Madagascar - Cyclone Emergency Rehabilitation Project (Vol. 1 of 2) : Main report

-~~~~Z -z - & ;7A -/t Doczuem of The World Bank FMR OMRCZL USE ONLY Repurt No P-6323-MG EtMORANDUM AND RECOMMEATION OF THE PRESIDEIT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EIECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 9.3 MILLION TO THE REPUBLIC OF MADAGASCAR FOR A CYCLONE EMERGENCY REHABILITATION PROJECT MAY 17, 1994 MICROGRAPHIICS -Report No: P- 6323 MG Type: MOP This document bas a restricted distibution and may be used by recipies only In the performance of their official duties. Its contents may not othewise be dicosed without World Bank authrization.  CURRENCY EOUIVALENTS (April 1994) Curency Unit Malagasy Franc (FMG) US$ 1.00 = FMG 1,840 FMG 1,000 = US$ 0.5435 SDR 1.00 = US$ 1.4123 WEIGHlTS AND MEASURES Metric System MALAGASY FISCAL YEAR January 1- December 31 ABBREVIATIONS AND) ACRONYMS AHC Ad Hoc Committee CFD Caisse Franvaise de D6veloppement CNC National Coordination Committee CNS National Relief Council CPPR Country Portfolio Performance Review CRP Cyclone Rehabilitation Project EAP Environmental Action Plan EDF European De, elopment Fund PAO Food and Agriculture Organization Faritany Province GDP Gross Domestic Product GNP Gross National Product GOM Goverment of Madagascar MADR Ministry of State r Agriculture and Rural Development MAT Miuistiy of National and RegionDal Development MEN Ministry of National Educaton MFB Ministry of Finance and Budget MS Ministry of Health MTM Miistry of Transport and Meteorology MTP Ministry of Public Works ONE National Environment Office PIP Public Investment Program PNER National Road Maintenance Program PPF Project Preparation Facility RN National Road SOLIMA Malagasy oil company TCE Antananarivo-East coast railway UNDP United Nation Development Program UNICEF United Nation Children's Fund WFP World Food Program  FOR OFFICIAL USE ONLY MADAGASCAR CYCLONE EMERGENCY REHABELITATION PROJECT Credit and Project Summary Borrower: Republic of Madagascar Benefciaries: Ministry of Public Works; Minitrv of National and Regional Development; Ministry of State for Agriculture and Rural Development. Creit Amoumt: SDR 9.3 million (US$13.1 million equivalent) Program Cost: US$28.8 million equivalent - Terms: Standard IDA terms, with 40 years maturity Projed finafng Pl. (US$ million) Amomt Percent IDA 1megenc Credit 13.1 45 Ongoing D)A CredW'. 9.7 34 Governmei3t of Madegaww 6.0 21 Total 28.8 100 Povety category PF Economdc Rate of Retnn: N/A Map: IBRD No 25672 ILES _ has a lesicted and may be used by reciet ol in tdeo p _ u olicial doom Ils cntezs may DO at od be diesead widbou Wodd Ba1 auitbm  MEMORANDUM AND RECOMMENATION OF TE PESIDENT OF THE INTERIONAL-DEVELOPMENT ASSOCATION TO TEE EXECUllV DIRECTORS ON A PROPOSED CREDIT OF SDR 93 MILI^ON TO THE REPBLIC OF MADAGASCAR FOR A CYCLONE EAMERGEANCY REABILTATION PROIECT 1. I submit for your approval the following meraorandum and ronon a proposed credt ir an amoun equivalent to SDR 9.3 million to the Republic of Madasar to help finance a cyclone emergency rehabilitation project. The credt would be on sandard IDA tem, with 40 years maty. 2. Backgrond. Madagascar succsly completed a two-year polical transition to democradc rle in 1993. A new president was elected in February 1993, parliametary elections were held in June, and a ne government was formed in August. The political environment in Mdagascar is complex, however, and the country is going twough a period of political apprenticeshi. 3. On January 13-17 and February 2-4, 1994, Madagar was stuck by two cyclones (Daisy and Geralda). Exceptional ranfall (2.5 dmes the average for the heavy rainfall month of Janary) and winds (up to 250 km/h) caused extensive damage w the eastern province of Toamasina and the central highlands area aound Antananarivo, the capital. About 60 people were reported killed and more than 60,000 left homeless in the capital alone. The donor communty provided immediate relief and helped the govemment restore basic services. A Bank mission arrived in Madagscar on Febnuy 13, 1994, and prepared, in cooperation with the G(vemment, a rebabilitation program to be financed by funds reallocated from ongoing credi and the emergency credit r ed in this report. The proposed emergency credit is needed to finance reconstuction of critical assets not covered by other donors or by funds from ongoing credits. 