Mexico - Second Low-Income Housing Project

Document of The World Bank FOR OFFICIAL USE ONLY 4A/ 316/o-e Repot No. P-5124-ME MEMORANDUM AND RECOMMEIDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$350 MILLION TO THE UNITED MEXICAN STATES FOR A SECOND LOW-INCOME HOUSING PROJECT NOVEMBER 8, 1989 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  . CURRENCY EQUIVALENTS Currency Unit Peso (Mex$) US$1.00 2616 Pesos (as of 10/30/89)* Daily Minimum Wage 8306 Pesos (as of 10/30189) (National Average) FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES Metric System ABBREVIATIONS BANOBRAS = National Development Bank for Public Works CETES = Mexican Government Treasury bill rate FONHAPO - Low Income Housing Fund GOM = Goverunent of Mexico * The exchange rate against the US dollar is currently sliding at a rate of Mex$l per day.  FOR OMCIL USE ONLY MEXICO SECOND LOW-INCOME HOUSING PROJECT LOAN AND PROJECT SUMNHARY Borrower: Banco Nacional do Obras y Servicios Publicos, S.N.C. (BANOBRAS) Guarantor: United Mexican States ExeCuting ARenCY: Fondo Nacional de Habitaciones Populares (FONHAPO) Amount: US$350.0 million equivalent Terms: Repayable over 17 years, including 5 years of grace. with interest at the Bank's standard variable rate. Relending Terms: BANOBRAS will onlend the Bank loan proceeds in pesos to FONHAPO, at the Mexican Government Treasury bill rate (CETES). FONHAPO would relend the proceeds to eligible subborrowers (i.e., states, municipalities, social and cooperative organizations and authorized banking institutions) on teoms and conditions which vary with the housing loan amount provided to final beneficiaries (heads of households earning less than 2.5 times the legal minimum wage). Under FONHAPO relending terms, monthly payments and the loan amount are indexed to the minimum wage. and upfront lump-sum subsidies are provided to beneficiaries, the amount of which varies depending on the loan amount and family income. In addition, beneficiaries would be charged an interest rate of 3Z p.a. on the loan balance net of the lump-sum subsidy. To cover administrative costs, subborrowers charge a one percentage point fee on the FONHAPO loan amount. Financing Plan: Local Foreign Total ---_-----_-----US$ millions--------------- Bank 254.7 95.3 350.0 Government 140.0 0.0 140.0 FONHAPO 175.0 0.0 175.0 Subborrowers/Beneficiaries 35.0 0.0 35.0 TOTAL 604.7 95.3 700.0 Economic Rate of Return: About 14Z Staff Appraisal Report: No. 8019-ME This document has a restricted distibution and may be used by rec pients or ly in the perfonrance of their official duties. Its contents may not otherwise be disclosed without 'orld Bank authorization.  MEMORANDtM AND RECOMMENDATIONS OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE UNITED MEXICAN STATES FOR A SECOND LOW-INCOME HOUSING PROJECT 1. The following report on a proposed loan to Banco Nacional de Obras y Servicios Publicos, S.N.C. (BANOBRAS) for US$350.0 million equivalent is submitted for approval. The proposed loan, which would be guaranteed by the Government of Mexico, would be repayable over 17 years, including 5 years of grace, at the Bank's variable interest rate and charges. BANOBRAS would be the borrower and one of its trust funds, the Fondo Nacional de Habitaciones Populares (FONHAPO), would be the executing agency. 2. Background. Mexico's housing deficit, estimated at 6 million units, is likely to grow substantially over the next five years, as a result of rapid urbanization and formations of new households. Most of this growth will take place at the lower-income end of the housing market. Traditionally, the formal housing sector has concentrated investments in middle- and upper-income housing, leaving poorer families largely unattended. 3. During the past 6 years, the Government of Mexico (GOM) has given housing a high priority, as part of its efforts to address -an important social concern and to create employment in construction. The GOM has introduced housing policies to reach a larger segment of the low-income population by inter-alia: (i) promoting more cost efficient housing solutions; (ii) improving cost recovery on, and redirecting resources to, housing finance; (iii) creating and promoting FONHAPO as the principal agency to finance housing for low-income families. 