China - Beijing Environmental Project

Do== The Worlc F'OR OFFMCLAL RepoitNo, P-5655-CHA MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIREC'."RS ON A PROPOSED LOAN OF US$45 MILLION AND A PROPOSED DEVELOPMENT CREDIT OF SDR 60.1 MILLION (US$80 MILLION EQUIVALENT) TO THE PEOPLE'S REPUBLIC OF CHINA FOR A BEIJING ENVIRONMENTAL PROJECT OCTOBER 18, 1991 This document has a restricted distribution and may be used by recipients only in the performance of their officii duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EOUIYALETS (as of July 1991) Cur?rency Name - Renminbi (RMB) Currency Unit Yuan (Y) - 100 Fen Y1.00 $0.19 $1.00 Y5.28 FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES 1 meter (m) - 3.28 feet 1 square meter (m2) - 10.76 square feet 1 cubic meter (m3) - 35.3 cubic feet 1 kilometer (km) 0.62 miles 1 hectare (ha) - 10t000 square meters ABBREVIATIONS AND ACRONYNS BDHC Beijing District Heating Company BM Beijing Municipality BMEPB Beijing Municipal Environmental Protection Bureau BMPC Beijing Municipal Planning Commission NEPA National Environmental Protection Agency  FOR OFFICIAL USE ONLY CHIN BEIJING ENVIRONMENTAL PROJ;QE LOAN/CREDIT AND PROJECT SUMMARY Borrower: People's Republic of China Beneficiary: Beijing Municipality Amount: IBRD Loan US$45 million IDA Credit SDR60.1 million (US$80 million equivalent) Terms: IBRD Loan 20 years, including 5 years of grace, at standard variable interest rate. IDA Credit Standard, with 35 years maturity. Onlendine From the Government of China to Beijing Municipality Terms: (BM): 15 years, including five years of grace, at a fixed initerest rate of 4.2 percent per annum; BN will bear all foreign exchange risk, except those that are borne by the entities to whom it onlends. From BM to the Beijing District Heating Company (BDHC): 15 years, including five years of grace, at a variable rate equal to the Bank rate, plus a spread of 1.5 percent p.a., with BDHC bearing the US dollar/ Renminbi Yuan foreign exchange risk. From BM to the industrial enterprises: ten years, including three years of grace, at a variable rate equal to the Bank rate, plus a spread of 1.5 percent p.a., with the industrial enterprises bearing all foreign exchange risk; or a spread of 2.0 percent p.a., with the industrial enterprises bearing the US dollar/ Renminbi Yuan foreign exchange risk. Financing Plan : Local Foreign Total -------- (US$ million) - IBRD/IDA 0.6 124.4 125.0 Japan Grant Facility 0.0 1.6 1.6 Beijing Mun. Govt. 118.4 5.8 124.2 Enterprises 53.7 0.0 53.7 Total 172.7 131.8 304.5 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.  Economic Rate Wastewater - 16 percen. for South Urban Sewer of LRtun: Interceptor; 39 percent f3r Sewer Interceptors in No. 3 Water Plant area. District Heating - 11 percent. Composite IRR - 13 percenc Staff Anpraisal Regort: Report No. 9791-CHA MaD: IBRD No. 23048  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INTERXATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN AND DEVELOPMENT CREDIT TO THE PEOPLE'S REPUBLIC OF CHINA FOR A BEIJING ENVIRONMENTAL PROJECT 1. The following memorandum and recommendation on a proposed loan for US$45 million equivalent and a proposed development credit for SDR60.1 million (US$80 million equivalent) to the People's Republic China is submitted for approval. The proposed loan would be for 20 years, including five years of grace, at standard variable interest rate. The proposed credit would be on standard IDA terms witl 35 years maturity and 10 years grace. The loan and the credit would help finance an environmental project in Beijing Municipality (BM). Proceeds of the loan and the credit would be onlent through the BM to: (a) a district heating company for 15 years, including five years of grace, at a variable rate equal to the Bank rate, plus a spread of 1.5 percent p.a., with the district heating company bearing the US dollar/ Renminbi Yuan foreign exchange risk; and (b) to industrial enterprises for ten years, including three years of grace, at a variable rate equal to the Bank rate, plus a spread of 1.5 percent p.a., with the industrial enterprises bearing all foreign exchange risk; or a spread of 2.0 percent with the