowed funds, is sustain-
able given the projected volume of operations through 1979 (Annex 18) and
CDB's relatively high paid-in capital base.  Debt leverage on CDB's paid-in
capital and reserve base is projected at less than 1.3:1 by the end of 19791/
and CDB's average cost of total resources will be 4.6%, taking into account
cost-free capital and reserves.
Projected Financial Condition
4.26   CDB's net income as a percentage of average total assets in its
ordinary operations is expected to be about 2.9% in 1975 and 1976. Thereafter,
it will decline to a level of 1.7% in 1979 which is considered acceptable for
an institution that does not assume the foreign exchange risk in its operations.
These results are based in part on CDB's ability to reduce administrative ex-
penses from 2.7% of average total assets to 1.6% in 1979, which may prove dif-
ficult in view of the complexity and diversity of CDB operations and the
geographical dispersion of its borrowing members. However, continuation and
perhaps expansion of the technical assistance programs available to CDB (para.
3.12 and 4.21) and the proper allocation of expenses to SFR operations (para.
4.21) bring this goal within reach.
4.27    As stated, one of the Bank's objectives is that CDB would use part of
the loans to finance projects which the Bank might otherwise have financed
directly (para. 1.03/a), when appropriate and with the concurrence of CDB. We
expect CDB to use about 50% of our loans to finance such'projects and the Bank
will be discussing individual projects with CDB and the countries concerned. It
should be noted that if the Bank increasingly uses CDB as an intermediary for
its Caribbean lending as contemplated, CDB may have to bear the administrative
costs of these operations and, to avoid inroads into its profitability, to find
ways of generating additional income to cover the costs of a level of operations
higher than presently forecast. There are several possibilities. CDB could
increase its interest rates though it would probably prove to be difficult for
CDB as a regional instituticn to obtain approval from its Board to charge a
higher interest rate than other international lenders, particularly in its lend-
ing to governments and government institutions. CDB could seek an increase in
paid-in capital, perhaps through expansion of its membership, provided other
related issues are resolved (para. 3.01). CDB could also lower its operating
costs to a certain extent by reducing the substantial technical assistance that
accompanies its lending, but this would be self-defeating with regard to CDBts
purpose. It would be preferable to seek additional technical assistance grants
from bilateral and international agencies interested in the economic development
of the Caribbean region. Within one year of loan effectiveness, the Bank and CDB
j Includes Venezuela Trust Fund operations for purposes of financial analysis
although Trust operations are not supported by CDB share capital.



- 27 -
shall review CDB's financial position with particular regard to the adequacy
of its net income and reserves and consult on any steps which may be considered
necessary to strengthen its financial viability.
V. THE PROJECT
5.01    The proposed conventional Bank loan of US$17 million equivalent and
the Third Window loan of US$3 million equivalent would be made available to
CDB for support of public and private sector projects in the Caribbean, ex-
cluding types of projects (e.g., straight housing, health) which the Bank itself
has not financed. The foreign exchange risk will be borne by CDBts subborrowers.
The interest rate subsidy of 4% will be applied to the Third Window loan and
amortization will be over 18 years beginning in 1983. CDB will relend the proceeds f the
Third Window loan to eligible governments at the same interest rate, commitment
fee, maturities and grace period set by the Bank with the provision that CDB
will charge the borrowing government a commission, presently set at 1% and
required by its Articles, to be credited to a Special Reserve. The proceeds
of the CDB subloans may be relent by governments, in which case the government
subloans would have an amortization and grace period appropriate to the sub-
project and would bear an interest rate consistent with CDB's present interest
rate structure. The US$17 million conventional loan will be subject to standard
Bank terms. The amortization of the conventional loan will be a composite of
CDB's subloans, subject to a maximum of 25 years, including up to 10 years of
grace, to be determined on project grounds with the exception of public sector
projects in the LDCs where country considerations may be taken into account.
CDB's present interest rate structure (para. 4.25) will apply to the relending
of Bank funds from the conventional Bank loan. The standard commitment fee will
be charged on both loans.
Guarantees
5.02    The UK Government has advised the Bank that it is willing to guarantee
to the Bank repayment by CDB of Bank funds used to finance subprojects in the UK
Associated States and Dependencies, provided that the requirements of the Colonial
Loans Acts are complied with and that parallel legislation is enacted in each
territory concerned, assuring repayment to the UK in the event that the UK is
called upon to fulfill its guarantee obligation to the Bank. It is not certain
that all of the UK Associated States and Dependencies will have enacted the
requisite legislation by the date of signature of the Bank Loan Agreements and
it is therefore proposed that the Loan Agreements should preclude the commitment
of Bank funds by CDB to finance subprojects in any UK Associated State or
Dependency until an appropriate UK guarantee has been issued in respect thereof.
5.03      With respect to relending by CDB of Bank funds to finance subprojects
in independent CDB member countries, Barbados, Grenada, Guyana, Jamaica and
Trinidad and Tobago have each advised the Bank that they are willing to enter into
a blanket Guarantee Agreement with the Bank covering repayment by CDB of Bank funds
used for subloans to the government of the country concerned or any agencies or
instrumentalities thereof. Bahamas has agreed to provide such guarantee on a



- 28 -
case by case basis. In any event, it is proposed that the Loan Agreements
should preclude the commitment of Bank funds by CDB to finance a subproject
in any independent CIE member country until an appropriate guarantee by such
member has been issued in respect thereof.
5.04      Any regional subproject, i.e. a subproject located in the territories
of more than one CDB member countrys should norsally be jointly and severally
guaranteed by all member countries participating therein, and the issuance of
appropriate guarantees to the Bank to cover Bank funds relent by CDB for such
subproject will likewise be a condition precedent to coumitment of such funds
by CDB.
Eligibility of Recipient Countries
5.05      Bank funds will be relent by CDB only to or in those CDB member
countries who are also members of the Bank and who are deemed by the Bank
to be eligible borrowers on the basis of creditworthiness and other pertinent
considerations. Separate lists of eligible countries have been established for
the Third Window loan and for the conventional Bank loan. Countries eligible
for Third Window funds are Antigua, British Virgin Islands, Cayman Islands,
DDminica, Grenada, Montserrat, St. Kitts-Nevis-Anguilla, St. Lucia, St. Vincent
and Turks and Caicos Islands. Countries eligible for Bank funds from the con-
ventional Bank loan include those eligible for Third Window funds, Belize,
Bahamas, Barbados, Guyana, Jamaica, and Trinidad and Tobago. These lists may
be amended at any time by the Bank after consultation with CDB, either by dele-
tion or addition, and in the event of any country being deleted from such list
COB will not enter into any new commitment of Bank funds to or in such country.
Free Limits
5.06      The usual requirements for a "free limit" will be entirely dispensed
with in the loan agreements (para. 3.15). Bank Supervision missions will
monitor the quality of CMB subproject approvals.
Disburseinmts
5.07      The Bank will reimburse CDB 65% of total project costs (representing
the estimated average foreign exchange costs). In cases in which the foreign
exchange costs could be clearly identified (and these are likely to be in the
large projects) the Bank would reimburse 100t of the actual foreign exchange.
Since the IDCs may have considerable difficulty in generating savings for invest-
ment, the Bank will reimburse CDB 8B% of the cost of public sector projects in
the IDCs. Disbursements would normally be made against adequate supporting docu-
mentation submitted by CDB. In those cases where documents are not available to
CDB due to the nature of the subprolect and it is clearly impractical to secure
them, the Bank would disburse against certificates of expenditure submitted by CDB



- 29 -
on the understanding that the documetation which is not submitted for review
would be retained by the respective financial intermediary and made available
for inspection by Bank staff while on supervision missions. The Bank will
reimburse CM for expenditures for eligible subprojeets incurred no more than
180 days (instead of the normal 90 days- prior to the date on which the Bank
receives a subloan for authorization to make withdrawals, because of the large
number of CIE operations channeled through intermediary institutions. CDB will
be permitted to use Bank funds from the conventional Bank loan for retroactive
financing up to US$4 million for disbursements after October 27, 1975 which
meet the Bank's usual eligibility criteria. The period of comitment will be
two years and the closing date for disbursements will be December 31, 1979.
VI. RECOM      TINIS
6.01     D]rwig negotiations agreemot was reached and assurances obtained
from Cm on:
(i)   the eligibility of C:B member countries for Bank fundc
(para. 5.0
(ii)  the restrictionIon relending by CDB of Bank funds to types of
projects normally eligible for Bank financing under its lending
policies (para. 5.01); and
(iii)  a review of CIB finncial condition and adequacy of income
within one year of the date of loan effectiveness (para. 4.27).
6.02      The Bank has satisfied itself that the CIE member governments concerned
agree to meet the Bankis requirements for:
(i)    the issuance of a UK guarantee for relending by CDB of Bank
funds to finance projects in the UK Associated States and UK
Dependencies (para. 5.02);
(ii)  the issuance of a blanket guarantee by each independent CIB
member country for relending by CDB of Bank funds to finance
projects in that country up to and limited to the amount of
such financing or, alternatively, on the issuance of guaran-
tees on a case-by-case basis (para. 5.03);
(iii)  the issuance of appropriate guarantees for relending by CDB of
Bank funds to finance regional projects located in the CDB
member territories concerned up te the amount of such financing
(para. 5.014)
6.03      The project is suitable for a conventional Bank loan of US$17 million
equivalent and a Third Window loan of US$3 million equivalent on the terms and
conditions listed in Chapter V.






CARIBBEAN DEVELOPMENT BANK
Basic Indicators for CARIFTA/CARICOM Countries. 1971 1/
GDP                         Estimated 4/                                                               Agric. Exports
Factor         GDP           1974 GNP         Agric. as 2/       Exports as        Imports as          as Percentage of        Tourism as             Manufacturing S/
Area         Population       Cost       per Capita       per Capita      Percentage           Percentage        Percentage            Total Goods          Percentage of 3/         Contribution
Km2           (000's)        (US$m)         (US$)           (US$)           of GDP              of GDP             of GDP                Exports            Total Exports               to GDP
LDC s
Antigua                   441.6            66.6          28.8         433.5           370.0               3.1                42.6               76.8                   -                    76.7                     10.1
Dominica                  787.4           71.4           19.8         277.0           280.0              29.4                34.0              69.9                  89.6                  22.8                      10.8
Grenada                   344.5           95.1           32.8         345.5           250.0              30.0                29.5              59.7                  94.3                  55.1                      15.6
Montserrat                102.3            11.6           6.3         537.5             n.a.             16.0                19.3               60.2                  51.2                 89.3                       8.2
St. Kitts                 352.2           45.7           16.8         367.5           350.0              24.4                32.4              80.3                   66.1                 34.4                       3.0
St. Lucia                 616.4          102.5           38.0         370.5           370.0              23.2                27.4               75.8                  96.8                 39.7                      12.2
St. Vincent               384.0            88.8          19.5         220.0           240.0              24.8                23.6              80.2                   72.5                 45.0                      13.6
Belize                 22,966.0          123.5           68.9         550.0            n.a.              15.3                20.0              48.0                  82.3                   -                         1.7
MDCs
Barbados                  429.9           237.8         160.8         676.0            n.a.              38.0                57.0               79.7                  58.8                 61.5                       2.6
Guyana                215,000.0          719.4          247.6         344.0             n.a.             20.3                57.8               54.7                 45.4                   -                         3.6
Jamaica                11,424.0        1,906.2        1,282.7         673.0             n.a.              9.3                37.6               43.9                  17.5                  19.4                      3.8
Trinidad and
Tobago               5,128.0          951.6         964.1        1,013.0            n.a.               4.6                35.7              43.3                  17.2                  14.1                      11.7
1/   Except for columns 3, 4 and 5, the ratios are calculated from data at current market pricea.
2/   Includes livestock and fishing.
3/ Total exports is exports of goods and tourism.
4/  IBRD estimates as of August 1975 (valued at 1972 market prices).
5/ These figures are for 1970.
LCPDF, August 1975



CARIBBEAN DEVELOPMENT BANK
ORGANIZATION CHART1"
HO0ARD) OF
GOVERNORS
BOARD Of1
DIRECTORS
T
|      P'RESIDENT
M,  D1m.s,
I                    I
|Vl IE PRESill)EN T|
ECONOMICS AND
ADMINISTRATIVE                    FINANCE                        U LEG A,                               PROJECIS ANALYSIS                                  INUSTRY                       TECHNICAL.                  ADIVIIO TUR
DI V SIGN                    ISI SION                                     DIVISION         V                             DIlVISION       V              DIVISION                      DiVISIN         A
DIVISION                   F.10 lF, R                      Mt N                                         0. s    IttrfVSt...                             OD. K                         Mt ese-                      O CD, Vplh I
Mt
LOAN
ADMIN STRATION                AM INISI FIAIIVLE |                     I   , I                  1                            FCONOMIC        Fx IFNANCfACIAL                          S         IX                    FIELD DFFICEFI                 FIELD OFFICER
AND SUPERVIS ON           X        OFFICER          |        ACV  lANG I                           lfEl                    STATISTICIAN                     ANALYS I                                                    IMA|    1 -l                 A INITIl |TRF
UNIT                           Illf                                                                                       ()                             1                     LOANS OFFICERS   X131                                               131
Mr de Fon-t.ka                                                                                                                                                                              0
A| M NEAl ION              |     MIADMINISTRAT vE             ACCOUNTING NPROJT                                                                                                    | II(LTl (1Ff CLI                PHEJEI OlFFICEI|              PROJFCT OFFICER
AND SFERSISON             l        -ASSISTANT                   ASSI1 SIANT                                                                                                                    T          VANALYST  - P  (2 Y  1 N1.TRY    ENGINEER  AGRICULTORE
OFFICEIS                1~~             ~~~~~3.       131                                                                                         2                             13)                            (2T                           1 St
FARM
EC 0 N O  I S ISSTATISTICAL                       PRHETIEFEFRPOJECT OFFFC RCEV                                  IMPROVEMENT
ECONOMISTS             ~~~~~ASSISTANT                  HOTELS          V             tOI I SI  G                   OFFICER
III                                II               Ir                                         IN            *                 IV-
I ItRARIAN                                                                                 TECH ICAL
(1)          _                                                                         ASS(STANT
F g,t-s-  ,f -M-acn.t.....no... .tl.lIAF I(st;,II  sll ttttttsstttt
2 os,Ion,nay ItI ll n.ltlIIII
X Denotes s-lff nrEnts otet JNDP P,.,ncti
X,,,tt, Deno, s1511a tIlt
X DEnVIt., -sf   ll OttP  .odl, JSAID FItC



ANNEX
page 1
CARIBBEAN DEVELOPMENT BANK
BOARD OF GOVERNORS
(as of January 16, 1976)
Hon. C.A. Paul Southwell         St. Kitts-Nevis-Anguilla             Chairman
Hon. George Chambers             Trinidad and Tobago                  Vice-Chairman
Hon. John Turner                 Canada                               Vice-Chairman
COUNTRY                           GOVERNOR                      ALTERNATE
Antigua                          Hon. S. U. Prince,            Mr. H.B. Ambrose
Minister of Finance,         Acting Financial
Industry and Tourism         Secretary
Bahamas                          Hon. A. D. Hanna,             Mr. T. Donaldson
Deputy Prime Minister        Governor, Central Bank
and Minister of Finance       of the Bahamas
Barbados                         Rt. Hon. Errol W. Barrow    Mr. L.V.H. Lewis
Prime Minister and           Permanent Secretary
Minister of Finance         (Finance)
Belize                           Hon. A. Shoman                Mr. G. R. Graham
Attorney General and         Head, Planning Unit
Minister of Economic        Ministry of Economic
Planning                     Planning
Canada                           Hon. Donald S. Macdonald    Mr. P. Gerin-Lajoie,
Minister of Finance          President
Department of Finance        Canadian International
Development Agency
Colombia                         Dr. Rodrigo Botero            Dr. German Botero de
Montoya                      los Rios
Minister of Finance &        General Manager
Public Credit               Banco de la Republica
Dominica                         Hon. P. R. John               Mr. A. C. B. Watty
Premier and Minister of      Financial Secretary
Finance & Development
Grenada                          Hon. Geo. F. Hosten           Hon. F. Dolland
Minister of Finance,         Minister of Youth
Trade and Industry           Development, Sport
and Labour
Guyana                           Hon. F. E. Hope               Hon. S. S. Ramphal
Minister of Finance          Minister of Foreign
Affairs and Justice
Jamaica                          Hon. David H. Coore, Q.C.   Hon. G. A. Brown
Deputy Prime Minister        Governor
and Minister of Finance    Bank of Jamaica



ANNEX 3
page 2
COUNTRY                        GOVERNOR                            ALTERNATE
Montserrat                      Hon. Benson Ebanks                 Mr. William Bramble
British Virgin Islands         Member of Executive Council         Montserrat
Cayman Islands                  Cayman Islands
Turks and Caicos Islands
St. Kitts-Nevis-Anguilla       Hon. C.A.Paul Southwell             Hon. R.L. Bradshaw
Deputy Premier                     Premier
St. Lucia                      Hon. J.G.Compton                    Hon. W.G. Mallet
Premier and Minister of            Minister of Trade,
Finance                            Industry & Tourism
St. Vincent                    Hon. R.M. Cato                      Mr. C. Ivor Martin
Premier and Minister of            Financial Secretary
Finance
Trinidad and Tobago            Senator the Hon. F.C.Prevatt        Hon. Errol Mahabir,
Minister in the Ministry           Minister of Industry
of Finance                         and Commerce
United Kingdom                  Rt. Hon. R.E.G. Prentice           Mr. C.R.A. Rae,
Minister for Overseas              Under-Secretary
Development Administration         Overseas Development
Foreign and Commonwealth           Administration
Office                             Foreign and Commonwealti
Office
Venezuela                       Dr. Hector Hurtado                 Dr. R. Figueredo Planchai
Minister of Finance                President
Institute of Foreign
Trade



ivdLrX 4
CARIBBEA i  DEVE)'M.-ENT BANK
BOARD OF DIRECTORS A&D VOTING GROUPS
(˝s of December 31 1975)
Cbairman: Mr. William C. Demas, President
COUNTRY OR GROUP OF
DIRECTOR                    ALTERNATlE                  COUNTRIES REPRESENTED
A. Regional
Mr. H. G. Barber             Miss Joan Ferguson              Jamaica
Mr. T. A. Harewood           Mr. U. Baksh                     Trinidad & Tobago
Mr. D. Augustin              Mr. S. Emtage                   Barbados and Guyana
Mr. W. Rolle                 Mr. R. Fonseca                   Bahamas and Belize
Mr. G. Girard                Mr. L. F. wilson, Jr.            Dominica, Grenada,
St. Lucia and St. Vincent
Mr. G. Ward                  Mr. E. Benjamin                 Antigua, St. Kitts-Nevis-
Anguilla, Montserrat,
British Virgin Islands,
Turks and Caicos Islands
Dr. Jose Mogollon            Dr. Manuel M2rtinez             Colombia
Dr. Jesus Fernandez          Dr. Maxim Ross                   Venezuela
B. Non-Regional
Mr. Earl G. Drake            Mr. S. Westall                   Canada
Sir Bruce Greatbatch         Mr. A. Jackson                  United Kingdom
LCPDF, December 1975