4. The following sector constraints still remain to be addressed: (i) a very small share of financing reaches the poorest and largest segment of the housing market due to the limited availability of credit funds; (ii) low-cost housing solutions have yet to be fully developed; (iii) FONHAPO's level of cost recovery is low, leading to the decapitalization of its funds, and its subsidies need to be better targetted; (iv) the administrative procedures of FONHAPO and its subborrowers should be improved, and additional information on the collection performance of subborrowers from final beneficiaries is required; (v) inappropriate building codes, design standards and legal procedures limit the possibility of reducing the costs of low-income housing; (vi) savings mobilization for housing among low-income families is low; and (vii) poor urban planning policies spur the expansion of unregulated settlements in many fast- growing cities. 5. Rationale for Bank Involvement. Continued Bank involvement in the sector is important both to build upon efforts to strengthen institutions and reform sector policies begun under previous Bank operations, as well as to further support poverty alleviation programs, particularly important now, as Mexico has initiated a substantive stabilization and structural adjustment program which has adversely affected the lower income groups in particular with high levels of unemployment and reduced real wages. The first Bank-financed project in the sector (Loan 2612-ME; approved in 1985) helped to support FONHAPO during its start-up phase and led to FONHAPO's adoption of a .:ew mortgage  a instrument which makes subsidies transparent and ensures the covenanted 501 level of cost recovery in an inflationary environment. Thls project is expected to be completed by December 1989, three years ahead of the appraisal estimate. A second Bank operation (Housing Finance Loan of US$300 million) approved in 1968 is supporting measures which, inter-alia, will allow commercial banks to achieve full cost recovery on their mortgage loans, mainly to middle. income families. Continued Bank funding for FONHAPO is important in order to accomodate reductions in budgetary transfers, which in the future are expected to be further tightened because of the Government's ongoing fiscal austerity efforts. 6. Prolect Objectives. The main project objectives would be tot (i) increase the availability of housing credit for low-income families; (ii) further improve FONHAPO's level of cost recovery and redirect its subsidies to the poorest groupOs (iii) improve the cost efficiency of housing solutions; (iv) further streamline the administrative procedures of FONNHAPO and its subborrowers; and (v) contribute to the improved planning and development of urban areas. 7. Proiect Description. The loan would finance a slice of FONHAPO's 1989-94 conventional lending program in starter homes, serviced lots and home improvement credits (821 of total costs). It would also finance two special investment programs for land tenure and urban upgrading in rapidly-growing northern border cities and unregulated settlements in Mexico City and other urban centers (131 of total costs). Altogether, the project would provide new or improved housing for about 250,000 families. FONHAPO would onlend funds to public agencies, cooperative groups, private developers, etc. which would execute subprojects for eligible beneficiaries (heads of households earning less than 2.5 times the minimum wage, or US$250 per month at present). In addition, the project would support institutional strengthening for FONHAPO and its subborrowers as well as project administration and three studies on (a) building codes and administrative procedures, with the aim of revising regulations and procedures which add costs and time to the construction and purchase of low- income housing, (b) informal settlements, in order to better understand the housing needs of their residents and how FONHAPO's programs can be reshaped in the future to address their needs, and (c) savings mobilization among low-income families and ways to expand the provision of financial services in poor neighborhoods (5S of total costs). 