Colombia - Export Development Project

Document of The World Bank FOR OFFICLAL USE ONLY Report No. P-5966-CO MEMORANDUM AND RECtMENDATION OF THE PRESIDENT OF TIE INTERNATIONAL BANK FOR RECONSTRUJCTION AND DEVEILPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$50 MILLION TO TEE REPUBLIC OF COLOMBIA FOR AN EXPORT DEVELOPMENT PROJECT e MAY 5, 1993 .~~~~~~ TN f-lt; ,8 ''"'"1 ) -'s''" '-t I '---, 1, ; . t['r LA;1W This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (as at October 14, 1992) Currency Unit = Colombian Peso (Col$) USS1 = Col$ 688 ColS 1 = .00145 FISCAL YEAR OF THE GOVER.NMENT OF COLOMBIA January 1 - December 31 GLOSSARY OF ABBREVIATIONS BANCOLDEX Foreign Trade Bank CERT Indirect tax rebate DTF Average rate for 90-day time deposits EMP Economic Modemization Program FFIDUCOLDEX Export Promotion Trust Administrator GATT General Agreement on Tariffs and Trade IFC International Finance Corporation LIB Umited Intemational Bidding MFPC Ministry of Finance and Public Credit MFT Ministry of Foreign Trade OED Operations Evaluation Department OECD Organization of Economic Cooperation and Development PV Duty exemption system SOE Statement of Expenses TA Technical assistance TC Trading Company TPO Trade promotion organization VAT Value Added Tax  FOR ORMCIL USE ONLY COLQIIA EXPORT DEVELOPMENT PROJECT Loan and PUriect Summary Borrower: Republic of Colomtia Beneficbaries: (a) Private enterprises with potential or existing export sales; lb) financial institutions providing export finance services; and (c) Government agencies responsible for trade policy and administration, and capital markets development. Loan Amount: US$50 million equivalent, to be repaid in 17 years, including 5 years of grace, at the standard variable interest rate. Relendina The Republic of Colombia would pay the standard Bank commitment fee and bear the explicit risks of interest rate and foreign exchange fluctuations. Proceeds of the Bank loan would be provided by the Government to the agencies responsible as grants for implementing each technical assistance program or as capital contribution in the case of technical assistance for the export credit insurance entty. FinanchPlnan: Local jForel Total % Tota --M=S*illions. Private Enterprises 10.2 26.4 36.6 42.3 World Bank 50.0 50.0 57.7 TOTAL 1Q 282 100Q0 Rate gf Retum n.a. Staff ADaraisal ReDort: Report No. 11442-CO Mao: IBRD 18370R 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 BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO COLOMBIA FOR AN EXPORT DEVELOPMENT PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Republic of Colombia for the equivalent of US$50 million. The loan would be at the Bank's standard variable interest rate, with a maturity of 17 years, including 5 years of grace. About 43% of Project costs (US$36.6 million) would be financed by Colombian private enterprises, mainly as the 50-50 counterpart under the Export Developmert Matching Grant Program or user fees for training programs. Proceeds of the Bank loan would be provided as grants by the Govemment to the agencies responsible for implementing each technical assistance program. The value of technical assistance services provided under the project for the export credit insurance entity would be counted as part of BANCOLDEX equity contribution to it. 2. I und. The need to accelerate Colombia's export development at this juncture arisen from three basic factors. First, Colombia's production structure has remained generally stagnant for the past two decades and become inefficient behind heavy trade protection. Many policy-makers and private entrepreneurs agreed in 1990 that changing this trend in the 1990s could not rely on continued high trade protection, import substitution, and capital-driven growth. Thus, the Govemment set in motion an Economic Modemization Program (EMP) which aims through a number of initiatives, including export development, to create an intemationally competitive private sector. The liberalization of the extemal trade regime is the centerpiece of the EMP and is complemented by adjustments inter alia in the exchange and foreign investment regimes, the financial sector and transportation services. 