Philippines - Subic Bay Freeport Project

/ -A QS as z'/ - f7a Documnet of The World Bank FOR OMcaAL USE ONLY Rqport No.P-6270-Pl MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN THE AMOUNT EQUIVALENT TO US$40.0 MILLION TO THE SUBIC BAY METROPOLITAN AUTHORITY WITH THE GUARANTEE OF THE REPUBLIC OF THE PHILIPPINES FOR A SUBIC BAY FREEPORT PROJECT MAY 10, 1994 MICROGRAPHICS This document has a restricted distribution Report No: P- 6270 PH their ofricial duties. Its contents may not iType: MOP  CURRENCY EQUIVALENTS (as of December 31, 1993) Currency Unit = Peso p 1 = US$0.035 US$1 = P 28.4 WEIGHTS AND MEASURES ha hectare km kilometer m meter m2 square meter m3 cubic meter MGD million gallons per day MW megawatt ABBREVIATIONS AND ACRONYMS ADB - Asian Development Bank ASEAtl - Association of South East Asian Nations BCDA - Bases Conversion and Development Authority BOT - Build-Operate-Transfer CDA - Comprehensive Development Area CIF - Cost, Insurance and Freight COA Commission on Audit DBM - Department of Budget and Management DENR - Department of Environmnent and Natural Resources DFI - Direct Foreign Investment DOJ - Department of Justice EPZ - Export Processing Zone GOCC - Government Owned and Controlled Corporation GOP - Government of Philippines IRR - Implementing Rules and Regulations JV - Joint Venture MOA - Memorandum of Agreement NPC - National Power Corporation PWC - Public Works Center SBF - Subic Bay Freeport SBMA - Subic Bay Metropolitan Authority SEZ - Special Economic Zone US - United States FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY PHILIPPINES SUBIC BAY FREEPORT PROJECT Loan and Project Summary Borrower: Subic Bay Metropolitan Authority (SBMA) Guarantor: Republic of the Philippines Amount: US$40 million equivalent Terms: 20 years, including five years of grace, at the Bank's standard variable interest rate Financing Plan: Local Foreign Total ------- US$ million -------- IBRD 0.9 39.1 40.0 SBMA's Internal Cash 12.6 1.5 14.1 TOTAL 13.5 40.6 54.1 Economic Rate of Return: 12%-37%, depending on component Poverty Category: Not applicable Staff Appraisal Report: Report No. 12773-PH Maps: IBRD No. 25499 and 25500R. 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 IBRD TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE SUBIC BAY METROPOLITAN AUTHORITY WITH rHE GUARANTEE OF THE REPUBLIC OF THE PHILIPPINES FOR A SUBIC BAY FREEPORT PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Subic Bay Metropolitan Authority (SBMA) with the guarantee of the Republic of the Philippines for the equivalent of US$40 million to help finance a Subic Bay Freeport Project. The loan would be at the Bank's standard variable interest rate, with a maturity of 20 years: including five years of grace. The Government of the Philippines would guarantee the Bank loan. Background 2. The Subic Bay Naval Base in the Philippines was the largest US military facility outside the United States. Following the expiration of the 1947 Military Base Agreement between the Philippines and the United States, the US Navy evacuated the premises in November 1992. The Subic Bay Metropolitan Authority (SBMA) was established in March 1992 to take over the Subic baselands, which would be converted to the Subic Bay Freeport (SBF). The site presents a unique opportunity for industrial, commercial and tourism development, and the base possesses assets which cannot easily be replicated, and whose replacement value runs into several billion US dollars. In addition, the site is located amid virgin forest of significant ecological value (this forest is included in the Global Environment Facility Conservation of Priority Protected Areas project). 