China - Education Development in Poor Provinces Project

G 42 1- 7~: c / U. / csc} 5 ~~~~~~~~~Docunmmtesof ^-: - The World Bank FOR OFFMIci USE ONLY MICROFICHE COPY Report No. P- 5663-CHA Type: (PM) MARTINEZ, / X84044 / A7019/ AS3EH RquoitN. P-5663-CA 4 MEMMRANDUM AND RECOMNDATION OF THE PRESIDENT OF THE INTER-TIONAL DEVELOPM ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A ?ROPOSED DEVELOPMNT CREDIT OF SDR 93.2 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR AN EDUCATION DEVELOPMENT IN POOR PROVINCES PROJECT . ^ ~~~~~~~~~7 4ki FEBRUARY 12, 1992 T his documest has a estricted dribution ad may be wed by eipiet only in the prfoance of : aofficial dutes. Its contents may not otherwise be diclosed without World Bank authiatio.  S1iRWFNCY EOU2VALENTS (as of October 1991) Currency Name - Renminbi (RMB) Currency Unit Yuan (Y) - 100 Fen Y1.00 $0.19 $1.00 Y5.33 FISCAL XffiAR January 1 - December 31 A-CA-DgMIC YEAR September 1 - August 31 ABBREVIATIONS AND ACRONYMS GOC - Government of China Gongban Teacher - Teacher Financed by Government Budget Minban Teacher - Community Financed Teacher MIS - Management Information System MOF - Ministry of Finance SEdC - State Education Commission SPC - State Planning Commission  FOR OFFICIAL USE ONLY CHINA EDUCATION DEVELOPMENT IN POOR PROVINCES CREDIT AND PROJECT SUMMARY Borrower: People's Republic of China Beneficiaries: Guizhou, Hubei, Hunan, Shaanxi, Shanxi and Yunnan Provinces Am-o-ung: SDR 93.2 million (US$130 million equivalent) terms: Standard, with 35 years maturity Onlending Terms: The Government of China (GOC) will make the proceeds of the Credit available to the provincial governments at no interest over a period of 20 years, including a 5-year grace period. For amounts onlent in foreign exchange, provinces will pay a 1 per cent per annum service charge and a 0.5% per annum commitment fee. For amounts onlent in local currency, provinces will pay up to 3 percent per annum service charge and no commitment fee. The provincial governments will bear the foreign exchange risk and onlend a portion of the Credit proceeds in local currency to participating municipalities and counties, on the same terms as from GOC to provincial governments, or on more concessional terms, in cases whore provinces consider it appropriate. Financing Plan: Local Foreign Total ---- US$ million---------- Municipal & County 37.8 - 37.8 Governments Provincial Governments 37.1 - 37.1 IDA 89.7 40.3 130.0 TOTAL 164.6 40.3 204.9 Economic Rate of Return: Not applicable Staff Appraisal Report: Report No. 10010-CHA &R: IBRD No. 23543 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.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A ?ROPOSED DEVELOPMENT CREDIT TO THE PEOPLE'S REPUBLIC OF CHINA FOR AN ED-UCATION DEVELOPMENT IN POOR PRO`INCES PROMJECT 1. I submit for your approval the following memorandum on a proposed Development Credit to the People's Republic of China for SDR 93.2 million, the equivalent of US$130 million, on standard IDA terms with a maturity of 35 years, to help finance a project for the development of educatio. in poor areas of China. The proceeds of the Credit will be relent to the participating provinces for 20 years, including 5 years of grace, with no interest. Provinces :rill be responsible for the foreign exchange risk, and will pay 1 percent per annum service charge and 0.5 percent per annum commitment fee for amounts onlent in foreign exchange. For amounts onlent in local currency, provinces will pay up to 3 percent per annum service charge. The provincial governments will onlend a portion of the Credit proceeds to participating municipalities and counties on the same terms as those from the Government of China (GOC) to the provinces or on more concessional terms. BackEr'-n- 2. The management and financing of education activities in China has been shifting over the last few years from a centralized to a decentralized structure. Re3ponsibility has increasingly been delegated from central and provincial to local authorities (prefectures, munici- palities and counties). Apart from a few key universities, the central government no longer manages nor does it directly finance education activities. Higher education is now mostly run by provincial bureaus, secondary education by prefectural, municipal and county bureaus, and primary education by cities and townships. 