8. The loan would fund subprojects for infrastructure works, for construction of starter dwellings, and for improvements of existing dwellings. It would also finance technical assistance and professional services for the preparation of studies as well as administrative and supervision costs associated with the execution of the project. The total cost of the project Is estimated at US$700.0 million equivalent, with a foreign exchange component of US$95.3 million (14?). A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursement. and the disbursement schedule are shown in Schedule B. Retroactive financing of US$35.0 million would be granted for expenditures incurred after February 15, 1989. A timetable of key project processing events and the status of Bank Group operations in Mexico are given in Schedules C and D, respectively. The Staff Appraisal Report No. 8019-ME dated November 8, 1989 is also attached.  -3- 9. Implementation Arrangements. The borrower of the loan would be BANOBRAS, which would act as administrator of the loan. FONHAPO would be the executing agency and would channel loan proceeds to subborrowers which would be responsible for the implementation of subprojects, for the allocation of housing units to identified beneficiaries, for recovery of debt service, and for repayment to FONHAPO. FONHAPO, during the execution of Loan 2612-ME, has demonstrated the capacity to execute successfully a rapidly growing loan portfolio and would require only limited future institutional strengthening, mainly by a further decentralization of its operations, which will be supported by the proposed project. Eligible sub-borrowers would includes (i) federal public sector entities; (ii) state and municipal governments, decentralized agencies and parastatal or paramunicipal entities; (iii) authorized banking and financial institutions; (iv) cooperative housing associations; and (v) legally constituted groups implementing programs consistent with the norms of FONHAPO. FONHAPO would supervise the proper execution of subprojects and provide technical assistance, as necessary, to sub-borrowers for the implementation of subprojects and the carrying out of their obligations under subloan agreements. The project would be implemented over a six-year period. 10. Actions agreed/to be agreed upon. During negotiations assurances were obtained on the followings (a) From FONHAPO to: (i) by December 1991, carry out jointly with the Bank a review of the results of the two special investment programs and, by May 1992, submit an action plan including a time table for implementation to incorporate the lessons learned from these programs into FONHAPO's conventional lending programs, to the satisfaction of the Bank, and by January 1993 start to implement the plan; (ii) enter into contractual arrangements satisfactory to the Bank, for onlending Bank loan proceeds; (iii) require subborrowers to meet eligibility criteria for FONHAPO financing, satisfactory to the Bank; (iv) carry out an institutional strengthening program in accordance with a plan of action and timetable satisfactory to the Bank; (v) e prepare studies on building codes and administrative procedures, on irregular settlements and on resource mobilization among low-income families under terms of reference satisfactory to the Bank and in accordance with an agreed timetable; (vi) carry out jointly with the Bank an annual review of its credit program and the Project and execute to the satisfaction of the Bank plans of action agreed to during the annual program review; and (vii) by March of each year forward to the Bank results of a survey of the collection performance of subborrowers and, for those subborrowers with collection problems, establish a plan of action which includes annual collection targets and the provision of tectnical assistance to assist such subborrowers in improving their collectlon performance. Should subborrowers fail to achieve the agreed-to collection targets, FONHAPO would refrain from providing them new financing; (b) From the Federal Government to: (i) enter into contractual arrangements