0 H Docummt of The World Bank FOR OMCIAL USE ONLY MICROFICHE COPY t. t Report No. P- 5757-ME Type: (PM) ROGER, NEI/ X38720 / I8 181/ LA2C1 RPwtNo. P-5757-ME MEMORANDUM AND RECONENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE XECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$189 MILLION TO NACIONAL FINANCIERA, S.N.C. WITH THE GUARANTEE OF THE UNITED MEXICAN STATES FOR A SCIENCE AND TECHNOLOGY INFRASTRUCTURE PROJECT APRIL 30, 1992 This document has a rsticted dstrlbution an may be sed by eipies only in te perfonce of deir official dutie Its contens may not otherwise be dislosed withou World Bank authoriution. Currency Unit M Nexican Peso (Mex$) US$1 Mex$3,087 Mex$1 million US$324 > - (April 1992) FS8CAL YEAR January 1 - December 31 WuIaBTS AND NEASUNUS 1 meter (a) = 3.28 feet (ft) 1 kilometer (km) 0. 62 mile (mi) 1 hectare (ha) G 10, 000om = 2.47 a'res 1 square kilometer (km) 0.38 square miles (mi2) 100 ha 1 metric ton (m ton) = 2,205 pounds CENAM Contro Maclonai de Metrologala National Center of Metrology CONACYT Consejo Maconal de Ciencla y rechnologia; National Council of Science and Technology DGN Direccion General de Normas (SZCOFI/DGW); Directorate General of Standards MPI Instituto Mexicano de la Propiedad Industrial; Mexican Institute of Industrial Property lb NAFIN Macional Pinanciera; National Development Bank A PACIME Prograwn de Apoyo a la Ciencla on Mexico; Program of Support for Science in Mexico SEOOFI Secretaria de Comercio y Fomonto Industrial; Ministry of Commerce and Industrial Development WIPO World Intellectual Property Organization FOR OMCLAL USE ONLY MEXICO UCIEmU AND TECENOLOGY INFRASTRUC!DR PROJUCT AM AMRND PROJECT 8UMMARY Nacional Financiera, S.N.C. (NAVIN) Guaramnors United Mexican States xxecutiua AoeucAes: National Council for Science and Technology (CONACYT); National Center of Metrology (CONAM)l Ministry of Commerce and Industrial Development, Directorate General of Standards (SEOOPI/DGN); Mexican Institute of Industrial Property (IMPI) Oeu.ficiariess CONACYT, research institutions and researchers; CENAM and industrial firmsl SECOFI/DGN and industrial firms; IMPI, and industrial firms Amounts US$189 million equivalent TBros: Repayment in 15 years, including a five year grace period, at the standard variable interest rate Finanina Plan: USS million J&scal Forsian Total Government 299.1 105.2 ,04.3 IBRD 4.6 185.9 190.51 Research Institutes 152.5 134.9 287.4 Private firm 3.6 - 3.6 Total 459.8 426.0 885.8 i/Includes US$1.5 million from previous loans. Rate of Returns Not applicable Staff AVoraisal Report: No. 10468-MB, dated April 30, 1992 maps IBRD 23547 dated February 1992 This document has a rstricted distribution and may be used by recipients only in the petformanc7 of their official duties. Its contents may not otherwise be disclosed without World Bank authonatic - NIxOnuNYcw AND RUCONNEDATION Or TMU PRUsIDUNT OF THU 1BRD TO TMU ENICUTIVE DIRECTORS ON A PU0POSD IAA TO NACIONAL FIUNCIURA, S.E.C. WITH THU GUARANTEE OF TIM NWITED MEXICAN STATES POR A sCIENCE AND UCILOGT INnRABTRUCTURU PROJECT 1. The following memorandum and recommendation on a proposed loan to Nacional Financiera, S.N.C. (NAPIN) for US$189 million equivalent is submltted for your approval. The proposed loan, which would be guaranteed by the United Mexican States, would be repayable over 15 years, including five years of grace, at the Bank's standard variable interest rate and charges. The National Council for Science and Technology (CONACYT), the National Center of Metrology (CENAM); the Ministry of Commerce and Industrial Development, Directorate General of Standards (SECOFI/DGN); and the Mexican Institute of Industrial Property (IMPI) would be the executing agencies. 