3. As a result of this decentralization process, poor villages and remote rural schools have been encountering difficulties in upgrading the quality of education. In rural areas, the commune education committee has been gradually replaced by Village Education Bureaus. Primary school teachers, previously selected and paid by the commune, are now selected and paid by Village Education Bureaus. About 50 percent of the teachers are in the government budget and are called gongban teachers, while the remaining 50 percent, called minban teachers, receive a small subsidy from the government and the rest of the pay is provided by the villagers, mostly in kind (housing and food). Improving the conditions of these minban teachers and guaranteeing that they remain in the rural schools are formidable chal- lenges for the Chinese education authorities. Village Education Bureaus are also expected to increase enrollment and school completion ratios. Currently, although more than 95 percent of the children enroll in school, only 50 percent of children in rural areas finish the primary school cycle. In many of the poor rtral areas, schools are dilapidated and there is a shortage of books and appropriate teaching materials. 4. Regarding the higher education system, a large expansion took place during the 1980s. Enrollments doubled from about one to two million students. It is now recognized that this expansion was carried out in many provinces without sufficient attention to issues of costs and economies of  -2- scale. Small and narrowly specialized provincial universities and colleges were established with high unit costs, low student-teacher ratios, and poor match 'ith the labor markets. The average size of Chinese higher education institutions is only 1,920 students, and there are many institutions with less than 500 students. The average teaching load of university teachers is four to five hours a week, significantly below the average of nine hours in the rest of the world. Due to high unit costs, higher education expenditures have been growing at a fast pace, resulting in relatively small or stagnant growth in expenditures in other levels of education. The government has, therefore, recognized that it is necessary to rationalize the structure of the higher education system before any expancion takes place. Provincial Education Bureaus are actively seeking models and mechanisms to consolidate universities, merge small ones, and reorganize the internal structure to make better use of staff and facilities. 5. It is expected that as reforms of universities and decentralization of the education system proceed, accountability and responsiveness of education to new local economic realities and demands will be increased. However, the economically backward localities will find themselves increasingly disadvantaged in their efforts to offer educational opportunities to all children, and the small and poorly financed, provincial universities will find it harder to adopt more efficient managerial structures. Moreover, with further decentralization, local education bureaus will find themselves trying to manage complex structures for which they are weakly prepared. Wastage and inefficiency in the use of scarce resources are also likely to increase. For these reasons, the provincial governments need to establish a clear set of policies, adequate incentives and appropriate monitoring mechanisms to continue the process of decentralization, improve the management of resources at provincial and local levels and encourage efficiency and quality improvements. The sector report China: Provincial Education Management and Finance (Report No. 8657-CHA) provides guidance on policies and programs that could help Chinese education institutions to cope with new challenges imposed by decentralization, and financial and economic