3. Second, the process of building sustained and significant participation in intemational markets must acquire its own critical momentum so as to provide interest groups with enough of a stake to avoid a reversal to protectionist policies. Non-traditional export performance has traditionally been treated as a residual activity and has basically been driven by a relatively few domestic and international enterprises with substantal experience in business and exporting. Such enterprises nevertheless have maintained the domestic market as their primary business domain, with a relatively low overall export orientation and narrow product/export market relationships. Export sales have been partly a basic response to relative price changes though, as importantly, a more ephemeral reaction in times of weak domestic market demand conditions. Overall, Colombian producers have very limited knowledge and experience of complex export market characteristics, saleable product requirements, competitor strengths and weaknesses, marketing channel options and market penetration strategies. 4. Lastly, Colombia's extemal sector has experienced recurrent volatility In commodity export revenues. Dependence upon such exports has been maintained in the export stucture since the mid-1970s and represented over one-half of total exports in 1991. The persistent flux in export markets and macroeconomic management have together often created a highly uncertain business environment for the private sector. In particular, enterprises have had to face pronounced business cycles of relative expansion and contraction in the local market, creating production bottlenecks or excess capacity. This has been compounded by doubts about timely access to imported raw materials, spare parts and capital goods inputs. It has created marked and unpredictable shifts in profitability wih reative price changes. It has also been a deterrent to investment for both the domestic and international markets. Diversification of revenue sources, particularly from agro-business and  -2- manufacturing exports, and a more stable business environment are hoped to be derivative benefits of the export development process. 5. Notwithstanding the comprehensive policy adjustments made under the EMP, there are few indications to date that any significant work has been done to set the stage for a broad supply and export response. This lag during the early stages of trade liberalization has been observed elsewhere. Nevertheless, it remains of concern that producers have generally not undertaken essential Investments to increase intemational competitiveness and adopt more commitment to the international market. Policy and institutional adjustments are needed to accelerate the acquisition of information and experience which can provide the opportunity to a broad range of enterprises to participate in the export development process and to transmit its socio-economic benefits as widely as possible across the country. 6. Pgijegt Obetve. The v bjective of the proposed Project would be to help accelerate the export supply response under the EMP. Its role in the EMP would be to help bring about *second generation* reforms in the key areds of the Govemment trade policy and administration which constrain exporting and to promote trade promotion and finance services which facilitate increased exports. Encouraging more involvement of Colombian enterprises in the international market would contribute to economic efficiency and the durability of the fundamental policy reforms in 1991 establishing open trade, foreign exchange and foreign investment regimes. It also would help build Increased efficiency of the transportation system involving intemational trade by reducing the time and cost to enterprises of customs clearance. 7. The Project would advance the implementation of understandings between the Govemment and the Bank on financial sector reforms by ensuring that interest rates to users of export credit rediscounted by the Govemment's new Foresin Trade Bank (BANCOLDEX) reflected long-term market-determined rates, and that broad eligibility criteria and nondiscretionary administration were applied in the allocation of such credit. It would help avoid the possibility of increased Govemment intervention in local financial markets through this Bank by limiting its operation mainly to second-tier export credit rediscounting functions with extemal resources, reducing its equity capital, prohibiting the use of interest rate subsidies and mobilization of long-term resources from the domestic market, and applying minimum financial performance targets. The Project would also introduce several new export finance products into the local financial markets and address issues to promote local capital markets development. 