2. Backaround. Public spending on science and technology in Mexico declined in real terms over the decade of the 1980s with fiscal austerity, from 0.45 percent to .0.26 percent of GDP, and preliminary information suggests that private sector spending declined as well. This was lower than in comparable middle-income developing countries and far lower than in industrial countries. The effectiveness of the public institutions implementing science and technology policy also declined over the 1980. from an already fairly weak base, and they lost credibility with the scientific community. The mechanisms for science project funding were increasingly politicized, and administrative costs consumed much of the limited funds available. Technology infrastructure institutions providing metrology services and intellectual property protection lagged behind comparable developing countries. 3. The result was a deterioration of both human and physical science and technology capital at a time when continuing technological change in the rest of the world, and rapid unilateral opening-up of the Mexican economy (and the prospect of further opening-up with the North American Free Trade Agreement), were greatly increasing the need for local science and technology capability. 4. With the success of the Mexican economic reform program of stabilization and deregulation in recent years following the economic crisis of 1982, and the prospect of sustained private sector-led growth, new priorities have been defined. The Government has placed emphasis on strengthening and rebuilding Mexico's science and technology capability to facilitate modernization of the economy and integration in the world marketplace. The Government set out a new policy framework in the National Program for Science and Technology Modernization 1990-94, and the National Program for Industrial Modernization 1990-94. In the context of the proposed project, the Government has provided a statement on National Science and Technology Modernization Policies which contains a strategy for implementation actions over the period of the proposed project. The Government plans to increase budgetary resources for science and technology with the broad objective of achieving expenditures in both the public and private sectors of one percent of CDP in 1994 and two percent of GDP in the year 2000. Public funding for scientific research is being increased, with increasing allocation by competitive means, and the relative burden for investment in technology development is being shifted from the public to the private sector. Many of the necessary policy changes have already been made, and now the emphasis is shifting to strengthening institutional structures and implementing mechanisms. 5. Proiect Oblectives. To address the concerns outlined above, the objectives of the proposed project are to: (i) Rationalize Public sector fundino by supporting increased public spending fort (a) grants for scientific research projects and scientific equipment infrastructure projects, with improved allocation on a competitive basis, to generate relevant research and train scientists; and (b) technology infrastructure in the areas of metrology, standardization, and intellectual property protection to improve services to industry, enhance competitiveness, and increase attractiveness for foreign investment; and (ii) Develo, institutions by supporting the restructuring of CONACYT, and start-up of institutions providing support to industry in metrology (CENAM), standardization (SECOFI/DGN), and intellectual property protection (IMPI), to improve the efficiency of public support in these areas. 