reforms. The proposed project is based on these recommendations. Rationale for IDA Involvement 6. IDA has supported the development of higher education in China with four successive projects and has assisted the central government in the provision of textbooks, improved teacher training, and expansion of vocational education. It has alsv supported three medium-sized cities in their efforts to improve the plarning and management of education resources. It has also financed a successful project in Gansu province that has in a short time achieved significant improvements in expanding lower secondary schools and training of teachers. The proposed project would complement and expand Bank's previous efforts by adopting a stronger provincial focus involving provincial and county level managers in planning and implementing project activities. The focus is on improving the capacity to plan and manage a decentralized education system by the intro- duction of quality and efficiency improvements at local and institutional levels. It will be the first Bank-assisted project in China that finances primary schools, as well as covering education activities in poor and remote rural areas in a comprehensive way. It will also be the first  - 3 - project that involves county level bureaus in planning and implementing an IDA-financed project. Because of its experience in other cour.tries, IDA is well placed to support efforts under the proposed project, to assist the government in designing more effective and efficient structures for its higher education institutions, and in introducing at the basic education level managerial practices that are new to China but which have been successfully implemented in other countries. (Examples of experiences from other countries include the rationalization of higher education institutions through mergers and internal reorganizations, the use of multi-grade teaching, the introduction of management information systems and the systematic monitoring and evaluation of reform activities). Proiect Objectives 7. The overall aim is to assist the Government in initiating institutional and policy reforms needed to improve the management of education and its quality and efficiency within a decentralized and more equitable framework. To this end the project would support three main objectives: (a) to improve efficiency and quality of primary and lower secondary schools with the aim of achieving an effective nine-year compulsory education system; (b) to support the development and restructuring of higher level education and the efficient use of resources by colleges and universities; and (c) to improve provincial and county- level education planning, financing and management systems. Project DescriRtion 8. To support the implementation of the compulsory education system, the project will finance investments needed in small towns and rural areas to encourage reforms 'n municipal and county education services. These reforms include: increasing the number of complete schools (i.e., those that offer all grades of primary education) by increasing multi-graded classes; provision of free textbooks to very poor children; improving resource management by increasing the workload of urban teachers and the budget for non-salary items, improving quality related school inputs such as library books and teaching aids; improving the qualifications of teachers, especially of rural teachers; and increasing the share of investment resources for poor and disadvantaged small villages. Specific investments include construction, rehabilitation and maintenance of schools, equipment, books and furniture. To assist the process of restructuring higher education, the project will support pilot projects in selected universities that are attempting to improve efficiency through internal reorganization and mergers. The restructuring includes rationalization of departments to reduce narrow specialization and to provide broader courses that increase the flexibility of graduates. Finally, to imnrove planning and management of provincial and county education bureaus, the project will support adoption, in project counties, of the software already developed in China to collect and analyze data on teachers, students, infrastructure and resources. It will also inprove the student examination systems and the bureaus' capacity to do research and to prepare future investment plans.  -4- Proiect I.nplementation 9. The Basic Education Component will be carried out in 114 counties. At the provincial level, a Project Unit will deal with day-to- day operations. It will be assisted at the county level by a Project Implementation Leading Group. Staff in all these units have been closely associated with project prepzrn.ion and have started to receive training in project implementation. The provvncial education bureaus will coordinate the higher education and the planning components. The State Education Commission (SEdC) will coordinate the monitoring and evaluation of project activities. A Chinese panel of experts will be organized and financed under the project and will be responsible for identifying and selecting consultants for the technical assistance components, review terms of reference for fellowships and study tours and assist in dissemination of findings for special studies. 10. The total project cost is estimated to be US$204.9 million, net of duties and taxes, with a foreign exchange component of US$40.3 million (20 percent). The proposed Credit would finance about 63 percent of total costs with the couxitty and provincial governments financing the balance. A breakdown of project costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursements and the disburse- ment schedule are shown in Schedule B. A timetable of key project pro- cessing events and the status of Bank Group operations in Cnina are given in Schedules C and D, respectively. The Staff Appraisal Report, Report No. 10010-CHA, dated February 11, 1992 is being distributed separately. A map is also attached. 11. Sustainability. Under present financial circumstances in China, it is difficult to present a set of indicators that would ensure availability of finarcial resources to sustain the levels of investment required to carry out the proposed education reforms in very poor counties. County, municipal and township finances have been restructured recently and there is no record of performance under present finance laws. However, in addition to government assurances that education will continue to have a high priority and that expenditures for education will continue to grow, there are several positive indications of program sustainability: (a) population growth is expected to continue to be small, and the school population will not grow more than 2 to 3 percent in the coming decade; (b) provinces involved will most likely continue to have a rate of economic growth of 4 to 5 percent per annum in the coming years; and (c) if the current allocation of 10 percent of the total government budget is earmarked for education, China will be able to provide the required resources to school all children. Agreed Actions 12. The provinces have agreed to: (a) carry-out action plans designed to improve access, efficienc- and quality of basic education; (b) provide IDA with a construction pian for each participating county prepared on the basis of criteria acceptable to the Association; (c) prepare a school maintenance plan during the first year of the project to be carried out during the following years; (d) carry out on an annual basis, maintenance of the equipment provided to secondary schools,  including provision of spare parts; (e) prepare a plan to revise the sti?ucture of pre-service teacher training in project provinces; and (f) make arrangements satisfactory to IDA for the development of software for the MIS and training of staff. 