CARIBBEAN DEVELCP1ENT KANK
Statement of Sb-sc,i,ptio- of Copiota Stock and Voting power
December 31. 1974
SUBSCRbBED CAPITAL                                                                                 VTN   OE
M E Mb E R                                            Per-ent                               CALLABLE   1!            PAID-UP    2I                  VOTIe G   POWER
Shores     of Total        A ..ot                 CAPITAL                 CAPITAL                of 'Votes          of lotal
A.  REGIONAL STATES & TERRITORIES
J-maica                                               2,240       20.I0       11,200,050                 5,600,000                5,674,662              2,390              17.3S
Trieidod &  Tobago                                    1,540       13.75        7,700,COE                 3,850,000                3,901,329              1,690              12.29
3anan:as                                                660        5.89        3,300,(00                 1,650,000                1,671,998                810              5.89
Colombia                                                600        5.36        3,000,(100                1,500,000                  361,904                750               5. ' 5
V -nezuela                                              600        5.36        3,000,100                 1,500,000                  651,428                750              5.45
Guy...                                                  480        4.29        2,400,(00                 1,200,000                1,215,999                630               4.58
Barbados                                                280        2.50        1,400,100                    700,000                 709,333                430               3.12
Antigua                                                 130          .89         500,(00                    250,000                 253,333                250               L.82
BeIlie                                                  100          .89         500,(00                   250,000                  253,333                250               1.82
Dominica                                                100          .89         5oTi,00                   250,000                  253,333                250               1.82
Grenada                                                 100          .89         500,C00                    250,000                 253,333                250               1.82
St. Kitus - Nlevs - Aoguilla                            100         .89          50O0G0o                   250,000                  253,333                250               1.82
St. Lucia                                               100          .89         500,000                   250,000                  253,333                250               1.82
St. vicose                                             100         .89          500,000                   250,000                  253,333                250               1.82
'lonstser-at                                             25          .22         '25,000                     62,500                  63,333
Brtish Virgin Islands                                    25          .22         125,000                     62,500                  63,333
250              1.82
Tovuos Islo.,os                                          15          .22         125,000                     62,500                  63,333
Turks I Coicos Islonds                                  25          .22          125,000                    62,500                   63,333
B. NON-REG0ONAL STAGES
Can-do                                               2,002        17.87       10,000,000                 5,000,000                5,066,663              2,150               5.6<
Usitod Kingdom                                       2,000        17.87       10,000,000                 5,000,000                5,066,663              2,150              15.64
11,200      100.30       56,000,000                28,000,000               26,346,642             13,750             t00.00
ADDITIONAL SUBSCRIPTION
Colombia                                                600         -          1,500,000                   750,000                  180,952               -
60C         -          1,500,000                    750,000                 325,713
1, 500, 003               506,665
29,500,000              26,853,307
Li Is 1969 US dolloro.
2/ Is 1974 TS dollars.
LCPDF, Aug-ts 1975



QA±kl uLAN iD EIfVF.PMET BANK
Loan 'fezin.- and Conditions
aOrJune 30,195
xirterest Rates  1/                                         Ordinary Resources                                 Soft Resourcee
Government (Infrastructural & Public Utilities)                    8 1/2%                                             4%
Government financial intermediaries                                7 1/2%   V/
Productive enterprises (Industry & Hotels)                        l0.                                                 _
Productive enterprises (Agricultural)                              9%
Ter Loan Limits
LDC governments                                        80% of project cost                                   90% of project cost
MDC governments                                        70% of project cost                                   90% of project cost
private borrowers                                      60% of projects costing up to US$375,000
40% of projects costing over US$375,000
Lower Loan Limits                                      US$100,000                                            US$100,000
Conmitment Fee                                         3/4 of 1% p.a. on undisbursed balance from
a date 60 days after signature of Loan
Agreement
Term and Grace Period
Government:
grace period                                     Normally 2 years                                      Up to 5 years
term after grace period                          10-15 years                                           15-20 years
PrLvate Borrowers:
grace period                                     Up to 5 years
term after grace pernod                          5-10 years
<Q3eourity Regui rements
Governments                                            Negative pledge clause                                Negative pledge clFuse
Government Agencies                                    Government Guarantee                                  Government Guarantee
Private Borrowers                                      Adequate security in form of first legal mort-
gage or other form acceptable to Bank.
change PRi skc                                  Borne by borrower or guarantor                        Borne by borrower
or guarantor-
7inc±uies i~6 p.a. comietsaion reqWired by CDB Articles of Agreement as a Special Reserve against losses
2/ Increased to 8% on December 12, 1975
L0.P0F, December 1975



ANNEX 7
CAR BBEXN DEWIELPMNT BANK
Slzaixa7 of Operations - 1970/19$74.
Number and Amount of Loans (in million of Us$)
LDC                  & Others                      Total
'Mo.             ~~No.                      No. __
APPROVALS
OCR-
Agri-aultue            29       41                       21                ;        ,,,
Infrastructure          6      1.8              6      1.2 12                     -20
Did. & Tour.            I       .5                      3,3                I
Subtotal                                            30.1                       3
SFR:
Agriculture            30      6.2               2      1.2               32        7.4
Infrastructure         33     32.2              3        .6               36      32.8
Id. & Tour.            2h      5.3              2        .2               26        5.5
Subtotal           _______43_7              _____2__94_4__
TOTAL          127    71l,5              19     32.1              146  l
COMMITMENTS
OCR:
Agriculture            19       2.7              1      10               20        3.7
Infrastructure          4      1.2              2       2.2                6        3.4
Ind. & Tour.            4       1.3                    11.6                5        2.9
Subtotal      ~~~27    T,                                         31      10,0
SER:
Agriculture            21      309              -       -                 21        3-9
Infrastructure         21     21,1              2        .5               23       21.6
Ind. & Tour.           24       5.6             1       16               25        7,2
Subtotal             6     306               3       2.1               69      32.7
TOTAL                                                             100352, 7  6O7
DI SBURSEMENTS
Agriculture            14      1.5              1        .5               15        2.0
Infrastracture          4        .5              -      -                  4         .5
nd. & Tour.             2        .9             -                          2          9
Subtotal            20      2,9              1        .5                1       3.4
Agriculture            28       2.9              1       .5               29        3.4
Infrastructure         15      1o2              1       -                 16       1,2
Ind. & Tour.                                   _____                      15  .8
Subtotal 1O
TOTAL August                              3       1.0                        9
LCPDF, August 1975



CARIBBEAN DEV3LOPMENT bANK
Loans to the ARricoitur.l Sector (1970-1974)
N-Sber (  ) aold Amount of Loa-s (in thousands of US$)
A.tiguo         Belize               Doinir-            Grenada            Mout-err-t      St. Kitts        St, Lucia          St. Vincent    Total LDCc            Other             Tote1 MOCe           Total Leare
ORDINARY CAPITAL RESOURCES
1.  Marketing Fecilities and  gro-Indoutrien
-   Phblic Sector                                                                        (1)   427.4                                                                                                (1)  427.4                                                 (1)      427.4
-   Private Sector                                                                                                                                                                 (1) 100.         (1)  100.0                                                 (1)      10 IO.0
2.  Financial I.termedi -ries
-   Agrioult-ral Credit                             (1) 150.0        (4)    840,0        (1)   100.0                                           (1) 100,0        (1)   250.0        (1) 250.0        (9)1,690.0                             (3) 12,563.1        (12) 14,253.1
3. Asriuoltural Developtent
-     bublic Sector                                                  (2)    432.2                           (1)   125.0                        (1)  56.3                                            (4)  613.5                            (1)  3,525.1           (5)  4.138.6
-   Private Sector                                                   (4)    723.9        (4)   430.4        (4)   328.5                        (1)  53.1        (1)    85.0                        (14)1.620.9                                     - -t---1-6209
S.btotal (Approved)                            (1) 150.0       (10) 1,996.1        (6)   957.8        (5)   453.5                         (3) 209.4        (2)   335.0        (2) 350.0      (29)4,451.8                             (4) 16,088.2         (33) 20,540.0
Comit-ent. (Signod)                            (1) 150.0         (6) 1,092.1        (5)   897.7        (2)   134.7                        (3) 209.4        (1)    85.0        (1) 100.0       (19)2,669.0                             (1)  1,000.0        (20)  3,68i9 0
Disbure-d (at 12.31.74)                                         (5)   487.0         (4)   633.4        (2)   134.7                        (1)  41.8        (1)    85.0        (1) 100.0       (14)1,481.9                            (1)    467.2         i155  1,949.1
SPECIAL DEVELQOPENT FUND & OTHER SPECIAL FUNLS
1. Marketing Faoilitiee and Aaro-I.doatri.e
-   PFblic Socoro                                                    (1)    398.9                           (1)   185,2                        (1)  58.2        (1)    65.0        (1) 100.0        (5)  807.3                                                 (5)      807.3
-   Prtiate Seator                                                                                                    _                                _                  _                _                                                                               _
2. FiLnaniSl Int.rnodi-riec
-   Fare Improv-en-t Credit                         (1) 252.1        (5)  1,200.0        (2)   702.0        (1)   252,0        (1) 100,000     (1) 252.1        (2)   502.1        (1) 252.1- .   (14)3,512.4         (1)  100.0 4-2                           (15)  3,612.4-.
-   Agricultural Credit                                                                                                                                                                                                                   (2)  1,100.8 _/    (2)  1,100.0
3.  Agritult-ral Develo-1met
-  Public Sector                                    (1) 178.4       (2)    361.1         (1)   183.9        (1)   592.5       (1) 179.0        (2) 194.2        (1)   137.4        (1)  82.5       (10)1,909.0                                                 (10)  1,909.0
-  Private Setr                                                                                                                                         -                                  -
Subtotal (Aproved)                              (2) 430.5       (8)  1,960.0        (3)   885.9        (3) 1,029.7        (2) 279.0        (4) 504,5        (4)   704.5        (3) 434.6       (30)6,228,7        (1)  100.0          (2)  1.100.0         (32)  7,428.7
Comittients (Signed)                             2  430.5        (7)  1,561.1        (2)   435,9        (1)   252,1        (1) 100.0       (4) 504.5        (2)   317.1        (2) 334.5       (21)3,935.7                                                 (21)  3,935.7
Di.bureed (at 12.31.74)                         (1)  25.5       (4)    754.2         (1)   165.7        (1)   100.2       (1)  57.7        (3)  16.3        (1)   127.7        (2) 215.8       (14)1,463.1                                                 (14)  1,463.1
TOTAL APPROVALS                                    (3) 580.5        (18) 3,956.1        (9) 1,843.7        (8) 1,483.2        (2) 279.0       (7) 713.9         (6) 1,039.5        (5) 784.6      (59)10,680.5       (1)  180,0           (6) 17,188.2        t65) 27,968.7
Commit-entr                                      (3) 580.5       (13) 2,655.3         (7) 1,333.6       (3)   386.8         (1) 1OO.0       (7) 713.9        (3)   402,1        (3) 434.5       (40) 6,604.7                           .(1)  1,000.0        (41)  7,604 7
iSObFuremeete                                    (1)  25.5        (9) 1,241.2         (5)   799.1        (3)   234.9       (1)  57.7        (4)  58,1        (2)   212.7        (3) 315.8       (28) 2,845.0                            (1)    467.2        (29)  3.412.2
Coit-ent  a.s a percentage of approv-ls                     1t0                   67                72                 26               36               L00                39              55               61                   0                     6                    27
Dieb.r.e e-tu as . percentage of  -ommitments                    4                  47                60                 61               58                8                 53               73              45                   5                    47                    45
1/ Guyana $2,763,156;  Janaina $8,800,000 (both not yet signed) and Trinidad $1,000,000.
2/ Rarbadee
3/ J.,,alr  
B/ B. Virgin Edg1d
LCFDF, ACgEOt 1975



CARIBBEAN DEVELOP11ENT RANK
10500  for tots rtrt    rojcs(97-94
Number I ) tnsmoot of Losns (to tlsottandof US$))
St. Kitts/                                                      TtAo                 Total                TotQl               Total
Aotigo-              Bolfze            D mifnit             -recodo         MAot-errst           Oovfo/            St. 0L-ie          St. Vifeont LARICOM                           Othrts               tt L-s
Anguill.                                                       LDC.
ORDINARY KAPIYAO. RESOURCES 
1.Oooeff
-~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~-4
2.   ih          d Fd          d                                  -                    -                                                                                                -                   -                                                       (1) 1,102.Z         (1)   I., 10z, 
3.  Se.  Ports  sd Aiot                                           -                    -            (1)   310.0               -                                    _            (2)     535.5               -            (3)       845.5        (1)   792,0                -            (4)   1,637,5
4.  Water  eSfo-                                                                       -                   -                  -                -                   -            (1)     384.0               -            (1)       384,0               -                                (1)      384.0
5.  Pisn . f.l Isstarm-difries-
2/                  5/
-   Ho.aoig                                           (1)   250.0                 _                                                                                        (1)     352,5                            (2)       602.5        (1) 3,000.0         (3) 5,313.9         (6)   89,16,4
-   Studast ._ __
Sobtota1 (Approved)                            (1)   250.0                -            (1)   310,0               _                 _                   -            (4)  1,272.0                -            (6)   1,832.0         (2) 3,792,0         (4) 6,416,1         (12) 12,040.1
Co itm-ets (Sig-od)                                   -                    -           (1)   310.0               _                                    _             (3)     919.5              _             (4)   1,229.5         (1)   792.0         (1) 1,381           (6)   3,403.0
Disbusrsd (at 12.31.74)                              -                    -            (1)   301.3                                                    -            (3)    229.5                -            (4)       530,               -                   -            (4)      530.0
SPRCIAL DEVEWOPMENT FUND & OT     SPrOCAL F0029S
1.  Eleottioity                                                   -            (1)  2,520.5                -                                                                            -                                (1)   2,520.5                 -                                (1)   2,520,h
2.   !      Y11 -   sod Feeder Roads                       (1)   248.0         (1)  1,459.6         (])   913.8         (1) 1,568.0            -                   -            (2)  1,592.2         (1)   802.0         (7)   6,583,6                 _                                (7)   6,583.4
3.  8ee Poets  safe                                        (1)   175,0         (2)  6,327.5         (1) 4,010.0                -           (1) 287.3        (1) 2,085,0         (2)  5,117.5         (1)   360.0         (9)  18,362.3          (1)   378.0                .            (10) 18,740,3,
4,  Lster                                                         -                    -            (1) 1,032,4         (1)   921,4            -                   -            (1)      60,0               -            (3)   2,013.8                 -                   -            (3)   2,013.8
5. Pl_asefal foformodlarlres
--  htu.ssinsg                                        (2)   746.8                 -            (1)   732.0                -           (1) 100,0               -                     -           (1)   431.3          (5)   2,010,1                -       3/                       (5)   2,010,0
-   Stude-t Loans                                     (1)    50,0       _ (1)1_                   ()__100          ()__ 100.0          _ 1 _ 50,0    _ ()_ O.              (1_ (8 _IIPŽs1                                     720..0__ (ffi2      1_(2˝    4                                P 0S0
Subtotal (Approved)                            (5) 1,219.8        (5) 10,427.6         (5) 6,788.t         (3) Z,589.4        (3) 437,3        <2) 2,185.0         (6)  6,669.7         (4) 1,693.3          (33) 32,210,3         (3)   530,0                _            (36) 32,748.3
Comitments (Sifned)                            (2)   298.0        (2)  3,980.0         (4) 6,056,1         (3) 2,589.4             -            (1)   100.0        (6)  6,869.7         (3) 1,262-0          (21) 21,155.4         (2)   478.0                _            (2') 21,653.4
D"boesed  (Qt 12.317,4)                        (1)      5.0       (1)     516.5        (4)   561.9         (3)     39,4            -            (1)      6.3       (4)       64,3        (1)    40.4         (15)  1,234.8         (1)     12,3               -            (16)  1,246.3
TOTAL:  APPROVIALS                                         (6) 1,469.8         (5) 10,427.6         (6) 7,098.2         (3) 2,589,4        (3) 437,3        (2) 2,185.0         (10) 8,141.7         (4) 1,693,3         (39) 34,042.3          (5) 4,330,0         (4) 6,416.1         (48) 44,78a.4
Cf90UMS51NT0                                      (2)   298.0         (2)  3,98O.0         (5) 6,366.Z         (3) 2,389.4            -            (1)   100.0         (9)  7,789.2         (3) 1,262.0         (25) 22,384.9          (3) 1,270.0         (1) 1,381.6         (29) 25,036.5
DI8BUR8E6 EIOT8                                   (1)      5.0        (1)    516.6         (5)   863.3         (3)    39,4            -            (1)      6.3        (7)     293.8        (1)    40.4         (19)  1,764,8          (1)     12.3                _           (20)  1,777,1
Co ia-toeats  so e por-e-tags of opp-osals                        20%                  38%                 90'h                100L%                                5%                  96%                 75%                   66%                  29%                 227.                  567,
Olshuraansota as a paroastoge of   mfit-sta                        27                  137                 14%                   2T-                                67,                  4/.                 37                     87.                 1%                 -                       7%
1/ Caym=n Isisads
2/  Secondary Morttgag  Market
CJ ayeta Is., $60,000;  B, Virginf  s, $100,000
4/ Jarsatca
5/  Ba-bados $1,182,350;  Gsy-ns  $1,381,570; Jmsai-s $2,750,000
LCPD, August 1975