6. Proaiet Descritjaon. The four components of the proposed project ares (i) Science Proarams (US$765 million, 86 percent of total costs). This component would support the first four years of CONACYT's new science programs beginning in 1992. The main programs fund individual research projects and equipment infrastructure projects open to universities and other research institutions, both public and private. The programs stress scientific merit, rather than particular sectors or applications. Award of the grants is on the basis of transparent, competitive peer review by evaluation committees, including foreign scientists, in eight broad areas. The research project grants mainly fund equipment, materials, visiting researchers, and dissemination costs, but the sponsoring institutes will fund the affiliated researchers' salaries and overheads. The results of the projects would be publicly available. Any intellectual property, such as a patent, would accrue on a refusal basis, first to CONACYT, then to the sponsoring institution, and then to the researcher. The scientific equipment infrastructure projects are aimed at strengthening institutions' capacity for carrying out research, and are funded co-operatively with research institutions. Other programs fund retention and repatriation of top quality Mexican scientists, and creation of chairs of excellence in universities. Pilot programs in 1991 worked well, and the experience is feeding into the 1992 programs. The level of spending on science research would provide enough funds to get research going again, while recognizing the "newness" of the programs and Allocation processes. Bank financing would be US$ISO million, for laboratory equipment, computers and Materials; (ii) Mtrolca (US$63 million, 7 percent of total costs). -his component would support the start-up of the new metrology center (CENAM) to provide primary metrology services to industry, and facilitate the development of a private system to provide secondary metrology services. Technical co-operation is being provided by industrial countrJes, particularly Germany and the Us. The construction of CENAM's premises is being partly financed by the Industrial Technology Project (Ln. 2747-ME). Bank financing would be US$30 million, for scientific equipment, technical assistance, training and promotion; (iii) Standardization (US$17 million, 2 percent of total costs). This component would support building capacity for metrology, standards, testing, certification and quality assurance in industry. DGN has prepared an indicative "privatization" program for standards and quality assurance which would encourage a larger role by the private sector. Preparatory work to develop a national consensus on defining and implementing a comprehensive national standardization and conformity assessent system, and to assess existing capacities and the needs for up-grading to world- class facilities is being financed under the Industrial Restructuring Project (Ln. 3087-ME). The resulting standardization program would begin in 1993. Bank financing would be US$3 million, for training and promotion; and (iv) Intellectual Property Protection (US$41 million, 5 percent of total costs). This component would support the start-up of IMPI to implement the new industrial property law passed in July 1991. A team of consultants, including the World Intellectual Property Organization, have completed background studies for IMPI. The institute is expected to be created during 1992 and begin operations from January 1, 1993. Bank financing would be US$6 million, for international consultants, computer systems and training. 7. Total project costs would be US$886 million. The proposed Bank loan would finance US$189 million equivalent, and US$1.5 million is being provided from previous loans. Schedule A shows the estimated project costs and financing plan. Retroactive financing would be granted for up to ten percent of the loan amount or US$18.9 million equivalent for eligible expenditures incurred for the science component after January 1, 1992, when the new programs began. Schedule B shows the methods of procurement, and the disbursement schedule. Schedule C shows the timetable of project processing. Schedule D shows the status of Bank group operations. A map and the Staff Appraisal Report No. 10468-ME, dated April 30, 1992, are also attached. 