industrial enterprises bearing the US dollar/ Renminbi Yuan foreign exchange risk. All other foreign exchange risk will be borne by BM. 2. Background. Growing urban populations and industrialization are causing widespread air, water and soil pollution in China, and environmental problems have become the highest priority issues in Chinese cities. Due to a past industrial location policy, many large industries are placed close to urban residential areas which are also rapidly expanding. Gaseous and poorly treated liquid effluents, unwanted refuse from industries and domestic premises, industrial hazardous and toxic wastes, and high noise levels from congested traffic, factories and commercial complexes, are significantly polluting the environment and affecting the health of urban residents. 3. During the last decade China has initiated a wide array of environmental protection policies and programs, and established comprehensive pollution control guidelines. The National Environmental Protection Agency (NEPA), established in 1979, is primarily responsible for setting national policies, standards, and regulatory overview. Implementation and enforcement are mainly the responsibility of the vast network of provincial, municipal and local environmental protection bureaus. The Beijing Municipal Environmental Protection Bureau (BMEPB) was established in 1979 with a mandate to set local environmental regulations, enforce regulatory control, coordinate integrated waste treatment, increbse public awareness, and operate an environmental management system and monitoring network. BM has developed initial strategies to address its air, water, and solid waste problems. They involve changing of the fuel structure for domestic and industrial use, improving wastewater and solid waste management, and greater efforts to reduce industrial pollution. The plans for these have been reviewed by the Bank. Beijing wishes to carry out studies, with the help of the Bank, to refine these plans to ensure that they are cost-effective, and to resolve any institutional constraints which could impede their implementation.  4. hank's Previous Work and Lessons Learned. The Bank Group is involved in a number of projects in China's urban and water supply sectors which deal to varying extent with the environment. Under implementation are the Shanghai Sewerage Project, the Medium-sized Cities Development Project, and the Liaoning Urban Infrastructure Project). The Shanghai Sewerage Project (Credit 1779-CHA, SDR78.9 million, 1987; Loan 2794-CHA, US$45 million, 1987) is largely directed at environmental pollution control, and the Bank/IDA's experience in it is highly relevant to the Beijing Environmental Project. The other two projects are mainly concerned with urban development and water supply, with only minor involvement in the environmental area. Despite the complexity of the Shanghai Sewerage Project, and the initial unfamiliarity of project officials with Bank requirements, work progress is satisfactory, and construction quality exceptional. In response to government requests for assistance in developing sound and cost effective strategies for environmental improvement, the Bank has carried out various sector studies which touch on environmental issues in China. In particular a recent environmental strategy study for China (for publication in grey cover this Fall), would identify major environmental issues and their underlying causes, assess China's policies and institutional capabilities for addressing them, recommend areas for improvement, and formulate a multi-year program of environmental assistance. 