8. Proiect Description. The Project, with an estimated total cost of US$86.6 million equivalent, would support the following areas: (a) Trade Policy and Administration - (i) advisory services to develop a transparent, automatic system to ensure that indirect tax reimbursements are commensurate with indirect taxes incurred by exporters; (ii) training, software and office support to implement the Govemment's antidumping system; and (iii) information systems development and computerization, procedural simplification, staff training and equipment upgrading to support customs reform; (b) Export Promotion Services - (i) advisory and information services to potential exporters under an Export Development Matching Grant Program for one-time support of initial advice on the export process, product market research, product adaptation and market promotion activities aimed to accelerate export development and build linkages with intemational markets providing such services; (ii) training and advisory services under twinning arrangements with overseas promotion organizations to help restructure the Colombian Government export agency, the Export Promotion Trust; and (iif) training and promotion programs to facilitate trading company development; (c) Export Finance Services - (i) adjust the capital structure of BANCOLDEX so as to help ensure a market-based return on equity and substantial private sector participation In its equity capital; (ii) training and enterprise-specific advisory services to help smaller enterprises to structure sound export financing arrangements and to support implementation of a public/private preshipment export credit guarantee  Joint venture; Oiii) training and advisory services to support startup of a public/private postshipment export credit insurance ioint venture; and (iv) advisory support for an export finance training program; and (d) Capital Markets Development - advisory services, training and associated software to make adjustments in the market regulatory framework, information and supervisory systems. 9. A breakdown of costs and the financing plan are shown in Schedule A. Procurement arrangements are shown in Schedule B and a tlmesable of key project processing events and the status of Bank Group operations in Colombia are given in Schedules C and D, respectively. A map has been included, and the Staff Appraisal Report No. 1142-CO, dated May 5, 1993 is attached. 10. Proiect Imolementati2n. Overall responsibility for Project implementation would be exercised by the Ministry of Finance and Public Credit (MFPC). It would ensure, in particular, that budgetary, prowkirement, contracting, disbursement. accounting, auditing and reporting arrangements were carried out in accordance with the Loan Agreement. Responsibility for implementation of specific technical assistance programs would rest with four organizations: the Ministry of Foreign Trade (export tax free, antidumping systems and trading companies), MFPC (customs reform and capital markets development), rIDUCOLDEX (the Administrator of the Export Promotion Trust) and BANCOLDEX (expor. finance services). The proposed technical assistance programs have bean developed jointly during extensive preparations and agreed upon with those responsible in these organizations. A strong need for and commitment to implementation of these programs has been evidenced by them and key staff members. 11. Implementation support would be required for several programs. Given the size and complexity of the customs reform program, the National Tax and Customs Service would designate stff fulltime to manage and coordinate the Program with the support of a resident international consulting technical specialist. Rrgarding the Export Development Matching Grant Program, a Matching Grant Trust would be established with the services of one manager and seven account executives to operate the program. Both preshipment export credit guarantee and postshipment export credit insurance programs are being organized with strong and experienced private sector interets and would be facilitated by international consulting services for their establishment and startup. 12. Detailed Annual Implementation Plans would be prepared by the executing organizations for each agreed technical assistance program. Agreement with the Bank on such Plans would be required prior to loan effectiveness for the remaining portion of that calendar year and by the September 30 preceding each subsequent year of implementation. Each executing organization would have responsibility for contributing to the preparation by the Borrower of a Semi-annual Project Implementation Report. The Report would describe progress against targets established in Annual Implementation Plans and include calculations of agreed Key Indicators of Project Performance. Bank staff would hold a project launch workshop in Colombia shortly after loan signing in order to review needed start-up actions and to help avoid start-up delays. Staff would supervise Project implementation through receipt and review of the Annual Implementation Plans, and monitoring of Semi-Annual Implementation Reports against such Plans, including regular supervision missions to Colombia. A mid-term review would be undertaken of BANCOLDEX to assess its performance in relation to policies and indicators agreed under the Project as well as its medium-term prospects as part of the Colombian financial sector. A similar review of the Export Promotion Trust would be undertaken to assess whether it merits continuation. Such a review would be undertaken for other Project components If and when indicated on the grounds of implementation performance. 