8. Project Imgleentation. NAPIN would be responsible for project co-ordination. CONACYT would implement the science component; CENAN the metrology component; SICOFI/DGN the. standardization component; IMPI the intellectual property component. Each of these agencies would have the capacity to implement the components, and would draw on international expertise where appropriate. Project supervision is expected to take place at least twice a year to monitor progress. including ensuring adequacy of funding. Specific annual reviews would consider progress against agreed quantitative project implementation indicators. 9. PJeoact sustainabilit. For the science component, the main design feature to enhance oustainability is the new funding allocation mechanism on the basis of transparent, competitive peer review which has gained broad acceptance in the active scientific community. For the technology infrastructure components, the main design features to enhance sustainability are the institutional strengthening and involvement of the private sector. For the metrology and intellectual property components, cost recovery would be in line with international norms. 10. Lessons fro exSerience. The proposed project has benefitted from lessons learned in similar projects, particularly the Brazils Science Research and Training Project approved in 1990. For the science component, the proposed project design incorporates: clearly defined funding allocation rules to avoid discretion and gain broad acceptance in the scientific cosmunity; comprehensive, multi-year grants to avoid wasteful fragmentation; emphasis on dissemination and interaction with the industrial sector; and strong administrative capability for careful monitoring and evaluation of research results. For the technology infrastructure components, the proposed project design foresees: involvement of the private sector '.n the definition of the programs to ensure they are tailored to their needs; international expertise to ensure conformity with international norms; and strong administrative capability to ensure credibility and sustainabi.ity. 1. Rationale for sank Involvm_nt. The proposed project conforms with the Bank's overall strategy for Xexico, which is designed to support the Government's efforts to redefine and rationalize the role of the public sector and to lay the foundation for private sector-led growth. Basic science research and technology infrastructure are "public goods", where government involvement may improve both production and consumption efficiency. 12. The Bank has been involved in dialogue and lending to support science and technology initiatives through previous projects. Loan 2747-ME of 1986 provided directed credit for technology development by firms, and funding for strengthening R&D centers and metrology services. The Loan 3087-ME supported policy improvements in foreign investment regulation, technology transfer rules and intellectual property protection. Both loans supported studies which contributed to the design of the proposed project. The previous projects have been implemented satisfactorily, but because they were focussed on technology policy and development, the experience has little relevance for the proposed project which is focussed on basic science research, with a secondary focus on technology infrastructure. The Bank's role in the proposed project has largely been catalytic, encouraging and facilitating the timely implementation of programs to which the Govenrment is publicly committed. The Bank has mobilized international consultants with extensive experience in other countries and other Bank projeate on science policy and funding, public assistance for technology development, metrolovy, standards and quality assurance, and intellectual property protection matters to assist with preparation of the Government's program and the proposed project. 