Zambia - Petroleum Sector Rehabilitation Project

- b Document of The World Bank FOR OFFICIAL USE ONLY Report No* P-6272-ZA MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN THE AMOUNT EQUIVALENT TO US$30 MILLION TO THE REPUBLIC OF ZAMBIA FOR A PETROLEUM SECTOR REHABILITATION PROJECT MAY 6, 1994 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 (Annual Average Exchange Rates) Currency Zambian Kwacha (K) US$1.00 K 600 K 1.00 = US$ 0.002 1980 US$1.00 = K .79 1983 US$1.00 = K 1.26 1984 US$1.00 = K 1.81 1985 US$1.00 = K 3.14 1986 US$1.00 = K 7.79 1987 US$1.00 = K 8.89 1988 US$1.00 = K 8.82 1989 US$1.00 = K 12.90 1990 US$1.00 = K 28.90 1991 US$1.00 = K 61.70 1992 US$1.00 = K171.00 1993 US$1.00 = K460.00 Currency Tanzanian Shilling (TSh) USi1.00 = Tsh. 499 Tsh.1.00 = US$ 0.002 Weights and Measures 1 Metric Ton (MT) = 1,000 kilograms (kg) 1 Barrel (Bbl) = 0.159 cubic meters 1 Metric Ton of Oil (API 30) = 7.19 barrels 1 Ton of Oil Equivalent = 10 million kilocalories (39.7 million Btu) 1 Kilocalorie = 3.97 British Thermal Units (BTU) 1 Gallon = 3.785 Liters 1 Liter = 0.26 Gallon FOR OFFICIAL USE ONLY Abbreviations ADB African Development Bank EIB European Investment Bank EIRR Economic Internal Rate of Return DOE Department of Energy GRZ Government of the Republic of Zambia ICB International Competitive Bidding Indeni Indeni Petroleum Company Limited kgoe kilograms of oil equivalent MEWD Ministry of Energy and Water Development NEC National Energy Council OMC Oil Marketing Companies OMCC Consortium of Oil Marketing Companies PIRC Privatization and Industrial Restructuring Credit SPM Single Point Mooring toe tons oil equivalent tpa tons per annum Tazama Tazama Pipelines Limited ZCCM Zambia Consolidated Copper Mines Limited ZESCO Zambia Electricity Supply Company Limited ZIMCO Zambia Industrial and Mining Corporation Limited ZIMOIL Petroleum Procurement and Supply Division of ZIMCO ZOC Zambia Oil Company ZR Zambia Railways Limited Fiscal Yeer Government - January 1 - December 31 ZOC, TAZAMA - April 1 - March 31 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. ZAMBIA PETROLEUM SECTOR REHABILITATION PROJECT Credit and Project Summary Borrower: Republic of Zambia Credit: Petroleum Sector Rehabilitation Project Beneficiaries: The Ministry of Energy and Water Development (MEWD); Tazama Pipelines, Ltd. (Tazama); and Zambia Oil Company (ZOC) Guarantor: Republic of Zambia Amount: SDR 21.6 million (US$30 million equivalent) Terms: Standard IDA terms with a maturity of 40 years On-Lending Terms: For 20 years including a grace period of 5 years at 8% interest rate (equal to 1.1 times the prevailing IBRD interest rate). Fnancing Plan: (US$million) Source of Financing Foreign Local Total MEWD, Tazama and ZOC - 3.0 3.0 IDA 30.0 - 30.0 European Investment Bank 15.0 - 15.0 Total m 48 Economic Rate of Return: Tazama Pipeline Rehabilitation (88% of project cost): 100%. Ndola Depot Modernization (5% of project cost): 14.9% Poverty Category: Indirect poverty reduction (long-term growth) Staff Appraisal Report: 12607-ZAM Map: IBRD-20145R IBRD-25541 MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE IDA TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO ZAMBIA FOR THE PETROLEUM SECTOR REHABILITATION PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed development credit to Zambia for SDR 21.6 million, the equivalent of US$30 million on standard IDA terms with a maturity of 40 years (including a grace period of 10 years) to help finance the Petroleum Sector Rehabilitation Project. A part of the proceeds (US$2.8 million equivalent) would be used to develop an efficient monitoring unit in the Ministry of Energy and Water Development (MEWD), US$25.1 million equivalent would be onlent to Tazama Pipelines Limited (Tazama) for its pipeline rehabilitation, and US$2.1 million equivalent would be onlent to Zambia Oil Company (ZOC) for the modernization of its Ndola depot. Parallel financing of US$15 million equivalent is expected from the European Investment Bank (EIB) for the pipeline rehabilitation