satisfactory to the Bank, for the onlending of Bank loan proceeds; (ii) provide in a timely manner counterpart funds to execute the project; and (c) From BANOBRAS to: enter into contractual arrangements satisfactory to the Bank, for the onlending of Bank loan proceeds. The following would be conditions of effectiveness: (a) conclusion of contractual arrangements between BANOBRAS, the Government and FONHAPO for the onlending of proposed loan proceeds; and (b) adoption by FONHAPO of revised onlending terms for subloans which are satisfactory to the Bank. 11. The onlending arrangement for the Bank loan proceeds would be as follows. BANOBRAS would onlend Bank funds in pesos to FONHAPO, at the Mexican Government Treasury bill rate (CETES). The CETES rate being a market-based rate  .4l would include a foreign exchange risk premium. FONHAPO, in turn, would relend the proc:iedl to eligible subborrowers on terms and conditions which vary with the loan amount provided to final beneficiaries (heads of households earning 2.5 times or less the minimum wage). Under FONINAPO onlending terms, monthly payments and the loan amount are indexed to the minimum wage. and upfront lump- sum subsidies are provided to beneficiaries, the amount of which varies depending on the loan amount and the family income in such a way that monthly repayments do not exceed 252 of the familv income. As a condition of loan effectiveness, FONHAPO would revise its onlending terms tos (i) lower upfront subsidies for all FONHAPO loans and eliminate them entirely for the largest loans; and (ii) explicitly incorporate a 32 annual interest rate on the wage- indexed loans net of the lump-sum subsidies provided by FONHAPO. Also, FONHAPO has agreed to direct about 70? of its future lending to families with incomes of less than the minimum wage. These changes would improve FONHAPO's overall cost recovery to 702 and retarget its subsidies to the most needy. To ensure that FONHAPO loans remain affordable for low-income families, the revised loan terms would reduce beneficiaries' down payments somewhat (from 10-15S to 5-102) and extend the term of the mortgages from 7-8 years to a maximum of about 14 years. 12. Benefits. The project would expand the credit available for the largest and poorest segment of the housing market and would improve FONHAPO's cost recovery, thereby gradually increasing its own contribution toward new investment financing. By supporting the execution of two special investment programs which promote in selected cities efforts to establish and regularize land tenure rights and to provide basic services, the project would assist local governments and community groups in addressing their housing problems and in better organizing urban development. Finally, the project would improve sanitary and environmental conditions for low-income families and in congested urban areas. 13. Risks. The project does not present major technical risks, and FONHAPO's very good performance under Loan 2612-ME would suggest that other risks are not too significant. The main risk, which involved possible political resistance to higher levels of cost recovery and the retargetting of FONHAPO subsidies, has already been successfully addressed, as the Government has agreed to implement revised FONHAPO loan terms before loan effectiveness. Other project risks related to the availability of sufficient counterpart funds and to problems in the payment recovery from final beneficiaries have been addressed in the project's design and conditionality so as to contain them to acceptable levels (para. 11). 14. Recommendation. 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. Barber B. Conable President Washington, D.C. by Ernest Stern November 8, 1989  . Schedule A MEXICO SECOND LOW-INCOME HOVSING PROJECT ESTIMATED COSTS AND FINANCING PLAN Estimated Proiect Costa Local Foreign Total ----------"-VsU$ million------------- I. PONHAPO Credits (a) Conventional Programs 416.. 