CARIBBEAN DEVSLOPMENT BANK
Loans to the T.d.stril and To-ris Sector (1970-19745
Number (  1 sod Ao,ou ti of_Lans (it thoos..de of US$)
St. Kitt./                                                   Total                Total              Total              Tot.l
A.tiga              lelis.            Dominica           G.renada       Mooteerrat          N-vi./           St. Lucia          St. Vincent           CARICO?d              Others            ?MDC.               Loan
Aaguilla                                                    LDca
ORDLTNAY CAPITAL RESOURCES
1.  Itdostrisl Estates - Public Sector                                                                                                                                                                                                                 (1) 1,624.0        (1)   1,624.0
2. Fiasciatl Inter-ediartei
-   I.d.strial Estates
-   Br-11 Indostry Credit
3,  TrassRortation                                                                                                                                                                                                      -           (1) 2,245.9 0             _            (1)   2,245.9
4. To-riso
-   Public Sector                                         -                   -                  -            (1)   208.3           -                  _                   _                  _           (1)      208.3              -                               (1)      208.3
-   Private Sector                                  (1)   231.7               _                  _                  -               _           (1)   132.5        (1)    750,0        (1)   136,0        (41   1.250.2                -                  -           (41   1.250.2
Subtotal (Approved)                         (1)   231,7                _                  _           (1)   208.3           -            (1)   132.5       (1)    750.0         (1)   136.0        (5)   1,458.5        (1) 2,245.9        (1) I,624.0         (7)   5,328.4
Co-t..t.Sts (Signed)                       (1)   231,7                _                  _           (1)   206.3                              -            (1)    750.0        (1)   136.0        (4)   1,326.0               -            (1) 1,624.0       (5)   2,950.0
Disb-rsed (at 12.31.74)                            -                   --                                    -              -                  -            (1)    750.0        (1)   136.0        (2)      886.0              -                  -            (2)     886.0
SPECIAL DEVELOPMsENT FPND & OTHER SPECIAL FUNDS
i.  Industrial Estates - Poblic Sector                  (1)   265.6        (1)    578.S        (2)   29908               -              -                  -                   -                   -           (4)   1,143.9               -                  -            (4)   1,143.9
2, Pinancial Intermediaries
-   Ind-strial Estates                                    -                   -                  -                  -           (1) 303.3       (2)   290.7        (3)    815.0        (2)   270.0         (8)   1,678.9               -       ./         -           (8)   1,678, 9
-   S-all Indostry Cradit                           (1)   100.0        (3)  1,200,0        (1)   150.000      (1)   200.0       (1) 100,0       (1)   125.0        (1)    200,0        (1)   250.0         (10)  2,325.0        (2) 2,375.5                           (12)  2,562.5
3.  Tra. orta.tiono                                                                 -                                    -                                 -                    -           (1)    05.0        (1)       85.0              -                  _            (1)       85,0
4.  Toori-s
-   Public Sector                                   (1)    50.5               -                  -                                                                         -                  -            (1)       50.5              _                  _           (1)       50.5
-   Private Saetor 
Sobtotal (Approved)                         (3)   416.1        (4)  1,778.5        (3)   449.8        (1)   200.0       (2) 403.3        (3)   415.7        (4)  1,015.0        (4)   605.0        (24)  5,283.3        (2)   237,5               _            (26)  5,520.8
Co?aitasots (Sigsed)                        (2)   365.6        (3)  1,200.0        (3)   449.8        (1)   200.0       (1) 100.0        (3)   415.7        (4)  1,015.0        (3)   520.0        (20)  4,266.1               -                  *            (20)  4,266.1
Disburred (at 12.31.74)                            -           (2)    299.9        (2)    95.0               -          (1)  24,4        (2)    43,8        (4)    289.0        (2)   203.1        (13)    955,3               -                  -            (13)    955,3
TOTAL: APPROVALS                                        (4)   647.7        (4)  1,778.5        (3)   449.800      (2)   4058.3      (2) 403,3        (4)   548.2        (5)  1,765.0        (5)   741.0        (29)  6,741.8        (3) 2,483.4        (1) 1,624.0         (33) 10,849.2
COhMITMENT8                                     (3)   597.3       (3)  1,200.0         (3)   449.800      (2)   408.3      (1) 100.0        (3)   415.7        (5)  1,765.0        (4)   656.0        (24)  5,592.1               -            (1) 1,624.0        (25)  7,216.1
D?SB?RSEMIEdTd                                        -            (2)    299.9        (2)    95.1              -           (1)  24.4       (2)    43.8        (5)  1,039.0        (3)   339.1        (15)  1,841.3               -                   -           (15)  1,841,3
Coitents as a porceotago of approvals                          92%                 67%                100%               100%            25%                76%                 100%               89%                  83%                _                   1007.                66%
pabhrosese-ts ao a  percentage of  oiteoLs                     -                   25%                 25%               -               247                117.                 597,              52%                  33%                -                   -                    26%
R/ Begioesl project
3 B. Virgis I.. $100,000: Docks A Caire, $137,500
aB Barbados
LCPDF, AuSuEt 1975



ANNEX 11
page 1
CARIBBEAN DE  LOPMENT RAK
Agricultural Lending Operations
Introduction
1.        Caribbean Development Bank (CDB) agricultural lending strategy aims
at: (i) stabilizing agriculture, especially by attracting young people to
family-size farms; (ii) increasing food production to substitute imports,
and (iii) increasing production of cormodities suitable for export. Tb this
end, CDB assists its member countries in financing a variety of projects under
the following programs: estate (farm and livestock) development, land redis-
tribution and settlement, marketing and processing of agricultural products,
and agricultural credit,
2.        CDR has thus far concentrated attention on its less developed coun-
tries (LDCs') but, since 1974, it has begun to assist its more developed
countries (MDCs_2) as well. Since it was established in 1970, CDB has approved
65 agricultural loans (59 to LDCs and six to MDCs), totalling US$28 million
(US$10.8 million to LDCs and US$17.2 million to MDCs). Details of these loans
by countries are presented in Annex 8.
3.        The number and amount of agricultural loans have grown rapidly
during 1973 and 1974 as shown below:
Ordinary Operations         Special O erations           Total
Year              o.     US$ million         No. Ui$imi=lon   No.    'US$ million
1971            (2)         0.24             (6)         1.36       (8)        1.60
1972            (6)         1.81             (4)         0.83      (10)        2.64
1973           (13)         4.85             (8)         1.60      (21)        6.45
1974           (12)        13.64            (14)         3.64      (26)       17.28
(33)        20.54           (32)          7.43     (65         27.97
Ordinary Operations comprise loans from ordinary capital resources (OCR) to
both the private and public sector. Special Operations comprise loans from
the Special Development Fund (SDF) to the public sector only, and from the
Agricultural Fund (AF) to financial intermediaries for relending to small farmers.
4.        Disbursements, as of December 31, 1974, totalled only 12% of the
amount of approvals and 45% of commitments.  This low performance is due mainly
to delays in signing loan agreements, reluctance to accept certain CDB conditions
and problems during project implementation.
1/ Antigua, Belize, Dominica, Grenada, Montserrat, St. Kitts/Nevis/Anguilla,
St. Lucia, St. Vincent and the British Virgin Island,.
/ Barbados, Guyana. Jamaica, and Trinidad and Tobago.
Source:  Report on GDB Agricultural operations by IBRM Appraisal Mission, June 1975.



ANNEX 11
page 2
Agricultural Lending Programs
5.        CDB agricultural loans, by programs, approved during 1970-1974
(Annex 2) and projected commitments for 1975-1979 (Annex 13) are as follows:
1970-1974                 _  1975-1979
No.      US4 million  %        US$ million    %
Estate Development       (14)           1.62     6           5.4o         7
Land Settlement          (13)           2.40     8          14.00        20
Marketing/Processing      (9)           4.98    18          11.25        16
Agricultural Credit      (29)          18.97    68          20.50        29
Regional Ag. Projects     -             -        -          12.00       17
Ag. Feeder Roads          -            -1/       -           8.00        11
Total                  (65)          27.97   100          71.15       100
1/ US$4.87 million under Technical Division (Infrastructure).
It means that during the next five years agricultural lending programs are
expected to increase more than 100%. CDB will emphasize land settlement
projects (including land reform, small farm development, and land reclamation
and development) and regional agricultural projects. On the other hand, it
will proportionally decrease agricultural credit projects through financial
intermediaries. The proposed rate of expansion, however, appears to be too
high and probably will tax the absorbing capacity of the borrowers because
of the variety of problems as discussed below for each lending program.
6.        Estate Development Projects.  These projects are designed to increase
production and productivity of privately owned, medium- to large-size farms,
specializing in commodities suitable for export -- coconut, cocoa, nutmeg,
citrus, bananas, livestock and certain vegetables. Project components may
include land development, roads, fencing, irrigation and drainage, livestock,
establishment of pastures and other permanent crops, farm equipment, farm
structures, etc. CDB loans from OCR to finance up to 60% of project cost are
made available directly to the estates for 10 to 15 years (including five-
year grace periods), at 8.5% interest p.a. (recently increased to 9%). The
lower limit for this type of loan is US$50,000 and the borrower must provide
security valued at at least twice the loan amount. Fourteen loans for estate
development, amounting to U $1.62 million, were approved during 1970-1974
and 9  loans, amounting to US$0.88 million (5%)   have been committed. Dis-
bursements (US$0.62 million) run at 38% of approvals and 70% of commitments.
Thus, participation in estate development projects is good, especially taking
into account two large livestock projects in Belize that have recently been
approved and not yet committed. The success enjoyed so far in implementing
these projects has come about because the borrowers are generally good managers;
there are well organized marketing channels for project commodities and well



ANNEX 11
page 3
organized services provided by commodity associations; projects are carefully
selected by CDB staff and usually field officers, and even project officers,
are heavily involved in project preparation.
7.        According to CDB lending programs for 1975-1979, estate development
loans will substantially increase to US$2.65 million in the LDCs and will be
extended to the MDCs with loans amounting to US$2.75 million; that is a total
of US$5.4 million. Since the proposed IBRD loan would finance CDB Ordinary
Operations, there is a good potential for using IBRD funds to finance estate
development projects. However, with the exception of Belize, such projects
in the LDCs would appear to be limited to the most progressive farmers, and it
would be more and more difficult for CDB to identify well managed farms suit-
able for its loans. Moreover, IDC estate owners (except Belize) are apparently
reluctant to invest heavily in their lands (which are not the most productive)
due to increasing costs of production, scarcity of labor, uncertainties in
world market prospects, and especially the risk of land redistribution policies.
Therefore, estate development projects would probably be concentrated in Belize
and the MDCs where better potentials exist.
8.        Land Distribution and Settlement Projects.  These projects are designed
to stabilize the agrarian structure of member countries by settling people on
family-size farms which can be developed using capital intensive methods.
Governments, directly or through their specialized agencies, develop unutilized
public lands, or lands (usually large estates) acquired for this purpose, by
providing the basic infrastructure: roads, irrigation and drainage, land
clearing, fencing, establishment of pastures or permanent crops, packing plants,
and the like, depending on the project. Then, lands are divided into units
of size suitable for the main activity (livestock, 1QO ac; bananas,
30-60 ac; vegetables, 5-10 ac; other, 10-30 ac) and allotted to new farmers,
either by sale or lease. The government agency concerned provides the necessary
agricultural services and CDB long- and medium-term loans are made available
for on-farm investment through local financial institutions. CDB loans to LDC
governments and their agencies for land development and settlement (up to 80%
of project cost) are financed either from OCR, for 10 to 15 years (including
two-year grace periods) at 8% interest p.a. (recently increased to 8.5%); or
from SDF, for 15 to 20 years (including five year grace periods) at 4% interest
p.a. During 1970-1974, CDB approved 13 loans for land development and settlement;
three loans from OCR (US$0.49 million), and 10 loans from SDF (US$1.91 million).
Ten loans, amounting to US$1.49 million (62%), have already been committed, but
disbursements (US$0.22 million) run at only 9% of approvals and 15% of commitments.
The high percentage of commitments indicates the willingness of governments and
CDB to sign agreements for this type of loan. However, many loans are not effec-
tive, mainly because governments are unable to establish adequate project units
or restructure executing agencies as required by MDB; there are delays in appoint-
ing competent project managers acceptable to CDB; and it is difficult to select
settlers because of poor agricultural services, expecially lack of short-term
credit for recurrent expenditures. The only exception to this situation is the
Banana Development Program in Belize where the Banana Control Board (the execut-
ing agency) is well organized.
9.        Although the idea of developing family-size farms to attract new
farmers and so strengthen the agrarian structure of the LDCs is sound, it seems



ANNEX 11
pae4
difficult to formulate viable projects of this kind in view of the above
mentioned constraints. It would appear that the restructuring and building
of agricultural public institutions to provide adequate services (education,
research, extension, credit, marketing, and such) would be a prerequisite
for implementing this kind of project. As stated, the situation in Belize
is different, and together with Guyana (although an MDC) presents good poten-
tials for land development and settlement projects based on bananas, rice,
citrus, livestock and other food crops. Projected commitments of the CDB
agricultural lending program for the period 1975-1979 show SDF loans for
settlement projects amounting to US$14 million (US$9 million for land reform
and small farm development and US$5 million for land reclamation and develop-
ment). In addition, CDB and some governments are discussing possibilities for
initiating regional development projects in agriculture (e.g., land development
for production of corn, soybeans and other grains in Belize and Guyana, with
settlers from other countries); CDB projections include US$4.5 million from
OCR and US$7.5 million from SDF for this purpose. Part of the proposed IBRD
loan could, therefore, be used for this purpose.
10.       Agricultural Marketing and Processing Projects.  These projects
are urgently needed in the Caribbean Region. Export crop marketing is organ-
ized through commodity boards, such as the Coconut Industry Board and the
Banana Board, or through commodity associations, such as the Citrus Growers
Association. But marketing of non-traditional commodities in the LDCs is
being organized through government marketing boards or corporations, which
are extremely weak. In order to improve the marketing facilities, especially
by providing adequate equipment and cold storage, CDB has initiated an SDF
lending program for such items. Three loans, totalling US$0.22 million for
11 to 20 years at 4% interest p.a., have been approved for this purpose, but
none has yet become effective because the government marketing agencies
(proposed project executing agencies) have been unable to meet the CDB condi-
tions of effectiveness, especially the appointment of acceptable managers.
Projects designed to improve the processing and packing facilities for agri-
cultural products (especially for export) are supported by CDB. Six loans
(US$4.76 million) have been approved for this kind of project -- four loans
from OCR (US$4.18 million), including one (US$0.1 million) to the private
sector, and two loans from SDF (US$0.58 million). Only two loans, amounting
to US$o.53 million (11%), have been committed, and disbursements (US$0.1 million
for a meat packing plant and US$0.42 million for a citrus packing plant) run
at 11% of approvals and 98% of commitments.   Here again, there are management
problems; even the citrus packing plant in Dominica, which has already been
completed, operates at high cost due to poor management.
11.      As indicated, there is an urgent need for marketing, storage and process-
ing facilities in the region, and in the case of non-traditional procacts, for
an institutionalized marketing and processing system. In general, the market-
ing boards or corporations confront serious problems as a result of poorly
trained personnel, both technical and managerial; deficiencies in organization
and administration; and inadequate financial support.  Improvement in all these
areas would therefore appear to be a prerequisite for providing the the
required physical facilities.   For the traditional export commodities, on
the other hand, there are well organized marketing systems through specialized



ANNEX 11
page 5
boards and associations. According to the CDB 1975-1979 lending program,
loans to improve marketing, storage and processing facilities will increase
substantially. OCR loans to the LDCs are expected to amount to us$o.65 million,
close to the amount called for in the 1970-1974 period, but MDCs will receive
loans amounting to US$3.6 million, compared to nothing previously. A substantial
portion of the IBRD loan will probably be used for processing projects in the
MDCs where good potentials exist.  SDF loans to improve marketing facilities
in the LDCs are expected to increase from US$0.81 million during 1970-1974
to US$7 million during 1975-1979. This figure, however, appears to be too
optimistic. Some projects, such as those to improve the processing facilities
for traditional export products, may be successfully implemented, but those
that require an institutional set-up will probably present serious problems.
12.       Agricultural Credit.  A high proportion of CDB agricultural loans
to the private sector for investment in farm improvement are channelled through
local intermediaries -- development finance corporations (DFCs), agricultural
banks, development banks, and such. These loans are made available for invest-
ment in any profitable enterprise involving such activities as crop and live-
stock development, bee keeping, commercial fishing, processing of agricultural
products, farm machinery, establisbment of permanent and semi-permanent crops,
irrigation and drainage, erosion control, farm structures, access and farm
roads, livestock and land development. CDB agricultural credit cannot be used
to purchase land, to pay off old debts_, or to cover operational expenditures;
funds for these purposes must come from DFCs' ordinary resources, if available.
Some 29 agricultural loans to intermediary financial institutions were approved
during 1970-1974, totalling US$19 million -- 68% of total lending to the agri-
culture sector. Two types of CDB agricultural credit are available: that
which comes from the Ordinary Capital Resources for relending to investors in
the agricultural and industrial sectors whose net worth is over US$50,000
(Agricultural and Industrial Credit Scheme), and that which comes from the
Agricultural Fund for relending to small- and medium-scale farmers whose net
worth is under US$50,000 (Farm Improvement Credit Scheme).
13.       Agricultural and Industrial Credit scheme loans are for 20 years,
including five-year grace periods, at 7.25% interest p.a. (recently raised to
7.5%). Sub-loans for investment in agriculture range between US$5,000 and
US$50,000 at interest rates not exceeding 10.25% p.a., too small to be handled
directly under any existing CDB lending programs. As of December 31, 1974,
CDB had approved 12 loans of this type, as follows:
LDCs                   MDCs                 Total
No.      US$ million   No.      US million  No.    US$ million
Approvals                9           1.69        3          12.56     12        14.25
Co i tments              5           0.77        1           1.00      6         1.77
Disbursements            2          0.32         1           0.47      3         0.79
- as % of commitments  40           h2         100          47        50        45
- as % of approvals    22          19           33           4         25        6



ANNEX 11
page 6
As shown, the rate of disbursements is very low. Most of the loans to the
LDCs are not yet effective, mainly due to LFC weaknesses and lack of counter-
part funds. Only two loans to the Belize DFC are being disbursed, with most
of the subloans going to Banana Development Program settlers. In the MDCs,
the loan agreements with Jamaica (US$8.8 million) and Guyana (US$2.76 million)
have not yet been signed because the development banks ccweerned have not yet
fulfilled CMB conditions. The only effective loan is to Trinidad and Tobago
(US$1 million) which, according to CUB, is proceeding satisfactorily.
14.    Farm Improvement Credit (FIC) Scheme loans are also for 20 years, includ-
ing five-year grace periods, at 4% interest p.a. Subloans for investment on
small farms range between US$1,500 and US$75,000 (recently raised to US$100,000)
at interest rates not exceeding 8% p.a. for 5 to 15 years, depending on the
nature of the project, including grace period, not exceeding 3 years. The
FIC program was initiated with the Agricultural Fund--a special contribution
from Canada--which was used in the financing of loans for agricultural develop-
ment in the LDCs through their agricultural credit institutions. But the
program is now using the SDF and is being extended to the MDCs--two loans for
US$1.1 million have been approved to Barbados from a special allocation of
US$2 million made by the US to the SDF.  During 1970-1974, COB approved 17 FIC
loans, totalling US$4.71 million--15 loans (US$3.61 million) to the LDCs and
the 2 loans to Barbados, These loans to Barbados are not yet effective
because of organization and management problems in the executing agencies--
the Barbados Development Bank and the Agricultural Development Corporation.
FIC loan commitments in the LDCs, on the other hand, are higher--50% (US$1.81
million) and disbursements (US$1.27 million) run at 70% of commitments and 35%
of approvals. The relative success of this program is due to CDB assistance to
the DFCs, although mary problems exist in implementing the FIC program.
15.       The intermediary finance institutions are relatively new, especially
in the LDCs wihere CDB has insisted on their establishment, and some of them are
in the process of restructuring. Land mortgage is the common security for
agricultural loans, buttressed where necessary by personal guarantees, bills
of sale of animals and machinery, and life insurance policies. In general,
xortgages haw rarely been foreclosed by credit institutions, though arrears
have been heavy. In some instances, governments have paid off outstanding
loans to start again from the beginning. In addition to their ordinary
resources, DFC resources for lending operations come from different sources
in the MDCs and Belize (USAID, CIDA, BDD, CDB, and such) but, in the other
IDCs, they come almost exclusively from CDB. In general the credit institu-
tions are very weak, mainly because of the lack of adequately trained staff
and of resources for their lending operations.  In order to assist these
institutions in implementing the FIC program, CDB has placed a Farm Improvement
Officer (FIO) in each institution, who is expected to provide management and
technical assistance to farmers throughout the period of the loan. CDB has
prepared an Operational Manual to assist FIOs in undertaking their responsi-
bilities in identification, preparation, appraisal, implementation and super-
vision of agricultural projects. In practice, FIOs not only deal with the
FIC program, but are also heavily involved with the Agricultural and Industrial
Credit Scheme, and even with identification and preparation of agricultural