and construction of a new storage tank in Ndola. Onlending of IDA funds will be at 8% (1.1 times the prevailing IBRD rate) for a period of 20 years including 5 years grace period. Energy Sector Background 2. Zambia is a landlocked country in southern central Africa with a land mass of 753,000 km2: it shares borders with Angola, Botswana, Malawi, Mozambique. Namibia, Tanzania, Zaire and Zimbabwe. The closing of Zambia's southern border and the imposition of economic sanctions on Rhodesia in 1965 constrained the supply of petroleum fuels. To ensure a steady supply of petroleum products, the construction of 1710 km Tazama Pipeline from Dar-es-Salaam, Tanzania to Ndola, Zambia, was completed in 1968. The pipeline was converted into crude oil service in 1973 when the Indeni Refinery at Ndola was commissioned. Pipeline leakage due to external and internal corrosion became serious in the early 1980s, causing loss of oil and serious pollution in Tanzania. The Government of the Republic of Zambia (GRZ) initiated steps for rehabilitating the pipeline as a priority, but this had to be done in stages because of shortage of funds. The first stage (with Zambia Industrial and Mining Corporation's (ZIMCO) own financing) and the second stage (with European Investment Bank (EIB) and Italian Government financing) are complete; the third stage (with African Development Bank (ADB) financing) is nearing completion. 3. The Zambia's energy supply consists of domestically produced hydropower (12.2%), coal (5.2%), fuelwood and charcoal (70.1%), and imported petroleum (12.3%). Final domestic energy consumption in 1992 totalled about 4.6 million tons of oil equivalent (toe), of which household use accounts for 62.8% and mining 14.2%. Per capita annual commercial energy consumption of about 379 kilograms of oil equivalent (kgoe) in 1991 was the fourth highest among the low-income countries mainly because of use in copper mining. The major sources of commercial energy supply are petroleum (41.7%), electricity (40.9%) and domestic coal (17.4%). The Zambian Government policy is aimed at promoting optimum supply and use of energy, especially indigenous forms, to facilitate the development of the country and maintain a safe and healthy environment. As part of this policy, the Government seeks to promote energy efficiency and fuel substitution, speifically a reduction in oil -2- consumption, and has undertaken a conservation and management program to seize energy conservation and substitution opportunities. 4. The Government's energy policy seeks to establish a viable institutional structure that will ensure attainment of the policy objectives. This will require reform of-and better operation, management and coordination of-Government, public enterprises and the private sector. The central Government is responsible for energy policy and planning. In 1991, the new Government consolidated the responsibility for energy under a single portfolio in the newly-created Ministry of Energy and Water Development (MEWD). The energy component of the Ministry's portfolio is handled by the National Energy Council (NEC) and the Department of Energy (DOE). NEC acts as a policy adviser to the Ministry and is responsible for integrating the plans of the various sectoral institutions, while DOE concentrates on technical/administrative advisory services. Both units need significant reinforcement in technical and analytical capacities: for this they will need to recruit more qualified candidates and undergo suitable training. The proposed project includes institutional strengthening of petroleum operations in the Ministry. Project Objectives 5. The main objectives of the proposed project are: (a) restructuring of the petroleum industry to become more competitive and cost effective; (b) policy development through encouraging establishment of a monitoring system on the government side and through using a satisfactory regulatory framework, competitive imports of petroleum and eventual deregulation of the market; (c) rehabilitation of the