Document of The World Bank FOR OFFICIAL USE ONLY {AI Report No. P-6158-CHA MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$250.0 MILLION TO TEE PEOPLE' S REPUBLIC OF CHINA FOR A TELECOMMUNICATIONS PROJECT NOVEMBER 18, 1993 MICROGRAPHICS Report No: P- 6158 CHA Type: MOP This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (as of July 15, 1993) Currency Name : Renminbi Currency Unit : Yuan (Y) = 100 Fen US$ 1.00 = Y 5.8 FISCAL YEAR January 1 - December 31 WEIGHTS AND MZASURES 1 meter = 3.28 feet 1 kilometer = 0.63 miles ABBREVIATIONS AND ACRONYMS BITS - Swedish Board for Investments and Technical Support ICB - International Competitive Bidding MOF - Ministry of Finance MPT - Ministry of Posts and Telecommunications P&T - Posts and Telecommunications Enterprise PTA - Posts and Telecommunications Administration FOR OFFICIAL USE ONLY TELECOfMMJNICATIONS PROJECT Loan and Project Summary Borrower: People's Republic of China Beneficiaries: Ministry of Posts and Telecommunications (MPT) and Posts and Telecommunications Administrations (PTAs) in Heilongjiang, Jiangsu, and Liaoning Provinces. Amount: US$250.0 million equivalent Terms: 20 years, including five years of grace, at the Bank's standard variable interest rate. Financincg Plan: Local Foreign Total ------ US$ million ------ MPT and PTAs 328.3 43.4 371.7 BITS - 1.3 1.3 IBRD - 250.0 250.0 TOTAL 328.3 294.7 623.0 Economit Rate of Return: 36% Poverty Category: Not Applicable Staff Appraisal Report: Report No. 12268-CHA Map: IBRD No. 25093 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. NEMORANDUM AND RECOMMENDATION OF THE PRBSIDENT OF THE INTERNATIONAL BANK FOR RSCONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE PSOPLE' S REPUBLIC OF CHINA FOR A TELECOMMUNICATIONS PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the People's Republic of China for the equivalent of US$250.0 million to help finance a telecommunications project. The proposed loan would be at the Bank's standard variable interest rate, with a maturity of 20 years including five years of grace. The proceeds of the loan for project investments would be made available to the Ministry of Posts and Telecommunications (MPT) and to the Posts and Telecommunications Administrations (PTAs) of Heilongjiang, Liaoning, and Jiangsu Provinces, on the same terms and conditions as the Bank loan. The Swedish Board for Investment and Technical Support (BITS) will provide a grant of US$1.3 million equivalent to support the project's reform components. 2. Sector Background. With about 9.8 million connected telephone lines in the urban network plus some 2.4 million in the rural network (1992), China has the largest telecommunications system among developing countries and the 12th largest worldwide. System growth accelerated from about 12% per annum in the 1980s to over 20% in the early 1990s; annual investment is approximately US$5.0 billion; and traffic and revenues have recently grown in excess of 50% per annum. These are among the highest growth rates and investment levels ever achieved by any developing country. Also, more advanced services are starting to be provided. In 1992 there were some 177,000 cellular telephones and 2.2 million paging receivers in use. The supply of telecommunications services, however, lags far behind pent-up and rapidly growing new demand. There are 1.6 million outstanding urban applications for telephone connections and total unmet demand is likely to be much higher. Basic telephone service is still generally of poor quality and very congested. While many of the most advanced technologies are being introduced in the fastest-growing parts of the network, old and obsolete plant is still widespread. With only about one telephone line per 100 inhabitants, China's telecommunications system is still one of -he least developed in Asia relative to population size. 3. The MPT, with about 1.2 million employees and annual operating revenues of about US$4 billion, is responsible for public telecommunications and postal services. These services are mainly provided by about 2,500 Posts and Telecommunications Enterprises (P&Ts) at the