4. Madagsa is hit by cyclones of varying intensity every year. In 1984 and 1986, two cyclones (Kamisy and Honorine) inflicted major damage on the country. The Bank extended an emergency credit and a spplemenal credit (respectively approved in October 1984 and August 1986) to help rebuild major infrastructure, including the port of Toamasina, which handles about 90% of the country's external trade. the advance warning system whose development was assisted by the first s on project functioned well and helped limit casualties in the 1994 cyclones. The constuction standards now applied for public buildings also proved adequate to limit losses. The port withsood the recent cyclones without structur damage, and only needs minor repairs to warehouse. However, the coastine outside the port was heavily eroded, destroying sections of access roads to the port and threati the hib school of Toamasin. More importantly, the Toamasina-Anumnanivo coridor, the critical link bclween the port and the capital city, including a road and a railway, has been badly damaged. The degradation of watrsheds in the corridor area has considerably increased water nmoff and, comined with a gged topography, file soi stuture, and oultdated rail and drahage work designs, has conrbut to heavy damage. Traffic has been temporily re- established on the road, but the railway is out of commission for an extended period of tine. The cyclones also klocked out power generation and distrniuon facilities in Toamasina, and only mmum_ semvce has been restored. Major irriged areas in the Lake Alaotra region, and the Annaivo plain, which are among the largest producers of rice, Madagascar's main staple, have been flooded. In the coastal Brickaville area, south of Toamasina, farmers suffred major damage to their tree crop plantations. Schools, health centers and other public buildings also need urgent rehabiLitation in several areas. Overall, total damge to public assets amounts to about US$45 million, witout countg _subal indect costs resulting from the cownmic disruption. 5. Project Objecives. Complemnted by reallocated fimds from ongoing credits, the proposed rhlition credt would help rebuild faculties damaged by the 1994 cyclones and srengthen mees to  -2 - m_imize poteial damage from future cyclones. The overall rblitaton progrm of which this project is a part, was designed in close coordination with the donor community. The IDA financed components wer selected on the basis of: (a) their economic and social priority as assessed by the Government and the Bank; (b) the necessity to ensure rapid restoration and operation of sets; (c) the absence of other financing; and (d) the feasibility of prmpt rontuction. 6. Program and Project Descipton and nandg. Tne preliminary estima of the total IDA finnced program cost is US$28.8 million (see schedule A). Fancial sources include funds under eight ongoing crdis, amoundng to US$9.7 million, that would be applied towards urgent rehabiifton in accordance with the resr--tive project objectives, as follows: (a) the Ports Project (Cr. 1752-MAG, FY1987) would finnce a study for the coastal defense of 1 iinasina (US$75,000) and the rehabilition of port superstructure (US$08 million); (b) the Seventh Highway Project (Cr. 1905-MAG, FY1988) would contribte US$0.3 million to finae the final design study of the rehabilitation of throe major roads; (c) the Economic Management and Social Action Project (Cr. 1967-MAG, FY1989) would finalce the sudies for rehabilitation of public buidings (US$30,000), labor-intensive works on the road network (US$0.34 million), and rebabilition of agricultural producton in the Brickaville area (US$0.3 million); (d) the Education Sector Reinforcement Project (Cr. 2094-MAG, FY1990) would finance a study and works for rebabilitation of sdcools (US$3.0 million); (e) the Antananaivo Plain Development Project (Cr. 2117-MAG, FY1990) would finan reconstuction of damaged dikes in the Antananivo plain area (US$0.3 million); (f) the Health Sector