5. Rationale for Bank Involvement. China has requested the help of the international community in finding solutions to its environmental problems. The World Bank is in a strong position to provide this assistance, given its involvement in envirormental issues in previous projects in the country. BM, which will be the beneficiary of this project, has already established a strong institution for environmental protection with good implementation capability. It is highly committed to resolving its environmental problems and has agreed to develop a long-term plan and to implement an extensive program of investments and institutional improvements to achieve this purpose. New technology, particularly for the industrial pollution abatement, will be required, and this will need to be imported. BM has played an important role for the past decade in providing NEPA with technical support for developing environmental policies and testing pollution control techniques for the country, and this role is seen to continue. The experience gained from this project will allow Beijing to become an important learning ground for many other cities in China which are encountering similar problems. Bank assistance will help to ensure that these goals can be achieved in the best possible way. 6. Project Objectives. The objectives of the project are to assist BM to strengthen its environmental planning and management capabilities, and to plan and carry out specific pollution abatement efforts. Project activities would demonstrate: (a) cost-effective interventions in the areas of water, air and hazardous and solid waste pollution; (b) improved investment planning; (c) more effective measures for regulatory control; (d) basic requirements for the efficient operation and maintenance of communal facilities for pollution control and abatement; and (e) methods to recover costs from the users of these facilities for sustained operation. 7. Poect Descr5Rtion. The project will assist through several technical assistance and training components the Beijing Municipal Planning Commission (BMPC), the Beijing Economic Commission, the BMEPB, the Beijing Municipal Engineering Administration Bureau, the Beijing Environmental  -3 - Sanitation Administration Bureau and the Beijing Public Utilities Bureau to improve their capabi-'ity to develop and implement long term strategies for: (a) air quality management; (b) water quality management; and (c) domestic and solid waste management. Environmental tudis to be conducted would recommend an optimum program of investments to improve the environment at least cost, and specific measures to strengthen institutional arrangements, remove institutional constraints and improve inter-agency coordination. The Government of China has rsceived a grarn: if US$1.6 million from the Japan Grant Facility to cofinance these studies. A hazardous waste management study will also be conducted to assess requirements, propose institutional and regulatory needs, and to develop plans for hazardous waste disposal. An autonomous sewerage company will be established to enable BM to better manage the city's liquid wastes. 8. Proposed physical works would include: (a) the construction of sewer systems to collect wastewater in the southern urban area of the city with a population of 2.4 million, and at the No. ? water plant area where the groundwater provides drinking water supply to about one million people, for appropriate treatment (a proposed Gaobeidian wastewater treatment plant is now under construction); (b) the construction of a sanitary landfill and procurement of equipment for solid waste disposal for about 20 percent of the city's population; (c) in order to reduce air pollution from coal burning, the construction of a pressurized hot water piping system for dist-;ict heating from a heat and power cogeneration station to supply piped heat to 18.5 million m2 of residential building area for about 800,000 people; (d) the procurement of equipment through a credit line to deal with solid, liquid and gaseous pollutants discharged by industries; and (e) the construction of buildings and procurement of equipment and instruments for the development of an institution to manage the collection, treatment and safe disposal of hazardous wastes. 9. Project Implementatior. Project implementation would be managed by a project office under the BMEPB, which would oversee subproject offices in the relevant construction and operating bureaus for wastewater, district heating, and municipal solid waste works. Implementation of the industrial pollution subprojects would be supervised by the BMPC with the assistance of the China Investment Bank, Beijing Branch and experienced local consultants engaged by BM. All the project offices have been established and staffed. The project will be carried out over a period of five years. The total project cost (excluding interest during construction) is estimated to be US$298.7 million, with a foreign exchange component of US$126.0 million (42 percent). A breakdown of project costs and the financing plan are shown in Schedule A. Retroactive financing of up to US$12.5 million for expenditures incurred after March 1, 1991 will be provided. 