3. A conversion strategy for the baselands has been defined with technical assistance provided through a Bank-executed grant from the PHRD fund. This assistance has also resulted in the formulation of implementing rules and regulations for the freeport regime; an assessment of the existing facilities and the development of a land use plan for the SBF; and the development of a privatization strategy for the disposition of the assets. The substantial analyses undertaken to date point to critical needs for further technical assistance in certain areas, as well as financial assistance to enable SBMA to undertake infrastructural improvements that are urgently required to jump-start the freeport and attract private investors. One such improvement is the need to reconfigure the facilities for the SBF's future industrial, commercial and tourism activities. Another urgently needed action is the environmental management of the site, ranging from establishing a baseline of information on present ecological conditions to establishing sound environmental management practices at the SBMA to guide future SBF development. Institutional strengthening is required at the SBMA to improve its overall management of the SBF. The Government has requested Bank support in these areas. 4. Export processing zones (EPZ) have had considerable success in the Philippines in recent years. Approximately 20% of foreign investments in the country in the past five years has taken place in these zones. Two of the most notable successes have been the Cavite and Mactan EPZs (in Calabarzon and Cebu, respectively), which are in their last phases of expansion, and are running out  -2- of space to accomodate new investment. Freeports typically go beyond the limited tax and trade incentives offered in EPZ regimes, cover larger geographic areas, and are not limited to export manufacturing activities. Freeport registered enterprises and individuals can freely import all types of merchandise and are not restricted to those used directly in the manufacturing process. Finally, freeport enterprises are not required to export a certain percentage of their production, and are free to sell to the local market upon payment of any applicable duties and taxes. The SBF has generated considerable investor interest, and some US$350 million in investment commitments have been obtained to date. Lessons from Previous Bank Involvement 5. The Bank has played a major role in the Philippines through a lending program involving some 140 operations, but has no direct experience in EPZ development in the country. Experience from Bank involvement in similar activities in other countries indicates that EPZs are most successful when they are part of a coherent incentives and trade policy regime. Key factors for success include appropriate location, the availability of suitable physical trade infrastructure, site development consistent with investor demand, and a policy environment that fosters private sector development. The country's trade, investment and foreign exchange regimes are now at par with those of its more dynamic East Asian neighbors. The SBF's regulatory framework, its location and physical infrastructure are consistent with the success factors commonly cited for EPZs. The project is designed to fill the gaps in the implementation of the regulatory framework, particularly with respect to the environment, and to ensure a phased development of the SBF. Rationale for Bank Involvement 6. The Country Assistance Strategy was discussed by the Executive Directors on February 3, 1994, and this project is consistent with the strategy. The Philippines is at a critical juncture in its economic history, and needs to seize the opportunity to break out of its low economic growth cycle. Foreign direct investment will be very important if the Philippines is to catch up with its more affluent neighbors. The SBF has the potential to kick-start this process. Improving the business environment for private enterprises is a key element of the GOP development agenda. The SBF provides a model base for the implementation of concerted and sound business-friendly policies. The SBF has already attracted considerable invesuor interest; however, certain institutional and infrastructural bottlenecks prevent the SBMA from realizing the full potential of the SBF's considerable asset base. 7. The Bank can play a catalytic role in helping the GOP and the SBMA effect an orderly conversion of the facility, and