13. MFPC would be responsible for ensuring the use of procedures agreed with the Bank for procurement of all goods and services aimed to obtain competitive quality and price and would receive assistance under the Project to do so. The Project goods and services provided are expected to include office and computer and software systems for the antidumping system, and equipment for  -4- the customs inspection of goods. In view of the specialized type of equipment required and the relatively small value of the contracts involved, such equipment would be procured either through Umited Intemational Bidding (estimated to total US$1.2 million and not likely to exceed US$250,000 per contract) or, for other items which cannot be packaged and are estimated to cost less than US$25,000 per contract, through local or international shopping (estimated to total US$0.8 million). Standard documents would be expected to be used for LIB procurement and the Bank would have prior review of all procurement documents and decisions for contracts to be awarded under LiB. The selection and hiring of consultants would be done according to Bark guidelines, with prior Bank rev.ew of documentation required for contracts estimated to exceed US$25,000. 14. The closing datc for loan disbursements would be December 31, 1999. The Bank loan would be disbursed against 100% of FIDUCOLDEX disbursements for qualifying expenditure under the Export Development Matching Grant Program (excluding program management), and 50% of qualifying expenditure for export finance training program (excluding program management support) a.d trading company development program (visit component). The loan would also be disbursed against 100% of foreign and 80% of local expenditures for goods and 100% of all other qualifying expenditures of all other TA program. A provision for retroactive financing of US$5 million as from December 15,1992 would be included to account for the nesd to accelerate the implementation of the Project. MFPC would submit to the Bank a monthly statement of transactions of the Special Account. Withdrawals from the loan account would be made on the bei of statements of expenditures (SOE) for contrac.s below US$50,000. Detailed documentation for each technical assistance activity would be maintained for Bank services upon request 15. Lessons Leamed from Previots Bank Involvement. Recent Bank-wide analyses by the Operations Evaluation Department (OED) on trade policy reforms reflect support for export development in 35 trade adjustment loans. These assessments concluded that adjusting countries that have placed an equal emphasis on export as well as import policy changes have reduced adjustment costs associated with lost output and unemployment in inefficient industries through the early shift in resources to export industries. Of equal importance, other analyses indicate the need to provide policy and institutional support to an incipient export drive so as to achieve a critical momentum that confers on interest groups sufficient political power to avoid strong advocacy of policies to reinstate protectionism. Good performance also requires that reforms go beyond the legal aspects of regulatory reforms to management and operating issues based upon sufficient analytical depth. In the case of Colombia, for example, the Trade Policy and Export Diversification Project (FY85) inter alia did reduce the dispersion of indirect tax rebates (CERTs), simplified the criteria for eligibility in the duty exemption system (PV) and provided for automatic import licenses for production inputs needed by exporters. However, the Project failed to achieve essential increases in the operating efficiency and coverage of PV, and did not address the inconsistent, unpredictable administration by the Government of CERTs which has directed subsidies to selected exporters. 