Improvement Project (Cr. 2251-MAG, FY1991) would finance sufdies, works and supervision of works for rehabilitation of health centers (US$2.0 million); (g) a supplementl PPF advance (PPF 800-1) of US$0.4 million under the recently approved Annarivo Urban Works Project (Cr. 2591-MAG, FY1994) would finance urgent street rehabilitation in the capital; and finally (h) the Second Irgation Rehabilitation Project negoated on April 15, 1994 would include rehabilitation of irrigation schme in the area affected by the cyclones (US$2.0 million). No major amendments are needed to the respective Credit Agrements, and the reallocation of fimds is under way. I - 7. An IMA Emergency Recovery Credit of SDR 9.3 million (US$13.1 million equivalent) is proposed to fnance reconstrution of critical assets which lack alterative funding. The project would cover: (i) rehabilitation of critical roads affected by the cyclones, including the eastern section of the corridor (RN2) between the major port and the capital city, the chromite transport road (RN33), and the major road of the cenal highland area (RN7); (ii) repairs to public buildings and administratve offices; (iii) consuction of a coastl defense in Toamasina; (iv) strengthening of the National Coordination Comnmittee (CNC), established in 1984 on a permanent basis to coordinate emergency recovery assistance, and chaired by the Ministry of Finance and Budget (MFB); and (v) a watershed protection and risk management study for -e Toanasina- Antananarivo corridor to help the Government address soil erosion issues in transport infructur design and mateance. Executng agencies have already initiated final design stAdies. 8. Oher Donors' Cotbutions. Many donors including bilaterals, UNDP, WEP and UNICEF, have provided timely emergency relief aid. Donors are making important contnbutions to the recovery program which do not overlap with the proposed rebabilitation project. The European Development Fund (EDF) has indicated interest in financing urgently needed road works under the 1994 National Road Manenance Program, for an amount of about US$ 0.8 million, and in increasing its current contribution by about US$8.9 million to rhabilitate other roads not included in the proposed program. The Swiss Cooperation Agency is committed to finance part of the rehabilitation of the western section of the Anonanarivo-Toamasina road (US$1.5 million). The Caisse Fnnie de D6veloppement (CFD) would finance the repair of power lines and power plants in Toamasina (about US$0.5 million) as well as an economic study on modal transport options in the Toamasina-An vo coridor. The result of this study will be used to define medium term investment needs, according to viabili.y, including possibly railway rehabilitation. A rehabilitation program of the agriculual sector has been prepared by a Food and Agriculture Orgaization mission (PAO) to be subItted to the donor community.  -3- 9. !roject lm n. I nionarrangements for the proposed project would be similar to those under the first Cyclone Rehabilitation Project (CRP) which was successfu1ly completed with fnamcing from the Credit 1526-0-MAG-(FY1985) and supplemental Credit 1526-1-MAG (FY1987). The proposed inpIemeentation schedule, too, replicates the calendar for execution of the first CRP. The CNC, created in the MFB as a condition of Credit 1526-0-MAG, would supervise implementation of the emergency project. Rehabilitation of facilities under ongoig projects has already been initiated by the relevant executing agencies. An emergency unit has bee established under the direct responsibility of the Ministry of Public Works (MTP) to implement road rehabilitation and coast defense works. The unit has the capacity to carry out its tasks with the support of a French-fianced technical assistant already in place. Another emergency unit has been created under the responsibility of the Miistry of National and Regional Development (MAT) to supervise the reconstruction of public buildings other than schools and health centers. MAT has demonstrated its ability to carry out urgent works during the start-up of the IDA-financed Antananarivo Urban Works Project (approved in March 1994). A senior implementation specialist, to be assigned to the Bank Resident Mission in Antananarivo as of July 1, 1994, would be responsible for on-going Bank supervision of the proposed rehabilitation project to be unplemented over 2.5 years. Specific monitoring indicators were agreed upon during negotiations. 