Tazama pipeline as the least cost and most reliable means of transporting oil to Zambia and strengthening of its institutional structure; and (d) improvement of infrastructure facilities to reduce the cost of petroleum product importing and distribution. Project Description 6. The principal feature of the proposed project is the redefinition and enlargement of the private sector to reduce the presence of Government and government agencies. The new policy structure will enable the private sector to purchasa the refinery feedstock as soon as it is landed in Dar-es-Salaam, and negotiate performance contracts with the pipeline and refinery. The private sector companies, as a consortium, will take over management of the national storage. The main prerequisites to enable the companies to do this are an overhaul of the price system (included under the project) and its subsequent deregulation, and an interim financing mechanism. At the completion of the project, Government will review the role of the refinery. Most elements will be in place for a rapid conversion of the pipeline for products use (bypassing the refinery), should that decision be made. No part of the rehabilitation under the present project would become redundant. 7. The proposed project would have 4 main components: (a) Technical Assistance to MEWD (US$3.1 million) to permit it to identify and formulate policies and strategies to address current and emer;ing energy issues such as pricing reform and restructuring of sector organizations. -3- (b) Rehabilitation of Tazama Pipeline (US$39.0 million) including corrosion protection, overhaul of pumps, engines and generators, rehabilitation of the tank farm at Dar-es-Salaam, consultancy services in relation to design and supervision of the project and adoption of stronger environmental practices to eliminate most of the present problems from operations. (c) Institutional Strengthening of Tazama (US$3.3 million) to improve its efficiency and environmental awareness in operation, maintenance, and financial management. (d) Modernization of the Oil Products Depot (US$2.6 million) to allow unit train loading, and the supply of equipment and measuring instruments at Ndola. The private sector companies would make parallel investments at their Lusaka depots. 8. The IDA Credit of US$30 million equivalent would finance about 67% of the foreign exchange and about 63% of the total financing required. EIB is expected to finance the remaining US$15 million foreign exchange needs. Schedules A, B and C give the cost breakdown and detailed financing plan, procurement and disbursement, and processing events, respectively Schedule D shows the status of Bank group operations. Two maps, showing the pipeline route and main features, are attached. Staff Appraisal Report No. 12607-ZAM is being distributed separately. Project Management and Implementation 9. The supply component would be implemented by ZOC, which will be formed to take over some of ZIMOIL's activities; capacity strengthening component by MEWD; and pipeline rehabilitation will be executed by Tazama. Tazama and ZOC would be responsible for coordinating their actions for the appointment of consultants and contractors, procurement, project programming and budgeting for their respective portions of the project. A project implementation team, headed by an experienced pipeline engineer as project manager, will be established within the engineering department of Tazama. This team will also assist ZOC. Project Sustainability 10. The project focus is on restructuring the petroleum industry to put all key operational responsibilities into the hands of experienced private sector companies. At completion of the project, the private sector, in the form of a consortium of oil marketing companies (OMCC), will be responsible for all actions from the time the feedstock is received at Dar-es- Salaam, including negotiating performance contracts with Tazama. The only company possibly remaining under public sector control will be Tazama itself (the possibility of privatizing Tazama is remote). ZOC's proposed shareholding structure is likely to leave day to day control with the private sector. 