13. lasus and Actions. At neLotia2ons, agreement between the Bank and the Government was reached regarding: (a) the Government policy statement on science and technology infrastructure; (b) any changes in the Rules of Operation of PACINZ would have to be acceptable to the Bank; (c) the two preparatory studies on standards and quality assurance will be discussed with the Bank In November 1992 to develop the program to be implemented in 19931 (d) the decree creating IMPI will be issued in 19925 (e) the annual and mid-term reviews, and implementation indicators including the process to assure adequate Federal budgets for the project; and (f) audititg. arrangements. Conditions of loan effectiveness would be a signed agreement between NAFIN and the Government for transferring the loan proceeds, and signed contractual arrangements with CONACYT and CENAM. The conditions of disbursement fors (i) the standardization component would be provision of a program acceptable to the Bank to begin implementation in 19931 (ii) the IMPI component would be issuance of the decree creating IMPI, appointment of the top management and their taking up their positions, signing of contractual arrangements between NAFIN and OIPI and receipt by the Bank of a satisfactory legal opinion on them, and confirmation of adequate Federal funding for 1993; and (iiI) for the COCNacT component would be that no withdrawals in excess of US$5.0 million equivalent be made for any science research or equipment infrastructure project. 14 * nvironmental Matters The proposed operation has an environmental rating of "Co and would incur no direct environmental costs. Multidisciplinary reseArch on environmental issues has been identified as an area of emphasis under the science programs. The Rules of Operation of PACINE state that any proposed research involving high-risk transgenic organisms would be conducted under safety standards acceptable to the Bank. 15. Proiect -enefits. The science component would help rationalize public spending on research project and equipment grants, and strengthen the responsible public institutions, generating relevant research and human capital development, and modernizing Mexico's science and technology capability. The technology infrastructure components would improve services to industry, enhancing competitiveness and attractiveness for foreign investment. By their nature the benefits of the proposed project are broad and dispersed and hard to quantify. While it is not feasible to estimate an ex ante economic rate of return, studies have shown high ex post social rates of return to spending on basic science in industrialized countries. CONACYT and the Bank are co-operating to develop an approach to economic assessment of the new science programs. 16. Rtpigtg g nkn. The main risk for the science component is that the allocation mechanism would become politicized and fragmented again, and reinforce past patterns of science research rather than looking to future needs. However, the new PACrME rules are clear and there is a strong commitment to the new allocation system on the part of both the authorities and the science community, which should make a return to previous practices unlikely. The main risk for the technology infrastructure components is that the close links required between responsible public sector agencies and private industry to build confidence in the programs would still be lacking and the services would be poorly used. However, the authorities are cognizant of this and have built implementation mechanisms and strong teams with close consultation between interested parties to ensure successful implementation. 17. Remme*ation. I am satisfied that the proposed loan would comply with the Articles of the Bank and recommend that the Executive Directors approve the proposed loan. Lewis T. Preston President Attachments Washington, D.C. April 30, 1992 -7. 