Romania - Technical Assistance - Critical Imports Loan Project

Doument of The World Bank FOR OMFICIAL USE ONLY Report No. P-5584-RO MEKORANDUN AND RECOWMENDATION OF THE PRESIDENT OF THE rNTEENATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO $130.0 MILLION TO ROIAIA TO THE TECHNICAL ASSISTANCE/CRITICAL IMPORTS PROJECT June 11, 1991 ThWs document has a restricted distribution and may be und by redpients oly in the pWformawce of their official dutks. Its contents may not otherwise be disclosed widout World Dank authorization.  CURRENCY ROUIVALENTS Currency Unit = Leu (plural Lei) US$l = 60 Lei Leu 1 = US$0.0167 Lei Per US Dollar Official Rate' Interbank Rate2 1990 November 25.000 n.a 1991 April 60.000 200 approx. FISCAL YEAR January 1 - December 31 Abbreviations and Acronyms CMEA Council of Mutual Economic Assistance CONTRANSIMEX Trading Company for Road Transport CONVEX Company for Terminal at Port of Constanza EC-PHARE European Economic Commission/Economic Assistance for the Restructuring of Poland and Hungary EEC European Economic Communities EIB European Investment Bank ERR Economic Rate of Return FIBOR Frankfurt Interbank Offer Rate GATT General Agreement on Tariffs and Trade GOR Government of Romania IMF International Monetary Fund LIBOR London Interbank Offer Rate MEF Ministry of Economy and Finance MOLSP Ministry of Labour and Social Protection PETROM Regia Autonoma a Petrolului (Petroleum) RAL Regia Autonoma de Lignitului (Lignite) RENEL Regia Autonoma de Electricitate (Electricity) ROMAGRIMEX Trading Company for Agricultural Machinery ROMGAZ Regia Autonoma a Gazelor Naturale (Natural Gas) ROMPOST TELECOM Romanian Post and Telecommunications Administration SMA Agricultural Machinery Station SOCEP Company for Terminal at Port of Constanza TA Technical Assistance TOR Terms of Reference The official exchange rate applies to the purchase of foreign exchange that is not retained by exporters (one-half of their foreign exchange receipts are subject to retention), the sale of foreign exchange for the importation of a limited number of goods, and certain government transactions. 2 The Interbank rate applies to other foreign exchange transactions. The Interbank market for foreign exchange has been established in April 1991.  FOR OMCIL USK ONLY uaga TrCHNICAL ASSISTANCE AND CRITXCAL IMPORTS pROJIC2 Loan and Prolest Summary Romania' D^rnoCXULARIESS For technical assistance components Ministry of Economy and Finance, Ministry of Industries, Uiational Agency of Privatization, Ministry of Labor and Social Protection, Ministry of Agriculture, Cooperative Bank, Savings Bank, Development Dank, Commercial BvDk, Agricultural Bank, Regia Autonoma A Petrolului (PWcROM), Regia Autonoma do Lignitului (RAL). For imports component: Regia Autonoma de Electricitate (RENEL), Regia Autonoma a Petrolului (PETROM), Regia Autonoma a Gazelor Naturale (ROMGA.), Regia Autonoma de Lignituliu (RhL), Romanian Post and Telecommunications Company (ROMPOST TELECOM), Bucharest Metro, Port of Cdnstanza for terminals operated by CONVEX and SOCEP, CONTRANSIMEX (for buses and trucking companies), ROMAGRIMEX (for agricultural machinery), and Ministry of Agriculture AMOUNfs US$180 million equivalent ZER8s Fifteen years, including five years of grace, at ths BankIs standard variable interest rate. ONLE11DrNGs Part of the proceeds of the loan would b' onlent to Bucharest Metro, CONTRANSIMEX, CONVEX, PETRO, RAL, RENEL, ROMGAZ, ROMAGRIMEX, ROMPOST TELECOM, and 50CEP for the investment component. Funds for the technical assistance component would be onlent to agencies not fully financed by budgetary transfers. Maxlmum maturity periods under the onlending arrangements are 10 years wlth 3 years of grace. funds onlent would be denominated in USS terms or ln Deutsche Mark and carry an interest rate of LIDOR or VISOR plus a minimum of 1. 5 percent spread for the US dollar or DM loans, respectLvely. Disbursementss Dank Fiscal YeAr