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 land use map (IBRD 23048) is also attached. The Staff Appraisal Report, Report No. 9791-CHA, dated October 16, 1991, is being distributed separately. 10. Agered Actlons. BM has agreed to: (a) conduct the environmental and hazirdous waste management studies; (b) onlend the proceeds of the relevant parts of the loan/credit to the Beijing District Heating Company (BDHC) and the industrial enterprises participating in the project on terms and conditions acceptable to the Bank/IDA; (c) establish an autonomous  sewerage company with appropriate financial and operating policies acceptable to the Bank/IDA; (d) carry out a staff training program; and (e) cause the BDHC to generate, commencing January 1, 1993, sufficient revenues to cover operating and maintenance costs, working capital increases and debt service, and, commencing January 1, 1995, to cover at least 20 percent of its average capital expenditures from its own resources. 11. Benefits. The project would support development and implementation of cost effective long term environmental protection strategies and plans, wh.ich by optimizing the use of the funds available would increase the size and effectiveness of the environmental program. Heal`' benefits will accrue from reduction of water-borne diseases, respiratory aL.Uents and cancer. Corrosive damage to buildings and municipal water facilities caused by pollution will be reduced. Constrained supplies of natural resources and raw materials will be used more efficiently thereby improving economic conditions. The project would also significantly strengthen the capability of key institutions of the city in carrying out environmental planning and pollution control work, as well as improve crucial coordination among t}em. The composite IRR of thte wastewater and district project components, comprising about 60 percent of the total project cost, is about 13 percent. It is not possible to calculate a rate of return for the line of credit as the subprojects to be financed are not yet fully evaluated. 12. Risks. There are risks of delay in implementation with a project that has multiple components involving several different municipal entities, none of whom were previously familiar with Bank procedures and requirements. However, the establishment of a strong project management unit and its effective management during project preparation, indicate that these risks are manageable. With tne help of a comprehensive environmental plan, concrete strategies and action plans to be developed in the projezt, and proposed measures to strengthen the environmental management capabilities of BM, efforts to continue environmental protection work at a high pace can be expected to be sustained. Also the establishment of institutions for the management of wastewater and hazardous waste as financially self-sustaining entities, and the strengthening of the solid waste management institution, will ensure that these important areas for environmental protection are well taken care of. 13. Recommendation. I am satisfied that the proposed loan and credit would comply with the Articles of Agreement of the Bank and the Association and recommend that the Executive Directors approve the proposed loan and credit. Lewis T. Preston President Attachments By: Hans Wyss Washington, D.C. October 18, 1991  Schedule A =HNA BEIJING ENVIRONMENTAL PROJECT ESTIMATED COSTS AND FNANCING PLAN Estimated Costs : qca Forein Total ------ (US$ million) - Wastewater 12.1 13.2 25.3 Solid Waste 4.7 1.9 6.6 Distric:: Heating 21.8 43.3 65.1 Industrial Pollution 43.5 36.4 79.9 Hazardous Waste 1.5 0.1 1.6 Environmental Studies 0.2 1.8 2.0 (for instruments) Project Management 0.8 0.7 1.5 (for equipment) Tech. Assistance 8.8 5.0 13.8 and Training Land Acquisition 48.6 0.0 48.6 Base Cost (1990) 142.0 102.4 244.4 Physical Contingency 14.2 10.2 24.4 Price Contingency 16.5 13.4 29.9 Total kroiect Cost _/7 126.0 298.Z Interest during Construction 0.0 5.8 5.8 Total Financing required 172. 