ANNEX 11
page 7
projects for CDB direct lending. In addition, the FIO is expected to assist
DFC management in its overall operations, so contributing to DFC institutional
development. This, bowever, has not yet been fully achieved because most of
the DFCs (except Belize) are so poorly staffed that the FIOs do not have adequate
counterparts with whom to work and because FIOs, although placed under DFC man-
agers, are directly responsible to CDB.
16.       In addition to their own institutional problems (lack of adequate
organization, management, staff and finance), DFCs face several problems in
carrying out their agricultural development lending programs, most of them
related to local agrarian structures and deficient agricultural services,
including short-term credit. The majority of the farmers are small, part-
time operators, whio lack working capital and are reluctant to borrow to invest
in their lands. Most of them do not even qualify for investment loans, and
those who do usually have trouble in lodging land titles as collateral, refinanc-
ing outstanding debts and following reasonable accounting procedures as required
by the DFC. The result is that a high proportion of loan applications have to be
rejected. In spite of these problems, DFC operations are generally improving
due to CDB's assistance, given both directly and through the FIOs. Belize
DFC is a particular case among the LDCs. Due to its better conditions, it has
embarked on a program to diversify its resources, particularly on a bilateral
basis, to seek better terms and reduce its dependence on one lending agency,
and also to meet the special requirements for development funds in Belize.
Under this program, funds from the UK were received for lending to subsistence
farmers under a rigidly supervised credit program for which the Ministry of
Agriculture has placed six full-time extension staff, one in each district.
A similar loan from CIDA was received for crop loans as wwrking capital.
17.       CDB lending program for 1975-1979, as compared to the former period,
shows a substantial decrease of agricultural credit operations in the MUCs
(from US$12.6 million to US$6 million), but a substantial increase in the
LDCs (from US$1.7 million to US$3 million under Ordinary Operations and from
US$3.6 million to US$11.5 million under Special Operations). This is in line
with CDB's policy to emphasize agricultural development in the LDCs, especially
through the Farm Improvement Credit program. But in spite of this, the agri-
cultural credit program (US$20.5 million, including FIC) during 1975-1979 will
represent only 29% of the total agricultural lending program, as compared to
68% during 1970-1974. This is in line with CDB desires to have its staff less
involved in DFC operations. IBRD funds will probably be used for DFC operations,
if they are suitable, in very limited amounts unless special arrangements are
made.
CDB Agriculture Division
18.       The CDB Agriculture Division is headed by an Agricultural Ehgineer,
who is one of the experts assigned under the UNDP Project. He is supported by
eight professionals -- five project officers and three field officers. The
staff is well qualified in terms of academic training as well as in practical
experience since the terms and conditions of CDB service are attractive to
competent personnel. In addition, eight Farm Improvement Officers assist -with
the FIC program (para 15).



ANNEX 11
19.       The CDB Agriculture Division is directly responsible for identification,
appraisal and supervision of agriculture projects, and is heavily involved in
project preparation and even implementation. The project officer identifies
projects for CDB financing from among those presented by the interested persons
or entities. Sometimes projects are presented by CDB field officers and FIOs.
Because the identification process is frequently complicated due to the lack
of agricultural development plans and development strategies, particularly
in the LDCs, CDB staff frequently makes rough calculations on the feasibility
of projects and selects those better suited for CDB financing. Project prepa-
ration is undertaken by the borrowers with CDB staff 1sRistance+_but, most of the
time, it is a rather long process of preparation/appraisal carried out exclusively
by CDB staff. Thus, project preparation is a heavy burden for CDB, but, on the
other hand, without CDB assistance, the borrowers are generally unable to
prepare suitable projects,aid the assistance given by other institutions is
very limited.
20.       Project appraisal is done entirely by CDB staff, usually a team
consisting of an agricultural economist, a financial analyst, and technical
(agriculture, livestock, or the like) and legal specialists all working under
a project officer, who is responsible for issuing the appraisal report. CDB
appraisal technique is sound and includes thorough analysis of the technical
and economic feasibility of a project, its organization and management aspects
and problems that can be foreseen, services that can be provided by supporting
organizations, soundness of marketing and legal arrangements on which the project
is based, and rate of return on alternative projects. CDB appraisal reports
give as much information as is available on the agricultural sector, with emphasis
on marketing systems, price policies, and supporting services. Projects are
well described and project costs and returns are studied in detail. The organi-
zation and financial situatimn of the borrowers and proposed executing agencies
are also described and carefully analyzed. Project benefits and justification
are adequately discussed, and, finally, terms and conditions for loans as
proposed by the appraisal team, are presented. As indicated, CDB project
appraisal is a relatively long process which usually includes a great deal of
preparation work carried out by the field officer and the project officer,
both of whom frequently visit the country concerned.
21.       Project supervision is performed by the project officer and the
field officer at least once a month, but the value of their visits is some-
what lessened when they try to solve local problems, over which they have no
control (i.e., project management deficiencies and lack of counterpart funds).
On the other hand, CDB staff pressure to solve such problems usually brings
about satisfactory results. In order to increase supervision efficiency, CDB
has placed two agricultural officers in the field on permanent assignment,
one in Belize and one in Antigua (covering St. Kitts, Montserrat and Dominica,
as well). In addition to their supervision work, these offficers provide
technical assistance, serve as liaison between CDB treasurer and borrower
(signing of disbursement certificates), collect data for project officers
and help formulate project requests.
22.       Project evaluation is intended to be part of CDB responsibility, and
the Agriculture Division is aware of it, but so far, no evaluation work has



ANNEX 11
page 9
been done, apparently due to the shortage of personnel trained for this type
of work (only two projects have been completed). Cn the other hand, CDB
staff is actuaIly engaged in IWC periodical evaluation.
23.       The Agriciulture Division added two new staff members this year and
it appears that the size is sufficient for the present level of operations.
In order to carry out the 1975-1979 lending program, however, it will be
necessary to take on additional help, progressively as needed, toward the
end of the period. This would not be difficult to do because CDB Agriculture
Division is well organized and under excellent leadership.



CARIBBEAN DEE IOPNENT BANK
Agricultural Loans ~rKind of' Pr_ograms _(1970-1974)
Programs                Ordinr    erations    spea                          Total           Commitments        Disbursements
Loans        Amount    Loans         Amount   Loans   Amount    Loans   Amount    Loans   Amount
No.             US$     No.            US$    No.        1US$     No.        US$      No.        13S$
Estate Development-/   (14)       1,620,883       -              -      (14)1,620,883        (9)  883,097      (9)    619,659
Land Settlement V         (3)       488,544      (10)    1,908,990    (13)2,397,534        (10)1,488,634       (6)    216,129
Marketing Facilities2/   -             -          (3)       223,250      (3)  223,250        (2)  1?3,250       -         -
Processing Facilities   (4)       4,177,41o       (2)       584,080      (6)4,761,490       (2)  527,350       (2)    519,993
IDCs                  (3)        652,350       (2)       584,o80      (5)1,236,430       (2)  527,350       (2)    519,993
NDCs                  (1)      3,525,o60        -           -         (1)3,525,060        -       -          - 
Agricultural Credit    (12)    14,253,156        (17)    4,712,399    (29)18,965,555    (18)4h5§2,399    (12)  2,056,512
LDCr, 2/(9)                    1,690,000      (15)    3,612,399    (24) 5,302,399    (17)2.582.399    (112
mDcs                          12,563,156       (2)    1,100,000       (5)13,663,15 (1)W (1
TOTAL                (33)    20,539,993       (32)    7,428,719    (65)27,968,712        (41 )7,6o4,730    (29)  3,412,293
LDCs2/               (29)      4,451,777      (30)    6,328,719    (59)10,780,496        (40)6,60h,730    (28)  2, 9ht5, 04
MDCs                  (4)    16,088,216        (2)    1,100,000       (6)17,188,216       (1)1,000,000      (1)    467,252
1/ All loans to LDCs.
2/  Includes B. Virgin Islands.                                                                                                   |
LCPDF, August, 1975                                                                                                                H



ANNEX 13
CARIBBEAN DEVELOPMfENT BkNK
Loans to the Agricultural Sector
Projected Commitments (1975-1979)
Ordinary Resources and                  1975       1976      1977       1978      1979      Total
Venezuelan Trust Fund
- Marketing, Processing, Storage, etc.
- LDCs                      -         0.10      0.15       0.20      0.20      0.65
- MDCa                      1.25      0.15       0.60      o.80       o.80     3.60
-Financial Intermediaries
i  LDCs                     -         0.50       0.50      1.00      1.00      3.00
- MDCs                      -         1.00      1.50       1.50      2.00      6.oo
- Estate Development (Private Sector)
- LDCs                      0.15      0.50       0.50      0.75       0.75     2.65
- MDCs                       -        0.50      0.50       0.75      1.00      2.75
- Regional Agricultural Projects         0.50      1.00       1.00      1.00       1.00     4.50
Subtotal                    1.90      3.0          0  6.75                    23-15
Special Development Fund
- Land Reform & Small Farm
Development                          -        1.00       2.50      2.75       2.75     9.00
- Regional Agricultural Projects         1.50       1.00      1.50      1.50       2.00     7.50
- Agricultural Credit                    1.00       2.50      2.50       2.75      2.75    11.50
- Marketing Facilities
& Agro-Industries                     1.50       1.25      1.25       1.50      1.50      7.00
- Land Reclamation &
Development                            -         1.00      1.00       1.50      1.50     5.00
- Agricultural Feeder Roads              2.00       0.50      2.00      1-50       1.50     8.00
Subtotal                                        1.75 7    12.00     12.00    497.00
TOTAL                       7.90     11.00      15-50     18.00     18.75    71.15
LCPDF, August 1975.



ANNEX 14
page 1
CARIBBEAN DEVELOPMENT BANK
HOTEL INVESTMENTS IN THE CARIBBEAN
1.        The investment and ownership patterns of accomodation reflect the
sources and types of financing available to the Caribbean in the recent past.
The CDB had approved, as of December 31, 1974, five projects located in
Antigua, St. Kitts, St. Lucia, St. Vincent and Grenada totalling US$1.5
million. The Commonwealth Development Corporation (CDC), together with some
private investors, owns and manages hotels in Antigua, Grenada, St. Lucia and
St. Kitts. Financing of infrastracture, including transport and public utili-
ties directly beneficial to tourism, has been provided by the CDB and the CDC
and under bilateral assistance programs with ODA and CIDA. The latter have
both financed tourism-related studies in the area and have provided technical
assistance particularly for training. The Inter-American Development Bank
has made loans to development banks in Barbados and Jamaica, part of which are
allocated for the tourism sector, specifically for small hotels. Governments
have invested directly in hotels which are operated under management contracts
by large hotel chains. Commercial banks have generally financed hotels as a
normal business proposition to creditworthy borrowers, although availability
of loan funds reflects monetary and credit policies.  The commercial banking
system, for example, in the late 1960s financed a considerable portion of new
hotel investments in Barbados, but due to subsequent debt repayment problems
and a tight money market, the volume of new lending was drastically reduced.
2.        The limited availability of commercial and development bank financ-
ing has thrown local investors back on their own scarce resources which,to-
gether with unsophisticated managerial skills and the high price of resort
land has encouraged investment in small accommodation units.  An alternative
investment for local capital,however, has been in condominia where quick
sales of units refuel the owner's liquidity. Apartment complexes have also
attracted local investors since they do not require the managerial skills or
working capital needed for running a hotel.
3.        Given the scarcity of private and public funds in the islands,
financing of accommodation has originated mainly from foreign sources. For-
eign investment has been attracted to the tourist sector by incentive legis-
lation which permitsduty-free imports during the hotel construction and pro-
vides tax holidays during the first several years of operation of a hotel.
Jamaica has additional measures which include the guarantee of foreign debt
and some further incentives for convention-sized hotels. In most cases,
whatever the category of the hotel, operational profits is only one of a
series of motives for investing in hotels; others include: expectations of
capital appreciation; tax benefits either through tax holidays under incentive
legislation or a tax write-off on losses--particularly where double taxation
agreements are in operation; and in the case of larger hotels, vertical
integration of production, transport or marketing services with the hotel
as the eventual outlet,



ANNEX 14
page 2
4.        The effects of the construction boom that began in 1968  continue
to be evident. Hotels were often financed at shorter terms than required.
Investments were undertaken with little or no pricr studies on the viability
of the projects. Often government incentive schemes were hastily made even
more generous because of the cut-throat cmpetition between islands for the
investment capital.  Small and inexperienced investors, therefore, began to
proliferate as profit expectations from tourism became greater. Physical
and econcmic plans were often not available to regulate the location and type
of the projects being undertaken. The need for related infrastructure, train-
ing, new or stronger public sector institutions, and promotion and marketing
was not always foreseen. The demands of the tourism sector became translated
into demands for imports rather than being channelled into increased local
production and import-substitution industries. Fiscal measures necessary to
capture the benefits from tourism development were often neglected.
To correct this situation, some measures should be taken.  In addi-
tion to planning for the future use of physical resources, the governments of
the islands must be prepared to coordinate, regulate and direct the activities
of the private and the public sector so as to ensure the growth of a healty
tourism sector and provide for the maximum benefit to the islands' economy
over time. The governments should, therefore, address themselves to: the
provision of infrastructure to complement tourism growth; the expansion of
accommodations so as to have the correct combination of luxury and Class A
hotels, guest houses and small hotels, large convention style hotels and self-
catering units; the reconciliation of the incompatibility between the scarcity
of local capital and of local entrepreneurship and the current market trend
toward group travel and bulk marketing which dictates larger units; and the
selection of a growth strategy for tourism that will satisfy the islandst
need for eployment and dignity.
6.        The solutions to these problems will vary from island to island but,
particularly in the LDCs, will require increased emphasis on planning for the
tourism sector at the governmental and regional level. The key institutional
change that would advance the tourist sector of the CARICOM countries is the
establishment of a regional tourist board. The greatest benefits from such a
regional coordinating bocdr are likely to accrue to the Windward and Leeward
Islands, as the MDCs are better able to internalize most of the possible
economies on a national scale.



C A R I B B E A N D E V E L 0 P M E N T B A N K
Main Statistics of CARICOM Tourism 1968-72
Rate of                                                     Rate of           Implicit
Growth        Average Length        Supply of Accomoda-   Growth             0ccupancv,
Annual Tourists Arrivals;                       (7%)        of stay (days)        tions (beds)                WRate (%)-
1968        1969        1970        1971        1972      1968-72       1968        1972         1968        1972      1968-72       1968        1972
Antiqua                                 55838       61262       65369       67637        72328         6.7           4          2.5       1908         2405         6.0        32.0        20.6
Dominica                                 9977        8246       12450       14708       15294         11.3           4           4         150         453        31.8         72.9        35.6
Grenada                                 23164       29267       30436       35626        37933        13.1           7          12         748         1734        23.4        59.4        71.9
Montserrat-/                             6215        7475        8382         7270       11463        16.5          10          10         347          496         9.3        57.9        69.2
St. Kitts/Nevis                          9797       11779       13472        15105       16245        13.5           5           5         370          930        75.9        23.5        23.9
St. Lucia                               22653       25382       29529       33198       42399         17.0           3.5         3.5       572         2278        41.3        38.0        17.8
St. Vincent/                            12472       15569       17586        17407       16902         7.0           5.4         8         483          933        17.9        38.2        39.7
Total LDCS                        140116      159340      177244      190951      212564       11.0             4.9         5.6      4578        9229        19.2        39.8         35.2
Barbados                               115695      134303      156417      189075       210430       16.1            6           6.5      5360         7773         9.7        35.5        48.2
Jamaica                                258460      276926      309122      359323      407806        12.1            9           8        9616       17874         16.8        66.3        50.0
Trinidad and Tobago                     91660       94510       96890      111330       114550        5,7            5.5         5.5      2606        3422          7.0        53.0        50.A
Total MDCS                        465815      505739      562429      659728      732786       12.0             7.6         7.2    17582        29069        13.4        54.9        49.6
CARICOM                       605931      665079       739673      850679      945350       11.8             6.9         6.8    22160        38298        14.7        51.7        46.1
1/ Includes cruise visitors.
2/ Air arrivals only.
3/ The occupancy rate - tourist bednights  -available bednights.                                                                                                                                    X
Tourists bednights is calculated as total arrivals times average
lenght of stay. Available bednights is calculated as number of
beds in tourist accomodation X 365 nights.
Source:  Multiple buLt mainly Tourism Supply Study - Caribbean Region, the Shankland Cox Partnership, 1973.
LCPDF, August 1975



ANNEX 15
page 1
CARIBBEAN DEVELPPMENT BANK
THE ID)Cs INDUSTRIAL SURVEY
1.        In 1971, the CDB commissioned an industrial survey with the purpose
of identifying potential CDB projects. The survey was carried out by the
Economist Intelligence Unit (EIU) and reflects the proposals put forward by
the Secretariat of CARIFTA. Although the survey is an excellent pioneering
effort, perhaps the most frequently heard criticism is that the projects were
identified on the basis of UK norms and costs. While the projects,on average,
are labor intensive, and EIU's suggested choice of technique is reasonable,
the least satisfactory feature is the acceptance of UK norms in the area of
labor productivity. While the high productivity levels assumed in the project
are possible, as existing enclave enterprises in the islands demonstrate,
this is more likely to be so in the area of very simple assembly-type operations
overseen by managers with experience of such plants in traditionally high-
productivity countries than in the more skill-intensive activities characterizing
the projects destined for CARIFTA markets (e.g. shoemaking, light engineering).
20        The major recommendations formulated by CARIFTA and reflected in the
survey report concerned institutional approaches:
a)   an East Caribbean industrial promotion body to identify opportuni-
ties for investment, seek out investors and act as middleman to
government-investor negotiations; i/
b)   strengthening of the National Development Corporations (or their
equivalent) so that they can provide complementary services to
the above body in the form of information on industrial infra-
structural requirements, and streamlining government processing
of incentive applications;
c)   connected institutional improvements such as improved labor
training facilities; active government support (reduction in
delays concerning processing of applications, work permits, etc.);
investment guarantees (legislation on compensation for national-
ization, etc.); improvement of local savings through legislation
designed to oblige more local investment from banks and insurance
companies; improved national statistical services; and develop-
..ent of industrial infrastructure.
3.        The survey stressed that the specific recommendations for the improve-
ment of the concessionary mechanisms in CARIFTA/CARICOM, though important, were
secondary to the institutional recommendations. The suggested concessions in
favor of the islands j in relation to the MDCs include: more generous fiscal
incentives, relaxed rules of origin, a more flexible reserve list, allowance of
export subsidies for exporting to MDCs and a CARICOM regionwide investment
licensing authority. These suggestions have all been adopted, to a greater or
lesser extent, in subsequent regional agreements with the exception of the
investment licensing authority; the list of industries initially reserved for
fiscal incentives in the islands is only a partial concession in this area.
1/ Such a unit has since been created as a part of the ECCM Secretariat.
v/ The suggestions also cover Belize.