city/municipality and county levels, with considerable autonomy regarding operations, network development, and finances. The P&Ts are organized in a hierarchical structure accountable to 30 PTAs that mirror some of the functions of the central MPT. The MPT' s responsibilities include formulating sector policy, strategic planning and pricing, developing the interprovincial main network, overseeing telecommunica- tions networks of other ministries and public enterprises, and international relations. Until recently the MPT was also directly involved in manufacturing and construction, but these activities are now organized as separate enterprises. The MPT and PTAs have several design, R&D, testing, training, and higher education institutes. They also provide housing, health, and welfare services to their employees. Various other government agencies, including the State Planning Commission, Ministry of Finance, and State Pricing Bureau, have - 2 - jurisdiction over certain telecommunications sector matters, such as investment, operating budgets, and pricing. 4. The MPT's services are overall profitable. The annual rate of return on net fixed urban telecommunications assets in operation increased from about 7.7% in 1986 to 12.1% in 1989 on a historical basis. A healthy 66% of the !nvestment (including posts) was financed from operating surpluses. In the three PTAs involved in this project, the annual rate of return in 1990-92 averaged 22.0% and the self-financing ratio averaged 78%. Financiai performance, however, varies considerably among services and provinces, and large cross-subsidies take place within the telecommunications sector, and between telecommumications and posts. The accounting and financial system in use until July 1993 presented a distorted financial picture of the P&Ts and was not suitable for managing them as businesses. A Bank report "People's Republic of China - Telecommunications Sector Study: Survey, Assessment and Strategy Recommendations" (Report No. 9413- CHA of February 14, 1992) gives further details. 5. The Government has under way an ambitious program for telecommunications development, the success of which is central to realizing the economic growth objectives of China. The development program comprises accelerated expansion and modernization of the telecommunications network, as well as a process of sector reform begun in 1988 and likely to continue beyond the 1990s. The main thrust of the sector reform aims at transforming the P&Ts into commercial enterprises and developing increasingly competitive markets of telecommunications equipment, networks, and services. This strategy is consistent with the Bank1c overall approach to economic reforms in China. 6. Sector Reform. The reform process began with a reorganization of MPT initiated in 1988 aimed at gradually (a) separating enterprise from government functions, (b) decentralizing management decisions, (c) making each operating enterprise responsible for its profits and losses, and (d) separating telecommu- nications and postal operations. The Bank's Sector Study recognized the importance of these initial changes, and recommended taking the reform process much further: (a) reorganize operations along fully commercial lines, including reform of P&T enterprises, (b) diversify the supply of telecommunications services and networks and develop competition, (c) rationalize tariffs and reduce cross-subsidies, and (d) develop regulation. Considerable progress has been made along some of these lines. For example, MPT's manufacturing and construction functions are now organized as separate enterprises; competitive markets have developed for network and customer equipment; many companies compete to provide paging services; and existing and new specialized business networks give large users alternatives to MPT service. 