11. The project addresses the financial viability of Tazama and ZOC. The pricing system being developed will permit the financial viability of other well-managed institutions in the sector. In all cases, a mechanism has been worked out to'protect against the major risk - currency fluctuations- and to provide regular review on variations in volume and other issues. -4- Lessons Learned from Previous IDA Operations in the Energy Sector 12. Experience indicates that the main sectoral problems causing implementation delays ere institutional weakness and lack of coordination among the governmental agencies and project implementation agencies. Tazama's technical and financial skills are weak and need reinforcing by experienced staff at all levels. Technical assistance provided under the project plus the shift of responsibilities to the private sector will address these deficiencies. 13. The pricing mechanisms to permit the financial viability of enterprises in the sector have been closely related to the parastatal reforms included in the Privatization and Industrial Reform Adjustment Credits (PIRC). The detailed structure envisaged for petroleum product prices draws heavily on successful experience in other countries. Rationale for IDA Involvement and Consistency with Country Assistance Strategy 14. The Bank's previous lending for energy in Zambia has included the development of hydropower generation, including expansion of the transmission network, providing technical support for the rehabilitation of the coal industry and evaluating options for modifying the country's oil refinery. The Bank's current involvement is vital to the modernization and overhaul of the structure of the sector, which will include redefinition of the public sector to open opportunities for the private sector, rationalization of the management structure of the project's impl.menting agencies and the establishment of training programs. The Bank's efforts to identify Tazama's environmental issues have led to the development of an action plan. Bank staff have convinced the Government to review performance and manning levels of Tazama, Indeni and the Ndola terminal. 15. The goal of the Bank's strategy for Zambia, as articulated in the Country Assistance Strategy distributed to the Executive Directors on February 18, 1994, in conjunction with the Economic and Social Adjustment Credit, is to assist the Government to achieve sustainable economic growth and to reduce poverty. This translates into a three- pronged strategy of direct assistance aimed at: (a) supporting policy reform and providing balance of payments support through adjustment operations; (b) improving the enabling environment for private sector growth through project investments in infrastructure and human resources; and (c) targeting the poor and vulnerable groups with programs in agriculture and social services and ensuring that environmental issues are addressed promptly. These interventions are mutually supportive and mutually reinforcing. The Petroleum Rehabilitation Project directly supports the reform of policy, improving the enabling environment for private sector growth, and minimizing environmental problems. It indirectly supports poverty alleviation objectives through improving the reliability and efficiency of petroleum supplies. Actions Agreed Upon 16. Before Board Presentation, Government (a) submitted to IDA a Letter of Petroleum Sector Policy; (b) reached agreement with OMCs on measures to restructure the petroleum sector; and (c) approved the formation of ZOC. As conditions of Credit effectiveness, Government will (a) execute subsidiary loan agreements with Tazama; (b) execute an agreement with EIB, including fulfilling EIB's conditions of effectiveness; and (c) implement -5- consultant for project engineering and supervision. ZIMCO (or ZOC, if it is then the owner of Ndola terminal) will contract to transfer