131.8 304.5 Financing Plan IDA/IBRD 0.6 124.4 125.0 Japan Grant Facility 0.0 1.6 1.6 Beijing Mun. Govt. 118.4 5.8 124.2 Enterprises 53.7 0.0 53.7 Total 172.7 131.8 304.5 V/ Project-financed goods are exempt from import duties and taxes.  Schedule B Page 1 of 2 CHI: BEIJING ENVIRONMENTAL PRONECT PROCUREMENT AND DISBURSEAENTS Procurement Method Project Component ICB LCB OTHER NBF TCTAL ----- US$ million ------------ Civil Works Wastewater 17.4 6.7 24.1 (7.1) (2.8) (9.9) Solid Waste 5.5 5.5 (2.2) (2.2) District Heating 33.4 8.2 41.6 (13.1) (3.4) (16.5) Industrial Pollution 53.9 53.9 Hazardous Waste 1.5 1.5 ESuiJ3mnt and Materials Wastewater 6.3 6.3 (5.3) (5.3) Solid Waste 2.1 0.1 2.2 (2.1) (0.1) (2.2) District Heating 37.6 0.6 38.2 (36.0) (0.6) (36.6) Industrial Pollution 20.0 24.9 44.9 (20.0) (24.9) (44.9) Hazardous Waste 0.1 0.1 (0.1) (0.1) Environmental Study 2.1 2.1 (1.8) (1.8) Project Management 1.9 1.9 (0.9) (0.9) Land Acquisition 59.4 59.4 (0.0) (0.0) Technical Assistance & 17.0 17.0 Training (4.6) (4.6) TOTAL 116.8 20.4 106.1 55.4 298.7 (83.6) (8.4) (33.0) (125.0) Note: Figures in parenthesis are the resrective amounts to be financed by the Bank/Association. NBF - Non Bank financed.  Schedule B Page 2 of 2 Disbursement Category Amount Expenditures To Be Financed (US$ million) Civil Works A/ 28.5 42 percent of expenditures Materials and 47.0 100 percent of foreign Equipment a/ expenditures and 100 percent of local expenditures (ex-fa-.tory) and 75 percent of local expenditures for other items pro- cured locally Technical assist- 4.6 100 percent of expenditures ance and Training Subloans h/ 44.9 100 percent of amounts disbursed under subloans Total 125.0 Estimated Disbursements Bank FY 1992 1993 1994 1995 1996 1997 ---------------- (US$ million) ------------------ Annual 13.0 31.0 34.1 32.2 11.0 3.7 Cumulative 13.0 44.0 78.1 110.3 121.3 125.0 A/ Retroactive financing of expernditures up to US$12.5 million equivalent would be permitted for expenditures made after March 1, 1991 that are reviewed and agreed to by the Bank/IDA. k Subloans are for the Industrial Pollution project component.  Schedule C CHINA BEIJING ENVIRONMENTAL PROJ1ov TIMETABLE OF KEY PROJECT PROCESSING EVENTS (a) Time taken to prepare 20 months the project: (b) Project prepared by: The Beijing Municipal Government with the help of consultants. (c) First Bank Mission: April 1989 (d) Appraisal Mission February 1991 Departure: (e) Negotiations: September 1991 (f) Planned Date of February 1992 Effectiveness: (g) List of relevant PCRs None and PPARs:  schedule 0 Page 1 of 3 STATUS OF SANK GROUP OPERATIONS IN THE PEOPLE'S REPUULIC OF CHtNA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of Septembfer 30 191) Loan/ Amount (USS million) Credit Ber- (net of cancellations) Nutcer FY rower Purpose Bank IDA Undisb. (a) Thirteen loans and seventeen credits have been fully disbursed. 1245.94 958.9 Of which SECAL: 2967/1932 88 PRC Rural Sector AdJ. 200.0 100.0 1411 84 PRC Polytechnic/TV University - 85.0 17.2 2382 84 PRC Lubuge Hydroelectric 141.4 10.3 1472 84 PRC Rural Health & Medical Educ. - 85.0 5.4 2444/1500 84 PRC Agricultural Education II 45.3 (23.5)(b) 3.4 1516 8 PRC Agricultural Research I1 25.0 1.2 1551 85 PRC University Devetopment II - 145.0 11.4 2493 85 PRC Power II 117.0 - 8.5 2501 85 PRC Changcun (Luan) Coal Mining 79.5 - 42.6 1578 85 PRC Rural Uater Supply - 80.0 0.2 2540 85 PRC Railway It 220.0 - 84.5 1605 85 PRC Forestry Development - 47.3 6.4 2579/1606 85 PMC PiShiHang-Chanhu Area Dev. 17.0 (75.0)(b) 0.8 2580 85 PRC Weiyuan Gas Field Technical 25.0 - 4.5 Assistance 2659/1663 86 PRC Industrial Credit III (CIB III) 75.0 25.0 5.6 1664 86 PRC Technical Cooperation Credit II 20.0 15.3 1671 86 PRC Provincial Universities - 120.0 12.4 2678/1680 86 PRC Third Railway 160.0 70.0 119.5 2689 86 PRC Tianjin Port 130.0 - 64.5 1689 86 PRC Freshwater Fisheries - 60.0 1.9 2706 86 PRC