10. Project tab . The proposed project would reinforce the use of technical specifications cntly adopted in Madagascar for low-ost cyclone-resistant constuction, as defined under the first CRP (OED Report SecM92-763 of June 8, 1992). A flood warning system, to complement the advance cyclone warning system, is being implemented under the Antananrivo Plain Development Project with CFD inancing. The project would further help the counuty by supporting the development of enviromental risk management to improve the formulation of investment projects and to introduce a preventive posure in the maintnance of infiasucture according to the immnence and gravity of potential erosion damage. 11. Lessons learned from Previous IDA Involvement. The first CR? demonsaed that the main ingredients for success were: (a) surong political support from the government, manifested by the strong coordinating unit placed direcdy under the responsibility of the Minister of Finance and Budget; (b) agreement, between the Governmn and the financiers, or the reconstrction strategy; and (c) a simplification of cmbersm procurement pocedures in Madagascar, with a specific timetable for strea8ining the necessary steps, permitting efficiency, tnsarency and accountability. The Government's swift and efficient response to the recent disaster already demonstrates its political support for the recovery effort. The proposed project incorporates the lessons learned, especially those concerning implenon. 12. Rationae for IDA Imvolvement. The proposed project is fully consistent with the Country Assistance Suategy (CAS) which was discussed by the Board on May 18, 1992. The Bank's over-arching objectives in Madagascar are to help promote sustained export-led growth with equity, reduce poverty and protect the environment. The proposed project fits well with the cuntry strategy, and is in line with IDA's mission in emergency recovery assistance, of restoring producivity and promoting disaster prevention and mitigation. Thus the prposed project would: (a) restore to normal levels the supply of primary necessities in the capital dy and highlands, by urgeny rehabilitating major roads (prices of food and fuel skyrocketed in the aftermath of the cyclones, creating economic disorder and hardship especially among the poor population, and although basic supplies soon resumed to the capital, the situation has not reurned to normal). Besides, the disruption of traffic flows requires correction of long term damage to transport corridor as well as of pavement; (b) allow resumption of social services before the disruption affects their quality and cost, thus protecting the welfare of the population and contributing to poverty alleviation, by undertakng prompt repairs to schools and health centers; and (c) have a positive impact on the enironment by managig watersheds to reduce erosion and vulneability of transport infrastructure.  -4 - 13. Issues and Acdons. The project would include measures to ensure that appropriate building standards are applied in accordance with those established under the first CRP. The Government would adjust the existng public investment program (PIP) to accommodate the reconstruction project and avoid overburdening execution and financing capacity. The Government and IDA would agree on eligibility criteria to be applied for the selecon of administrative buildings to be rehabilitated, as a condition of disburment for these buildings. Agreement on the use of streamlined procurement procedures, established for the first CRP on the government side, has been confirmed during negotiations. 