management and operation of Ndola terminal to OMCC. Conditions of disbursement for the allocation of funds to ZOC are: (a) establishment of ZOC and execution of subsidiary loan agreement between ZOC and Government; and (b) confirmation by Zambia Railways of its acceptance in principle of performance standards relating to travel time, wagon return time and physical losses. Other agreements include: Government will (a) ensure that petroleum product prices will be reviewed at least monthly and adjusted as required to reflect all foreign and local currency costs, including those caused by devaluation and will be set at a level to permit ZOC to recover losses incurred before June 1993, through the pricing system, before December 31, 1994; (b) Government will cause OMCC to be established and will have made adequate arrangements for the financing of all feedstock and refined products for the purposes of transferring their ownership to OMCC by March 31, 1995; and (c) implement ending of controls on retail prices before the end of 1996. Tazama and ZOC will agree on the environmental measures to be implemented in conjunction with the construction program. A mid- term review will be held in June 1996. Environmental and Safety Aspects 17. The project is classified as Category B. An environmental assessment of all the project-related facilities has been conducted by an independent consultant; the assessment's recommendations have been taken into account in preparing the scope of the project facilities and have been incorporated in t;ie legal documents. ZOC would provide suitable drainage facilities to collect the oil spillage in loading areas. With these facilities and new operational procedures, the general housekeeping at ZOC's Ndola installation would be satisfactory. A review of the working of the engines at the Tazama pumping stations is required to correct the air pollution problem. The specifications for modifying the engines will be prepared accordingly. The operators will be trained in environmental awareness. The proposed pipeline rehabilitation will prevent oil leaks resulting from pipeline corrosion. 18. An emergency plan will be developed to deal with a serious oil spill or a fire. Basic equipment to stop a serious leakage or a fire will be available along the pipeline and at the terminals. Operators will be trained in handling emergencies. Program Objective Categories 19. The project aims to increase the reliability and reduce the long-term cost of bringing petroleum products into Zambia, through reliance on a stronger private sector. It supports the Government privatization strategy and the development of the private sector. Project's Economic Viability and Benefits 20. The proposed project represents the logical core investment requirement in the petroleum sector. It would correct the now deteriorating pipeline, and together with private sector investment, would rehabilitate the rail loading and unloading facilities at Ndola and Lusaka. It would remove the threat to the environment in Zambia and Tanzania caused by the pipeline's current condition. Investment costs for the pipeline have been compared to the next least cost alternative of supplying Zambia with petroleum products. Without the Tazama pipeline, the region's least cost access to the sea would be the Tazara railway system. As the "with pipeline" -6- solution is less costly than the rail option in each of the first 10 years, the economic benefit is clear: the return will exceed 100%. 