16. The Bank's export promotion measures have consisted mainly of providing technical assistance to or through public trade promotion organizations (TPOs) in at least 23 lending operations in 18 countries since 1979. While quantification and causality are very difficult to establish, careful Bank-sponsored assessments have concluded that lasting results in the form of incremental exports were rarely evident. TPOs have infrequently proven capable even with technical assistance of effecively providing enterprise-level support services and have experienced difficulty in becoming well established given considerable leadership turnover with changes in political administration and inexperienced staff. Such evaluations have further shown that TPOs have generally operated In a policy environment favoring import substitution, did not address the highly individualistic needs of exporters (particularly In regard to the most difficult tasks of adaptation of products for extemal markets and Improving supply capabilities), were unclear or unrealistic in their objectives, and were Ineffective in Influencing public policy towards exports.  - 5 - 17. Mechanisms should be employed with clear and direct supp .rt to the generation of exports by producers. Paticularly with the broad access to market information offered by current technology, reliance on a single, centralized source of support services which frequently impose government promotion programs on exporters is no longer appropriate. Promotion entities shoulk rather be organized as joint or wholly private promotion organizations which are fully responsive to exporters priority needs, and provide services which are not otherwise available in the marketplace, mainly involving newer and smaller scale exporters. Service delivery should rely more on expanding access to commercial service suppliers generally found overseas. Financially, increased stress needs to be placed on cost recovery as a central indicator d.f value of export promotion. Specific time-bound projects in partnership with private enterprise through matching grant schemes slhould also be er.,ployed as temporary mechanisms to overcome market failures. Finally, it should be recognized that promotion efforts will not be effective on their own, but only when accompanied by a supportive neutral policy environment and other export support instruments. 18. Rationale for Bank lnvolt'ement. The Bank's Country Assistance Strategy (CAS) calls for help to consoldiate and deeper. Colombia's structural reforms, support private-sector-led growth, ensure the efficient provision of infrastructure and utility services, improve the delivery of basic services to the poor, and to improve environmental management. Bank assistance in recent years to facilitate structural reform and private sector development has comprised a PR ank loan of US$300 million approved in FY91 to support broad-based public sector regulatory and enterprise reforms, and a US$200 million loan approved in the same year to facilitate industrial restructuring and development. Another loan for US$100 million was approved in FY92 to facilitate the reorganization of Colombia's industrial development bank. IFC's operations for Colombia involve a significant project pipeline, including coal and gas pipeline/distribution projects, assistance to the large Colombian industrial groups for major physical plant restructuring, privatization and support for a limited number of individual export-oriented projects with demonstration effects. 19. The proposed Project is an integral part of the CAS. It would bring cross-country experience into designing support for the export development process in Colombia. It would encourage and see through private exporter enterprise involvement in the design and operation of export promotion and financial service institutions. It would also help to ensure that the establishing policies of the Govemment's Foreign Trade Bank are consistent with its financial sector policy framework. In the future, furthei efforts will be required to help build and sustain enterprise capacity to achieve intemational competitiveness and to finance related investments. Particular attention needs to be given to reforming Colombia's outdated technology regime and to stimulating a larger long-term debt and equities market in the local financial sector. Additional projects are therefore in the pipeline to facilitate regulatory reform of capital markets and increase Colombia's technological capacity. 