14. Euvhr=nent Aspects. Because this emergency recovery project needs to be processed rapidly and seeks to restore existing facilities, it would not require an Enviromental Assessment (EA). However, the project will seek to detennine and correct inappropriate enviromnental practices which contributed to exacerbate the emergency. The project's impact on the environment is expected to be positive, in terms of erosion control, coastal defense and slope stabilization. Further, the project is expected to develop appropriate methods to protect the urmediaze environment of transport infrastructure and make adequate provision for the inclusion of envitonmentally-safe procedures in all relevant civil works contract. 15. Project Benefts. The reconstruction of infrstructure which has been destroyed or damaged by the cyclones is urgently needed to restore economic activity and reduce hardship to the population. The rebabilitation works financed under this project would be designed to reduce the vulnerability of ifrsuue and buildings, and mirimize damage in future cyclones. The studies financed will contnbute to the development of policies for systematically reducing risks in the design, construction and maintenance of major public infrastructnre, especially roads. 16. Project Risk. The main risk is delay in the procurement process. This iisk is being mitigated by attention to project size and scope, the use of experienced institutions and streamlined procurement procedures, and close monitoring and supervision through the Bank's decentralized supervision arrngements. 17. R n on. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve it. Lewis T. Preston President Washington, D.C. May 17, 1994  REPUBLIC OF MADAGASCAR S A Page 1 of 1 CYCLONE EMERGENCY REHABLITATION PROJECT 1. ESTIMATED COSTS' COMPONENTS FMQ mion USS min % % of ocal fotign total local foriin. total fore ot Road rebablttion 6,386 12,417 18,803 3.5 6.7 10.2 66 36 Buildig r loan 5,770 3,915 9,686 3.1 2.1 513 40) 18 Coastll defense of Toansin 661 1,022 1,684 0.4 0.6 0.9 61 3 Rehabifmlion of Toamasina port 813 696 1,509 0.4 0.4 0.8 46 3 Renbilin of streets in Antananarivo - 589 0 589 0.3 0.0 0.3 0 1 Rebabilutation of dikes in Antananarivo plai 162 243 405 0.1 0.1 0.2 60 1 Agdiutura rbabilitaiion 1,816 1,841 3,657 1.0 1.0 2.0 So 7 Watershed protection and tisk management study 92 828 920 0.1 0.5 O.S 90 2 Stfrngteig of CNC 8 75 83 0.0 0.0 0.0 90 0 Total baseline costs I/ 16,298 21,036 37,334 8.9 11.4 20.3 56 71 Physical contingenies 1,887 2,709 4,596 1.0 1.5 2.5 59 9 Price c_encies 2,236 881 3,117 1.2 0.5 1.7 28 6 Taxes 7,883 7,883 4.3 4.3 0 iS Total progrm cost 28,304 24,626 52,930 1I.4 13.4 28.8 47 100 i/ Taxes on locally procured goods (mainly cenent, fuel and sheet iron) estmted at 8% of local costs have been incuded in the esimte. They amount to FMGI,634 million (US$0.9 million) 2. FNANCING PLAN (US$ million)' loca foreign tota Emergency project ---- US$ milion Proposed IDA credit 3.9 9.2 13.1 Government 1/ 3.4 0.0 3.4 sub-total 7.3 9.2 16.5 Other IDA fnanced projects Seventh Highway Project (Cr. 1905-MAG) 0.0 0.2 0.3 Economic Management and Social Action Project (Cr. 1967-MAG) 0.8 0.1 0.8 Educaion Sector Reinforcement Project (Cr. 2094-MAG) 1.7 1.3 3.0 Health Sector Improvement Project (Cr. 2251-MAG) 1.1 0.9 2.0 Ports Project (Cr. 1752-MAG) 0.4 0.5 0.9 Antananarivo Plain Development Project (Cr. 2117-MAG) 0.1 0.2 0.3 Antananarivo Urban Works Project (Cr. 2591-MAG) 21 0.4 0.0 0.4 Second Irigation Rehabilitation Project 3/ 1.0 1.1 2.0 sub-ta 5.5 4.2 9.7 Government 1l 2.6 0.0 2.6 sub-ttal 8.1 4.2 12.3 Total program costs 15.4 13.4 28.8 1/ including taxes 2/ project approved on March 29, 1994 31 prQject negoated on April 15, 1994 'Figures may not add due to rounding  Schedle B Page I of I REPIUBLC OF MADAGASCAR CYCLONE EMERGENCY EHABILITATION PROJECT 1. SUMMARY OF PROPOSED PROCUREMENT ARRANGEMENTS UNDER THE EIMGENCY CRIDIT (US$ million)l CATEGORIES ICB LCB Other Total costs 1/ Civil works 2/ 12.9 1.9 - 14.8 (10.2) (1.4) - (11.7) Equipment 2/ 0.1 0.1 (0.1) (0.1) Conlting services 21 - - 1.6 1.6 - - (1.3) (1.3) TOTAL 21 12.9 1.9 1.6 16.5 - aQ~~~~~~~~~~(02J (1.4) (1.4) 31 1/ Cost figures include taxes and contingencies 2/ Figures in parentheses represent Credit fnncing 2. DISBURSEMENT SCHEDULE (IJS$ million)' IDA fiscal year IDA emergency credit 1995 1996 1997 Annual 5.8 2.9 0.4 Cumulative 9.8 12.7 13.1 Ongoing projects Annual 9.7 0.0 0.0 Cumulative 9.7 9.7 9,7 Total project Annual 19.5 2.9 0.4 Cumulative 19.5 22.4 