ANNEX 15
page 2
4.        The findings, in terms of an industrial strategy for the Eastern
Caribbean,are best expressed in the final list of industries proposed:
(i) industries for export to the wider CARIFTA market and the outside world;
(ii) existing industries with potential for expansion on the basis of the ECCM
market; (iii) possible new industries to serve the ECCM market; and (iv) indus-
tries which do not appear to have potential at present (or are under separate
investigation).



CARIBBEAN DEVELOPMENT BANK
Selected Statistics of CARICOM Manufacturing
GDp in Manufacturing                        Employment in Manufacturing (Census Data)
(in millions of EC$)   Growth rate (%)   Share in GDP (,)       Jos (000)   Share in Working Force (,)-
1966   9976167                          1 966-1-71          I   T Y75             1960   1 70
Antigua                 1.0    1.5               8.5             2.3    2.6          -      1.8            -       -
Belize                       -           -                        -    15.8         3.8    4.6           14.6   14.6
Dominica                2.4    3.2               5.9             7.8    8.1         2.5    1.5           11.3    7.4
Grenada                 1.3    2.0               9.0            3.2    3.0          2.6    2.1           10.3    8.0
Montserrat               1.3    1.9              7.9            18.2   16.1         0.3    0.2            8.2    5.4
st. Kitts/Nevis         o.6    0.9               8.4            2.1    2.8          2.1    1.3           14.6  10.l4
St. Lucia                -     2.7                -               -     3.5         3.5    2.2           12.1    8.1
St. Vincent             1.1    1.5               6.4            4.1    3.7          2.7    1.6           11.7    7.8
Total LDCs           7.7   13.7                                                 17.6   15.3
Barbados               26.6  37.0                6.8           11.4   11.5         12.7   12.3           14.9   14.6
Guyana                 40.3  42.2                0.9             9.0    8.4        26.3   23.9           16.3   15.0
Jamaica               282.7  370.2               5.5           12.4  13.8          46.0   71.3            7.6   14.4
Trinidad & Tobago     136.1  215.7               9.6             6.5   11.2        4o.8   31.0           15.6   13.4
Total MDCs         485.7  665.1               6.5                              125.8  138.5
TOTAL CARICOI4     493.4  678.8                                                143.4  153.8                                   Nx
Source: IBRD Report No. 566a.
LCPDF, September, 1975



ANNEX 16
CARIBBEAN DEVEIOPMENT BANK
Sumarized
Balance 5eet and Profit and Loss Statements
Balance Sheet - (millions of US$)
(Year-end)               1970       1971      1972       1973      1974
Ordinary Operations
Cash & investments             4.5       6.3        9.4      11.2      14.5
Capital subs. notes            0.9       3.0        5.3       9.8        9.8
Loans disbursed                -         -          0.4       1.6        3.4
Other                          0.1       0.7        0.5       0.5       1.0
Total Assets                         T ".      15.                      7
Borro angs                     _-                   - _       _
Capital & reserves             5.5      10.0       15.6      22.2       28.7
Total Liab. & Capital       5.5      10.0      15.6       22.2      28.7
SDF Operations
Cash & investments                       1.0        1.2       3.2       11.5
Loans disbursed                          -          -         0.5        2.4
Other                                    -          _         -          0.2
Total Assets                          1.0        1.2       3.7      14.1
Contributions                            1.0        1,2       3.1      10.9
Borrowings                               _-                   0.4        2.7
Reserves                                            _         0.2       0.5
Total Liab. & Contrib.                1.0       1.2        3.7      14.1
Consolidated Profit & Loss - (millions of US$)
(Year-end)               1970       1971      1 972      1 973--   1974
Interest on investments        0.2                  0.'1      1.0        2.0
Interest & fees on loans
disbursed                                                   0.1       0.3
Total                       0.2       0.5       0.7        1.1        2.3
Interest expense               -         -          -         -          -
Administrative Expenses:
CDB                          0.2       0.4        0.4       0.6       0.9
UNDP                         -         0.2        0.3       0.4        0.4
0.2       0.6       0.7        1.0       1.3
Net operating income           -         (0.1)      -         0.1        1.0
Add back: UNDP                           0.2        0.3       0.4        0.4
Net income                     _         0.1        0.3       0.5        1.4



ANNEX 17
CARIBBEAN DEVLOPMT BANK
Special Fmds Resources
December 31, 1974
(nrillions of Us$)
Loans               Contributions
tUited  Trinidad          Ulnited
States & Tobago   Canada  Kingdom  Venezuela  Total
1. Special Development Fimd  22.0                 10.1     9.9      10.0    52.0
Utilized                  2 .7)             (5_8    _ (2)__   (5.0)   137
Available                19.3                4.3     9.7       5.0     3 .3
===,=     ====   =====   ~=====   ======
2. Agricultural Fund                               2.5                        2.5
Utilized                                    (0.6)                      (0.6)
Available                                    1.9                        1.9
3. Housing Fund
Primary Market           6.o                                           6.o
Utilized               (0*5)                                         (0.5)
Available
Secondary Market          4.o                                          14.0
Utilized
Available               °
Technical Assistance     0.3                                           0.3
Utilized              (0.1)                                          (0.1)
Available               0.2                                           0.2
== ===                            ~~~~~~~~==== =
4. Counterpart Contribution
Fund                               5.0                                    5.0
Utilized
Available                       7   &                                    -
5. Non-Reivnbursable Contribution
for Livestock Feed Study                       0.3                        0.3
Utilized                                    (0.1)                      (01)
Available                                    0.2                        0.2
6.  Commercial Live toek
Production Fun                                 2.0                        2.0
Utilized                                    -                           -
Available                                    2.0                        2.0
Total Funds                    32.3    5.0       14.9    9.9       10.0    72.1
Utilized                     (3.3)   -          (6.5)   (0.2)      5.0     15.0
Available                    29.0     5. -       8       9.7       5.0    57.1
./  Established in 1975.



COMPANY 10/105 NUMBER I L02/0O                               CARIBBEAN OEVELOPMENT OANK                                       RUN DATE i  0/0*/TS
meow PROJECTED *'''                                             RUN TIME I l2i09
REPORT ID 1 01                                            B A L A      N C E   S M E t T                                            PAGE I  5
L C C E N g i
*CCR, w ACCRUED
LOOLs * ADDITIONAL
APPROPR, * APPROPRIAtED
B8RR, S BORROWINGS
CO * CENTRAL BANK
CONV, * CONVERTIBLE
CURRS * CURRENT
DC * DOMESTIC CURRENCY
DIVOD, * DIVIDENDS
FC * FOREIGN CURRENCY
FINAN. * FINANCING
GOV, a GOVERNMENT
IN0UST3 u INDUSTRIAL
INV  * INVESTMENTS
JF* JOINI FINANCING SCHEME
LIA3S,   LIABILITIES
LT * LONG.TERM
OUTS, w OUTSTANDING
PFD * PROVISION FUR DOUBTFUL
RECEIV, s RECEIVABLE
SEC a SECURITIES
ST * SMORTUTERM
STI * SMORT.TERM INVESTMENTS
SUDOR, * SUBORDINATED
SUBSCRIPT, a SUBSCRIPTION
WORK, a WORKING
YR, a YEAR
02



COMPANY IDXJOB NUMBER t L02/002                                    CARIBBEAN DEVELOPMENT BANK                                           RUN DATE  I  S/0N/T5
VW-" PROJECTED  "w-w                                                 RUN TIME  I 12t09
REPORT ID I 01                                                BA  L A      N C E S H EE  t                                                   PAGE I  I
UNIT i (TMOUSANDS OF  US  DOLLARS)
PERIOD ENDING
1/1974                  t/1971                  1/1970                  1/19t7                  1/197
(BASE DATA)
CURRENT AS3ETS
*t Ra.W_a
10l    CASH AND ST DEPOSIT8                          490                     490                     490                      490                     490
103   STI AND FIXED DEPOSITS                      14,470                  21.476                  21.250                  22,8t0                  23.109
l12   ST FC LOANS OUTSTANDING                           0                    317                     704                   1.240                    .ealy
.w.a*-a..aa*.aa. v....       a.....  ..........   .e..aaaqa.                               ,.ma.~a
130     TOTAL CURRENT ASSETS                      14,90                   22#2S3                  22,445                  24,600                  aS.441
.a,..a...aa... p.                      aspa    .a.qap.ap.aa,.w.. *0-wt_---e w.-..-arqqwa.a.,,   .ap.aaap.aap.-pa
LOANS OUTSTANDING
** *.fl.-.*.
131   FOREIGN CURRENCY                             3,630                  13,128                  30.399                  4S,253                  64,491
a...~w"-a.   eo.* .......             a.         .....f.a.qwap.V   v ...a…......
160     GROSS LOANS OUTS,                          3.63013d125                                    30,399                  45,s53                  64,491
161   LESSl PFD FOR PC LOANS                            0                    197                     55a6 88                                        1,199
166    NET LOANS OUTSTANOING                       3,630                  12.931                  29,641                  44,374                  63,192
ae.*..*eae.a*... a......eflpWaSp..q . *  USa           .    .y.a      a.aeq...........
INVESTMENTS
150    NET INVESTMENTS                                  0                       0                       0                       0                       0
1l1   NET FIXED AND
OTHER ASSETS                                 240                     240                     2i40                    240                      240
gao.      .      09   .aoaa*aa.ae.o.*. *we--a--a-_--..*v  v-......woa.a a.           r…  -  VVV
l95     TOTAL ASSETS                              18,830                  35,45A4                 52.58                   69,214 Z86608
533333333*3UUU*u   UUUU*IZSZ*gU*UU   uuanuaugauxsasaguu    m3uxmu.uuazs.uaauu       38u5*dUUs*u3S3U*uu
CURRENT LIABILITIES
VW... aaa,aa.   - .. W.0. e
232   ST FC BORROWINGS                                  0                       0                    2?9                      S57                  1,052
300     TOTAL CURRENT LIASS.                            0                       0                    279                      575                  1#052
*      …      a.e**   *.aqa*.Z.aaaaa._ww ,aa.wwe         @ w w.a* aaaaa.. .aa... .   W…*."O  W_.*.........
LONGWTERM LIABILITIES
"v... W. -... p. . a   09
246   FC SUNNUWINGI                                     0                  6.895                  18,213                  26,851                  4S,462
280     TOTAL LONGaTERM   IAS8s                         0                  6#,98                  18,213                  26.w851                 4541482  1 
290  TOTAL LIABILITIES                                  0                  6,898                  18,492                  29,426                  46,534
UUUU*UUSUUUUUUe us       u  GU3Suoxmgs&.utsu.ug                                                                          coguusywSusu.:ug   gg:Uw*g8Ew lSU     ~



COMPANY ID/JOB NUMBER I L02/002                               CARIBBEAN DEVELOPMENT BANK                                       RUN DAT  S  4/0I0/75
vrwe  PROJECTED  r.w                                            RUN TIME I ll09
REPORT ID I O                                               A L      A N C E  HE E FAt A$E I  2
UNIT I (THOUSANDS Of  US DOLLARS)
PERIOD ENDING
1/1174                1/1975                1l1976                 1/1977                 1/1976
(BASE DATA)
EQUITY
301   SHARE CAPITALCIASE YR)                   17,000                17,000                 17,0000                17000                 17,88
351   UNAPPROPRIATED SURPLUS                    1,830                 2,626                  3,914                 S.488                  7,13
360    GROSS EQUITY                            18,830                19,624                 200916                22!,488                24,113
38S    TOTAL EQUITY BEFORE
NEW ISSUES AND RESERVES                  18,830                 19.824                20,914                 22,488                14,113
w-g>_ w*w       w9w* w_wlt@wwb9900w*-u                     ww      -wbw ww    qwv*w-tv-w
371   CASH EQUITY ISSUED                            0                 6#930                 13,120                  7,lO0                11,4100
365    TOTAL EQUITY                            18,830               2R5S,5                  34,036                39,768                 420313
7;:;.;,        .        . -Ww .. waw       ... *.... www                                   ... WW
390  TOTAL EQUITY AND LIA68,                   18,630                35454                 52,528                69,214                166,45
UsUlugsUnxU.sUUU    *38*UUUUSUUUUU         *UWUUUUUUUEUUUSSSS  *SUUUBUSU,g.ga   uEaDuaYaaiaualuu
IA 
I-.0



COMPANY ID/JOB NUMBER I L02/002                                 CARIBBEAN DEVELOPMENT BANK                                         RUN DATE a  8108/7S
..WV PROJECTED *ww                                                RUN TtmE   I 12kO9
REPORT ID I o0                                                A L A N C I   s H E E T                                                  PAGE I  3
UNIT i (THOUSANDS OF  US DOLLARS)
PERIOD ENDING
1/1979
CURRENT ASSETS
we ....... *
101   CASH AND ST DEPOSITS                         490
103   StI AND FIXED DEPOSITS                    23,62S
112   sT fC LOANS OUTSTANDING                    3,815
*   - - -   …     **.w*w---w
130    TOTAL CURRENT ASSETS                     27.q3O
w* .-.t_.-tw
LOANS OUTSTANDING
W ......0s...... 0
131   FUREIGN CURRENCY                          78,766
160    GROSS LOANS OUTS,                        78,76
,,_ ------------
1l1   LESS# PED FOR PC LOANS                     1,661
16*    NET LOANS OUTSTANDING                    77,105
INVESTMENTS
*Ww.p ......
ISO    NET INVESTMENTS                                0
181   NET FIXED AND
OTHER ASSETS                               240
195    TOTAL ASSETS                            t5,27e
33s33332333:53s3s1
CURRENT LIASILITIES
132   St PC SORNUtNING                           2,703
wr~Pwvw.003
240    TOTAL CURRENT LIABS,                      2,703
LONG*TERM LIASILITIES
IRS   PC BORROUNINS                            ,Sa207
260    TOTAL LONGeTERM LIABS,                   5*,207
290  TOTAL LIABILITIES            .23.3S....i                                                                                                         4:-
*e--0-w-.-Bw-0-v-                                                                     & ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~,N



COMPANY ID/JOB NUMBER I L02/002                                CARIBBEAN OEVELOPMENT BANK                                      RUN DATE I  8/00/75
w."v  PROJECTEO *'-                                             RUN TIME 1 12109
REPORT ID   01                                             0A L A N C E   S H E E T                                                 PAGE I  4
UNIT I (THOUSANDS Of US DOLLARS)
PERIOD ENDING
1/1979
EQUITY
301   SHARE CAPITALUBASL YR,)                  17,000
351   UNAPPRUPRIATED SURPLUS                   86,76
3b0    GROSS EQUITY                            2 5,75
................................-
365    TOTAL EQUITY BEFORE
NEW ISSUES AND RESERVES                  2S,766
371   CASH EQUITY ISSUED                       16.600
3s5    TOTAL EQUITY                            4403OX
390  TOTAL EQUITY AND LIAB$,                  1059176
33 323 3 33 U 33 2 33 U 3 33
PI .