7. The Government intends to move considerably further along the reform road in the next four years. A Medium Term Policy Action Program confirmed with the Bank summarizes the achievements in telecommunications sector reform until 1993 as well as the following key steps that the Government expects to undertake in 1994-97: (a) restructure MPT - the State Council will decide on the modality and pace of restructuring telecommunications and postal operations as separate state-owned enterprises; spin off new national enterprises for non-basic servic- es; take steps towards transferring responsibility for workers' welfare to other organizations; and refocus the scaled-down MPT on policy, regulation, and strategic planning; (b) develop competition - license new providers of cellular, trunk mobile, domestic satellite, and other wireless services; allow dedicated - 3 - networks to lease capacity, provide service to others, and interconnect with the public network: and allow open entry for providers of value added services; (c) rationalize tariffs and reduce cross-subsidies - revise tariffs in relation to costs; revise and further decentralize tariff setting and approval procedures; and end cross-subsidy from telecommunications to posts; (d) introduce modern management tools - design and implement improved enterprise accounting systems and procedures; (e) attract new capital - manufacturing, construction, and non- basic services enterprises spun off from MPT that meet Government requirements will be restructured as joint-stock companies; issue P&T bonds to start raising long-term financing in the domestic markets; and encourage users and others to invest in new business networks and possibly to build-out local infrastructure; and (f) develop legal and regulatory framework - issue basic telecommunications regulations and submit a telecommunications law to the National People's Congress. The pace and extent of these reforms exceed those envisaged at the time of the Sector Study, and are fully consistent with its recommendations. 8. Lessons Learned from Previous Bank Operations. Although th-s would be the first telecommunications lean to the PRC, there have been substantial telecommunications components in railway projects, and special efforts are under way to coordinate Bank work in both sectors. The Financial Sector Technical Assistance Project (Credit 2423-CHA) also includes support for developing a satellite-based bank payments system, which is consistent with Bank policy recommendations in the telecommunications sector. Accounting reform under the telecommunications project is consistent with the more general activities under the Financial Sector Technical Assistance Project (Credit 2423-CHA) and the Planning Support and Special Studies Project (Credit 1835-CHA) being implemented by MOF. 9. From the late 1980s, the Bank has been involved in an increasing number of telecommunications restructuring programs in other countries. Traditional state monopoly utilities are giving way to market-driven business structures featuring greater private sector participation, increasing competition, and a shift of government role from ownership and operation to policy and regulation. These reforms aim at overcoming persistent shortages of telecommunications services, which have come to be widely perceived as critical constraints on economic development. The reforms under way in China are consistent with this trend. In particular, the private sector already has a strong presence. For example, major telecommunications equipment is manufactured in China by joint ventures with the world's leading suppliers, and independent companies provide paging services in over 1,000 cities. The next steps of reform supported by the project are expected to create new opportunities for private participation. For example, some operating enterprises to be spun off from MPT will become joint-stock companies; P&Ts will start issuing bonds; cellular and other advanced services will be opened to competition, presumably by a wide mix of public and privately owned companies; and several large Chinese consortia are reportedly vying to enter the long distance and other fast-growing market segments currently reserved for MPT. State Council decisions expected by the end of 1993, and legislation and regulations being prepared will further clarify the prospects for domestic and foreign private investozs and operators. 