22.8 'Figues may not add due to romding  schedule C Page 1 of 1 REPUBLIC OF MADAGASCAR CYCLONE EMERGENCY REHABILITATION PROGRAM TIMETABLE OF KEY PROCESSiNG EVENTS (a) Request received from government: February 6, 1994 (b) Identification/Preparation mission: February 13 to 25, 1994 (c) Appraisal/Negotiation mission departure: April 11, 1994 (d) Board Presentation: June 9, 1994 (e) Planned date of Effectiveness: July 15, 1994  Schedule D Page I of 5 REPUBLIC OF MADAGSCAAR CYCLONE EMERGENCY REHABILITATION PROGRAM Note on projects with signiflcant disbsement lag 1. Mo.t projects with IDA financing in Madagascar have suffered from slow disbursements due partly to geneic problems, including: (a) lack of counterpart finds; (b) difficulties for project manaers to access IDA funds deposited in special accounts opened by the Central Bank and operated by signatories in the Treasury; and (c) cumbersome public procurement procedures due to repeated reviews by central agencies. The situation worsened in July 1991 with the onset of political turmoil. Large scale demonstrations and strikes parlyzed public adminisraon and severely disrupted econonic activity. The country has now completed a process of political transition (new govermment in place since late August 1993). Project implementation has continued to be slow during the two-year transition. The generic problems noted above have affected all projects, in addition to other project-specific '..tors causing delays. The following projects have the most significant disbursement lags: Accountin and Management Traiing Project (Cr. 1661-MAG). Even theugh the project has attained most of its goals, disbursements are low, with larger than anticipated co-financing through grants fiom Canada and France. Agreement has been reached on possible uses for some of the remaining funds, and a litde more than US$1 million has been cancelled. Forest Management (Cr. 1878-MAG). Implementation of this project has been delayed by a wide variety of problems (organizational, permnel, counterpart fimds, and marketing). A mid-term review in March 1992 made recommendations to redirect and streamline the projea and agreed on an action plan, which the Forestry Department (DEF) has so far implemented with minor delays. The FanamaltF pine forest. plantation has almost completed reorganizing and equipping itself to meet its tasks, and is continuiLg its efforts to find foreign operators who are interested in its products and by-products. Seventh Hihway Project (Cr. 1905-MAG). This project was mosdy affected by the generic problems of cumbersome procurement procedures and lack of counterpart funds. Many con s have now been signed and disbursents have incased significntly (US$8 million in FY93 and US$13.8 million aready in FY94 by the end of April 1994). Economic Management and Socal Action Project (Cr. 196"-MAG). Implementat of IDA-financed components was slow, partly due to complexity of project design. Component financed by grants from Switzerland and UNDP were disbursing more rapidly. Followir- the establishment of a new coordinaton unit (private sector), the disburseent rate picked up and the project was re-designed in October 1992 to streamline its activities, Nadond Agricutural Resarc Project (Cr. 2042-MAG). The roject experienced an eight-month start-p delay in meeting credit effectiveness conditions. Project execution was disrpted in 1991 due to the political turmoil in the country and continued to be affected by institutional disputes. Several missions in 1993 and 1994 have fowssed on restuctring the project, and a proposa to downsize the project and cancel part of the credit has been implemented. Education Sector Reinforement Project (Cr. 294-MAG). Only 20% of this credit has been disbursed, even though the project has been effective for three yea-s. Project objectives and design are being simplified in order to speed up project implementation.  