its presence provides a measure of comfort to private investors. The proposed project touches on a multiplicity of sectors. The Bank has considerable experience in and is well-equipped to deal with the issues related to all these sectors. The bulk of the proposed financing concerns infrastructure, for which the terms of Bank ft'nds are more appropriate than the shorter maturity finance that would be available commercially. The overall financial needs of the SBF are large, and the available commercial  -3- funding would be more effectively channeled if it supports commercial ventures. Finally, the Bank has already been involved in the provision of technical assistance to the SBMA to help strengthen the policy, regulatory and institutional framework and define a conversion strategy for the baselands. The Bank's continued involvement will help implement this conversion strategy, and, in particular, ensure that the emphasis on environmental protection and institutional strengthening is maintained. Project Objectives 8. The objective of the project is to attract private investors to the Subic Bay Freeport (SBF). This will be achieved by: (a) improving infrastructure and access to the area for industrial, commercial and passenger traffic; (b) maintaining the SBF asset base, including protection of the environment; and (c) strengthening the capacity of the SBMA to manage and administer the facility. roject Description 9. The project consists of three components. The first is site improvement, which includes improv3ment of land access (road, bridge and entry gates); airport improvements (runway repair, strengthening of aprons and taxiway, airport communicati3ns and navigation equipment, and conversion of an existing building into a passenger terminal); port repairs; a pilot standard factory building development (6 buildings); and the provision of miscellaneous equipment for security and maintenance purposes. The second component is institutional support to strengthen the institutional capacity of the SBMA and to pro-tde appropriate systems for the implementation of freeport policies. The third is environmental protection, which includes the carrying out of an environmental baseline survey, the provision of monitoring equipment and institutional support to establish a scund environmental infrastructure at the SBF. Project Implementation 10. The project will be implemented by the SBMA, which is the sole governmental authority charged with developing and operating the SBF. Its authorized capital of P20 billion, paid up tLrough lands and other transferred assets, includes a GOP budgetary transfer of P300 million per year for three years to meet initial working capital requirements. The legislative basis for the SBF regime (Republic Act 7227) has been further clarified through the adoption of its Implementing Rules and Regulations, and through the signing of several Memoranda of Agreement (MOA) with concerned GOP entities. 11. The project cost is estimated at US$52.0 million equivalent, with a foreign exchange component of US$39.1 million (75% of total). The total financing required, including interest during construction, is US$54.1 million, of which the Bank would finance US$40 million. Retroactive financing not exceeding US$4 million equivalent is recommended for expenditures inLurre,1 after December 6, 1993. A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of pracurement and disburseme--s, and the disbursement schedule, are shown in Schedule B. A timetable of key processing events and the status of Bank Group operations in the Philippines are given in  -4- Schedules C and D, respectively. Maps are also attached. The Staff Appraisal Report, No. 12773-PH dated May 10, 1994, is being distributed separately. Project Sustainability 12. The project has been designed to undertake the bare minimum of facilities improvements in order to increase the SBF's marketability to potential investors. The bulk of SBF development will be undertaken by the private sector. Over 500 expressions of interest from prospective investors had been