13. The Central Government provided assurances that it will: (a) participate in a mid-term review of the progress of carrying out the project by no later than June 30, 1995; (b) select a project province that will prepare a comprehensive plan of reform of its higher education system, and assist the province to prepare the pian; and (c) disseminate experiences learned in implementing the .. &her education component. Program Objective Categories 14. The project has a strong poverty alleviation focus. It will be implem#'ited in 114 poor counties selected among 607 counties of the six participating provinces. Together, there are 36 million people in the 114 counties. No GNP data is available for the selected counties but income levels can be compared using the farmer's cash income per capita which gives a good indication of the extreme level of poverty in the selected counties. The average farmer's cash income ranges from 206 Yuans in the selected counties of Guizhou to 374 Yuans in the selected counties of Hunan. The average for China is 450 Yuans. Benefits 15. The primary beneficiaries of the Credit will be the children, mainly rural and poor, who will be able to attend primary school and complete their basic education with better quality and relevance. Improved basic education will lead to higher literacy and higher productivity of rural areas. The Credit will also develop the education services by improving the efficiency of selected universities, and providing the central and provincial governments with the capacity to pilot institutional reforms needed in China to expand and improve university programs. As a result of the proposed reforms, universities will be more cost-efficient and will provide better-trained professionals needed in a more dynamic labor market. Activities supported by the Credit will also supply models for the implementing of reforms in China's use of education resources, particularly in poorer areas. The project will place special emphasis on increasing girls' participation rates in primary, secondary and higher education. Risks 16. The principal risk lies in the ability of the provincial governments to manage project impiementation and to provide counterpart funds. There are a large number of provincial, municipal and local institutions involved in implementing the project and the manageria. structure in the provincial education bureaus is weak. To minimize the risk, technical assistance and training will be provided to support institution building and detailed monitoring plans will be prepared to allow rapid identification of problems and adoption of corrective measures. Careful project preparation with detailed implementation plans will also mitigate the institutional weaknesses. A second risk is the possible lack  -6- of counterpart funding ill the poorest counties. The six provinces have committed themselves to resolve this problem by providing special funds earmarked for the implementation of this project. The challenge lies in being able to target these resources to make sure they reach the poorer areas. Detailed financial plans and well-conceived monitoring instruments have been prepared to mitigate this risk. Recommed,ation 17. I am satisfied that the proposed Credit would comply with the Articles of Agreement of the Association and recommend thaz the Executive Directors approve the proposed Credit. Lewis T. Preston President By: Sven Sandstrom Attachments Washington D.C. February 12, 1992  -7- 1chedulg A CHINA EDUCATION DEVELOPMENT IN POOR PROVINCES PROJECT Estimated Costs and Financing Plan (US$ million) Estimated Costs:jj Local Foreien Total -(US$ million)------ Basic Education 111.2 18.9 130.1 Higher Education 19.4 13.8 33.2 Planning and Ma:-agement 1.6 1.4 3.0 Total Baseline Costs 132. 34.1 166.3 Physical Contingencies 9.g 2.7 12.5 Price Contingencies 22.6 3.5 26.1 Total Project Costs 164.6 40.3 204.9 Financing Plan: Local Foreign Total ------(US$ million)------ Municipal and County 37.6 0 37.8 Governments Provincial Governments 37.1 0 37.1 IDA 89.7 40.3 130.0 Total 164.6 40.3 204.9 ~/ The project-financed goods are exempt from import duties and taxes.  