10. Rationale for Bank Involvement. The strategic importance of telecommunications for China's economic development is now well recognized at senior Government levels, and a process is underway to restructure and modernize the sector. Through sector work and project preparation the Bank helped MPT - 4 - articulate policies that accelerate development towards meeting demand for basic and advanced services, enhance efficiency and innovation, develop competition, and open opportunities for private participation. The Bank's continued support of the reform process is a necessary complement to its interventions in most other sectors and in general economic reform. The Bank's country Assistance Strategy presented to the Board in August 1993 highlighted a general intention to support economic reform and a specific aim in the telecommunications sector to promote commercialization and a policy framework conducive to competition and the introduction of private capital. The project supports these various objectives by including measures for legal, regulatory, accounting and tariff reforms. The proposed loan will give the Bank the opportunity to work in greater depth on these issues, as well as carry the dialogue to provii.-ial and enterprise levels. The Bank expects to assess the progress of reform in creating new opportunities for competition and private sector participation. The proposed loan may be followed with other loans linkeP to further sector reforms. 11. Project Obiectives. The objective of the proposed project is to help develop a modern commercial telecommunications sector that will evolve increasingly towards allocation of resources on the basis of competitive market forces. In this way, the Government hopes to overcome acute and widespread telecommunications snortages that impose high costs throughout the economy and impede effective implementation of development programs in other productive and social sectors. While in the immediate future investments will continue to be self-financed to a large degree, sustaining the growth pace will eventually requi-e substantial private investment and access to domestic and international capital markets. The project will help create conditions for increasing competition and private participation, including setting up an appropriate policy, legal, and regulatory framework. In the course of helping the Government to achieve these objectives the Bank will finance some investments in modern technology for fiber optic long distance links and local digital switching in the provinces. 12. Project Description. The project has two groups of components. The sector reform components comprise three priority tasks under the Medium Term Policy Action Program for 1994-97: (a) preparation of a reculatory framework for competitive services and for dedicated networks and their interconnection to the public network; under the project, the Bank will provide direct technical assistance as part of its project supervision, and training and specialized legal advice, if necessary, financed by the loan; (b) substantially improve enternrise accounting by developing improved systems and procedures, implementing them on a -ilot basis in two provinces (Jiangsu and Liaoning), reviewing results, and extending implementation to the rest of China; the project includes technical assistance by a major international accounting firm that will help prepare and carry out this component; and (c) undertake a study of telecommunications tariffs and prepare an implementation plan and timetable for tariff restructuring; the project includes technical assistance by consultants. 13. The investment components of the project comprise: (a) construction of 6,550 km of high-capacity interprovincial transmission networks in two of the 21 inter-provincial fiber optic cables under construction in the 8th Five-Year Plan period (1991-1995); one of the cables is in the north (Beijing-Lanzhou) and the other in the south (Fuzhou/Hangzhou-Chengdu); and (b) expansion of 920,000 lines of urban local telephone networks in Heilongjiang, Jiangsu, and Liaoning - 5 - Provinces; this component covers about 14% of the total urban network expansion expected during the period 1993-97 in these three provinces, or about 3% of the total national local telephone expansion expected in the same period. The national urban and long distance program is being assisted by the Asia Development Bank and bilateral credits and grants from Australia, Belgium, Finland, France, Japan, Sweden, and the United Kingdom, among others. 