received as of end-1993. Thirty-two proposals have been accepted and are currently being implemented; investment commitments of these firms amount to US$350 million, and employment projections stand at 12,800 over the next 1-2 years. Private i.nvestment in the SBF will provide a source of income to the SBMA, and ultimately, to the GOP. The multi-sectoral private investment that is targeted will create a diversified employment base, leading to stability and growth in a region that has suffered the consequences of an abrupt cessation of its only economic activity. By 2003, it is estimated that the SBF will provide over 80,000 jobs, and generate export revenues of the order of US$750 million. Institutional support of the SBMA foreseen in the project is designed to improve its managerial and administrative capabilities, in order to create a viable and sustainable institutional structure. The protection of the environment, necessary for the physically sustainable development of the SBF, has been a key concern of the SBMA, as can be seen from the SBF's land use plan, and the proposed project interventions. Agreed Actions 13. Actions required prior to effectiveness are the publication of an agreed Environmental Management Plan and of an agreed land use plan. Agreements reached at negotiations with the Republic of the Philippines and the SBMA include: (a) a prior consultation process with the Bank on any policy modifications with regard to the SBF's freeport regime; (b) the implementation of the agreed land use plan, the agreed Environmental Management Plan, and the Environment Procedures Manual; (c) a joint review of the SBMA's policy and organizational effectiveness to take place by July 31, 1995; (d) certain financial covenants, including an annual, joint review of SBMA's rolling, five- year investment plan and the revaluation of SBMA assets in a manner acceptable to the Bank by December 31, 1995; (e) the adequate provision of water and sewerage and solid waste management services in the SBF according to an agreed action plan; and (f) the carrying out of the TA activities financed by the proposed loan and the implementation of agreed recommendations according to an agreed action plan. Environmental Aspects 14. An Environmental Analysis related to project-specific impacts has been prepared by the SBMA and has been reviewed by the Bank. No resettlement of persons is required and there are no land acquisition issues. Environmental conditions in the SBF are good at the present time, but sound environmental management will be required to maintain environmental quality as the SBF develops in the future. A thorough analysis of the environmental management issues  -5- related to the future development of the SBF has been undertaken as part cf the SBMA's Environment Management Plan, which also provides a blueprint for the organization of the SBMA's environmental management unit. This plan is being reviewed by the Bank and its adoption will be required prior to effectiveness. The project will finance an Environmental Baseline Survey to establish the basic environmental conditions in the SBF, including the forest and bay areas, and locate areas of possible contamination in view of the site's past military use. Second, an Environment Procedures Manual establishing environmental policies and procedures for the SBF has been adopted. Third, actions to improve environmental administration and enforcement by the SBMA will be undertaken through, inter alia, the hiring of staff and the provision of technical assistance and monitoring equipment. Project Benefits 15. The major project benefits are: (a) economic benefits arising from increased economic activity and employment in the region; (b) environmental benefits arising from increased protection of the forest lands and the bay; (c) financial benefits to the SBMA arising from increased rental and other income from the SBF. In addition, institutional strengthening at the SBMA will result in significant human capital development. Given the nature of the proposed project investments, economic rates