20. Agreements. The main agreements reached under the Project are as follows: (a) Export Tax Free System - from January 1, 1994, indirect tax rebate payments would not exceed actual indirect taxes incurred; (b) Antidumping - maintenance of Decree 150 of January 25, 1993 adopted by the Government to make national antidumping regulations consistent with GATT with respect inter alia to methodology and timetable for dumping margin calculations and injury investigation, duty assessment and collection systems, and sunset provisions; (c) Customs Reform Program - a detailed technical assistance program to reduce the time and cost to private enterprise of Customs import and export procedures, to improve control over fraudulent practices and contraband, and to increase Govemment revenue yields from trade duties. Also, adoption and utilization of a system along the lines of the GATr valuation code for imports and complete phaseout of the current official and reference pricing system as from January 1, 1995; (d) Export Development Matching Grant Program - a detailed Statement of Policies and Operating Procedures for the Export Development Matching Grant Program. As a condition of loan effectiveness, an agreement between the Borrower and FIDUCOLDEX establishing the Matching Grant Trust and adoption by the Trustees of the Trust of its statement of  -6 - operating policies and procedures satisfactory to the Bank and the hiring of the manager and account executive to implement the program. Also, maintenance of operation of the Program in conformity with this Staterment; (s) Restructuring of Promotion Services - maintenance of three seats, representing the majority, on the Board of Directors of the Export Promotion Trust and cost recovery from any program services provided by the Trust or FIDUCOLDEX of at least 50% of cost, excepting at least 20% for trade fairs and missions; under this project component (other than the Matching Grant Program), the entering into the required contractual arrangements satisfactory to the Bank by FIDUCOLDEX/Export Promotion Trust for the provision of the services under this Project component (other than the Matching Grant Program) as a condition of first disbursement; (f) Trading Company Deraguiation - maintenance of Decree 1728 of October 26, 1992 eliminating inter alia barriers to market entry for trading companies; (g) BANCOLDEX Restructuring - li) an annual rate of return in real terms on BANCOLDEX average total assets of 1 % and, once BANCOLDEX capital is adjusted, a return on total average equity capital of at least the real average vslue of the DTF (the 90-day time deposit rate in the banking system); (ii) the provision of credit only as a second-tier institution for export credit rediscounting, except in the case of findncing provided directly to overseas buyers for the purchase of Colombian exports; {iii) export credit rediscounting policies providing for eligibility of all enterprises in ali non-traditional export sectors and automatic rediscounting of individual export credits approved by first-tier financial intermediaries under BANCOLDEX portfolio risk diversification criteria for such intermediaries; (iv) interest charges to first-tier banking institutions for rediscounting export credit containing no subsidy element or, in the case of financing of overseas buyers, of at least the rates specified under the OECD Consensus; (v) elimination by BANCOLDEX of the ceiling on interest rates to users of long-term export credit rediscounts and increase in the short-term export credit ceiling from DTF+4 to DTF+6 from July 1, 1994 and non-reduction of the DTF+4 ceiling in the interim period; (vi) agreement on terms of adjustments and completion of the agreed adjustments to be made to BANCOLDEX' capital level and structure by December 31, 1993, and completion of implementation of adjustments by July 1, 1994 or a later date if so agreed by the Bank; and (vii) mobilization of resources, by BANCOLDEX from the domestic credit market only as short-term indebtedness and not to exceed 10% of total BANCOLDEX liabilities at any one time; and (h) Project Implementation - preparation of initial Annual Implementation Plans for all project components as a condition of loan effectiveness and such Plans by September 30 preceding each subsequent year of implementation. 21. Proiect Benefits and Risks. The proposed Project would help to accelerate the export development process during the early stdges of trade liberalization in Colombia. It would, In particular, streamline trade administration mechanisms and ensure GATT-consistency. It would help existing and potential exporters to better assess export markets, adapt products and build export market share. It would also help to build export finance capacity, and begin to stimulate local capital markets and increase the access of enterprises to such financing. For increased exports to materialize with this support will require a continuation of the relative stability in the macro-economic environment which is characteristic of Colombia, maintenance of the basic business environment established under the EMP, and reasonably favorable growth and access conditions in major international markets. 