6CrBNC AMR T$CmNCrCGY An ]WSXRUB2G=PROJlCT * D#~~~RUMA=E PRO&MCM QQ8T AMR EUMINCtN ISM (Vs$ million) Local tQzgei Total Science Programs 387.6 351.7 739.3 Netrology 15.3 42.7 57.9 Standards and Quality 8.2 8.5 16.7 Intellectual Property 31.5 8.1 39.6 Total Base Costs 442*S 411.0 §S3.5 Price Contingencies 14.8 15.0 29.8 Physical Contingencies 2.5 - 2.5 Total Project Costs 159.8 426.0 885.8 Zsaci1a Government 299.1 105.2 404.3 Bank 4.6 185.9 190. S1 Research Institutions 152.5 134.9 287.4 Private Sector 3.6 - 3.6 459 8 426.0 885 8 v Includes US$1.5 million from previous loans. Note: Retroactive financings Costs of no more than US$18.9 million incurred after January 1, 1992 in the science component would be eligible. -8- Page 1 of 2 _________ __ _ _ 2IIItRCTURE OJECT pndm~~Pl MEwd lw m 1. Works 1.1 Buildings Remodeling 4.85 5.00 9.85 2 s(1.00 (1.00w 2. ods 2.1 Laboratory Equipmen ed 92.00 28.00 58.20k' 204.8 383.00 cafputers (92.00) (28.00) (58.20) (108.20) 2.2 Laboratory Materials 4.52 28.40 32.92 4.52) (4.52) 2.3 Vehicles 0.30 0.30 3. Administratfve Exess 388.31 388.31 4. Consultancies 4.1 Studies ad training 2 73 12.91 15s64 (2.73W9 (2.73WV 4.2 Technical Assistance 1.68 0.0 1.68 (1.68) (1.68) 4.4 Seminars and Promotion 1.61 24.05 25.66 (1.61) (1.61) 4.5 conultants 0.76 0.76 (0.76) (0.76) 5. Niscellanet us 27.66 27.66 Totad 92.00 32.865 69.8 0 1.43 085.7 (92.001 (29.001 (69.5) (190.Uo) Note: Figures in parentheses are the respective amounts financed by the Dank toan. U.3.F.: Not Bank-Financed. a) Financed under Ln. 2747-NE. b) includes US*17 million equivaLent to be procured under LIB and USS27.00 million under VIlS. c) Includes adninistrative expenses (salaries, benefits and overhead) incurred by research institutions, CONACYT, CElAR, INPI and SECOFI/DGN and the Repatriation/Retention and Chairs of Excellence Programs. These expenses are financed by the Go through budeting allocations. d) Includes USSO.S million from Ln. 3047-NE. e) Includes USS1.0 mllion financed under Ln. 2747-NE and USS0.5 million financed under Ln. 3047-ME. Page 2 of 2 Amount of tde Loan Allocaed U of Eupmdwv.s Catov (tJ$ MOM) - _ _____ F - L 1. Laboratory equipment 161.9 100 75 2. Cter equipment 11.70 100 n 3. se1l 4.S2 100 n5 4. Studies and training 2.73 100 100 5. Seminars and prowtion 1.61 100 100 6. Technical mfisttae 1.68 100 100 T. Consultants 0.76 100 100 8. Contingencies 4.60 . 189.00 ,- KEstimated Disbusements fUSS millions)s Bank Fiscal Year 1 99 1922 l9 i .122 122! Annual 28A 44 48 32 22 15 Cumulative 28 72 120 152 174 189 i Tncludes US$15 million for the Special Account and up to US$18.9 million for retroactive financing. - 10 - scheduleC MCO SCIENC AND T8CHNOfAX IhFR^8lHWCTUR PROJECT Timetable of Key Project Progegsggn Eents (a) Time taken to prepares One and one-half years (b) Prepared bys Government with IBRD assistance (c) First IBRD mission: December 1990 (d) Appraisal mission departure: January 1992 (e) Negotiations: April 1992 (f) Planned Date of Effectiveness: June 1992 (g) List of relevant PcRs, PPARs, and other Bank evaluationss "World Bank Lending for Science and Technology: General Operational Review", PHREE Background Paper 92/5lR, March 1992. By Joshua A. Muskin. - 11 - Schedule D Page 1 of 2 STATUS OF SANK GROUP OPERATIONS IN NEXICO ................................................. A. STATEMENT OF SANK LOANS ................................... (As of March 31, 1992) Amount in USS million (less cancellation) Credit/ Ffscal *------------------ .............