69.6 485.7 (b) Special Programs 65.4 13.7 79.1 _E. Other Costs (a) Technical Assistance 6.4 0.0 6.4 and Studies (b) Project Administration 23J 8 0.0 23.8 PROJECT BASE COSTS 511.7 83.3 595.0 Price Contingencies 93.0 12.0 10S O TOTAL PROJECT COST 604.7 95.3 700.0 Financins Plant Local Foreign Total ---------------us$ millions-------------- Bank 254.7 95.3 350.0 Government 140.0 0.0 140.0 FONHAPO 175.0 0.0 175.0 Subborrowers/Beneficiaries 35.0 0.0 35,0 TOTAL 604.7 95.3 700.0  Schedule B Page 1 of 2 MEXICO SECOND LOW-INCOHE HOUSING PROJECT PROCUREMENT METHOD AND DISBURSEMENTS Procurement Method a/ (US$ million) Project Element ICB LCB Other N/A Total 1. Land -- -- -- 110.0 110.0 (0.0) (0.0) 2. Studies & Design -- -- -- 9.0 9.0 (0.0) (0.0) 3. Civil Works for Serviced 30.0 405.5 30.0 b/ -- 465.5 Lots. Progressive Housing (19.5) (260.5) (20.0) -- (300.0) Units & Neighborhood Up- grading 4. Civil Works & Goods for -- -- 80.0 cJ -- 80.0 Home Improvements (50.0) __ (50.0) 5. Technical Assist. -- -- -- 7.5 7.5 & Studies di (0.0) (0.0) 6. Project Admin. -- - -- 28.0 28.0 1_(0.0) (0.0) Totals 30.0 405.5 110.0 154.5 700.0 (19.5) (260.5) (70.0) (0.0) (350.0) a/ IBRD share in parenthesis. bI Force account to be used for civil works. c/ Civil woIks contracting and purchasing of goods and materials by individual beneficiaries, through local shopping procedures satisfactory to the Bank. d/ Technical assistance and studies carried out under terms of reference satisfactory to Bank. NOTE: The N.A. refers to costs which will be financed entirely by FO14HAPO and to categories for which the Bank will not disburse against.  Schedule B Page 2 of 2 MEXICO SECOND LOW-INCOME HOUSING PROJECT PROCUREMENT METHOD AND DISBURSEMENTS Disbursements Amount of the Loan Allocated (Expressed in Millions of Category Dollars Equivalent 2 Subloans made by FONHAPO 350.0 652 of FONNAPO disbursements for civil works and goods Estimated Disbursements: Bank Fiscal Year 1990a/ 1991 1992 1993 1994 1995 (US$ millions) Annual 39.4 48.1 70.0 105.0 70.0 17.5 Cumulative 39.4 87.5 157.5 262.5 332.5 350.0 a/ Retroactive financing of US$35 million to be provided for all project expenditures incurred after February 15, 1989.  -8 Schedule C MEXICO SECOND LOW-INCOME HOUSING PROJECT Timetable of Key Processing Events (a) Time taken to prepares One Year (b) Prepared byt FONHAPO with IBRD assistance (c) First IBRD Missions April 1988 (d) Appraisal mission departures March 1989 (e) Date of negotiations: October 1989 (f) Planned Date of Effectiveness: January 1989 (g) List of relevant PCRs and PPARs: N.A.  STATUI OF ON NOW 11011 01P IRAY N MEXICO 1/ A. StatmeOnt of Dank Loans As of September J0, IM (Use *IlIIIon) .......... 0............ a....... ....................... .......................... 0............................................t Fiscal Amount loe. Undl- Loan No. Year Borrower Purpoe Cannelletlono bursad ........ 7 .. ............ ................................................. ... 7I loann *ully dilbuwob 5,99.60 1706-3 1979 NAptN Irwio tien 31.30 15.14 153-5 11O NAPIN Zrrlogtlon 64.40 14.05 2202 1S8 NAPIN Arlculturol Marketlng 113.00 1.0? gi61 1S8 SAKORAS Third Water Supply 100.80 21.16 2I15 19018 APIN Third ./M.d Ifidustry 175.00 0.18 1881 18 SANCOMIXT ESPOrt Dovelopmnt 830.00 2.30 2423 1904 SANOORAS Nlghways 200.00 04.52 2450 1914 lASnCA Ports 16.80 S8.8 151 1NS NAFIN Chlopas Agrli. Dev. 50.00 41.21 2540 1N3 NAFIN cm/Mod Seat* Mining1 105.00 28.69 2339 1960 NAPIN Vocatlonal Education 01.00 17.10 2573 1605 SANOURAS Rallways V 800.00 141.62 1612 Im BANRAS Low Income Houlng I 130.00 13.60 2610 1960 NAFPIN Proderith t 36.8o 71.15 "6o5 1NS SANOARAS Eorthqukoe Rohob 400.00 26.60 1666 1 M BANOBRAS Munielpal Strongtheninq 40.00 J5.81 0669 1606 SAMURAI Solid Waste Plilot 25.00 19.07 2745 1607 SANCOMEX? Trade Polluy Loan I 500.00 10.58 2740 160? NAPIN Induatrlal Recovory 150.00 17.60 2747 1607 NAPIN Technology Dvelopment 48.00 82.46 2777 1967 IANCOUXT xport Development It 230.00 22.9J 2624 1607 *ANURAS Urban Transport 125.00 938.1 28J7 1607 NAPIN Agrliultural Credit 400.00 12.56 1050 8/ 1607 NAFIN S/M.d Industrles IV 100.00 100.00 1650 1607 NAFIN Arliultural Extenolon 20.00 16."0 2376 107 SUANORAS Hihway Mai ntenance 185.00 121.00 2676 1980 WAPIN M npower Training 80.00 68.21 2616 1960 NAPIN Steel Sector Reetruct. 