COMPANY ID/JO$ NUMBER I L02/002                                  CARIBBEAN DEVELOPMENT BANK                                          RUN DATE t  8/0tl/75
www.   PROJECTED *r-m                                              RUN TIME: l2IlQ)
REPORT ID i 02                                           I N C U M E   AND    E X P EN NS E S                                            PAGE t  4
L E C E N D I
SIT a BEFORE INCOME TAX
OSTLIT a BEFORE sPECIAL TAXES AND LICENSES
AND INCOME TAXES
DCS * DOMESTIC CURRENCY 8ORRQO2INGS
OCL a DOMESTIC CURRENCY LUANS
El * EQUITY INVESTMENTS
FC, FOREIGN CURRENCY
FCB a FOREIGN CURRENCY BORROMINGS
FCL * FOREIGN CURRENCY LOANS
GENM * GENERAL
LT * LONG*TERM
PFD a PROVISION FOR DOUBTFUL
*EC, * SECURITIES
STI a SPECIAL TAXES AND LICENSES
SYND  a SYNDICATION
UNDERnRI - UNDERWRITING
a,~



COMPANY ID/Joe NUMBER I L02/00i                                   CARIUSEAN DEVELOPMENT BANK                                           RUN DATE I  8/06/7S
vw,w PRUJECTED w..o                                                 RUN TIME a 12*10
REPORT ID I 02                                            I N C U  M       A A N D   E X P E N S E S                                       PAGE I  i
UNIT i (TMOUSANDS OF   US DOLLARS)
PERIOD ENOING
1/1975                 111976                  1/1977                  1/1978                  1/1979
INCOME
,-----
FRUM FCL OPERATION
411     INTEREST FROM PCL                                                  1.781                  3,135                  40,618                   6173
4i2    COMMITMENT PEE PCL                            221                     219                     251                     22'                     240
416      TOTAL INCOME FCL                            90                   2.000                   3,386                   4.842                   b,4i3
.,*5   ........   ,             ......                       9-*    Wow.. *q. ...  w ..........  .se ,    ..
FROM DCL OPERATION
.-  .... ., ,           ......             w   .            ......... w    ............,._        *     ,,
416      TOTAL INCOME DCL                              0                       0                       0                       0                       0
...... ..... *...... ..............               ..        ....... q."% _    ...... *v ... www a ......... ........ a
FROM ElI OPERATIONS
436      TOTAL INCOME El                               0                       0                       0                       0                       0
3*S..  ..................  ................…               .  ...      . .       W.    .......… .
FROM UNDERWRITING AND LT SECURITIES
.. --.- ... ..... -. ... ..- ...         -              ....W..  ….--.. ..--.
446      TOTAL INCOME fROM
UNDERWRT AND LT SECC                         0                       0                      0                        0                       0
FROM GUARANTEES
,-w---~*.e..   s                                                        ....-.qq.,                   .      e   U      .
45J      TOTAL INCOME FROM
GUARANTEE                           0                       0                       0                       0                       0
USOP.                ..              .-......  ................
FROM SYNDICATION
466      TOTAL INCOME FROM
SYNDICATION                            0                      0                       0                       0                        0
FROM MONEYMARKE  OPRT;,v.. W.... ",V-...  0.................             ...... ........   W  .......... .,,,,,. w,,,. a"',.------P
PROM MONEY MARKET OPERATION
071     MONEY MARI^ET OREMATION 
RELATED INCOME                     1,013                   1.503                   1,488                   I,b60I                 I,6 1 8
CO
.................        ............. W-,, .... ...........-  .................... ...... .WW............ . . . . _ ,,.,,,,,    ...................,,,,,,.W.",w



COMPANY ID/JOB NUMBER I L02/OO2                               CARISOEAN DEVELOPMENT SANK                                     RUN DATE I   /0o8/75
V-9; PROJECTEO WV-                                             RUN TIME I l211Q
RePORT ID I 02                                        I N C 0 M E    A N D   E X P E N S E S                                      PAGE 1  2
UNIT I (THOUSANDS OF  uS DOLLARS)
PERIOD ENDING
1/1975                1/1976                1/1977                1/1978                 1/1979
696    GROSS INCOME                            Iq919                  3,S03                 4,873                 8,442                86031
EXPENSES
w*......
UN FCL OPERATION
51t     INTEMEST FUR fC8                         286                  1.053                 1,989                 3.15b                 4,467
St4    PFD FCL                                    197                   380                   322                   421                    382
518     TOTAL EXPENSES ON FCL                     63                  1,413                 2.311                 3?577                 4,626
0.3.0*www"""  *wq0~      .0zZ"_""w-w""ww"w  flw_z"*ww..…               …... .           ............... Pe
ON DCL OPERATIONS
--------                 ......03      …..............q......                                 .
S26     TOTAL EXPENSES ON DCL                                                                   0                      0                     0
ON El OPERATIONS
..............p                                                                           .303.9
S3S     TOTAL EXPENSES ON El                        0                     0                     0                     0                      0
RELATED TO UNDERWRITING ND Lt SECURITIES
..........................
*"0-------*------w- ---._...........  .*    .W............... .......  VW*................ --W." * .--.-.-,.- ......eVW"............... w---.'--
S4S     TOTAL RELATED TO
UNDERWRT AND LT SEC,                       0                     0                     0                      0                     0
EXPENSES RELATED TO GUARANTEES
5SS     TOTAL EXPENSES
RELATED TO GUARANTEES                      0                     0                     0                      0                     0
~~3   ..              3  *3W93n…flfl*p~~~~~v   W........ W."            .,......
RELATED TO SYNDICATIONS
-........w    .........0W..             33....... we                      ......  . wo   a~.........
5X8     TOTAL RELATED TO
SYNDICATION                      0                     0                     0                     0                      0
w~^w"-w-oe0 *3.,o.,.* ..**….
RELATED TO MONEY MARKET OPERATION                                                              .                           .
VW.... W  ....  .........woe.W.W
VW*...0.                                    ........                                                       3 ..     VW .........   lo 



COMPANY ID/JOB NUMBER I L02/002                                    CARIBBEAN DEVELOPMENT SANK                                            RUN DATE  I  6/08/Vs
WOW PROJECTED New*                                                  RUN TIME I 12itq
REPORT ID 8 02                                             I N C O M E    A N D    E X P E N S ES                                            PAGE I  3
UNIT I (THUUSANDS OF   US  DOLLARS)
PERIOD ENDING
1/1975                  1/1976                  1/1977                  1/1978                   1/1979
57T      TOTAL RELATED To MONm
EY MARKET OPERATIONS                           0                       0                       0                        0                       0
t     ............. t0.......W....                                      Wfe......e...                  ............
GENERAL EXPENSES
561     AOMINISTWAtIVE
EXPENSES                           640                     800                     990                   1,240                    l.SS0
@ww*ZwW,wew~   SwwZ"w@                   flSW9t…t=tW5W  *ttUCWb*W                e    3^   5t-"w-^
So$      TOTAL GEN, EXPENSES                          640                     600                     990                   1,240                    lS50
,,,**,,,,,,,,,,   S,.0 ...... ...fl.*…0.......  *W......W.*W.t. V...                                             ,
590      GROSS EXPENSES                             1,123                   2.213                   3,301                   4,617                    6,378
.zzms:smuuuzuua:u    *z.s:u.zuumxuCmu.s  gmEUmamgumzUuuRuuU   *SSC..uumUmuuuu.m                  uEU.SUZUCUUUUUZSU-
592   NET INCOME 8STLIT                               796                   1,291                   1,572                   1.625                    1,652
--e* w eqee.*          .      t        335.5weww    **WCP .       33**w"    w*w- e P-flC5"w    5W …"w""
595    NET INCOME
BIT AND BONUS                              79e                   1,291                   1,S72                   1,625                    ,0652
Ce.           w  e. .,w***""w*w ...............V..*       C........v           ....... .C.   *,.vm ..............
598   NET EARNINGS                                    796                   1,291                   1,572                   1,625                    1F612
335UU33sZZZZUSUU5w   mmuzutauazu:ammuu   *smu.sumuuumuguuam    UU3uUU-U|SU3UUUUU                 *UUZUUU3UUURSU
samaxastauzzussanx~~~~~~~~~~~~~~~~~~ 
(D 
M 



COMPANY ID/JOB NUMBER I L02/002                                 CARIBBEAN DEVELOPMENT 8ANK                                       RUN DATE J  8/08/75
w-ww PROJECTED w*"                                               RUN TIME I 12ti
REPORT ID   D                                                      YNLY T I C A L   R      A T I O                                    PAGE I 
PERIOD ENDING
1/1975                1/1976                 1/1977                 1/1978                 1/1979
905  D/E BASED ON OUTS, DEST                    0,2416                0,5351                 0,7251                 1,0749                 1,3120
910 DIE BASED ON OUTSTANDING
DEST PLUS UNDISaURSED                    1,2738                 1,3915                1,i647                 1,7803                 2,0335
915 D/E BASED ON AVG, OF
OUTS,DEBT t OUTS.UNDIS8,                  0,7577                 0,9633                 1,1449                 i,4a7t                 1,6727
920 GROSS INCOME AS X OF
AVG, TOTAL ASSETS                     7,0690                 1,9637                 8,0056                 ,151e                  8,2737
925 GRUSS INCOME AS X OF
AVG, EQUITY                        8,0961                11,1941                13,2018               15,6938                18,5294
930 NET EARNINGS AFTER TAX
AS X OF AVG3 TOTOASSETS                 2,9318                 2,9336                 R,5823                 2,0566                 1,7022
935 NET EARNINGS AFTER TAX
AS X OF AVG, EQUITY                      3,356H                4,1236                 4,264                 3,0594                 3,8t23
940 FINANCIAL EXP, Aa X OF
AVG, TOTAL ASSETS                     1,053S                 2,3943                 3,2681                 3,9933                 4,6018
945 FINANCIAL EXP, AS X OF
GROSS INCOME                    14,90T3               30,0647                40,8234                48,9874                55,6192
950 ADMINISTRATIVE EXP, AS X
OF AVG, TOTAL ASSETS                   2,3560                 1,6186                 1,6264                 1,5690                 1,5969
955  ADMIN1ITRATIVE EXP, AS X
OF GROSS INCOME                        3,356b                22,8356                20,3137                19,2474                19,3012
960 NET INCOME BEF, TAX AND
PROV, AS X OF AVG,EQUITY                  4,1896                5,2724                 5,1303                 4,985Z                 4,6471
965 NET INCOME AFTEtR TAX
AS X Of YEAR END CAPITAL                  3,0668                4,2846                 4,5021                 4,6175                 4,6411
o I-



COMPANY lD/J08 NUMBER I LO02XO0                                  CARIBBEAN DEVELOPMENT BANK                                          RUN DATE I  8/00/75
'-vt PROJECTED up."                                                RUN TIME I 121
REPORT 10 i 08                                             A N A L Y T I C A L   R A T I O S                                              PArE t  2
L E C E N D1
AVG, s AVERAGE
0 a DEBT
Ea EQUITY
EXP, a EXPENSES
OUTS, a OUTSTANDING
PROV, * PROVISION
TOT, * TOTAL
UNDIS0, * UNDISeURSED
I  I
OD 



COMPANY ID/JOB NUMBER I L02/002                                CARIBBEAN DEVELOPMENT BANK                                        RUN DATE I  8/0b/75
.-"w  PROJECTEU W-                                               RUN TIME I 12111
FOREIGN CURRENCY ALLOCATIONS AND DISBURSEMENTS
REPORT ID 1 13                                                     BY SOURCE OF FUNDS                                                PAGE i  I
UNIT I (THOUSANDS OF US DOLLARS)
PERIOD ENDING (YEARLY)
I/1Q75                1/1976                 1/1977                 1/1978                 1/1979
ALLOCATIONS
BEGINNING BALANCE                             0        2*.2q94                                               58,5 99                7aR274
AMOUNT DURING PERIOD
SOURCES OF Ft LOANS
A I - IBRD and others                 15.655                  9.690                 10,710                  9,900
G 1 - VENEZUELA TRUST FUND            10064i4                 5S653                  6,Z248                 5.775                  6,036
TOTAL                                26,299                 15,3M3                 16,956                 1S.h75                16,388
CUMULATIVE AT END PD,                    26,299               Ł41.61                  Sd5899                 74t274                 90Qbb6
DISBURSEMENTS
*W. .- .. -..P   w eq
BEGINNING BALANCE                             0                 66896                 18,492                 29,705                 47,389
AMOUNT DURING PERIOD
SOURCES OF FC LOANS
A I - IBRD and others                   J0076                 6,966                  6,954                 10,979                 9,744
G I - VENEZUELA TRUST FUND             2,622                  9,627                 4',2hO                  6,704                 5,684
TOTAL                                 ,0898                 I1 593                 11,213                17tI.e6                15928
CUMULATIVE AT END PDO                     6,696                18492                  29,705                 47,389                62,617
k) H
CO 



COMPANY ID/JOB NUMBER I L02/002                                 CARIBBEAN DEVELOPMENT BANK                                         RUN DATE I  A/0/75
PRUJECTED .---                                              RUN TIME I 121t
FOREICN CURRENCY ALLOCATIONS AND DISSURStJENTS
REPUR7 ID I 13                                                      BY SOURCE OF FUNDS                                                 PAGE I  2
L E G e N D I
FC a FOREIGN CURRENCY
PD, * PERIOD
eA I-



COMPANY  ID/JUN NUMBER   L02/002                                       CARNB,EAN DEVELOPMENT BANM                                                RUN DATE  I  8/08/7S
PRUJECTED *--                                                      RUN TIME  1 12111
D         CRE UbN cRRENCY LOANS SY ACTIVITY
REPORT ID l 194                                                        AND SY  YEAR OF APPROVAL                                                       PAGE  t  |
UNIT  t (THUUSANDS OF US  DOLLARS)
PERIOD ENDING (YEARLY)
1/1975                   1/197b                    1/19T7                    1/1978                    1/1979
PRINCIPAL bALANCE BEGINNIN6
7wz; ---   s* .......*
LOAN NUMBEN
1974 - 3   AGRICULTURE  (BALANCE)                 1.ll5                     l.ls                     1,115                     1lls                     1,040
1974 - 4I                 (PIPELINE)                   0                    1,074                    5102                     5,3r7                     5,370
1975 - 5                                               0                         0                      380                    1 140                     1,900
1976 - 6                                               0                         0                        0                       '.50                   1,350
1977 - 7                                               0                         0                        0                         0                      550
1978 - 8                                               0                         0                        0                         0                         0
1979 - 9                                               0                         0                        0                         o                         0
1974 - 1 3   INDUSTRY AND IOURISM ( BALANCE)    1 0 45                      1 0 45                      993                      937                       875
1974 - 14                          (PlPELTNE)          0                      720                    1 200                     t,200                     1 1l44
1975 - 15                                              0                      238                       469                      70i                       667
1976 -It                                               0                         0                   1,972                     3,886                       8 0 0
1977 - 17                                              0                         0                        0                    2,0 40                    41 020
1978 - 18                                              0                         0                        0                         0                    2 0 40
1979 - 19                                              0                         0                        0                         o                         0
1974 -23    GOVERNMENT (BALANCE)                    650                       620                       587                      552                       514
1974 -24'               (PIPELINE)                     0                    3,255                    5,208                     5,556                     5#880
1975 -                                                 0                         0                      150                      302                       453
1976 -2b                                               0                         0                        0                    1,  350                   2, 722
1977 - 27                                              0                         0                        0                         0                    1200
1978 -28                                               0                         0                        0                         0                         0
1979 - 29                                              0                         0                        0                         9                         0
1974 - 33   FINANCIAL INTERMEDIARIES - MDCs (BAL. )470                        470                      4.70                        ro0                     436
1974 -334                                     (PI'T. )  0                  2,280                    5130                      7, ' Io                 II .0o
1975 -35                                               0                      150                      350                       550                       750
1976 - 36                                              0                         0                     375                        7                      Ia375
1977 - 37                                              0                        0                         0                      600                    1,100
1978 -38                                               0                         0                        0                         0                      b0
1979 - 39                                              0                        0                         0                         0                         0
1974 - 4'3   FINANCIAL INTERMEDIARIES - LDCs (BAL. )350                       350                      350                       350                       336
1974 - 44                                     (PPL.)  0                       286                      b6.                       930                    1   430
1975 -45                                               0                       i0                      t40                       220                       300
1976 - 46                                              0                        0                      165                       385                       605
1977 - 47                                              0                        0                         0                      Ib5                       3815
1978 -'8                                               0                        0                         0                         0                      300
1979 - 19                                              0                        0                         0                        0                         0    2
-54 '  iOUSING   (PIPEIINE)                       O                   1,t 782                     005                    8,A429                    8,161  
197T; -56                                              0                        0                      300                    1,012                     1, 2 2
1977 -57                                               0                        0                         0                      50o                    1.686  