Sohedule B Page 1 of 2 CHIN EDUCATION DEVELOPMENT IN POOR PROVINCES PROJECT Suua_rv of Proposed Procurement and Disbursement Arrangements Procurement Method ICB LCB Other NIF Total -US$ million----------- Civil Works Primary schools 64.5 18.0 82.5 (45.7) (12.0) (57.7) Secondary schools 6.4 6.0 12.4 (2.6) (2.4) (5.0) University 19.0 19.0 (0.0) (0.0) EauiRment and Books Primary schools 27.6 27.6 (21.9) (21.9) Secondary schools 11.1 11.1 (9.0) (9.0) University and MIS 8.6 1.8 8.4 18.6 (8.0) (1.4) (7.8) (17.2) Distribution and maintenance .9 5.9 5.9 (0.4) (0.4) Furniture Primary schools 5.4 1.8 7.2 (3.9) (1.2) (5.1) Secondary schools 2.5 2.5 (1.0) (1.0) Teacher Training 10.8 10.8 (5.5) (5.5) Technical Assistance. Studies. Research 7.2 7.2 and Staff Training (7.2) (7.2) Total 8.6 119.3 58.1 19.0 205.0 (8.0) (85.5) (36.5) (0.0) (130.0) N.I.F. - Non-IDA Financed. Note: Figures in parenthesis are the respective amounts financed by IDA. Other includes: force account for civil works, local shopping for equipment, and direct contracting for furniture for rural schools.  -9- Schedule B Page 2 of 2 Disbursements Expenditures to Category Amount be_Financed (%) (US$ million) Civil Works and Furniture - Primary 56.0 70% - Secondary 4.0 40% Equipment Materials and Books 40.0 100% of foreign expenditures; 100% of local expend5.tures (ex- factory cost); and 75% of local expenditures for other items procured locally. Consultant Services, Studies and Overseas Training 7.0 100% Training of Teachers 5.0 50% Unallocated 18.0 130.0 Estimated Disbursements IDA FY 92 %3 94 95 6 97 98 ----(US$ million)----------------- Annual 7.2 9.8 20.0 30.0 25.0 25.0 13.0 Cumulative 7.2 17.0 37.0 67.0 92.0 117.0 130.0  - 10 - Schedule C CHiNA EDUCATION DEVELOPMENT IN POOR PROVINCES PROJECT Timetable of Key Project Processing Events a) Time taken to prepare the project : 12 months i) Project prepared by : Provincial Bureaus of Education in Guizhou, Hubei, Hunan, Shanxi, Shaanxi and Yunnan Provinces, with assistance from the State Education Commission and the Institute of Higher Education at the Beijing University c) First Bank Mission July/August 1990 d) Appraisal Mission Departure June 1991 e) Negotiations December 1991 f) Planned Date of Effectiveness June 1992 g) List of relevant PCRs and PPARs PCR: First University Development Project (Loan 2021-CHA and Credit 1167- CHA) September 30, 1987  - 11 - Schedule 0 Page 1 of 3 STATUS OF BANK GRWtJP OPERATIONS IN THE PEOPLE#S REPUBLIC OF CHINA A. STATEMENT OF BANK LOANS AND tOA CREDITS (As of December 31, 1991) Loan/ Amoi-at (USS mil l.ion) Credit Bor (net of canceUtatlons) Number FY rower Purpose Bank IDA Undisb. (a) Fourteen loans and seventeen credits have been fully ds bursed. 1320.94 983.9 Of which SECAL: 2967/1932 88 PRC Rural Sector Ad]. 200.0 180.0 .... .......... 1411 84 PRC PotytechniceTV University - 85.0 16.3 2382 84 PRC Lubuge Hydroelectric 141.4 - 1.0 1472 84 PRC Rural Health & Medical Edue. - 85.0 2.2 2444/1500 84 PRC Agricultural Education It 45.3 (23.5)(b) 3.3 1516 85 PRC Agricuttural Research It - 25.0 1.1 1551 85 PRC University Oevel.otent II - 145.0 12.0 2493 as PRC Power II 117.0 7.4 2501 85 PRC Changcun (Luan) Coal Mfining 79.5 - 41.0 1578 85 PRC Rural Water Supply - 80.0 0.0 2540 85 PRC Railway II 220.0 74.1 1605 85 PRC Forestry Development 47.3 7.1 2579/1606 85 PRC PiShiHang-Chaohu Area Dev. 17.0 (75.0)(b) 0.8 2580 85 PRC Weiyuan Gas Field Technical 25.0 - 4.5 Assistance 1664 86 PRC Technical Cooperation Credit II - 20.0 15.3 1671 86 PRC Provincial Universities - 120.0 11.5 2678/1680 86 PRC Third Railway 160.0 70.0 109.5 2689 86 PRC Tianjin Port 130.0 - 53.4 168' 86 PRC Freshwater Fisheries - 60.0 1.8 2706 86 PRC Beilungang Thermal Power 225.0 - 38.1 2707 86 PRC Yantan Hydroelectric 52.0 - 14.5 2723/1713 86 PRC Rural Health & Preventive Med. 15.0 65.0 43.2 1733 87 PRC Red Soils - 40.0 0.8 2775 87 PRC Shuikou Hydroelectric 140.0 - 39.4 2783/1763 87 PRC Industrial Credit IV CCIS IV) 250.0 50.0 76.6 2784 87 PRC Shanghai Machine Tools 100.0 - 30.1 1764 87 PRC Xinjiang Agricultural Dev. 7 70.0 20.4 2794/1779 87 PRC Shanghai Sewerage 45.0 100.0 94.9 2811/1792 87 PRC Beijing-Tianjin-Tanggu Expressway 25.0 125.C 55.1 2812/1793 87 PRC Gansu Provincial Dev. 20.0 150.5 93.4 1835 87 PRC Planning Support & Special Studies - 20.7 14.1 2838 87 PRC Fertilizer Rationalization 97.4 1 17.4 2852 87 PRC Wujing Thermal Power 190.0 