400.00 J85.42 2910 1960 NAFIN Agricultural Sector Loan 800.00 201.0, 2019 8/ 1NS NAPIN Fertill r Sector Loon 265.00 263.00 2946 8/ 1608 SANO RAS Ports eReabilitatlon 10.00 30.00 2947 8/ 1968 IANOIRAS housing Flnnce 80000 800.00 8047 8/ 1989 NAAPIN Industrlal Reatructurlng 230.00 250.00 80a 8/ 1609 NAFIN Hydroelectric Development 460.00 460.00 80w. 1600 BANCOMiIT Financlal Sector Loon 500.00 230.00 808J 16 NAPIN Public Enterp Restruct 600.00 230.16 8067 1600 NAFIN Industrlal Sector Pollcy 500.00 258.27 8101 8/ 109 ANOARAS Water, Women A Dev 20.00 20.00 8115 J/ 1990 NAFIN Forestry Oevelopment 46.50 456.0 Totol I i,7 i20 Of which has been repald 8,858.68 Total now outstanding 10,86987 Amount sold 92.84 Of which hoo bee repald: 92.34 0.00 Total now hold by Bank 2/ 10,86.987 Total undlsbureed 8,756.90 1/ The status of the projecto listed In Part A is In a *oparate report on all Sank/IDA financed projecta In ex*eutlon, which ic updated twice yoarly and circulated to the Executive Directoro on Aprll 30 and October 31. 2/ Prior to exchange adjustment. 3/ Not yet effectivo. EArove10: LA2CO Dlsk:Stetement of Bank Oroup Operations Fl l:MXC-99:A90l.Mi7 October 80, 1o9s  - SCUDULE - Page 2 of 2 MEXICO S. Statement of IFC Intments As of September 80, 1989 (US$ MllIon) _________.__._______________..________________..__________._.____________________________________________ Fiscal -----Originat Approvola--------- Year Obligor Type of Business Loan Equity Totol 19S6/69 Industries Perfect Circle, S.A. /a Industrial Equipmt 0.60 0.00 0.80 1968 Oristol de Mexico, S.A. /s Aircraft Engine overhaul 0.60 0.00 0.60 1961 Aceros Soler, S.A. /a Twist Drills 0.30 0.00 0.30 1962/6/6/6 Fundidora Monterrey, S.A. /a StOel 2.80 21.40 23.70 1968 Tubos de Acero de Mexico Stainless StOel Pipes 0.90 0.10 1.00 1983 Quimica del Rey, S.A. /o Sodium Sulphate 0.70 0.00 0.70 1984/66 Industris del I1Hlrro, S.A. Construction Equipmnt 0.00 2.00 2.00 1970 Minern del Norte /a Iron Ore Mining 1.S0 0.00 1.50 1971 Colones Mexicons, S.A. /a Textiles 12.00 0.00 12.00 1972 Promotors Papel Periodico., S.A. de C.V. /a Pulp end Paper 0.00 lb /b 1973/79 C_ontoo Veracruz, S.A. Cemnt 15.90 0.00 15.90 1974/31 Cuneun Aristos Hotel Tourism 1.00 0.30 1.30 1976/76 Mexinox, S. A. Stainless Steel 12.00 3.20 16.20 1976/81/68 Papelee Ponderoso, S.A. Pulp ond Paper 10.70 5.00 15.70 1976 ToreftOlstos MIxiccnos, S.A. Petrochemical 19.00 0.00 19.00 1979/81/86 Hotel Casino Real Ixtapu, S.A. Tourism 0.00 4.20 4.20 1979/88 Espre Toltecs, S.A. Cement 168.00 7.90 176.90 1979 Conductor Monterrey, S.A. Electrical Wire A Cable 16.00 0.00 16.00 1960 Industries Resistol, S.A. Porticle Board 25.00 0.00 25.00 1960 Vidrlo Plano de Mexico, S.A. Flat Cloas 114.90 0.00 114.90 "90 Miners Roal de Angles, S.A. mining 110.00 0.00 110.00 1960 Corporecion Agro- lnduOtrial S.A. Agri-Butiness 11.80 3.00 14.30 1981/83 Celulosicos Centauro, S.A. Pulp ond Poper 69.50 0.00 59.50 1983 Copital Goods Facility /n Capital Goods Financing 100.00 0.00 100.00 1964/67 Metlos, S. A. Auto Chaois 8.00 1.40 9.40 1984 Protelson, S.A. de C.V. AgrIusines 2.00 0.60 2.60 1984 Promocionee Industriles Mexicanes, S.A. de C.V. Petrochoemcal 16.40 0.00 18.40 1968/88 Celulosu y PopaI de Durango, S.A. de C.V. Pulp end Paper 10.00 3.10 18.10 96s Agromx Phase I (AESA) Vg and Fruit Processing 1.60 0.50 2.00 1987 Industries Sulfex, S.A. de C.V. Chemical A Petrochemical 2.00 0.50 2.50 1967 Sealed Power de Mexico Auto Assembly 9.00 0.00 9.00 1987 Crescent Market Aggregtos Construction Material 87.00 0.00 87.00 1966 Sposco, S.A. de C.V. Cemnt 48.00 0.00 48.0' 1966 Salumi, S.A. de C.V. Food and Food Processing 20.80 2.00 22.30 1968 Polimer (A'!S), A.S. de C.V. Petrochemical 14.60 0.00 14.60 1969 Grupo Famas/Visa Consumer Goods Conglamorat 60.00 27.60 107.60 1989 Banco Serfin Developmnt Finance 60.00 0.00 60.00 1969 Cementoo Max icnos Cment A Const Materiels 66.00 0.00 66.00 Cross Total Commitments 1069.00 83.00 1142.00 Less Cancellations, Terminations, Repayments and Sales 745.90 37.80 763.70 Totxl Comitments Now Hold by IFC 313810 4S 20 388.30 Total Undisbursed (Including Participants) 94.06 0.06 94.13 ====m ==s:===S= _=== /a Investments which have been fully cancelled, terminated, written off, sold, or repaid. /b US825,000. EBArovflo:LA2CO IFC Investment:MXC89.WK1 October 30, 1969