Schedule D Page 2 of S F_indal Sector and Private Enterprise Development (APEX) Project (Cr. 2104-MAG). The APEX credit, despite a good commitment record, is not disbursing rapidly. A mid-tem review in October 1993 gave partcua attention to identifying and addressing the problems which have being holding up disbursements. Actions to remedy to a number of problems (e.g. authorization for Cent Bank to rquest disbursement directly, simplified methodology for ERR calculation, clarification of eligibility criteria, pmcurement guidelines, more regular monitoring) were agreed upon with the Borrower and for the most p;'- have been implemented. Antnanarivo PWn Development Project (Cr. 2117-MAG). This project experienced start-up delays, due both to cumbersome procurement procedures as we.l as complicated resettlemen issues, but most of these problems have been resolved and disbursements are expected to pick up considerably. Envrnment Project (Cr. 2125-MAG). Madagascar's period of political dnd socia instability coincided with, and affected, the start-up of this project. The institutional set-up of the project h&s, however, been put in place and has helped develop a satisfactory implementation capacity. The project now needs to concentate on priority areas and establish realistic obiectives and performance criteria. A mid-term review mission and meetig with the cofinanciers in Deember 1993 addressed these issues. National Helth Project (Cr. 2251-MAG). Start-up of this project was delayed duie to slow establishment of a project management structure. Competent project staff have now been recruited and disuursements are expected to incrase significanty. 2. Some recent breakhmug have been made which should go some way towards addressing th geneic problems of the portfolio. A CPPR was carried out in April 1994 during which a calendar was agreed upon to complete the resruc g of the portfolio, particularly in the case where projects are inompatible with execution or finaca capacity, or do not respond any longer to todays' developmen priorities; clearer responsibilities will be given to project managers; innovatve mean of project implementtion and management will be introduced following the posidve expenence of the Antmannarivo Urban Works Project; systematic monitoring of performance, both of the Bank portfolio and the entire PIP will be implemented. These breakhoughs followed the Country Implementatio Review (CIR) in Antananaivo in December 1990 and a follow-up CIR in March 1992, which resulted in: (a) new regulations for prcement and use standard bidding docments hich comply with Bank guidelines; and (b) a decree allowing project managers to have direct access to special accounts to be opened in commercial bans. In FY93, disbusmets for investment operations reahed US$41 million, i.e. almost 80% more than the total amount disbrsed in FY92. In FY94, US$40 million had been disbursed as of April 1994.  Sehedule D Page 3 of S EPUBLlIC OF MADAGASCAR SUlMMARY OF IFC 1NVESTMNIT As of March 31, 194 Ty" of Lm lqF Tobl TM Year Company Baunes USSnds 1990/9Y92 Fiam (AEF) Venue Capital - 0.7 0.47 19921923 Aquma Aquale 3.80 0.60 4.40 1980 Bat ShoeMant 1U2S - 12S; 1992 BNI CB k - 2.61 2.61 1986190 Cotona Spiing 10.80 0.20 11.00 1934/90190 Noes-Be FoodPocessing 7.00 0.20 7.20 1977/37 sotia Texliles 14.70 0.30 15.00 1994* scoi cemen I. _ la OApproved but not commifted rsaConitmens 39.05 4.38 41.93 Less repayment9s wie offs and 23.36 0.16 23.52 NemmitmebseldbylFC 15.69 4.22 19.29 Total unaisb 0.80 - 0.80 1 tI_  uwwvinu JOm PS01W 1Wm Js*z ps) X )um s WSM 91s Ua 933PW J'_ 1JM wiza ereWs arts Amd1 M 3 in U " Mf win eo 06-9 0F9 Ou sirln ivSIliuJ a" t S0W 3 *AA 96t WI! NM131 AU5W *0 536315 1GM 01= "ft It , ,.s _I _m a"s A&Ill/i 00nU 0ott an= "TM n SWh153 1M U-G "/NM/ WuZ W0C 3133SI UL1VU LW1331 1mt VAI-0151 u/l/s WI era mzum A43mid s 0ML 514051 ASWinrWo WOE Colt Waumin UW3WVS out 6-05 j6uogm 0111 0031 IIl3i3ISm Did 1163 6L53 511-0101 WI/I W6 _rtl 111 _ _I31 WJU3WWd M51 Wam/r Arts Colz VVI/d 'I 1 53616531'" 4564 5343961 W553/CE/ 9L16 calm0, 3 AVM 85-m-1 116n41 Wm4 536-5313 Us/WIo we 00"L AM ism 1116113 651 7064213 .......... ...... ........... .. .... ...... ....... .. .............. N/EC 1 OO mfqlP3 s wm 1} ^ e~~~~~~~~~~~~~~~~~~lo i)un 4uIllp sm VI I ._*..... .............. .................................... .... wt xw ml owwm ll_s Jo w Ft~ JOb0ab (11/11 n ,1I1UVJW U i4S1 S 11/li 30 Cr9 IOVJIU N 16316 LlL W051 a 11/C/ 3* i6341E*s 1 95 109  4n iii III I I gf Ii  .3 t I