21. The major benefits from the product distribution component would be a reduction in transport costs and savings from a shift from road haulage to rail. The EIRR for improving the distribution systems of petroleum by upgrading facilities at Ndola is 14.9%. Project Risk 22. In addition to the stated objectives of this operation, the reform process will be pursued and maintained through a dialogue on privatization, transparency in procurement and a suitable regulatory framework in connection with the adjustment credits. The risk of Tazama's management not performing to industry standards is mitigated by the proposed management contracts and the incorporation of experienced staff. However, the cost differential between road and rail may change, especially in view of the weak performance of Zambia Railways (ZR). There is also a risk that ZR will never accept responsibility for losses of product under its care, and that the Ndola rail loading component would not proceed as planned. Government and IDA are addressing this issue through an ongoing IDA-financed railway operation. Recommendation 23. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend the Executive Directors approve the proposed Credit. Lewis T. Preston President Attachments May 6, 1994 -7- Schedule A Page 1 of 1 ZAMBIA PETROLEUM SECTOR REHABILITATION PROJECT ESTIMATED PROJECT COSTS AND FINA.CING PLAN Estimated Project Costs: Project Component Local Foreign Total Local Foreign Total - (US$ Million) - -(Million Z. Kwacha*)- TAZAMA Pipeline Rehabilitation 1.4 30.1 31.5 840.0 18,060.0 18,900.0 Tazama Project Management 0.1 0.6 0.7 60.0 360.0 420.0 Tazama Institutional Strengthening 0.2 2.5 2.7 120.0 1,500.0 1,620.0 Sub Total 1.7 33.2 34.9 1,020.0 19,920.0 20,940.0 Contingency 0.5 6.9 7.4 300.0 4,140.0 4,440.0 Total For Tazama 22 40.1 42.3 1,320. 24,060. % ZOC 0.3 1.7 2.0 180.0 1,020.0 1,200.0 Contingency 0.2 0.4 0.6 120.0 240.0 360.0 Total for ZOC 0.5 2.1 2.6 300.0 16260.0 1560. MEWD 0.2 2.3 2.5 120.0 1,380.0 1,500.0 Contingency 0.1 0.5 0.6 60.0 300.0 360.0 Total for MEWD 0.3 2.8 3.1 180.0 1.680.0 .00 Total Project Cost 0 45.0 48.0 000 *Based on k 600/$, an average exchange rate for 1994 (projection). Financing Plan: (US$ Million equivalent) Component Source Local Foreign Total % of Sub- Total (i) Tazama IDA - 25.1 25.1 60 EIB - 15.0 15.0 35 Local 2.2 2.2 5 Sub-Total 2.2 40.1 42.3 100 (ii) Supply and Distr. IDA - 2.1 2.1 81 (ZOC) Local 91 0. _-5 Sub-Total 0.5 2.1 2.6 100 (iii) Monitoring Unit in IDA - 2.8 2.8 90 MEWD Local 0.3 - 0.3 10 Sub-Total 0.3 2.8 3.1 100 (iv) Total IDA - 30.0 30.0 63 EIB - 15.0 15.0 31 Local 3.0 - 3.0 6 Total 3.0 45.0 48.0 100 -8- Schedule B Page 1 of 2 ZAMBIA PETROLEUM SECTOR REHABILITATION PROJECT SUMMARY OF PROPOSED PROCUREMENT ARRANGEMENTS (US$ million equivalent) Procurement Method Project Elements ICB LCB Other Total 1. Works Tazama - IDA 5.9 - - 5.9 Other Finance 15.0 - - 15.0 ZOC 0.6 - - 0.6 2. Goods (Equipment and Materials) Tazama 13.0 - 2.1 15.1 ZOC 0.6 - 0.9 1.5 3. Consultancies Tazama/ZOC - - 3.6 3.6 MBWD - 2.6 2.6 4. Training Tazama - 0.5 0.5 MEWD - - 0.2 0.2 Total including cofinanciers 35.1 - 9.9 45.0 for IDA 20.1 - 9.9 30.0 All the figures unless otherwise noted will be financed by IDA. IDA financing figures are contracts net of taxes and will be financed 100% for foreign expenditure and 90% for local expenditure. Procurement of goods and works will be carried out as per Bank's Procurement Guidelines (May 1992). -9- Schedule B Page 2 of 2 ZAMBIA PETROLEUM SECTOR REHABILITATION PROJECT SUMMARY OF PROPOSED PROCUREMENT ARRANGEMENTS (US$ million equivalent) Credit Allocation: Zambia - IDA Credit Allocation MEWD TAZAMA ZOC TOTAL DISBURSEMENT Equipment and - 11.3 1.2 12.5 100% of foreign Materials expenditures, 90% of local expenditures Civil Works and - 4.8 0.5 5.3 100% of foreign Erection expenditures, 90% of local expenditures Engineering and - 0.6 - 0.b 100% of foreign Project Management expenditures Training and 2.3 2.8 - 5.1 100% of total Institutional expenditures Strengthening Contingencies 0.5 5.6 0.4 6.5 Total 2.8 25.1 2.1 30.0 Estimated Credit Disbursement: IDA Disbursements Components 1994/95 1995/96 1996/97 1997/98 1998/99 Total Tazama 1.7 2.0 4.8 8.7 7.9 25.1 ZOC 0.1 0.3 0.4 0.7 0.6 2.1 MBWD 0.2 0.2 0.4 1.0 1.0 2.8 Total 2.0 2.5 5.6 10.4 9.5 30.0 (%) 7.0 8.0 19.0 35.0 31.0 100.0 - 10 - Schedule C Page 1 of I ZAMBIA PETROLEUM SECTOR REHABILITATION PROJECT Timetable of Key Project Processing Events: Time Taken to prepare : 24 months Prepared by MEWD, Tazama, Zimoil (predecessor of ZOC), IDA and consultants funded by