14. Project Imnlementation. Responsibility for implementing the sector reform component of the project will be with MPT, in collaboration with the PTAs of Jiangsu and Liaoning Provinces. The long distance investments will be carried out by MPT, using purchasing agencies with experience ina procurement under World Bank guidelines and construction companies with experience in installing and commissioning optical fiber systems under supplier supervision. The expansion of local facilities will be carried out by P&Ts in the three provinces; the suppliers will supervise installation and commissioning of the telephone exchanges, and specialized construction companies or the P&Ts' own staff will build the associated cable networks. The project cost is estimated at US$623.0 million equivalent, with a foreign exchange component of US$294.7 million equivalent (47%). A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursements, and the disbursement schedule, are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in China are given in Schedules C and D, respectively. A map is also attached. The Staff Appraisal Report, No. 12268-CRA, dated November 11, 1993, is being distributed separately. 15. Project Sustainability. The reform component of the project will help create conditions for continued rapid sector growth and modernization. Training of P&T enterprise staff to maintain and operate the new assets is included in the contracts for supply of equipment. The MPT is undertaking corplementary network developments needed for the new assets to be fully utilized and yield the expected additional revenues and benefits. The tariff study and implementation program to be prepared as part of the project will lead to improved cost recovery of individual investments. 16. Agreed Actions. A policy letter to the Bank from a Vice Minister of Posts and Telecommunications has confirmed the Government's intention to carry out the sector reforms. During loan negotiations, it was agreed with the Borrower that it will: (a) by June 30, 1994, employ consultants to assist it in preparing accounting and tariffs reforms; (b) by June 30, 1995, complete a tariff study and present to the Bank a plan for implementing tariff adjustments; (c) by December 31, 1995, develop accounting standards for the sector, undertake pilot implementation of the new accounting system in two provinces in accordance with terms of reference acceptable to the Bank, and prepare and furnish to the Bank an assessment of this experience, including a plan for extension of the new account Ing system to other provinces; (d) carry out training on the above matters in a manner satisfactory to the Bank; (e) monitor financial and operational performance in accordance with annual targets agreed with the Bank; and (f) ensure that the three project PTAs would maintain self-financing ratios of no less than 40%, and by May 31 of each year during the project period would furnish to the Bank a rolling long-term financial plan and review their future finances with the Bank. Approval of the Loan Agreement by the Borrower's State Council was specified as a condition for loan effectiveness. 17. Environmental Aspects. The proposed project is not expected to cause any adverse health problems and would have only minor environmental effects. The Anti-Earthquake and Environmental Protection Office of MPT, granted a certificate to act on behalf of the National Environmental Protection Agency, has completed an environmental assessment of the two lcrg distance cable routes, and issued construction specifications to address environmental matters. The long distance fiber optic cables will be buried mostly along existing roads and river crossings, so no disruption of virgin land is expected. S.andard construction practices will prevent ground erosion and minimize vehicular and pedestrian traffic disruption while digging trenches for local networks, and preparing sites and undertaking construction of new buildings to house equipment in urban areas. 