22. The main Project implementation risks involves delays due to Govemment administrative, budgetary and contracting procedures. To mitigate these risks, the detailed design of each technical assistance program of the Project has been completed and agreed upon prior to implementation. There is also substantial commitment of public authorities to Project execution and the full involvement of private sector interests in each program through ownership, management and/or service cost-sharing.  .7- 23. Rgommendation. 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. May 5, 1993  -8- SCHEDULE A COLOMBIA: Exoort Develooment Proiect Estimated Proaect Costs and Flnanc!ng plan (in US$,' million) IQ-CAL FOREiGN IQIAL Trade Poligy & Administration Duty Tax Free Export System 0.20 0.20 Antidumping -- 0.30 0.30 Customs 1.20 4.20 6.40 Exoort Promotion Services g Matching Grant Program 8.00 68.00 76.00 Promotion Services Restructuring 0.10 0.40 0.50 Trading Companies 0.10 0.30 0.40 EXDort Finance Services BANCOLDEX Capital Structure 0.05 0.30 0.35 Trade Finance Training Program 0.15 0.65 0.80 Preshipment Export Guarantee 0.10 0.15 0.25 Postshipment Export Credit 0.10 0.30 0.40 Caoital Markets 0.40 1.60 2.00 TOTAL 10.20 76.40 86.60 Finaricina Plan Private Enterprise 10.20 26.40 36.60 World Bank - 50.00 50.00 TOTAL 10.20 76.40 86.60  -9- SCHEDULE B COLOMBIA: Export Develoement Project Procurement Arrangements CUSS milhion) Proiec Element ICR LCB Other Total Antidumping office and computer 0.11/ 0.1 equipment (0.1) (0.1) Customs inspection, office and computer 2.0b/ 2.0 equipment (2.0) (2.0) Consulting Services 83.0f/ 83.0 (46.9) (46.9) Tnaning Services 1.5dI 1.5 ri.o (1.0 TOTAL 86.6 86.6 A50.0) (50.0) a/ Of which US$0.08 is expected to be procured under Limited Interational Bidding. k/ Of which US$1.2 million is expected to be procred under Limited fnternational Bidding. gL According to Bank guidelines. 4/ Of which US$0.3 million is expected to be for fellowships. NOTE: Figures in parentheses indicate Bank financing.  -10- SCHEULDL C COLOMI4 : ExRt Development Project Tnmetable of Proiect's Key Processing evei4s Time taken to prepas the project May 1991 - May 1992 (12 months) First Bank mission April 1991 Apprisal muson departe June 22, 1992 Negotiations April 30, 1993 Planned date of effectiveness Septerer 30, 1993 L aNO Psojec PCR Dat RorNo. 2677-CO Colombia Trade Policy April 26, 1991 9528 & Bxp. Dev. Proj.  Schedule D A. STATEMENT OF BANK LOANS & IDA CREDITS IN COLOMBIA (as of March 30,1993) Amount (less Ln/Cr Fiscal cancellatfons) Undis- Number Year Borrower Purpose Bank IDA bursed 113 Loans and one IDA Credit fully disbursed 4,822.51 23.48 2449 1984 EPM Rio Grande Multipurp 164.50 29.48 2470 1985 EMC Cucuta Water/Sew 18.50 6.61 2512 1985 EAAB Bogota Water IV 129.00 24.12 2611 1986 Colombia Public Health 17.55 1.40 2634 1986 EEEB Bqgota Dist It 131.11 23.03 2667 1986 HIMAT lrrt;aton II 114.00 52.93 2668 1986 Cavednales Rura Transport 62.00 0.34 2829 1987 Fondo Vial 2rwd Ntl Hwy Sector 180.30 3.03 2909 1988 CaJa Agrauia Caja Agrarla 15.00 8.58 2961 1988 BCH WS&Waste Sector 150.00 112.87 3010 1989 Colombia Ed Sector 100.00 58.07 3025 1989 B. de la Rep. 5t Sm Med Entp 80.00 4.92 3113 1990 Colombia Sm-Scale Irrig 78.20 74.58 3157 1990 Fondo Vial Rural Rds Sector II 55.00 32.21 3201 1990 Colombia Comm Child Care & Nu 24.00 18.09 3250 1991 Colombia Rural Dev Invest 75.00 54.84 3278 (5) 1991 Colombia Public Sector Reform 304.00 101.85 3321 1991 Colombia Indust Restruct 200.00 200.00 3336 1991 Colombia Munic Devt 60.00 45.58 3449 1992 Colombia IFI-Restrc.&Divst 100.00 100.00 3453 1992 Colombia Third National Roads 266.00 26C.00 3575 1993 Colombia Agricultural Credit 250.00 250.00 2,574.16 1,468.53 TOTAL 7,396.67 23.48 Of which repaid 3,361.08 10.41 Total held by Bank & IDA 4,035.59 13.07 Amount sold 50.99 Of which repaid 50.99 Totl undisbursed 1,468.53 B. STATEMENT OF IFC INVESTMENTS (as of March 31,1993) Loan Equity Total (in Millions of US Dolars) Tota Gross Commitments 394.43 63.90 458.33 Less canellations, terminatons, exchange adjustments, repayments, wrieoffs, and sales 258.55 36.11 294.66 Total Commitments now held by IFC 135.88 27.78 163.66 Totl Undisbured IFC 21.13 11.16 32.29  t MAAP SECTION  IBRD 18370R iv M . - COLOMBIA VENEZUELA 2 ATLANTI d I A~~~BAI *n.#wE a~vMM.d'w The I% wtfl.IW.eIV zS^tO