Sefltgang Thermal Power 225.0 - 42.3 2707 86 PRC Yantan Hydroelectric 52.0 - 15.9 2723/1713 36 PRC Rural Health & Preventive Med. 15.0 65.0 43.3 1733 87 PRC Red Soils - 40.0 0.8 2775 87 PRC Shuikou Hydroelectric 140.0 - 46.3 2783/1763 87 PRC Industrial Credit IV (CIB IV) 250.0 50.0 75.9 2784 87 PRC Shanghai Machine Tools 100.0 - 36.7 1764 87 PRC Xinjiang Agricultural Dev. - 70.0 24.3 2794/1779 87 PRC Shanghai Sewerage 45.0 100.0 95.6 2811/1792 87 PRC Beijing-Tianjin-Tanggu Expressway 2S.0 125.0 53.6 2812/1793 87 PRC Gansu Provincial Dev. 20.0 150.5 93.7 1835 87 PRC Plamning Support & Special Studies - 20.7 14.5 2838 87 PRC Fertilizer Rationalization 97.4 - 24.2 2852 87 PRC Wujing Thermal Power 190.0 - 97.0 1871 88 PRC Rural Credit III - . 170.0 14.6 2877/1845 88 PRC Huangpu Port 63.0 25.0 66.3 2907/1875 88 PRC Dalian Port 71.0 25.0 50.0 188S 88 PRC Northern Irrigation - 103.0 49.6 2924/1887 88 PRC Coastal Lands Dev. 40.0 (60.0)(b) 26.8 1908 88 PRC Teacher Training - 50.0 12.7 2943 88 PRC Pharmaceuticals 127.0 31.7 291/1917 88 PRC Sichuan Highway 75.0 50.0 92.5 2952 88 PRC Shaanxi Highway 50.0 - 22.9 1918 88 PRC Daxing An Ling Forestry - 56.9 29.1 2955 88 PRC Beilungang It 165.0 - 50.5 2958 88 PRC Phosphate Dev. 62.7 - 59.0 2968 88 PRC Railway IV 200.0 116.1 1984 89 PRC Jiangxi Provinrial Highway 61.0 41.9 1997 89 PRC Shaanxi Agricuttural Dev. - 106.0 88.6 2006 89 PRC Textbook Development - 57.0 4.2 2009 89 PRC Integrated Reg. Health - 52.0 43.1 3006 89 PRC hNgSbo & Shanghai Ports 76.4 - 29.6  Schedule 0 Page 2 of 3 Loanr Amount (USS million) Credit Bor- (net of cancellations) Number tY rower Purpose Bank IDA Undisb. (a) 3007 89 PRC Xiamen Port 36.0 - 31.5 3022 89 PRC Tianjin Light industry 154.0 - 124.2 3060/2014 89 PRC IrJner Mongolia Ralwsy 70.0 80.0 125.4 2017 89 PRC Shandong Agriculture Dev. - 109.0 57.7 3066 89 PRC Hubei Phosphate 137.0 - 134.9 3073/2025 89 PRC Shandong Prov. Highway 60.0 50.0 94.9 3075 89 PRC Fifth tndustrial Credit 300.0 - 200.2 2091 90 PRC N.China Earthquake Reconstr. - 30.0 4.8 2097 90 PRC Jiangxi Agric. Dev. - 60.0 54.7 2114 90 PRC Vocational & Tech. Educ. - 50.0 40.3 2145 90 PRC NationaL Afforestation 300.0 265.1 2159 90 PRC Hebef Agricultural Dev. - 150.0 114.6 2172 91 PRC Mid-Yangtze Agricultural Dev. 64.0 54.2 3265/2182 91 PRC Rural Credit IV 75.0 200.0 230.2 327412186 91 PRC Rural Indust Tech (SPARK) 50.0 64.3 110.8 3286/2201 91 PRC Medium-Sized Cities Dev. 79.4 89.0 153.1 3288 91 PRC Shanghai Industrial Dev. (c) 150.0 - 150.0 2210 91 PRC Key Studies Development 131.2 124.3 2219 91 PRC Liaoning Urban Infrastructure - 77.8 67.4 3316/2226 91 PRC Jiangsu Provl. Transport 100.0 53.6 141.4 2242 91 PRC Henan Agricul. Dev. - 110.0 104.6 3337/2256 91 PRC Irrig. Agricut. Intensif. 147.1 187.9 336.2 3387 92 PRC Ertan Hydroelectric 380.0 380.0 2294 92 PRC Tarim Basin (c) 125.0 127.6 2296 92 PRC Shanghai Metro Transport (c) - 60.0 60.4 3406 92 PRC RaiLways V (c) 330.0 330.0 Total 6,414.1 5,090.1 5,527.1 of which has been repaid 375.7 0.0 Total now held by Bank and IDA 6,038.5 5,090.1 Amount sold: Of which repaid - - Total Undisbursed 3,217.6 2,309.5 5,527.1 Ca) As credits are denominated in SDRs (sInce IDA Replenishment VI), und7sbursed SDR credit balances are converted to dollars at the current exchange rate between the dollar and the SDR. In some cases, therefore, the undisbursed balance indicates a dollar amount greater than the original principal credit amount expressed in dollars. (b) Credit fully disbursed. tc) Not yet effective.  Schedule 0 Page 3 of 3 B. STATEMENT OF IFC INVESTMENTS (As of September 30, 1991) Invest Type of Loan Equity Total ment No. FY Borro*er Dusiress ...... (USS Million) ------- 813 85 Guangzhou and Peugeot Automobile 15.0 4.5 19.5 974 87 China tnvestment Co. Investment 3.0 0.0 3.0 1020 87 Shenzhen China Bicycle 5.0 5.0 Bicycles Co. Ltd. Manufacture 1066 88 Grawn Electronics Electronics 15.0 15.0 1119 89 Shenzhen Chronar Solar Solar (a) 2.0 1.0 3.0 Energy Energy Total Gross Commitments 40.0 5.5 45.5 Less cancellations, terminations 2.0 - 2.0 repayment and sales Total Commitments now Held by IFC 38.0 5.5 43.5 Total Undisbursed 0.0 - 0.0 (a) Loan subsequently cancelled.  .W~~~~~~~~~~