18. ?rocram Obiective Categories. The reform component of the project will lead to increased participation of private enterprise and investment in the telecommunications business, as well as contribute to the development of domestic capital and financial markets expected to finance an increasing proportion of telecommunications investment. 19. Proiect Benefits. Accelerated reforms supported by the project will contribute to sustained telecommunications expansion and modernization, which will benefit all sectors of the economy countrywide. The project also directly supports development of the basic infrastructure in three provinces included in the local network expansion program and in 11 other provinces served by the long distance cables. This will benefit businesses and consumers in the rapidly growing market economy; improve delivery of social services and government administration; and enhance the quality of life. 20. Risks. There are two main risks regarding the reform component. eirst, there is some uncertainty regarding the pace of the reform program agreed with MPT. However, the Government's formal commitment to the Action Program for 1994-97 and MPT's interest in subsequent Bank loans, which would be linked to further progress in sector reform, provide support for change. The second risk is that MPT may be unable to change as fast as needed. Measures to contain this risk have included Bank assistance in legal and regulatory matters during project preparation and would be followed up as part of the project. 21. The main risk regarding the investment component is delayed procurement of local switching equipment. MPT, however, recognizes the urgent need to greatly expand the urban telephcne network in developing industrial centers, and is likely to seek prompt action by the PTAs. 22. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve the proposed loan. Lewis T. Preston President Attachments Washington, D.C. November 18, 1993 -7- Schedule A PEOPLE'S REPUBLIC OF CHINA TELECOMMUNICATIONS PROJECT Estimated Project Costs and Financing Plan (US$ million) Local Voreign Total Estimated Costs: Equipment & Services 18.6 242.3 260.9 Construction and Installation 2C2.7 0.0 262.7 Technical Assistance 0.0 1.6 1.6 Total Base Cost 281.3 243.9 525.2 Physical Contingency 34.2 12.1 46.3 Price Contingency 12.8 9.4 22.2 Total Prolect Cost/a 328.3 265.4 $93.7 Interest during Co4struction/b 0.0 29.3 29.3 Total Financing Recired 328.3 294.7 623.0 Financing Plan: MPT and PTAs 328.3 43.4 371.7 Swedish BITS Grant - 1.3 1.3 IBRD - 250.0 250.0 Total 328 294.: 623.0 Notes: /a Project-financed goods are exempt from import duties and taxes. /b Interest during construction (IDC) is based on projected disbursement of loan proceeds. Foreign exchange portion of IDC is based or the Bank's standard variable interest rate. Schedule B Page 1 of 2 PEOPLZ'S REPUBLIC OF CHINA TELECOMMUNICATIONS PROJECT PROCUREMENT METHOD AND DISBURSEMENTS (uS$ million) Procurement Method Project Item ICB Other(b) N.B.F.(c) Total Xquipment and Services: Fiber Optic Cables 55.2 - - 55.2 (55.2) - - (55.2) Optical Digital 69.3 - - 69.3 Transmission Equipment (69.3) - (69.3) Telephone Exchanges 136.7 - - 136.7 (123.3) - - (123.3) Power Equipment, Air - - 18.1 18.1 Conditioning & Misc Tools & Instruments 1.9 - 4.1 6.0 (1.9) - - (1.9) Construction and Installation Works: Cables - - 77.8 77.8 Transmission Installation - - 24.3 24.3 Outside Plant (Material & - - 143.8 143.8 Construction) Telephone Exchange Inst. - - 5.3 5.3 Buildings & Site Preparation - - 32.4 32.4 Miscellaneous - - 23.2 23.2 Technical Assistance: Training and Consultants' - 0.3 1.3 1.6 Services (0.3) - (0.3) Total Procurement: 263.1 0.3 330.3 593.7 of which Bank Financed: (249.7) (0.3) - (250.0) NOTES: Figures in parentheses are amounts financed by the Bank