--- Loan go. Year Borro4Er Purpos Sank IDA Undisbursed 93 toans fully disbursed 10,088.92 Of which SECALs, SALs, Program Loans, and Interest Support a> Ln. 1929-ME 1981 AUNOSRAS Railway IV 149.88 Ln. 2331-ME 1983 CANCCNEXT Export Development 349.33 Ln. 2882-NE 1988 BANCOMEXT Trade Policy Loan II 500.00 Ln. 2918-ME 1988 NAFIN Agriculturat Sector Loan 300.00 Ln. 3159-ME 1990 BAucrOEXT Interest Support Loan 1,260.00 Ln. 3207-ME 1990 BANOSAS Road Transport & Tltecm 380.00 Ln. 3087-ME 1989 lAFIN industrial Sector Policy 497.51 Subtotal 3;436.7 Ln. 2450-ME 1984 BAMPESCA Lazaro Cardenas Ind. Port 38.2S 6.49 Ln. 2526-ME 19S5 NAFIN Chiapas Agricultural Oev. S8.00 23.36 Ln. 2546-NE 1985 NAFIN Smalt/Medium-Scale Oev. It 105.00 1.41 Ln. 2575-NE 198S BANOURAS Railways V 300.00 47.07 Ln. 2658-ME 1986 UAFIN Agricul. Dev. Proderith It 88.30 60.14 Ln. 2666-ME 1986 BANRON"A Municipal Strengthening 40.00 35.45 Ln. 2669-ME 1986 BANOERAS Solid Waste Management Pilot 25.00 15.27 • Ln. 2745-ME 1987 sANCOMEXT Trade Policy Loan 1 498.72 0.09 Ln. 2746-NE 1987 lAFIN Industrial Recovery 150.00 4.68 Ln. 2747-ME 1987 UAFIN Industrial Technology Dev. 48.00 12.45 • Ln. 2777-ME 1987 SANCOMEXT Export Development II 250.00 7.24 Ln. 2824-HE 1987 BANCORAS Urban Transport 125.00 69.34 Ln. 2837-ME 1987 "FIN Agricultural Credit IX 400.00 0.81 Ln. 2858-ME 1987 UAFIN Sm/Medium-Scale Indus. IV 100.00 25.50 Ln. 2859-ME 1987 NAFIN Agricultural Extension 20.00 4.78 Ln. 2875-ME 1987 BANORAS Highway Maintenance 135.00 73.06 Ln. 2876-ME 1988 NAFIN Manpower Trafning 80.00 9.58 Ln. 2916-ME 1988 MAVIN Steel Sector Restructuring 321.01 106.99 • Ln. 2919-HE 1988 UAFIN Fertilizer Sector 265.00 25.42 Ln. 2946-ME 1988 SAN08RAS Ports Rehabilitation 50.00 9.87 Ln. 2947-ME 1988 DAUOORAS Housing Finance 300.00 0.65 • Ln. 3047-ME 1989 NAFIN Industrial Restructuring 250.00 81.98 Ln. 3083-ME 1989 UAFIN Hydroelectrec Development 460.00 236.29 * Ln. 3085-ME 1989 BANCOHEXT Financial Se-tor Adjustment 487.14 1.64 * Ln. 3086-ME 1989 NAFIN Public Enterprises Reform 500.00 0.71 Ln. 3115-ME 1990 UAFIN Forestry Development 45.50 39.81 Ln. 3140-ME 1990 BANO0RAS Low-Income Housng II 350.00 183.19 Ln. 3141-NE 1990 NAFIN Agriculturing Marketing II 100.00 0.67 Ln. 3189-ME 1990 NAFIN Transmission & Distribution 450.00 245.73 Ln. 3208-ME 1990 SANOSRAS Tele-zm. Technical Assist. 22.00 18.87 Ln. 3271-ME 1991 BAN08RAS Later Supply & Sanitation 300.00 189.15 Ln. 3272-ME 1991 KAFIN Basic Health Care 180.00 170.00 Ln. 3309-NE 1991 BANCOHEXT Export Sector 300.00 200.15 Ln. 3310-ME 1991 KAFIN Dcsent. & Regional Develop. 350.00 281.33 * Ln. 3357-HE 1991 NAFIN Agricultural Sector AdJ. 11 400.00 200.00 Ln. 3358-ME 1991 UAFIN Technical Training III 152.00 142.00 Ln. 3359-ME 1991- NAFIN li/ing Sector Restructuring 200.00 179.99 Ln. 3407-hE 199 NAFIN Prmery Education 250.00 238.09 Ln. 3419-ME bt # 1992 lAFIN Irrigation & Drainage Sctor 400.00 400.00 ............ .................. ..... Total 18,682.84 3,349.25 Of Whfbch has been repafd 4,944.10 Total now held by the 8ank 13,738.74 Amount sold s 92.34 Of which has been repaid: 92.34 Total Undisbursed 3,349.25 3,349.25 .......................................... p. Approved during or after FY80 and fully disbursed. NdeS.: LA2C1 bP Not yet effective. File: WB-03-92.wkl *SAL, SECAL, or Program Loan under eplementation. Nay 4, 199 - 12 - Schedule D Page 2 of 2 NEXICO B. STATEIIT OF IFC IMVESTUMMTS As of March 31 1992 (USS Million) Fiscal -----Original Approvals- It --- Year Obligor Type of Business Loan Equity Total ......... ................._._.... ..... ......... ___............................... ................................. 195f/59 Industrias Perfect Circle, S.A. a/ Industrtal Equipment 0.80 0.00 0.80 1958 BristoL de Mexico, S.A. a/ Aircraft Engine Overhaul 0.50 0.00 0.50 1961 Acons Solar, S.A. a/ Twist Drills 0.30 0.00 0.30 1962/5t6/8 Fundfdore wMonterrey, S.A. a/ Steel 2.30 21.40 23.70 1963 Tubo de Acero de Mexico Stainless SteeL PIpes 0.90 0.10 1.00 1963 Quimica del Rey S.A. Vf Sodium Sulphate 0.80 0.00 0.80 1964166 Itdutria del Hierro. S.A. Construction Equipment 0.00 2.00 2.00 1970 1inera del Norte a Iron Ore Mining 1.50 0.00 1.50 1971 Celanese Mexican., S.A. a/ Textiles 12.00 0.00 12.00 197Z Promotora Papel Periodico, $ACV a/ Pulp and Paper b/ 0.00 0.00 0.00 1973/79 Cementos Veracruz, S.A. a/ Cement 15.90 0.00 15.90 1974/81 Cancun Arlstos Hotel a/ Tourism 1.00 0.30 1.30 1975/78 Nexinox, S. A. Vt Stainless Steel 12.00 3.20 15.20 1978/81/83 Papeles Ponderosa, S.A. a/ Pulp VW Paper 