COMPANY ID/JOB NUMBER  i L02/002                                          CARIBBEAN  DEVELOPMENT  BANK                                                RUN DATE  I  8/06/75
--- PRUJECTED   ----                                                      RUN  TIME  I 12.I1
FORE;UN CURRENCY LOANS BY ACTIVITY
REPORT ID * 14                                                            AND SY  YEAR OF APPROVAL                                                         PAGE  I  2
UNIT r    ,THOUSANDS OF US  DOLLARS)
PERIOD  ENDING  (YEARLY)
1/1975                    1/1976                     1/1977                    1/1978                     1/1979
1978  - 56    HOUSING                                      0                         0                          0                          0                       200
1979  - 54                                                 0                         0                          0                          0                          0
~~~~~~P.*.   "W. ..... .."_w.w_-, ........                         "W      ................    ............ ww,*"."*b*W Z--b-   
TOTAL                                          3,630 o13f445                                       31,104                     46,493                    66,308
-.-w.*.-..........    .................9*^ .....................  D--.^.--................Y WP@l0W-wWsO
APPROVALS
LUAN NUMOER
I    AGRICULTURE                                              0                         0                          0                                       0
1974  -  4                APPROVED (BALANCE)          5, 370                         0                          0                          0                          0
1975  -                                               I 900                          0                          0                          0                          0
1976  -  6                                                 0                    2,250                           0                          0                          0
1977  -  7                                                 0                         0                     i,750                           0                          0
1978  -  6                                                 0                          0                         0                    3,500                            0
1979  -  9                                                 0                         0                          0                          0                       7 0
- t3    INDUSTRY AND TOURISM                         0                         0                          0                         0                          0
1974     14               APPROVED (BALANCE)          1.200                           0                         0                          0                         0
1975  - t5                                              700                          0                          0                          0                         0
1976  - 16                                                 0                    SiSoo                           0                          0                         0
1977  - 17                                                 0                          0                    b,ooo                           0                         0
1978  - 18                                                 0                          0                         0                    6,000                           0
1979  - 19                                                 0                          0                         0                          0                    0,o00
23    GOVERNMENT                                  0                          0                         0                          0                         0
1974  - 24                APPROVED (BALANCE)          6s510                           0                         0                          0                         0
1975  - 2S                                              500                          0                          0                          0                         0
1976  - 2b                                                 0                    4,500                           0                          0                         0
1977  - 27                                                 0                          0                    44,000                          0                         0
1978  - 26                                                 0                          0                         o                     1000                           0
1979  - a9                                                 0                          0                         0                          0                    1,0 00
33    FINANCIAL IN'hERMEDIARIES - MDCs            0                         0                          0                          0                         0
1974  - 34                APPROVED (BALANCE)         11#400                           0                         0                          0                         0
1975  - 3S                                            I  000                         0                         0                          0                         0
1976  - lb                                                 0                    2,500                           0                          0                          0
1977  - 37                                                 0                          0                    4, 000                          0                          0
1978  - 30                                                 0                                                                          a  ',o0 00                      0
1979  - 39                                                 0                          0                         0                          0                    4,500
43   FINANCIAL INTERMEDIARIES - LDCs              0                          0                         0                          0                         0
1974  - 44                APPROVED (BALANCE)          ,1a430                          0                         0                          0                          0  g 
1975   - 45                                              400                          0                         0                          0                          0
1976  - 46                                                 0                     200                            0                          0                          0
1977  - 47                                                 0                          0                    1,I00                           0                          0    C 



COMPANY  ID/JOd NUMBER  I Lo2/002                                         CARI8BEAN  DEVELOPMENT BANK                                                 RUN DATE  I  8/0a/75
...- wPROJECTtD -w'"                                                        RUN TIME I lZil
FUREIGN CURRENCY LOANS BY ACTIVITY
REPORT  ID I 14                                                           AND BY  YEAR  OF  APPROVAL                                                       PAGE  I  3
UNIT  I (THOUSANDS OF  US  DOLLARS)
PERIOD  ENDNG  (YEARLY)
1/1975                    1/1976                     1/1977                    1/1978                     1/1979
1978  -  48   FINANCIAL. INTERMEDIARIES - LDCs              o                          0                         0                     2,000                           0
1979  -  49                                                 0                          0                         0                          0                    2,D000
1974  -  SU  HOUSING - APPROVED (BALANCE)              8,910                          0                          0                          0                          0
1976  -  56                                                 0                    1,500                           0                          0                          0
1977  -  57                                                 0                          0                    2,500                           0                          0
1978  -  58                                                 0                         0                          0                      ,000                           0
1979  -  59                                                 0                         0                          0                          0                    3,000
.     .* …………..s.....                                                                      .f..w...   .             .        ..s. eans -
TOTAL                                         39.320                     17.450                    Z,3050                     17 500                   20a,250
DISBURSEMENTS
LUAN NUMBEN
3   AGRICULTURE                                  0                         0                          0                         0                          0
1974  -   4               DISBURSED (BALANCE)         1,074                      40s26                        269                          0                          0
1975  -   5                                                0                       360                        760                        760                          0
1976  -   6                                                 0                         0                       450                        900                       900
1977  -   7                                                0                          0                          0                       550                     11 00
1978  -   8                                                 0                         0                          0                         0                       700
1979  -   9                                                 0                         0                          0                         0                          0
13   INDUSTRY AND TOURISM                         0                         0                          0                         0                          0
1974  -  la               DISBURSED (BALANCE)            720                       480                           0                         0                          0
1975  -  15                                              238                       231                        231                          0                          0
1976  -  1b                                                 0                    1,972                     1,914                      1,91 U                          0
1977  -  17                                                 0                         0                    2,04 0                     1,980                      I,980
1978  -  1t                                                 0                         0                          0                    2 04 0                     1,980
1979  -  19                                                 0                         0                          0                         0                     2.040
23   GOVERNMENF                                   0                         0                          0                         0                          0
1974  -  24               DISBURSED (BALANCE)         3,255                      1,953                        651                       651                           0
1975  -  25                                                 0                       150                       175                        175                          0
1976  -  26                                                 0                         0                    12,50                      1tsI5 1,575
1977  -  27                                                 0                         0                         0                     1,200                      1 400
1978  -  28                                                 0                         0                         0                          0                       300
1979  -  2q                                                 0                         0                         0                          0                          0
33   FINANCIAL INTERMEDIARIES - MDCs              0                         0                          0                         0                          0
1974  -  34               DISBURSED (BALANCE)         2.280                      2s850                     2,280                      3 990                           0
1975  -  35                                              150                       200                        200                       200                        Z50
1976  -  36                                                 0                      375                        S00                       Soo                        50o
1977  -  37                                                 0                         0                       600                       Boo                        800  
1978  -  38                                                 0                         0                         0            Q          bon                        S
1979  -  30                                                 0                         0                          0                         0                       675  o e



COMPANY  ID/JOB NUMBER  I L02/002                                         CARIBBEAN  DEVELOPMENT BANK                                                 RWN DATE  I  8/09/7
.--. PROJECTED  ---                                                         RUN TIME  I 12
RURF IGN CURRENCY  LOANS BY ACTIVITY
REPORT  ID I 14                                                           AND BY   YEAR  OF  APPROVAA,
UNIT  I (THOUSANDS OF   US  DOLLARS)
PERIOD ENDING  (YEARLY)
1/1975                    1/1976                     1/1977                    1/1978                     l/1/979
43   FINANCIAL INTERMEDIARIES - LDCs              0                          0                         0                          0                          0
1974 - 44                 DISBURSED (BALANCE)          28b                       358                        266                        501                          0
1975 - 45                                               60                         80                        sQ                         s0                        100
1976 - 46                                                 0                       165                       220                        220                       220
1977 - 47                                                 0                         0                       165                        220                       220
1978-Me                                                   0                         0                          0                       300                       400
1979 - 49                                                 0                         0                          0                          0                       300
1974 - 54   HOUSING - DISBURSED (BALANCE)           Ir782                      44,455                    2,673                            0                         0
1976 - 5                                                 0                      300                        750                        450                          0
1977 - 57                                                 0                         0                       500                     1,250                        750
1978 - 58                                                 0                         0                          0                       200                       500
1979 - 59                                                 0                         0                          0                         0                       600
Z.^.w._w.w_t  ..  ...... ... V    ........... w*_.***vo".q. W-."".we w._.ws ...............  ....     W   ..........-W-q*.
TOTAL                                          9a4 5                    17,976                     16,094                     21#056                    16t090
,,,,w,,,,,,,,,,........ ".,,,,,,,we   ....... ...........   ............. ....                      , _._......... .....wwe"--so
REPAYMENTS
LON NUMBER
3   AGRICULTURE                                 0                          0                          0                        75                         82
1974 -  4                                                 0                         0                          0                          0                         0
1975 -  S                                                 0                         0                          0                          0                         0
1976 -  6                                                 0                         0                          0                          0                         0
1977 -  7                                                 0                         0                          0                          0                         0
1978 -  8                                                 0                         0                          0                          0                         0
1979 -  9                                                 0                         0                          0                          0                         0
13   INDUSTRY AND TOURISM                         0                        52                        57                         62                         67
1974 - 14                                                 0                         0                          0                        60                         65
1975 - 15                                                 0                         0                          0                        33                         36
1976 - 16                                                 0                         0                          a                          0                       271
1977 - 17                                                 0                         0                          0                          0                         0
1978 - 18                                                 0                         0                          0                          0                         0
1979 - 19                                                 0                         0                          0                          0                         0
1974 - 23   GOVERNMENT                                   30                        33                         35                        38                         41
1974 - 24                                                 0                         0                       303                        327                        353
1975 - 25                                                 0                         0                         23                        24                         27
1976 - 26                                                 0                         0                          0                       2n3                        220
1977 - 27                                                 0                         0                          0                          0                       180
1978 - 28                                                 0                          0                         0                          0                         0    >
1979 - 29                                                 0                          0                         0                          0                         0
33   FINANCIAL INIERMEDIARIES - MDCs              0                         0                          0                        34                         36
1974 - 34                                                 0                          0                         0                          0                         0    o



CUMPANY  I0/JOb NUMBER t L02/002                                     CARIBBEAN DEVELOPMENT SANK                                              RUN DATE  I  8/08/75
..'. PROJECTED .-..                                                    RUN TIME  I 12111
FUREIGN CURRENCY LOANS BY ACTIVITY
REPORT ID I 14                                                       AND BY  YEAR  OF  APPROVAL                                                   PAGE  I  5
UNIT  i (THOLUSANDS OF  Us  DOLLARS)
PERIOD ENDING (YEARLY)
1/1975                  1/1976                   1/1977                   1/1978                   1/1979
1975 - 35   FINANCIAL INTERMEDIARIES   MOCs           0                        0                        0                        0                        0
1976 - 36                                             0                        0                        0                        0                        0
1977 - 37                                             0                        0                        0                        0                        0
1978 - 38                                             0                        0                        0                        0                        0
1979 - 39                                             0                        0                        0                        0                        0
u63  FINANCIAL INTERMEDIARIES - LDCs           0                        0                        0                       14                       15
1974 - 44                                             0                        0                        0                        0                        0
1975 - 45                                             0                        0                        0                        0                        0
1976 - 46                                             0                        0                        0                        0                        0
1977 - '7                                             0                        0                        0                        0                        0
1978 -8                                               0                        0                        0                        0                        0
1979 -9                                               0                        0                        0                       0                         0
54   HOUSING                                   0                     232                      249                      267                      267
1976 -56                                              0                        0                      3                        41                       44
1977 - 57                                             0                        0                        0                      64                       68
1978 -5                                               0                        0                        0                       0                       25
1979- 59                                              0                        0                       0                        0                        0
9w>*ww"t*..           ……"w-*w*          **   *.        …        **_-__-wr    w**in,tfl.afl.*    * .      -"sw "w
TOTAL                                           30                      317                     704                    1,24t0                   1,617
....         .....w                                                          …....... .......… V    .... .....  .....-.we
PRINCIPAL BALANCE ENDING
LUAN NUMBER
1974 -  3  AGRICULTURE                           1.115                    1.115                   1115                    1,040                       9se
1974 -  4                                        1.074                    St,102                   5,370                   5,370                    5,370
1975 -  5                                             0                     380                    1,U140                  1,900                    1,900
1976 -  b                                             0                        0                     4S60                   1t350                   2p250
1977 -  7                                             0                        0                       0                      SSO                   1,650
1978 -  8                                             0                        0                        0                       0                      700
1979 -  q                                             0                        0                        0                       0                        0
1974 - 13  INDUSTRY AND TOURISM                  1,0645                     993                      937                      875                      808
1974 - 1Ii                                          720                   1,200                    1t.200                  1,140                    1,075
1975 - 15                                          238                      469                      700                      667                      631
1976 - 16                                             0                   1,972                   3,866                    S,eOO                    5,529
1977 - 17                                             0                        0                  2,0640                   66,020                   6,000
1978 - 18                                             0                        0                       0                   2,040                    46020
1979 - 19                                             0                        0                       0                        0                   2,040
1974 - 23  GOVERNMENT                              620                      567                      552                      514                      473  
1974 - 266                                       3,255                    5,208                   5,556                    5,880                    5,527  7 
1975 - 2S                                             0                     150                      302                      453                      427 7
1976 - 26                                             0                        0                   1,350                   2,722                   46,078 l



COMPANY  DiCJOB NUMBER  I L02/002                                  CARIBBEAN DEVFLOPHENT BANK                                            RUN DATE I  8/06/75
"".' PROJECTED w.-w                                                  RUN TIME I 12,1I
FUREIGN CCURRENCY LOANS BY ACTIVITY
REPORT 10 I 14                                                     AND BY  YEAR  OF APPROVAL                                                 PAGE  I  6
UNIT I (THOUSAND3 OF  US  DOLLARS)
PERIOD ENDING (YEARLY)
1/1975                  1/1976                  1/1977                   M1978                   1/1979
1S77   27  GOVERNMENT                                0                       0                       0                   1,200                   2,420
1978-28                                              0                       0                       0                        0                    300
1979-29                                              0                       0                       0                        0                       0
1974 - 31  FINANCIAL INTERMEDIARIES - MDCs        470                      470                     470                     416                     400
1974 - 30                                       d,280                   5t130                   7,410                   t1t400                  11,400
1975 - 35                                         150                      350                     550                     750                   1,000
1976 - 36                                            0                    375                      875                   1,37s                   11875
1977 - 37                                            0                       0                     600                   1,400                   2,200
1978  38                                             0                       0                       0                     600                   1,000
1979 - 39                                            0                       0                       0                        0                    675
1974 - 43   FINANCIAL INTERMEDIARIES - LDCs       350                      350                     350                     336                     322
1974 - 44                                         266                      644                     930                   1,0430                  1,430
1975 - 4S                                           60                     140                     220                     300                      400
1976 - 46                                            0                     1*5                     385                     60S                     815
1977- 47                                             0                       0                     165                     315                     605
1978   08                                            0                       0                       0                     300                      700
1979 - 49                                            0                       0                       0                        0                     300
1974 - 54  HOUSING                              1,782                   6,005                   8,429                    8,161                   7,87S
1976 - 56                                            0                     300                   t012                    1,0421                  1,377
1977 - 57                                            0                       0                     500                   1,686                   2,368
1978 - 58                                            0                       0                       0                     200                      675
1979 - 59                                            0                       0                       0                        0                     600
TOTAL                                     13,445                  31,104                  46,493                   66,308                  82,581
w**_@w* C .*t Xw-- 9_wwww_ "Z--W C.. .     --C.9... ...   .......                 .......-..........
CD 
co



COMPANY  ID#JOB NUMBER I LD2/002                                    CARHSBEAN DEVELOPMENT BANK                                            RUN DATE I  5/08/75
.-..  PROJECTED  w--P                                                 RUN TIME  I 12112
DISBURSEMENT AND REPAYMENT SCHEDULES
REPORT ID   2l                                                ON FUREIGN AND DOMESTIC CREDIT SOURCtS                                           PAGE I  I
UNIT I (THOUSANDS OF US DOLLARS)
PERIOD ENDING tYEARLY)
1/1975                  1/1978                  1/1977                   1/1978                   1/1979
PRINCIPAL BALANCE BEGINNING
FUREIGN CURRENCY LUANS
SOURCES OF fCL
A I -  IBRD and others                         0                   4#076                  11.042                   17.831                  28 461
G I - VENEZUELA TRUST FUND                     0                   2.822                   7#449                   118595                  18073
...                              .            *  P....._......_. .  ..........…... .." v ........... "... "
TOTAL                                         0                  8.898                   18,492                  29,426                  46,534
,,,,,, ...,,,._... ...............W. _, .......                          v.,  ............ w                .....W
GRAND TOTAL                                   0                  8.898                   18,492                  29,428                   465314
u.:s-zzuzzumu:r:u:  Ex2ssu:uu:uuusaut=          *gwasz:auuamxusuz  .xxsuzuaSsagsgxaxa    mzmmz:x=s..u.uu*ZU
DISBURSEMENT3
.W. ...... … w
FUREIGN CURRENCY LOANS
SOURCES OF FCL
A t - IBRD  and others                    4,078                   8,988                    8,954                  10,979                    9,744
G I - VENEZUELA TRUST FUND                2,522                    4,627                   4,0280                  8,704                    5,b84
wt-w---------t. *-.-,............. -----, *.R......... ...W"W... W-..V            v.,@.. ,  ,.,.,.,,, ..................... ,,,,_,,,,W.,
TOTAL                                    F8,98                  11,593                   11,213                  17,884                  15,428
....-t.^..... V.0WW       .." @-w-.--.... "..W            ..........-    v ......-.. .V..-r-@*     0 .._--...........
GRAND TOTAL                              60898                    10,53                 11,213                  17.684                  15,428
g:.Xu::zz-uuszzz:z  m*z:mam2sgzax:u:ua   uu.zns.augsu-u-.   auu -agmugu:*g   gugaSzz 3tkuxgmauu
REPAYMENTS
FUNEIGN CURRENCY LOANS
SOURCES OF FCL
A I -  IBRD and others                         0                       0                     165                     3Ja                      849
C I - VENEZUELA TRUST FUND                     0                        0                    114                      228                     403
~~~~~0.-.  a _._..... t. 0..... ..              ..... w.. -.......  .. ow- ......._.w,........  .............. 9 .. ___., ...  
TOTAL                                         0                       0                     279                     S75                   16052
*-99-.-   0                           .       .       ..........._. ..  ... . ...- ..... v .  ..........….................  ......,. 
GRAND TOTAL                                   0                       0                     279                     575                   1,OS2
z::zg5s:z3uuugz3ganUtz   am.uazu.uzzsxsmuz*      m:uXzwuSguzu s-z  g        xxzmz:xz 32gSX:vzU*z  .US:ag:u3:SZU5z
PRINCIPAL BALANCE ENDING
........................... -.  
FOREIGN CURRENCY LOANS
SOURCES OF FCL
A I - IBRD and others                     4,07 6                 11#042                   17,831                  28,401                  37,558  °o-C



COMPANY ID/JOB NUMBER I L02.002                                    CARIlbEAN DEVELOPMENT BANK                                           RUN DATE I  8/Od/75
e-w" PROJECTED u--                                                  RUN TIME I 12I1i
DISBURSEMENT AND REPAYMENT SCHEDULES
REPURT ID I 21                                               ON FOREIGN AND DOMESTIC CREDIT SOURCES                                          PAGE  I  2
UNIT I (THOUSANDS OF US  DOLLARS)
PERIOD  ENDING  (YEARLY)
1/1975                  1/197b                  1/1977                 1l1978                   1/1979
G I  - VENEZ. TRUST FUND                  2.622                   79449                  11,595                  18a073                  23,534
TOTAL                                   6,698                  18a492                  29,426                  46,534                   60,910
-p-.p--.-f-p.q.--   p-.--.a           p--...W.   Wp.…W... ......p.p  wm.e.9.9.....-e-eV  W-b ..........
GRAND TOTAL                             6898                   to ' 492                29o,426                 46,534                   60,910
assazzgxgzsaaxs   *aazxxaxxzstg-a2   *"n |saoxxnsaw|-"   *sswassnavzsxasss    sscs ="g
M UE
"3 
Fz I-



COMPANY ID/JOB NUMBER t 02/002                                    CARISBEAN DEVELOPMENT BANK                                          RUN DATE I  6d0/lv
--    PRUOJECTED ow-0                                              RUN TIME 1 12112
DISBURSEMENT AND REPAYMENT SCHEDULE$
REPORT ID 5 21                                              UN FUREGN AND DOMESTIC CREDIT SOURCES                                         PAGE I  3
L E G  N D I
FCL F POREtGN CURRENCY LOANS
e C



ANNEX 18
page 23
CARIBBEAN DEVELOPMENT BANK
Assumptions for Financial Projections
1.         Projected operations are based on estimates formalated by each
Project Division of CDB and reviewed by management. These figures were re-
classified by type of borrower (i.e. agricultural, industrial, government,
dfc and housing intermediary) to produce the financial projections with the
Bank's computerized DFC Financial Projection Model. Individual forecasts of
operations provided by each of the project divisions are given below:
Projected Commitments
Ordinary Resources and the Venezuelan Trust Fund
1975-1979
Millions of US Dollars
1975    1976    1977    1978    1979    Total
1. Agriculture Dlvision:
a) Marketing, Processing,
Storage, etc.
LDCs                       -      0.10    0.15    0.20    0.20    0.65
MDCs                      1,25    0.15    0.60    0.80    0.80    3.60
b) Financial Intermediaries
LDCs                       -      o.50    o.50    1.00    1.00    3.00
MDCs                       -      1.00    1.50    1.50    2.00    6.00
c) Estate Development
(Private Sector)
LDCs                      0.15    0.50    0.50    0.75    0.75    2.65
iDCs                       -      0.50    0.50    0.75    1.00    2.75
d) Regional Agricultural
Projects                  0.50    1.00    1.00    1.00    1.00    4.50
Total Agriculture             1.90    3.75   4.75    6.00    6.75   23.15
2, Industry & Tourism Division:
a) Direct Lending
LDCs                      0.20    1.80    2.00    2.00    2.00    8.00
MDCs                      0.50    1.00   100    1.00    1.00    4.50
Regional Projects          -      3.00    3.00    3.00    3.00  12.00
b) Financial Intermediaries
LDCs                      0.40    0o60   o060    1.00    1.00    3.60
MDCs                      1.00    1.50    2.50    2e50    2.50  10.00
Total Industry & Tourism      2.10    7.90    9.10    9,50    9.50  38.10
(cont.)