of re-urn were estimated for individual project components. These range from 12% to 37%, depending on the component. Project Risks 16. The major risks are political in nature. A policy reversal regarding the SBF's freeport status would nullify its competitive advantages, and inflows of foreign investment would likely diminish. To mitigate this risk, agreement has been reached on a prior consultation process on any policy modifications with regard to the SBF's freeport regime, and appropriate remedies against a potential policy reversal have been included in the proposed loan. Another risk relates to the relative lack of experience in freeport management at the SBMA. To address this concern, the project will provide long-term technical assistance to provide the expertise required while training SBMA personnel on-the-job so that they gain the necessary experience. The risk of delays in project implementation has been minimized through intensive project preparation activity. Another potential risk is a delay in investor activity and occupancy of the SBF. This risk is minimized by the nature of the incentive regime and the ready availability of world class infrastructure, as evidenced by the actual investment and expressions of interest received to date. The project itself is not expected to have adverse environmental impacts. There is a risk of future environmental degradation if satisfactory maintenance practices are not followed. The project will address this concern.  -6- Recommendation 18. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve it. Lewis T. Preston President Attachments Washington, D.C. May 10, 1994  Schedl-e A PHILIPPINES SUBIC BAY FREEPORT PROJECT Estimated Project Costs and Financing Plan (US$ million) Estinlated Cos: a/ Local Foreign Total Site Improvement 10.3 26.9 37.2 Institutional Support 0.2 4.8 5.0 Environmental Protection 0.0 1.0 1.0 Base Cost i 5 v 43A Physical Contingencies 1.5 4.6 6.0 Price Contingencies 1.0 1.9 2.9 Total Project Cost 12.9 39.1 Interest during Construction 0.6 1.5 2.1 Total Financing Required 13 M M Financing Plan: IBRD 0.9 39.1 40.0 SBMA's Internal Cash 12.6 1.5 14.1 TOTAL / 13.5 _4 541 I/ Includes taxes and duties equivalent to US$1 million. h/ Totals may not add up due to rounding.  Schedule B Page 1 of 2 PHILIPPINES SUBIC BAY FREEPORT PROJECT Summary of Proposed Procurement Arrangements (US$ million) Component --------- Procurement Method----- ICB LCB Other NBF Total Works Land Access 4.6 1.7 0.4 6.7 (4.0) (1.5) (0.0) (5.5) Airport Improvements 14.4 14.4 (12.4) (12.4) Port Repairs 2.3 0.1 2.4 (2.0) (0.0) (2.0) Standard Factory Buildings 7.0 0.4 7.4 (6.0) (0.0) (6.0) Goods Airport Navigational Aids 6.5 6.5 (0.0) (0-0) Communications Equipment 2.5 2.5 (2.5) (2.5) Vehicles 0.7 0.7 (0.7) (0.7) Miscellaneous 2.9 O.S 0.1 3.5 (2.9) (0.3) (0.0) (3.2) Consultants Advisors 2.8 2.8 (2.8) (2.8) Studies 4.9 0.1 5.0 (4.9) (0.0) (4.9) Total 34.4 1.7 8.2 7.6 52.0 (30.5) (1.5) (8.0) (0.0) (40.0) Figures in parentheses represent amounts financed by the Bank loan. NBF: Not Bank Financed includes taxes and duties. Other. local and international shopping; consultant services.  Schedule B Page 2 of 2 PHILIPPINES Subic Bay Freeport Project Disbursements Category Amount Percentage of Expenditures Financed (US$ million) Works 26.0 90% of expenditures II. Goods 6.3 100% of foreign exrciiditures 100% of local expenditures (ex-factory cost) and 70% of local expenditures for other items procured locally III. Consultant Services 7.7 100% of expenditures Total 40.0 Estimated Loan Disbursement IBRD Fiscal Year 1995 1996 1997 1998 1999 -------------------US$ million--------------- Annual 7.2 17.6 11.2 2.4 1.6 Cumulative 7.2 24.8 36.0 38.4 40.0  Schedule C PHILIPPINES Subic Bay Freeport Project Timetable of Key Project Processing Events (a) Time taken to prepare the project: 12 months (b) Prepared by: Subic Bay Metropolitan Authority (c) First Bank mission: April 1993 (d) Completion of appraisal: December 6, 1993 (e) Negotiations: April 6, 1994 (f) Planned date of effectiveness: September 1, 1994 (g) List of relevant PCRs and PPARs: None This project was prepared by Messrs./Mmes. Shilpa Patel (Task Manager), John Arnold (Transport Economist-Consultant), Aldo Baietti (Financial Analyst), Jack Fritz (Environmental Specialist), Kishore Rao (Institutional Consultant) and Leonard Schiffman (Transport Engineer) Peer reviewers were Messrs. Peter Long and Hoon Mok Chung. The project was cleared by Mr. Vineet Nayyar, Chief, EAIIE and Mr. Callisto E. Madavo, Director, EAI. Schedule D Page 1 of 2  Schedule D Page 1 of 3 STATUS OF BANK GROUP OPERATIONS IN PHILIPPINES A. STATEMENT OF BANK LOANS AND IDA CREDITS la (As of March 31, 1994) Amount (US,e million) Loan or jless cancellations) Credit Fiscal Undis- Number Year Borrower Purpose IBRD IDA/b bursed One hundred and forty-seven loans and seven credits have been fully disbursed 4,764.65 171.18 Of which SALs, SECALs and Program Loans 1903 1981 Republic of the Philippines SAL 199.96 2266 1983 Republic of the Philippines SAL II 302.25 2469 1985 Republic of the Philippines Agriculture Sector Inputs 150.00 2787 1987 Republic of the Philippines Economic Recovery Program 300.00 2956 1988 Republic of the Philippines Program for Govt. Reform 200.00 3049 1989 Rapublic of the Philippines Financial Sector 300.00 2277 1991 Republic of the Philippines Environment & Natural Res. Mgt. 66.00 * 1.452.21 66.00 2418 1984 Republic of the Philippines Highways V 95.00 8.06 2435 1984 Republic of the Philippines Municipal Development 40.00 4.09 2676 1986 Republic of the Philippines Manila Water Distribution 38.00 3.23 2716 1986 Republic of the Philippines Rural Roads Improvement II 82.00 18.66 2823 1987 Republic of the Philippines Provincial Ports 32.00 3.18 2969-1 1988 Republic of the Philippines Bacon-Manito Geothermal Power 59.00 14.92 3084 1989 Dev. Bank of the Philippines Manila Power Distribution 65.50 31.17 3099 1989 Republic of the Philippines Health Development 70.10 27.47 3124 1990 Metro. Waterworks & Sew. Angat Water Supply 40.00 2.71 3146 1990 Republic of the Philippines Municipal Development II 40.00 18.34 3163 1990 Philippinos National Power Corp. Enewqy Sector Loan 200.00 13.20 3164 1 590 Philippines lational Oil Co. Energy Sector Loan 150.00 71.59 3165 1990 Republic of the Philippines Energy Sector Loan 40.00 14.65 3204 1990 Republic of the Philippines Coconut Farms Development 121.80 96.48 3242 1990 Republic of the Philippines WS/Sewer/Sanitation I 58.00 41.12 3244 1991 Republic of the Philippines Second Elementary Education 200.00 117.62 3261 1991 Republic of the Philippines Communal Irrigation II 46.20 39.07 3263 1991 Republic of the Philippines Earthquake Reconstruction 125.00 37.58 3287 1991 Republic of the Philippines Industrial Restructuring 175.00 4.85 3356 1991 Republic of the Philippines Rural Finance 150.00 9.52 3360 1991 Republic of the Philippines Env. & Natural Res. Mgt. 158.00 51.64 3430 1992 Republic of the Philippines Highway Management 150.00 149.18 3435 1992 Republic of the Philippines Engineering & Science Educ. 61.00 56.82 3439 1992 National Elpctrif. Adm. Rural Electrification 91.30 91.29 3455 1992 Republic of the Philippines Municipal Development III 68.00 67.95 2392 1992 Republic of the Philippines Second Vocational Training 36.00 36.40 2506 1993 Republic of the Philippines Urban Health & Nutrition 70.00 71.32 3523 1993 Dev. Bank of the Philippines Telephone System Expansion 134.00 1 34.00 3539 1993 Republic of the Philippines Economic Integration 200.00 80.00 3603 1993 Republic of the Philippines Tax Computerization 63.00 60.71 3607 1993 Republic of the Philippines Irrigation Operation Support 11 51.30 51.16 3626 1993 Philippines National Power Corp. Power Transmission & Rehab. 