Canadian and Danish Grants First IDA Mission September 1992 Appraisal Mission Departure : June 1993 Negotiations April 1994 Planned Board Presentation May 1994 Planned Date of Effectiveness September 1994 List of Relevant PCRs and PPARs : Tazama Pipeline Engineering Credit (Credit 1627-ZA) This Memorandum of the President is based on the findings of a preappraisal mission which visited Zambia in August 1992 and February 1993 and an appraisal mission in June 1993. The appraisal mission led by T.S. Nayar, Pr. Chemical Engineer (IENOG), included Eric Daffern, Pr. Energy/Industrial Specialist (IENOG) (lead adviser), Yuriko Sakairi, Economist (AF6IE) and P.K. Subramanian, Financial Analyst (Consultant). Secretarial support was provided by Joyce Chinsen and Ethiopia Taddese (AF6IE). David Cook (AF6IE) and Stephen Denning (AF6DR) are the managing Division Chief and Department Director. - 11 - Schedule D Page 1 of 3 ZAMBIA Statement of Bank Group Operations Summary Statement of Loans and IDA Credits (LOA date as of 3/31/94) Amount in USS million (Less canceLlations) Loan or Fiscal Undis- Closing Credit No. Year Borrower Purpose Bank IDA bursed Date Credits 22 Credits(s) closed 500.04 C14370-ZAM 1984 ZAMBIA FORESTRY III 22.40 5.01 09/30/93(R) C15750-ZAM 1985 ZAMBIA RWYS.IV 12.20 13.05 06/30/94(R) C16790-ZAM 1986 ZAMBIA TAS II 8.00 4.09 12/31/94(R) C17430-ZAM 1987 ZAMBIA COFFEE II 20.40 21.69 06/30/95 C17460-ZAM 1987 ZAMBIA AGR. RES.& EXT. 13.00 10.23 12/31/96(R) C22690-ZAM 1991 ZAMBIA MINING TAS 21.00 13.94 06/30/97 C22730-ZAM 1991 ZAMBIA SOCIAL RECOVERY PROJ 20.00 7.96 07/31/97 C24050-ZAM(S) 1992 ZAMBIA PRIVATIZATION/IND. k 200.00 6.07 02/24/95(R) C24060-ZAM 1992 ZAMBIA PIRC TECHNICAL ASSIS 10.00 7.90 12/31/97 C24220-ZAM 1993 ZAMBIA MKTG. & PROCESS. 33.00 26.32 06/30/99 C24290-ZAM 1993 ZAMBIA EDUCATION REHAB. I 32.00 28.37 06/30/98 C25150-ZAM 1993 ZAMBIA TRANSPORT ENGINEERIN 8.50 8.76 06/30/97 C25230-ZAM(S) 1993 ZAMBIA PIRC II 100.00 92.13 06/30/95 C24052-ZAM(S) 1994 ZAMBIA PRIVATIZATION/IND. R 16.84 17.10 02/24/95 C25231-ZAM(S) 1994 ZAMBIA PIRC II 10.00 9.89 06/30/95 C25350-ZAM 1994 ZAMBIA FINANCIAL & LEGAL MA 18.00 17.94 06/30/99 * C25770-ZAM(S) 1994 ZAMBIA ECON & SOCIAL ADJUST 150.00 153.80 12/31/95 TOTAL number Credits = 17 695.34 44.25 Loans 28 Loans(s) closed 582.13 All closed for ZAMBIA TOTAL number Loans = 0 TOTAL*** 582.13 1,195.37 of which repaid 424.66 2.53 TOTAL held by Bank & IDA 157.47 1,192.84 Amount sold 28.58 of which repaid 28.58 TOTAL undisbursed 444.25 Notes: * Not yet effective ** Not yet signed * Total Approved, Repayments, and outstanding balance represent both active and inactive Loans and Credits. (R) indicates formally revised Closing Date. (S) indicates SAL/SECAL Loans and Credits. The Net Approved and Bank Repayments are historical value, all others are market value. The Signing, Effective, and Closing dates are based upon the '.oan Department officaL data and are not taken from the Task Budget file. - 12 - Schedule D Page 2 of 3 ZAMBIA Statement of Bank Group Operations Summary Statement of Loans and IDA Credits (LOA date as of 3/31/94) Implementation of Bank Projects in Zambia Disbursements in FY94 are performing well and will be close to the original estimate. This is a marked improvement on previous years. In recent years disbursement was slow as a result of poor implementation capacity and procurement procedures in the Government. The IDA- financed PIRC/TA project is improving Government's capacity to manage projects. In addition, the Government has agreed to hire private sector consultants to monitor and evaluate projects, thus increasing the Government's capacity to manage projects more efficiently. Actions taken for specific, slow disbursing projects are: Railways IV: Project down-scaled and large proportion of undisbursed balance cancelled because of insufficient Government action to address implementation problems. Agricultural Research and Extension Restructured to facilitate better implementation. Coffee H: Restructured in line with current government