ANNEX 18
Projected Comnmitments  (cont.)
OrdinarM  Resources and the Venezuelan Trust Amd
1975-1979
Milli o   fUD ollars
1975    1976    1977    1978    1979    Total
3. Technical Division:
a) General Infrastructure
Los                      0o50    2.00    1.50    1.00    1.00    6.00
25Cs                       -      2.50    2.50     -       -      5°00
/a
b)  Low & Lower Middle
Income Housing
LDCs                               -      0.50     -      0.50    1,00
1ICs                       -      1.50    2.00    1.00    2.50    7.00
Total Infrastructure          0.50    6.oo    6.50    2.00    4.00   19.00
GRAN  TOTAL         4.50   17.65   20.35   17.50   20.25   80.25
La   To be channeled through Financial Intermediaries.
2.       Disbursement patterns are given by percentages of approvals for each
year of disbursement beginning in the year of approval:
Agriculture:
Approved prior to 12/31/74                         20%/75%/5%
Approved after 12/31/74                        -o-/20(/40%/40
Industry:
Approved prior to 12/31/74                             60%/40%
Approved after 12 /31/74                           34%/33%/33%
Govenment:
Approved prior to 12/31/74                     5%/30%/10%/10%
Approved after 12/31/74                        -o-/30%/35%/35%
Financial Interuie1iaries -DCs and LDCs:
Approved prior to 12/31/74                     20%/25%/20%/35%
Approved after 12/31/74                    15%/20%/2C%/2N/25%
Housing:
Approved prior to 12/351/74                        20%/50%/30%
Approved after 12/31/74                            20%/50%/30%



ANNEX 18
page 25
3.        Interest rates lJ charged on CDB loans are:
On loans approved       On loans approved
prior to 12/31/74        after 12/31/74
Agriculture                             8.5%                   9.0%
Industry                               9.0%                   10.0%
Government                              8.0%                   8.5%
Intermediaries (inml. Housing)          7.25%                  7.5%
4.        Administrative expenses were estimated on total MDB operations
(i.e. both OCR and SFR) and 50% was allocated to OCR for the OCR projections.
5,        Interest earned on short-term investments is calculated at 7% p.a.
throughout the projections.
6.        No commitment fee was charged on CDB borrowings.
7.        A commitment fee of 0.75% p.a. is charged on unutilized balances of
CDB loans made.
8.        Income is charged with an amount equal to 2% of disbursements for
Provisions for Loss Reserves.
9.        In the statement "Foreign Currency Loans by Activity and by Year of
Approval", the amounts disbursed as of 12/31/74 are reported as "Balance" and
undisbursed approvals are reported as "Pipeline."
100       The Venezuelan Trust Fund operations are included in the OCR projec-
tions at an interest rate charge of 8% p.a. for funds xtilized. The final
Trust Fund agreement provides for compensation to CDB by means of a fee rather
than a spread on the interest rate and consequently the projections show in-
correctly the source of income for Venezuelan Trust Fund operations. However,
net income is not materially altered.
The terms of the Third Window camponent of the proposed loan were not
known in time to be incorporated into the projections; however, Third
Window lending will not adversely affect the projected financial situation.



ANNEX 19
CARIBBEAN DEVELOPMENT BANK
Estimated Approvals and Disbursements of IBRD
conventional loan of US$17 million L
(in $ million)
Approvals                     Disbursements
Amount          %               Amount           %   E/
1976
1st Quarter   /       6.1          35.9
2nd Quarter            1.2         42.9                1.9         11.1
3rd Quarter            1.6         52.4                1.9          22.4
4th Quarter            1.14        60.6                1.7          32.4
End-1976          10.3          60.6                5.5         32.4
1977
1st Quarter            1.7         70.6                1.1          38.8
2nd Quarter            1.3         78.2                 .8          43.5
3rd Quarter           1.7          88.2                1.1         50.0
4th Quarter           1.4          96.5                 .8         54.7
rnd-1977           6r1          96.5                3.8         54.7
1978
lst Quarter             .6        100.0                1.7         64.7
2nd Quarter                                            1.3          72.4
3rd Quarter                                            1.8         82.9
4th Quarter                                            1.14        91.1
End-1978             .6        100.0                6.2         91.1
1979
1st Quarter                                            1.4          99-4
2nd Quarter                                             .1        100.0
3rd Quarter
4th Quarter                                            -
End-1979                                            1.5        100.0
g/  Assuming that the proposed loans becomes effective in the second quarter
of 1976.
j   Percentages are cumulative.
S/  Includes loans approved prior to 1976.



ANNEX 20
CARIBBEAN DEVELOPMET BANK
Estimated Approvals and Disbursements of IBRD
Third Window Loan of US$3 million 1J
(in $ million)
Approvals                     Disbursements
Amount          %               Amount           %   J
1976
1st Quarter
2nd Quarter             .3         10.0
3rd Quarter
4th Quarter             .3          20.0                 .3         10.0
End-1976             .6         20.0                 .3
1977
1st Quarter
2nd Quarter             .4         33.3                  .3         20.0
3rd Quarter
hth Quarter             .4         46.7                  .4         33.3
End-1977             .8         46.7                  .7         33.3
1978
lst Quarter
2nd Quarter             .5         63.3                  .          46.7
3rd Quarter             .5         80.0
4th Quarter            -                                 .5         633
End-1978            1.0         80.0                 .9          63.3
1979
1st Quarter             .6        100.0                  .5         80.0
2nd Quarter
3rd Quarter                                              .6        100.0
4th Quarter
End-1979             .6        100.0                1.1         100.0
g/ Assuming that the proposed loan becomes effective in the seccnd quarter of
1976.
g/ Percentages are cumulative.






935a
EVALUATION DE LA CARIBBEAN DEVELOPMENT BANK
La Caribbean Development Bank (CDB) a demande l'aide du Groupe
de la Banque pour le financement de projets d'agriculture, d'agro-industrie,
industrie manufacturiere, tourisme, transports, services publics, trames
d'accueil et formation technique et professionnelle, dans les secteurs pu-
blic et prive des pays membres de la CDB. Le pre^t conventionnel de la Ban-
que qui est propose, d'un montant de 17 millions de dollars, et le pret du
Troisieme guichet, d'un montant de 3 millions de dollars, permettraient de
renforcer cette institution r6gionale importante et par la de contribuer
au developpement et a l'integration economique de la region des CaraTbes.
En outre, la Banque comptera de plus en plus sur la CDB - sous reserve que
cette derniere et les pays membres concernes resteront competitifs - pour
acheminer les fonds de la Banque destines a la realisation de projets aux-
quels la CDB peut fournir son soutien du fait qu'elle possade les aptitudes
techniques-et les ressources en personnel suffisantes pour le faire et qui
sans cela devraient etre finances directement par la Banque.
La Banque a maintenu des relations etroites avec la CDB depuis la
creation de cette derniere en 1970. La CDB est devenue une Institution
associee de la Communaute caratbe (CARICOM) dont elle partage le principal
role qui est d'apporter son appui au mouvement d'int6gration economique
regional, en mettant particulierement l'accent sur les besoins en matiere
de developpement des pays membres moins developpes. La Banque joue d'autre
part le role d'organe d'execution d'un programme d'assistance technique du
PNUD qui donne d'excellents resultats et qui a permis d'identifier et de
recruter des Antillais pour occuper des postes cles a la CDB. La CDB s'est
rapidement taillee une solide reputation d'institution regionale en plein
essor et pendant les quatre premieres annees d'operations a realise des
progres considerables en ce qui concerne le recrutement d'un personnel
tres qualifie et tres efficace, la constitution d'un portefeuille de pro-
jets prometteurs, la prestation d'assistance technique aux emprunteurs et
la creation d'un reseau d'institutions nationales de financement du deve-
loppement. Ce faisant, elle a joue un role important de catalyseur en mo-
bilisant l'aide bilaterale au developpement de ses pays membres. La CDB
concentre maintenant ses efforts sur la solution des problemes concernant
lVex6cution des projets et sur l'assistance aux pays membres pour la formu-
lation et la mise a execution de strategies nationales coherentes en matiere
de developpement, dans le contexte regional.
Douze territoires antillais de langue anglaise 1/ ont adh6re au
CARICOM dans un effort visant a integrer et developper leurs economies en
mettant en commun leurs ressources, en stunissant pour constituer un marche
1/ Ce groupe comprend: cinq pays independants - Jamatque, Trinite-et-Tobago,
Guyane, Barbade et Grenade; cinq Etats associes - St-Vincent, Ste-Lucie,
Dominique, Antigua et St-Kitts-Nevis-Anguilla; et deux colonies de la
Couronne - Belize et Montserrat. Les quatre premiers pays sont quali-
fies de pays plus developp6s (PPD) et les sept autres de pays moins deve-
loppes (PMD).



-2-
plus vaste et repr6senter un pouvoir de negociation plus important, et en
coordonnant leurs politiques de developpement nationales. Leurs efforts
se heurtent neanmoins a un certain nombre d'obstacles imputables a leur
taille limitee, leur eparpillement, la vulnerabilite qui caracterise des
economies ouvertes comme les leurs, sans parler du probleme persistant de
la pauvrete et du chomage. Cependant, on peut dire quten ce qui concerne
la region prise dans son ensemble les ressources fondamentales, notamment
la beaute scenique de ces pays et leur proximite avec d'importants marches,
sont satisfaisantes, compte tenu du nombre d'habitants.
Le secteur agricole de la region des CaraTbes joue un ro^le vital
comme source de devises, d'emplois et de revenus. Malheureusement il a
ete caracterise, particulierement ces dernieres annees, par une stagnation
et megme un declin de la production. Les pays de la region reconnaissent
qu'il est important de revitaliser le secteur agricole.  I1 existe des pos-
sibilites de substitution d'importations, et la recente augmentation de la
demande et des prix de la plupart des produits traditionnels d'exportation
sur le marche mondial fournit d'autre part l'occasion id6ale de reorganiser
les sous-secteurs de l'exportation.
En 1971, la contribution moyenne du secteur manufacturier au PIB
a ete d'environ 12 % dans les PPD et 8 % dans les PMD. Ce secteur comprend
principalement une industrie de consommation 1lgere et de petites unites
de production de biens caracterisees par un fort coefficient de poids par
rapport a la valeur (en raison de l1'16ment protectionniste implique par
les couts de transport). I1 existe dans les PPD une industrie lourde fon-
d.e sur les ressources en p6trole et en bauxite, mais elles n'exercent sur
le reste de 1'economie qu'un effet minime. Les exportations en dehors de
la region, l'amelioration des liens entre le secteur industriel et les au-
tres secteurs de l'conomie, notamment l'agriculture, et des mesures per-
mettant de rendre ces pays moins tributaires des facteurs de production
importes, offrent les meilleurs perspectives a long terme.  Depuis les
annees cinquante, l'industrialisation a constitue un objectif important
des politiques gouvernementales de toutes les Tles Carathes, et la crea-
tion de la Caribbean Free Trade Association (CARIFTA) a contribue A accrot-
tre le volume de la production et des echanges grace a une politique de
protection de la production des biens de consommation. Par l'entremise de
la CARICOM, les pays de cette region ont joint leurs efforts en vue d'har-
moniser les mesures d'encouragement aux investissements et aux exportations
en y introduisant un regime preferentiel a l'intention des PMD, visant a
encourager leur developpement industriel.
Le secteur touristique a ete a la pointe de la croissance econo-
mique de la region et a represente pour les pays des Caralbes une source
importante de devises et d'emplois. De 1968 a 1972, le nombre des touris-
tes a augmente en moyenne de 12 % par an et tout laisse prevoir que ce taux
se maintiendra a plus long terme. Les objectifs de developpement des pays
de la CARICOM, dans le domaine du tourisme, visent a ameliorer les liens
entre ce secteur et les activites situees en aval et a comprimer les per-
tes importantes en devises et en revenus en reduisant le pourcentage eleve



-3-
des elements importes, dans les secteurs de la construction et de l'exploi-
tation ho^telieres. L'accord de la CARICOM, portant sur la planification,
la substitution d'importations, la commercialisation, la formation et l'a-
melioration dans le secteur des transports, offre de grandes possibilites
en matiare de cooperation regionale.
Les operations de la CDB portent sur une gamme etendue d'activi-
tes de developpement dans les secteurs de l'agriculture, de 1rindustrie,
du tourisme et de l'infrastructure. A la fin de 1974, la CDB avait approu-
ve 146 prets d'un montant total de 83,6 millions de dollars. La CDB s'est
jusqu'ici surtout preoccupee de projets d'agriculture et d'infrastructure,
car elle est consciente du r8le important de ces deux secteurs et de la
necessite imperative de poursuivre les efforts entrepris afin de les ame-
liorer. En outre, la CDB s'est particulierement interessee au developpe-
ment economique des PMD, comme l'exigent ses statuts. Les projets reali-
ses dans les PMD representent en effet 87 % du nombre total des pre^ts
approuves et 62 % du montant total des prets. Une grande partie des ope-
rations de la CDB dans les PMD portent sur des prets octroyes a des insti-
tutions nationales de financement du developpement, pour le financement de
petites industries et l'octroi de petits credits agricoles.
Jusqu'ici, les montants engages et decaisses ont ete tras infe-
rieurs aux montants approuves, mais on prevoit qu'il sera remedie a cette
situation dans un avenir tres proche. En ce qui concerne les engagements,
les retards apportes a la signature des accords de pret ont ete dans une
grande mesure imputables aux procedures appliquees et a l'approbation pre-
matur6e des prets par le Conseil d'administration. Ces procedures viennent
d'^tre modifiees.  En ce quiconcerne les decaissements, les delais provien-
nent des problemes fondamentaux qui existent au niveau de la gestion des
projets, de la longue periode de gestation des-projets d'infrastructure,
et de la capacite limitee des PMD lorsqu'il s'agit de fournir les fonds de
contrepartie. La CDB, en etroite cooperation avec les pays emprunteurs, a
pris un certain nombre de mesures en vue d'accelerer l'execution des pro-
jets approuves.
Les politiques et procedures de fonctionnement de la CDB sont mo-
delees sur celles de la Banque et d'autres organisations internationales
de pret, et le personnel de la CDB s'est montre consciencieux dans leur
application. La poursuite de pratiques bancaires saines en matiere de fi-
nancement du developpement constituera un facteur important dans les efforts
deployes en vue de se procurer des ressources supplementaires aupres d'orga-
nismes d'aide bilaterale et internationale.
La situation financiere saine de la CDB provient de la proportion
relativement elevee de son capital vers6 et de la faqon qu'elle a de traiter
les contributions bilaterales et les prets comme des fonds speciaux, inde-
pendants de ses operations courantes. Le revenu net de la CDB devrait res-
ter a un niveau satisfaisant pendant la duree du programme de pret envisage,
c'est-a-dire cinq ans. Cependant, elle devra demander a des organismes
d'aide bilaterale et internationale de lui fournir des subventions supple-
mentaires sous forme d'assistance technique; d'autre part, sa politique en



-4-
matiere de taux d'interet devra etre periodiquement revisee pour s'assurer
que la CDB peut continuer d'offrir a ses emprunteurs l'assistance techni-
que substantielle necessaire aux activit6s de developpement qu'elle finance.
Les prets de la Banque seraient fournis a la CDB pour financer
1'execution de projets dans les secteurs public et prive dans la region
des Caralbes, a 1'exclusion des types de projets que la Banque n'a pas pour
habitude de financer. Les emprunteurs subsidiaires assumeront le risque
de change. Le pret du Troisiame guichet propose, d'un montant total de
3 millions de dollars, sera octroye aux conditions indiquees dans la Reso-
lution No 75.111 des Administrateurs. La bonification du taux d'int6r-et,
representant 4 %, s'appliquera au pret du Troisiame guichet qui sera con-
senti pour une periode de 18 ans a compter de 1983. La CDB retrocedera
les montants du pret du Troisieme guichet aux gouvernements remplissant les
conditions voulues pour en beneficier, au taux dVintgret, et pour une com-
mission d'engagement et des echeances, y compris un differe de rembourse-
ment, indiques par la Banque; il est egalement prevu que la CDB demandera
aux gouvernements emprunteurs une commission, actuellement fixee a 1 %,
conformement a ses statuts, ladite commission etant versee au compte de
la Reserve speciale. Les montants des prets subsidiaires octroyes par la
CDB pourront etre r6trocedes par les gouvernements, auquel cas l'6cheance
et le differe d'amortissement des pr^ts ainsi consentis par lesdits gouver-
nements seront appropries a chaque sous-projet et leur taux d'int6r-et sera
conforme a la structure actuelle du taux d'interet de la CDB. Le pre^t con-
ventionnel, d'un montant de 17 millions de dollars, sera assorti de condi-
tions conformes a celles dont s'accompagnent les prets de la Banque. Son
6ch6ance sera fixee en fonction des echeances des prets subsidiaires con-
sentis par la CDB, avec un plafond de 25 ans, y compris un differe de rem-
boursement de 10 ans, et sera determinee en fonction des caracteristiques
respectives des projets a financer; cependant, dans le cas des projets a
realiser dans les PMD et touchant au secteur public, la situation du pays
pourra etre prise en consideration. La CDB sera habilitee a utiliser les
fonds fournis par la Banque au titre du pre^t conventionnel pour financer
retroactivement, jusqu a concurrence de 4 millions de dollars, les decais-
sements qui repondent aux criteres habituels imposes par la Banque en ma-
tiere de decaissement et a ses directives concernant la passation des
marches. La periode d'engagement sera de deux ans et la date de cloture
des decaissements est fixee au 31 decembre 1979.
Les prats proposes comportent un certain nombre de caracteris-
tiques qui sont duesau role d'institution de financement du developpement
regional joue par la CDB. Les pays membres de la CDB et le Royaume-Uni
garantiront le remboursement par la CDB du prat de la Banque jusqu'A con-
currence du montant des prets subsidiaires accordes par la CDB et finances
au moyen des fonds provenant des prets de la Banque, pour des projets a
realiser dans un pays membre, ou, dans le cas de la garantie du Royaume-Uni,
dans un Etat associe ou une dependance du Royaume-Uni. Les projets r6gio-
naux financ6s par la CDB sur les montants pret6s par la Banque seront ga-
rantis conjointement et solidairement par les pays membres de la CDB qui
participent aux projets. La Banque determinera periodiquement, apras



-5-
consultation avec la CDB, les criteres que les pays devront remplir pour
beneficier de prets de la CDB finances gr^ace aux montants pr^tes par la
Banque. Dans le cas oui un pays membre viendrait a ne plus remplir les con-
ditions voulues pour beneficier du financement direct de la Banque, l'en-
gagement des fonds de la Banque par la CDB, dans le pays en question, serait
egalement suspendu. L'aptitude de la CDB a evaluer les projets etant excel-
lente, renforcee qu'elle a ete par le personnel du PNUD recrute par la BIRD,
les conditions habituelles relatives au plafond des pre'ts pouvant etre li-
brement engages ne seront pas appliqu6es dans le cas des pr^ets propos6s.
La Banque remboursera a la CDB jusqu'A 65 % du cout total des projets, _e-
presentant l'element en devises moyen; dans les cas oa l'element en devises
pourra etre clairement identifie, la Banque, a la demande de la CDB,rem-
boursera le cout en devises effectif. Dans les cas de projets concernant
le secteur public dans les PMD, la Banque rembourserait jusqu'a 80 % des
coOts des projets.
Au cours des deux ou trois dernieres annees, le mouvement d'in-
tegration economique regionale, dans les CaraTbes, a pris de l'ampleur et
la CDB pourrait jouer un role considerable en aidant ses pays membres a
surmonter les obstacles qui freinent leur developpement economique. Les
prets proposes contribueraient a renforcer cette importante institution
regionale et ainsi a participer au developpement et a l'integration econo-
mique de la region.
Le projet justifie l'octroi par la Banque d'un pr^et conventionnel
de 17 millions de dollars et d'un pret du Troisieme guichet d'un montant
de 3 millions de dollars.
3 mars 1976






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