60.4 1871 88 PRC Rural Credit III 170.0 15.3 2877/1845 88 PRC Huangpu Port 63.0 25.0 66.4 2907/1875 88 PRC Dalian Port 71.0 25.0 40.3 1885 88 PRC Northern Irrigation 103.0 49.3 2924/1887 88 PRC Coastal Lands Dev. 40.0 (60.0)(b) 24.1 1908 88 PRC Teacher Training - 50.0 11.0 2943 88 PRC Pharmaceuticals 127.0 29.1 2951/1917 88 PRC Sichuan Highway 75.0 50.0 90.6 2952 88 PRC Sheanxi Highway 50.0 16.7 1918 88 PRC Daxing An Ling Forestry - 56.9 23.3 2955 88 PRC 8eilungang It 165.0 - 43.4 2958 88 PRC Phosphate Dev. 62.7 58.8 2968 88 PRC Railway IV 200.0 1 102.8 1984 89 PRC Jiangxi Provincial Highway - 61.0 41.0 1997 89 PRC Shaanxi Agricultural Oev. - 106.0 87.5 2006 89 PRC Textbook Development - 57.0 4.2 2009 89 PRC Integrated Reg. Health - 52.0 43.7 3006 89 PRC Ningbo & Shanghai Ports 76.4 - 29.1  - 12 - Schedute 0 Page 2 of 3 Loon/ Amout (USS million) Credit Bor* (net of cancet(ations) Number pY rower Purpose Sank IDA Undisb. (a) 3007 89 PRC Xiamen Port 36.0 29.9 3022 89 PRC Tianjin Light Industry 154.0 121.1 3060/2014 89 PRC Inner Mongolia Railway 70.0 80.0 112.7 2017 89 PRC Shandong Agriculture Dev. - 109.0 50.4 3066 89 PRC Hubei Phosphate 137.0 132.5 3073/2025 89 PRC Shandong Prov. HIghway 60.0 50.0 91.t 3075 89 PRC Fifth Industrial Credit 300.0 1 t99.5 2091 90 PgC N.China Earthquake Reconstr. - 30.0 3.1 2097 90 PRC Jiangxi Agric. Oev. - 60.0 50.7 2114 90 PRC Vocational & Tech. Educ. - 50.0 39.1 2145 90 PRC National Afforestation - 300.0 270.4 2159 90 PAC Hebei Agriculturat Dev. - 150.0 118.8 2172 91 PRC Mid-Yangtze Agricultural Oev. - 64.0 55.2 3265/2t82 91 PRC Rural Credit IV 75.0 200.0 205.0 3274/2186 91 PRC Rural Indust Tech (SPARK) 50.0 64.3 111.4 3286/2201 91 PRC Medium-Sized Cities 0ev. 79.4 89.0 154.0 3288 91 PRC Shanghai Industriat Dev. 150.0 * 148.5 2210 91 PRC Key Studies Oevetopmmnt - 131.2 122.2 2219 91 PRC Liaoning Urban Infrastructure - 77.8 64.2 3316/2226 91 PRC Jiangsu Provl. Transport 100.0 53.6 136.0 2242 91 PRC Henan AgricuL. Oev. . 110.0 110.0 3337/2256 91 PRC irrig. Agricut. Intensif. 147.1 187.9 305.4 3387 92 PRC Ertan HydroeLectric 380.0 261.7 2294 92 PRC Tarim Basin tc) * 125.0 134.1 2296 92 PRC Shanghai Metro Transport - 60.0 63.5 3406 92 PRC Railways V 330.0 330.0 3412/2305 92 PRC DOguangba Multipurpose (c) 30.0 37.0 70.2 2307 92 PRC Guangdong ADP (c) - 162.C 174.0 3415/2312 92 PRC Beijing Environment (c) 45.0 80.0 130.9 2317 92 PRC Infectious and Endemic ODsease Cont.(O) - 129.6 137.1 Total 6489.1 5498.7 5670.1 of which has been repeid 408.0 0.4 Total now held by Sank and IDA 6081.2 5498.3 Amount sold: Of which repaid - Total Undisbursed 3015.1 2654.9 5670.1 (a) As credits are denominated in SoRs (since IDA Replenishment VI), undisbursed SOR credit balances are converted to dollars at the current exchange rate between the dollar and the SOR. tn some cases, therefore, the undisbursed balance indicates a doltar amount greater than the original principal credit amount expressed in doltars. (b) Credit fully disbursed. (c) Not yet effective.  - 13 - Schedule 0 Page 3 of 3 8. STATEMENT Of IFC INVESTMENTS (As of Oecember 31, 1991) Invest- Type of Loan Equity Total ment No. FY Borrower wusiness ------ CUSS Milion) . 813/2178 85/91 Guangzhou and Peugeot Automobile 15.0 4.5 19.5 974 87 China Investment Co. Investment 3.0 0.0 3.0 1020 87 Shenthen China Bicycle S.O - 5.0 Bicycles Co. Ltd. Manufacture 1066 88 Crown Etectronics 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 r=payment ard sales Total Comnitments now Meld by IfC 38.0 5.5 43.5 Total Undisbursed 0.0 * 0.0 (a) Loan subsequently cancelled. 01/10/92 EA2DR/md  U S. S R. -S'' S(OAM HEILONGANI - NlERNAlKSLt)Ul sX i;i,UK c s~~~~~~~~~~~~~o w6 0 IAO N,s This t KOREA mu vowa es Fow A. M..4 Oof 7Th.WOBMS HADN G,oTh d.om.aoifp dwd o.nf Wcdd G-,o, ~~,ssnent mo~~~~~~~~qiiw.J ~~~~~~ HENAN jfAN&u )OZANG ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~;N EDUCATION DEVELOPMENT IN POOR PROVINCES PROJECT ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ PMDJECT MCMWS~~~~~~~~~~~~~~~tN; 0 PWMNCE CAFITALS N (-,UAN(3fY)qG~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~