policy for better implementation. -13- Schedule Page 3 of 3 INTERNATIONAL FINANCE CORPORATION INTEGRATED CORPORATE ACCOUNTING SYSTEM STATEMENT OF IFC INVESTMENTS AS OF MARCH 31, 1994 Gross Commitments US$ Million OBLIGOR TYPE OF BUSINESS Ex UQAN E QUIT TOTAL BATA SHOE ZAMBIA MPG OF FOOTWEAR EXPI VULCANIZE 1972 .85 .23 1.08 1973 1.20 .00 1.20 CENTURY PACKAGES MFG OF CHEMICAL PRODUCTS NEC 1975 .77 .21 .99 1978 .10 .00 .10 DBZ DEVELOPMENT FINANCE COMPANIES 1976 .00 .54 .54 ETHANOL ZAMBIA MFG OF BASIC INDUSTRIAL CHEMICAL 1982 3.68 .60 4.29 GWEMBE AGRICULTURAL & LIVE-STOCK PROD 1987 .00 .80 .80 1988 3.70 .00 3.70 KAFUE TEXTILE SPINNING WEAVING & FINISHING 1980 .29 .00 .29 1981 7.31 .00 7.31 1985 3.14 .00 3.14 MASSTOCK AGRICULTURAL & LIVE-STOCK PROD 1989 8.69 .00 8.69 MPONGWE AGRICULTURAL & LIVE-STOCK PROD 1984 .00 .29 .29 1985 1.83 .00 1.83 1991 .00 .00 .00 ZAMBIA HOTEL RESTAURANTS & HOTELS 1984 21.01 .00 21.01 1991 1.40 .00 1.40 ZCCM NON-FERROUS ORE MINING 1980 28.00 .00 28.00 1982 25.14 .00 25.14 TOTAL GROSS COMMITMENTS 107.12 2.68 109.80 LESS CANCELLATIONS, TERMINATIONS, 79.76 2.45 82.21 EXCHANGE ADJUSTMENTS, REPAYMENTS WRITEOFFS, AND SALES TOTAL COMMITMENTS NOW HELD BY IFC 27.36 .23 27.59 TOTAL UNDISBURSED IFC 6.50 .00 6.50 'OTAL OUTSTANDING IFC 20.86 .23 21.09 1BRD 20145R �ислиол��-�--- �,,;� 3� ----------- \ г,,.,. �,, и�.,w. г>w�. i l � исанол � ��� �'� � '*ваиооо \ \ь\ и iмов, `.\ �' 1 iоиии 7 ` \ ® \ � KENYA � 1� �1 Мигопа� ' �� i' � 1 \\ Г К N У А 1 у�с4-• --'� � � RWANDA l \ � и�µ'' �1 wtiuнo,� ` % Иапг,оо ' \ \ �_� . l . \ I �' � �у _ и � t, \ � s \ � tYOtpora ' r'� MwAN2A ' \ \ � � Оог и 5аlооу,® ) � Д/ наа^Еп г� L а i R Е � � / ) $егриеТ0 �r �\ � _ �„У\ � �" i ` i �, f v / � v- iлеnм' `1 � н,п¢пппг rla,!„мп • _--- "- - _ у , , мг на ,.. 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Д `/ I, W рп Ьп 1пп 1i0 W � � � л 1 �� г �/' `\ � � ',� � иww \ � � 89� , +.," �� l � ��' ,,,е кПно кrvгп�е MDaiov � маиапеаьо ' 1 . � 'i ... 927 .} � -� � .� .L , р , � ,. � Тиьиrv игатбе � ' % �1f� / L 1 1и U 1 У \ .- �' I . ,�: / \ , R �'\ iмпа,аагг /'5 � " л ~5 у " � / � � liral j Z А М В 1 А 1 �� f 1,г �n'°па ,пт 1 S { U ОЬ3 `~t (4 1` у_ � млюго 1 � �� ® � �► 1 i \ �5 1 54 7 ` г , _ � ` ,�4опqю � i Маюь I\t -j � I ,, i. ,, h The Ьоипдоriеы calo% М А L А W 1 Г двпопlпоМопа апд апу \ •` 7unEwu Ni 1 4"J /д 12 А � огhег 1п/огтогго hown 1210 � мооп�. , � • , 1пp1y lsагппрΡ де мг rhв ром г ; 295 Тм wл,rd Bonk Gsoup. � r Bar1, �... \ ' -- � ��идртмг оп rhs 1е�о1 � �-` --� ° 1 /' М Z А М В 1 Q U Е ( апу впдепв м ry Го Ndn1o � / „` +.�,,,./ �А асеврюпел ! аисh 94° i 96° 4р ЬоипдапМа. MARCH 1994 IBRD 25541 28' r. M-d. ý2- ZAMBIA/TANZANIA i PETROLEUM SUPPLY FACILITIES K ... b. 13.yý T A N Z A N l A mp l U0 öll, DEP01 AND JE] i i Coal Deposit Areas TAZAMA Pipeline bola N--., Rocids 0 Existing Oil Depots Railroads 11 Exisking Pump Storions Mpo,olkoto Rivers 0 Existing Colkodic Protection Stolions Swamps 927 Location (dentification @ National Capital 0 Plonned Cathodic Protection Stofions Koýoýb«o * Province Copitals ý0 190 1ý0 200 250 L-N9. Kosarna 106 Province Boundarics Nwc.d. 011 D17POT mila$ 6 50 160 150 ch. 1, International Boundories ^Y 0 f r H E R .ý 1154 Z A i R E 11 P. m ansa Ch... sdfy. 1210 L.b..b.,hi 1295 0 L U A u i Mpik. 12- 1310 Solweýl 0 d-i A N G 0 1 A b. N' 0 R 7- M, F.li. Kir. C) Kolonje, PETROLEUM 1r MALAW l EFINERY AND OIL L-Shy. VERMINAL 0 erente Ka-P. 011 DEPOTO zabe.i mP..9.6 Chipata K.bo.po ..hi Kapiri Mposhi 5-p Katet. E 7 iC K~ p.ýn.ks i . 11-91 / /, ý1, ,. -. Lukulu Kabwc J Ko... M 0 Z A M B 11 0 U E M.. b- J Monyv OIL TERMINAL SA jK A ý2' Lusaka K foc K10.90 W 5 E R A/ bGANDÅ! KENYA -16- K.tab. RWANDJT Mona* 8=114 1\ TANZAN» 5 0 U T H E je N Cho- U, Sol- comom Kolo.o 11TERMII Z IM SA BW II! ANGOLA ýM AIKAW I 117r) Seshelke 9 ANGO LA Th. b-d«,m, &,., d~ äwäw ..d ..y th., A- - tk, .p d. -t i.*, .. the pc,t f The ~id B-k G-p, zi AB E Livingstone .y iudgment o. th. 1.9.1,äntu, f ->, t-iwy, ., -Y ~danom.t NAM181A 11 B l A ,a MACIAGASCAI < - . rý Bu -A 20 BOTS NA 28- MARCH 199