110.00 95.67 3700 1994 National Power Corporation Leyte Cebu Geothermal 147.00 147.00 3702 1994 Philippines National Oil Co. Leyte Cebu Geothermal 64.00 64.00 Total 7,889.85 277.18 1,626.92 of which has been repaid 2,304.72 8.05 rotal now held by Bank and IDA 5,585.13 269.13 Amount sold 31.36 Of which repaid 31.35 Total Undisbursed 1.626.92 107.72 1,734.64 /a The status of the projects listed in Part A is described in a separate report on all IBRD/IDA-financed projects in execution, which is updated twice yearly and circulated to the Executive Directors on April 30 and October 31. Amounts are presented net of cancellations. /b Principal amounts in US$ equivalent at date of negotiations, and undisbursed amounts in equivalent are valued at exchange rate applicable on the date of this statement.  Schedule D Page 2 of 3 B. STATEMENT OF IFC INVESTMENTS (As of March 31, 1994) Total Undisbursed held including Original Commitments by IFC participants' Fiscal Loan Equity Total (at cost) portion Year Obligor Type of Business --- - -- US$ million ------ 1963/73 Private Dev. Corp. of the Phi. Development Finance 15.0 4.4 19.4 1967/89 Manila Electric Co. Utilities 33.2 4.0 37.2 26.9 1970/86/ Philippine Long Distance Tel. Co. Utilities 127.7 0.8 128.5 68.9 16.7 88/90 1970/72 Mariwasa Manufacturing Co. Construction Materials 0.8 0.4 1.2 1970 Paper Industries Corp. Pulp & Paper 2.2 2.2 1971/77 Philippine Petroleum Chemicals/Petrochem. 6.2 2.1 8.3 1972 Marinduque Miring & Ind. Corp. Mining 15.0 - 15.0 1973 Victorias Chemical Corp. Chemical 1.9 0.3 2.2 1974 Filipinas Synthetic Fiber Corp. Textiles & Fibers 1.5 - 1.5 - 1974/79 Maria Cristina Chemical Ind. Electro-chemicals 1.6 0.6 2.2 0.4 1974 RFM Corporation Food & Food Processing 1.2 - 1.2 - 1975 Phil. Polyamide Ind. Corp. Textiles & Fibers 7.0 - 7.0 1976 Philagro Edible Oils, Inc. Coconut Oil & Copra 2.7 0.2 2.9 1977 Sarmiento Ind. Plywood 3.5 - 3.5 - 1977 Acoje Mining Co. Inc. Mining 3.2 0.5 3.7 1.3 1978 Cebu Shipyard & Engineering Works Ship-repairing 2.1 - 2.1 - 1979/90 General Milling Corporation Food & Food Processing 4.0 1.7 5.7 1.7 1980 Ventures in Industry & Business Venture Capital - 0.2 0.2 - Enterprise, Inc. (VIBES) 1980/83/85 All Asia Capital & Leasing Equipment Leasing 11.1 0.8 11.9 1.1 1980 Consolidated Ind. Gas. Inc. a/ Industrial Gases 4.5 - 45 - 1981 Philippines Associated Smelting Copper Smelting - 5.0 5.0 .5 and Refining Corp. (PASAR) 1981 Davao Union Cement Corporation Cement 16.0 .8 16.8 .8 1981 Loans to Small & Medium Scale Capital Markets 18.0 1.1 19.1 Ent. (SMSE) a/ 1983 NDC-Guthrie Plantations. Inc. Agribusiness 11.0 - 11.0 .9 1985 Philippine Overseas Contractors Construction 38.0 - 38.0 - 1986/91 Purefoods Food Processing - 4.2 4.2 4.5 1 988 BPI Arribank Financial Institution - 1.0 1.0 1.0 1988 Philfund Debt Conversion Fund - 4.2 4.2 - 1989 Kewalram Phil. Inc. b/ Textiles & Fibers 3.0 - 3.0 1989 AG & P Construction 10.0 - 10.0 - 1989 Hambrecht & Quist Capital Fund - 2.3 2.3 2.3 1990 Hopewell Energy Power 10.0 1.1 11.1 7.1 1990 Manila Fund Money & Capital Markets - 7.0 7.0 - 1990 First Phil. Fund Money & Capital Markets - 29.7 29.7 - 1990 Avantex Mill Corp. Textiles 11.3 2.3 13.6 11.8 1990 Makati Shangri-La Tourism 59.0 - 59.0 27.9 4.7 1991 Best Chemicals Chemicals 6.5 2.3 8.8 7.4 1991 Automated Microelectronics Electronics 9.0 2.8 11.8 .2 1991 PCI Bank b/ Financial Institution 20.0 - 20.0 - 1991 Mactan Shangri-La Tourism 24.0 . 24.0 12.0 1992 Bacnotan Cement Corp. Cement 18.0 5.3 23.3 26.7 3.1 1992 Pilipinas Sheil Petrochemicals 120.0 15.0 135.0 50.0 81.0 1993 Hopewell Power Power 100.0 10.0 110.0 70.0 71.0 1993 Northern Mindanao Power 38.5 9.5 48.0 17.0 21.9 1993 14 & QPV II Capital Fund - 2.5 2.5 2.5 2.5 Subtotal 754.3 124.4 878.8 343.1 201.0  Schedule D Page 3 of 3 Total Undisbursed held including Original Commitments by IFC participants' Fiscal Loan Equity Total (at cost) portion Year Obligor Type of Business ------------- US$ million -.---.--.---.-- Approved but not yet signed 1992 Filsyn 11 Textile & Fibers 40.0 5.0 45.0 25.0 45.0 1994 Walden Management Capital Markets - .1 .1 .1 .1 1994 Walden Ventures Capital Markets 3.8 3.8 3.8 3.8 Total Gross Commitments 794.3 133.2 927.5 371.9 249.8 a/ Subsequently cancelled. b/ Guarantees. Less than US$0.5 million.  ________________________________________________ lARD 25499~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~BR 2A9 120- 125- -20- 20' SUBIC BAY FREEPORT PROJECT LUZON A.so is,