loan. (a) Including contingencies. (b) Consultants selezted and appointed following Bank's Guidelines for use of consultants. (c) N.B.F.: Not Bank Financed items which irclude equipment, services, works, and expenditures on engineering design and administrative overhead. Schedule B Page 2 of 2 Disbursements Percentage of Expenditures Category Amount to be financed (US$ million) Goods 229.4 100 percent of foreign expendi;ures and 100 percent of local expenditures (ex- factory). Training and Consultants' Services 0.3 100 percent of expenditures Unallocated 20.3 Total 250.0 Estimated disbursements Bank FY 1994 1995 1996 1997 199b 1999 ------------- (us$ million) ------------- Annual 5.8 170.2 64.7 7.3 1.0 1.0 Cumulative 5.8 176.0 240.7 248.0 249.0 250.0 - 10 - Schedule C PEOPLE'S REPUBLIC OF CHINA TELECOMMUNICATIONS PROJECT Timetable of Key Project Processingr Events (a) Time taken to prepare the project: 20 months (b) Prepared by: MPT and PTAs with Bank assistance (c) First Bank mission: April, 1992 (d) Appraisal iission departure: June, 1993 (e) Negotiations: November, 1993 (f) Planned date of effectiveness: March, 1994 (g) List of relevant PCRs and PPARs: none This report is based on the findings of a March/April 1993 preappraisal mission and a June/July 1993 appraisal mission. The mission members were Bjorn Wellenius (task manager), Alberto Cruzat, David Delgado, and Peter Wright. Alfred Kennefick, Natalie Lichtenstein, and Nicholas Miller (consultant) assisted in selected matters. The peer reviewers were Dinshaw Joshi (engineering), Selina Shum (finance), Peter Harrold (economics and country strategy) and Timothy Nulty (sector policy). The Division Chief is Richard Newfarmer and the Department Director is Shahid Javed Burki. - 11 - Schedule 0 Page 1 of 3 STATUS OF BANK GROUP OPERATIONS IN THE PEOPLE'S REPUSLIC OP CHINA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of September 30, 1993) Loan/ Amount CUSS million) Credit Bor- (net of cancellations) Number FY rower Purpose Sank IDA Undisb.(a) 19 loans and 36 credits have been fully disbursed. 1660.4 2097.6 Of which SECAL: 2967/1932 88 PRC Rural Sector Ad. 200.0 93.2 2501 85 PRC Changeun (Luan) Coat Mining 79.5 - 15.4 2540 85 PRC Railway II 220.0 - 13.4 1664 86 PRC Technical Cooperation Credit II - 20.0 8.0 2678/1680 86 PRC Third Railway 160.0 (70.0)(6L) 54.3 689 86 PRC Tianjin Port 130.0 25.3 2706 86 PRC Set tungang Thermal Power 225.0 6.6 2707 86 PRC Yontan Hydroelectric 52.0 - 0.5 2723/1713 86 PRC Rural Health & Preventive Med. 15.. 65.0 31.3 2775 37 PRC Shuikou Hydroelectric 140.0 0.0 2783/1763 87 PRC Industrial Credit IV (CIS IV) 250.0 (50.0)(b) 0.5 2784 87 PRC Shanghai Machine Tools 100.0 * 7.2 1764 87 PRC Xinjiang Agricultural Dev. 70.0 3.0 2794/1779 87 PRC Shanghai Sewerage 45.0 100.0 37.5 2811/1792 87 PRC Beijing*Tianjin-Tanggu Expressway 25.0 125.0 21.1 2812/1793 87 PRC Gansu Provincial Dev. 20.0 150.5 45.1 1835 87 PRC Planning Support & Special Studies - 20.7 7.9 2838 87 PRC Fertilizer Rationalization 97.4 3.5 2852 87 PRC Wujing Thermal Power 190.0 * 25.0 1871 88 PRC Rural Credit II1 170.0 2.0 2877/1845 88 PRC Huangpu Port 63.0 (25.0)(b) 40.8 2907/1875 88 PRC Dalian Port 71.0 (2S.0)(b) 5.1 1885 88 PRC Northern Irrigation - 103.0 23.9 2924/1887 88 PRC Coastal Lands Dev. 40.0 (60.0)(b) 4.7 1908 88 PRC Teacher Training - 50.0 0.1 2943 88 PRC Pharmaceuticals 127.0 4.9 2951/1917 88 PRC Sichuan Highway 75.0 (50.0)(b) 54.2 2952 88 PRC Shaanxi Highway 50.0 1.7 1918 88 PRC Daxing An Ling Forestry - 56.2 3.1 2955 88 PRC Beitungang II 165.0 - 27.6 2958 88 PRC Phosphate Dev. 62.7 - 18.0 2968 88 PRC Railway IV 200.0 * 61.2 1984 89 PRC Jiangxi Provincial Highway - 61.0 13.4 1997 89 PRC Shaanxi Agricultural Dev. * 106.0 40.3 2006 89 PRC Textbook Development * 57.0 2.1 2009 89 PRC Integrated Reg. Health * 52.0 21.8 3006 89 PRC Ningbo & Shanghai Ports 76.4 - 22.5 3007 89 PRC Xiamen Port 36.0 * 16.8 3022 89 PRC Tianjin Light Industry 154.0 - 94.3 3060/2014 89 PRC Inner Mongolia Railway 70.0 (80.0)(b) 30.7 2097 89 PRC Shandong Agriculture Dev. - 109.0 9.7 3066 89 PRC Hubei Phosphate 137.0 * 107.1 3073/2025 89 PRC Shandong Prov. Highway 60.0 (50.0)(b) 26.4 3075 89 PRC Fifth Industrial Credit 300.0 * 144.6 2097 90 PRC Jiangxi Agric. Dev. - 60.0 22.2 2114 90 PRC Vocational & Tech. Educ. * 50.0 16.3 2145 90 PRC National Afforestation - 300.0 165.0 2159 90 PRC Hebei Agricultural Dev. . 