10.70 0.00 15.70 1978 Tereftalatos Mexicanos, S.A. aJ Petrochemicals 19.00 0.00 19.00 1979/81/86 Hotel Camino Real Ixtapa, S.A. Tourism 0.00 4.20 4.20 1979/83 Eqmesas Tolteca, S.A. Cement 168.00 8.00 176.00 1979191 Conductores Nonterrey, S.A. Electrical Wire 8 Cable 21.40 0.00 21.40 1980 Industries Resistol S.A. a/ Particle Board 25.00 0.00 25.00 1980 Vidrie Ptano de Mexico, S.A. Flat Glass 114.90 0.00 114.90 1980 Miners Real de AngeLes, S.A. a/ Nining 110.00 0.00 110.00 1980 Corporacion Agroindustrial S.A. Agribusiness 11.30 3.00 14.30 1981/86 Celulostcos Centauro, S.A. a/ Pulp and Paper S9.50 0.00 59.50 1983 Capital Goods Facility V/ Capital Goods Financing 100.00 0.00 100.00 1984/87 Netalsa, S. A. Auto Chassis 8.00 1.40 9.40 1984 Proteison, S.A. de C.V. a/ Agribusiness 2.00 0.80 2.80 1984/90 Promocionas nd. Mexicanas, S.A. Petrochemicals 36.40 0.00 36.40 1986/88 Celulosa y Papel de Durango, SA de CV Pulp end Paper 10.00 3.10 13.10 1986 Agromx Phae I (AESA) a/ Veg. and Fruit Processing 1.50 0.50 2.00 1986 Cicasa Constr. Guar. Fac. c/ Constr. Guarantee Facility 20.00 0.00 20.00 1987 Industries Sulfamex S.A. de C.V. Chemicals & Petrochemieals 2.00 0.50 2.50 1987 Sealed Power de Mexico Auto Aesesbly 9.00 0.00 9.00 1987/91 Crescent Market Aggregates Construction Materials 73.00 0.00 73.00 1988 Apesco, S.A. de C.V. Cement & Const. Materials 46.00 0.00 46.00 1991/92 Apasco, S.A. de C.V. dt/ Cement & Const. Materials 45.00 0.00 45.00 1988 Saltui, S.A. de C.V. Food and Food Processing 21.00 2.00 23.00 1938892 Poltmr (ASS) A.S. de C.V. Petrochemicals 19.10 0.00 19.10 1989 Grupo Fease/Visa Consumer Goods Conglomorat 80.00 27.60 107.60 1989 Banca Serf in Development Finance 60.00 0.00 60.00 1989 Cementos Mexic nos Cement & Coast. Naterials 68.00 0.00 68.00 1990/91 Condomex, S.A. de C.V. /d Electromanufacturing 53.00 9.54 62.54 1990 Indelpro, S.A. de C.V. Petrochemicals 30.00 0.00 30.00 1990 Banso Nacional de Mexico Developmmnt Finance 60.00 0.00 60.00 1990 Bancomer Credit Line Develonment Firnane 20.00 0.00 20.00 1991 Mexico Fund money & Capital Markets 0.00 6.60 6.60 1991 Petrocel, S.A. Chemicals & PetrochemicaLs 32.00 0.00 32.00 1991 Vitro Flotado oltas & Related Manufac. 126.00 10.20 136.20 1992 Vitro, S.A. Glass & Related anuf. 0.00 8.00 8.00 1991 Celular de Telefonia S.A. de C.V. Telecommwications 52.00 1.00 53.00 1991 Grupo Industrial Biabo, SA de CV Bakery 100.00 0.00 100.00 1992 Aislantes Leon S.A. de C.V. Battery Manufacturing 10.00 7.00 17.00 1992 6rupo Posadas Tourism 0.00 3.70 3.70 1992 Grupo Financiera Probursa Development Finance 0.00 7.50 7.50 1992 Banco Macfonal de Mexico f/ Developmnt Finace 40.00 0.00 40.00 1992 Ban. Mercantil del Norte, S.N.C. f/ Developmnt Finance 20.00 0.00 20.00 Gross Total Comitments */ i11.80 136.64 1868.44 Lass Cancellations, Terminations, Repayments & Sales 1085.80 75.30 1161.10 ......... .............. .,............... .. 646.00 61.34 707.34 Total Coamftments Now Held by IFC - Total Urdisbursed (Including Participants) 123.50 0.00 123.50 .............................I ................... - ........... u.. m.... a/ Investments which have ben fully cancelled, terminated, written off, sold, redeemed or repaid. b/ US$25,000. c/ Loan amount includes guarantees of $20 million (Cicasa). d/ Excludes placements of 830.0 million (Apasco), $20.0 million (Vitro), and $19.8 million (Conduex). Kde1ilva: LA2C e/ Ixcludes urderuriting, but excludes swap transactions (Banca Serfin US$6.S million and I IFC-03-92.wkl f/ Approels not yet sigrnd. May 5, 1992 4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MAP SECTION a~~~~~~~~~ . _ _ IBRD 2354? .r-.-I - M E X I C O AIPrNfA $Pt*t cop3tal. a_s - t wf;;t,4 ;> X \ \0 A H v I I A 0i Pweipl dte or Do wSA GulfIo f Af e x rr ,ot IT~~~~~~~~~~~~~~~~~~~~~~~--So.bdto P A C F C OCEAN~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Ittfotti nnoe .1 1~~~~~~~~~~~~~~~~~~~~~~~~~~~~ A~~~~~~ GUTEMALA *~ODURAS tEOUARY 199