150.0 74.1 2172 91 PRC Mid-Yangtze Agriculturat Dev. * 64.0 27.1 3265/2182 91 PRC Rural Credit IV 75.0 200.0 89.0 3274/2186 91 PRC Rural Indust Tech (SPARK) 50.0 64.3 79.2 3286/2201 91 PRC Medium-Sized Cities 0ev. 79.4 89.0 94.1 - 12 - Schedule 0 Page 2 of 3 Loan/ Amount (USS million) Credit Bar- (net of cancellations) Nunber FY rower Purpose Bank IDA Undisb.Ca) 3288 91 PRC Shanghai Industrial Dev. 150.0 147.9 2210 91 PRC Key Studies Development * 131.2 72.2 2219 91 PRC Liaoning Urban Infrastructure 77.8 21.3 3316/2226 91 PRC Jiengsu Provk. Transport 100.0 (53.6)(b) 75.9 2242 91 PRC Henan AgricuL. Dev. - 110.0 81.6 3337/2256 91 PRC Irrig. Agricut. Intensif. 147.1 187.9 196.0 3387 92 PRC Ertan Hydroetectric 380.0 115.3 2294 92 PRC Tarim Basin * 125.0 96.1 2296 92 PRC Shanghai Metro Transport 60.0 42.9 3406 92 PRC Railways V 330.0 263.2 3412/2305 92 PRC Daguangba Multipurpose 30.0 37.0 47.0 2307 92 PRC Guangdong ADP - 162.0 138.0 3415/2312 92 PRC Beijing Enviro nent 45.0 80.0 109.7 2317 92 PRC Infectious and Endemic Disease Cont 129.6 107.3 3433 92 PRC Yanshi Thermal Power 180.0 135.5 2336 92 PRC Rural Water Supply and Sanitation - 110.0 100.7 2339 92 PRC Educ. Development in Poor Provs. 130.0 102.9 3443 92 PRC Regional Cement Industry 82.7 - 81.6 3462 92 PRC Zouxian Thermal Power 310.0 287.4 3471 92 PRC Zhejiang Provincial Highway 220.0 178.8 2387 92 PRC Tianjin Urban Devt. & Envir. * 100.0 95.7 2391 92 PRC Ship waste Disposal - 15.0 15.6 2411 93 PRC Sichuan Agricultural Devt. * 147.0 123.0 3515 93 PRC Shuikou Hydroelectric II 100.0 90.2 2423 93 PRC Financial Sector TA - 60.0 59.5 3530 93 PRC Guangdong Provincial Transport 240.0 226.1 3531 93 PRC Henan Provincial Transport 120.0 - 101.4 2447 93 PRC Ref. Inst'i and Preinvest. 50.0 46.2 3552 93 PRC Shanghai Port Rest. and Oevt. 150.0 * 150.0 2457 93 PRC Changchun Water Supply & Env. 120.0 122.4 2462 93 PRC Agriculture Support Services 115.0 113.0 3560/2463 93 PRC Taihu Basin Flood Control 100.0 100.0 182.7 2471 93 PRC Effective Teaching Services (c) 100.0 101.9 3572 93 PRC Tianjin !ndustry II (c) 150.0 - 150.0 3582 93 PRC South Jiangsu Envir. Prot. Cc) 250.0 * 250.0 2475 93 PRC Zhejiang Multicities Devt. (c) 110.0 112.1 3581 93 PRC Railway VI 420.0 420.0 3606 93 PRC Tianhuangping Hydroelectric (c) 300.0 - 300.0 3624/2518 93 PRC Grain Distribution (c) 325.0 165.0 493.1 2522 93 PRC Environmental Tech. Assist. (c) 50.0 49.9 2539 94 PRC Rural Health Workers Devt. (c) 110.0 112.1 Total 9430.6 6972.8 7365.1 of which has been repaid 735.5 4.0 Total now held by Bank and IDA 8695.1 6968.8 Amount sold: Of which repaid Total Undisbursed 4670.3 2694.8 7365.1 (a) As credits are denominated in SORs (since IDA Replenishment VI), undisbursed SDR credit balances are converted to dollars at the current exchange rate between the dollar and the SOR. In some cases, therefore, the undisbursed balance indicates a dollar amount greater than the original principal credit amount expressed in dollars. (b) Credit fully disbursed. (c) Not yet effective. - 13 - Schedule 0 Page 3 of 3 B. STATEMENT OF IFC INVESTMENTS (As of September 30, 1993) Invest- Type of Loan Equity Total ment No. FY Borrower Business .--* (USS Million) ------* 813/2178 85/91 Guangzhou and Peugeot Automobite 15.0 4.6 19.6 974 88 China Investment Co. Investment 3.0 0.0 3.0 1020 88/92 Shenzhen China Bicycle 17.5 2.5 20.0 Bicycles Co. Ltd. Manufacture 1066 89 Crown Electronics Electronics 15.0 15.0 1119 89 Shenzhen Chronar Solar Solar (a) 2.0 1.0 3.0 Energy Energy 3423 93 Shenzhen PCCP Manufacturing 4.0 1.0 5.0 3150 93 Yantai Cement cement 28.7 2.0 30.7 Not yet signed 93 JV Commercial Bank Banking - 7.5 7.5 Total Gross Commitments 85.2 18.6 103.8 Less cancellations, terminations 2.0 * 2.0 repayment and sales Total Comitments now Held by IFC 83.2 18.6 101.8 Total Undisbursed 28.7 5.8 34.5 (a) Loan subsequently cancelled. 9/30/93 EA20R 魚；