Turkey - Privatization Implementation Assistance and Social Safety Net Project

z A/ -L / J -) T - 7- Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-6243 TU MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ONA PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$100 MILLION TO THE REPUBLIC OF TURKEY FOR A PRIVATtZATION IMPLEMENTATION ASSISTANCE AND SOCIAL SAFETY NET PROJECT March 3, 1994 MICROGRAPHICS Country Operations Division County Department I Report No: P- 6243 TU Europe and Central Asia Region Type: MOP This document has a restricted distribution and may be used by recipients only in the performnce of their official duties. Its contents may not otherwise be disclosed without Word Bank authorizatia  CURRENCY EQUIVALENTS Currency Unit = Turkish Lira (FL) US$1 = 17,700 AVERAGE EXCHANGE RATES per US$1 CY1991 CY1992 CY1923 January 1994 Februa 19224 4,200 6,900 11,000 15,200 17,700 WEIGHTS AND MEASURES Metric System TURKEY - FISCAL YEAR January 1 - December 31 ABBEEITONS AND ACRONYMS PCR - Project Completion Report PPA - Public Participation Administration PPP - Project Preparation Facility PSBR - Public Sector Boizowing Requirement SOE - State-Owned Enterprise SPO - State Planning Organization TEK - Turkiye Elektrik Kurumu (power)  FOR OMCIL USE ONLY REPUBLIC OF TURKEY &RIVATIZATION IMPLEMENTATION ASSISTANCE AND SOCLAL SAFETY NET PROJECT Loan and Proiect Summary Borrower: Republic of Turkey Beneficiaries: Undersecretariat of Treasury and Foreign Trade (Treasury) Public Participation Administration (PPA) State Planning Organization (SPO) Amount: US$100 million equivalent Terms: Seventeen years, including five years of grace, at the Bank's standard variable interest rate Financing Plan: Local Foreign Totl US$ million Government 29.0 - 29.0 IBRD 19.0 810 100.0 Total a480 81.Q 129.0 Economic Rate of Return: Not Applicable Pove.-ty Category: Not Applicable Staff Appraisal Report: Report No. 12682-TU Map: IBRD No. 24903R 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 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF TURKEY FOR A PRIVATIZATION IMPLEMENTATION ASSISTANCE AND SOCIAL SAFETY NET PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed technical assistance loan to the Republic of Turkey for the equivalent of US$100 million to help finance a Privatization Implementation Assistance and Social Safety Net Project. The loan would be at the Bank's standard variable interest rate, with a maturity of seventeen years, including five years of grace. 2. Sector Background. The process of economic liberalization during the 1980s exposed the wealnesses of Turkey's state-owned enterprise (SOE) sector. Originally established within the framework of economic planning for industrial development and the provision of infrastructure, few of these enterprises are equipped to face the challenges of a dynamic market economy. SOEs are active in almost all sectors of the economy. In addition to the usual monopolies in the service sector, SOEs dominate the financial, commodity trading, and mining sectors and in the production of basic metals and chemicals. Past efforts to reform the SOE sector through changes in the legal and institutional framework, pricing policies, ma.rket regulation and the personnel regime have yielded limited results. Their financial performance has worsened over time and their economic efficiency has lagged behind that of the private sector. SOEs remain a major contributor to the overall public sector borrowing requirement (PSBR). In 1993, the borrowing requirement of the SOEs was 6.1 percent of GNP (close to 40 percent of the total PSBR). The deterioration in SOE performance has resulted from wage increases, agricultural support prices, political interference, the pursuit of multiple and often noncommercial objectives, and a legal and institutional framework which discourages commercial behavior and fails to impose financial discipline. 3. Current SOE inefficiencies will be difficult to correct without fundamental sector reform. Divestiture - sales and liquidation - has been brought to the forefront as the primary instrument for achieving this objective. Privatization is needed to sever the link between the Government and SOEs, impose a hard budget constraint, improve efficiency, and depoliticize pricing and hiring decisions. Privatization is also being viewed as a tool to generate revenues from the sale of SOEs, to fund severance payments and reduce public sector debt, and to tap private sector resources for expansion in all sectors, particularly infrastructure. Other, complementary elements of the agenda include labor restructuring, the commercialization of SOEs to be retained in the public sector, and the strengthening of the Government's regulatory role. 4. In the wake of the economic liberalization of the early 1980s, the Govermnent decided to privatize SOEs which no longer had a national mission. The main objective was to increase efficiency and lessen the budgetary burden of SOEs. A masterplan for privatization, which classified SOEs into those to be liquidated, sold or retained in the state sector, was completed in 1986. However, the plan was never implemented. Instead, a few small SOEs and minority shareholdings were sold, representing less than one percent of the total fixed assets of SOEs. The overall pace of privatization was constrained by a lack of political commitment, unclear privatization objectives and institutional and technical difficulties. in October 1991, a new coalition Govermnent came into power. Subsequent changes in 1992 in the management and structure of the Public Participation Administration (PPA), tne agency responsible for privatization, helped to accelerate the pace of privatization. The privatization program gained momentum with the sale of relatively large cement companies, the privatization of several agro-industrial firms, and sale of minority shareholdings.  -2 - 5. The current coalition Government, which assumed office in July 1993, announced a renewed privatization program coupled with the strengthening of the social security system and the development of a social safety net targeted at redundant SOE workers and affected communities. The scope of the program expanded from the sale of small and medium enterprises and minority shares to cover the reform and privatization of major enterprises in a wide range of sectors. A substantial number of SOEs were sold in 1993. A sizeable portfolio of SOEs in the tradeable goods sectors have been transferred to PPA and are slated for privatization (agro-industries, auto assembly and distribution, oil refining and distribution, steel, petrochemicals, and shipping). A Decree has been issuej to establish the conditions for privatizing TEK, the power utility, and preparatory work for the reform of the telecommunications sector is underway. Success in privatizing PPA's core portfolio of SOEs is both feasible and desirable. Initial successes would have major demonstration effects for the program as a whole, move PPA further along the learning curve in preparation for more complex transactions, and help mobilize revenues which could be utilized to settle the large liabilities of problem SOEs prior to their privatization. 6. Project Obiectives. The main objective of the project is to promote efficiency and productivity and further the development of Turkey's dynamic private sector by providing assistance for an accelerated privatization process. The project would also help lay the basis for more comprehensive privatization and sustained fiscal contraction in the future. It would build up institutional capacity through technical assistance and the experience gained through the implementation of the current program, thereby enabling the Government's administrative machinery to manage the larger and more complex workload entailed by a broader divestiture program. Another important objective is to alleviate the adverse impact of SOE downsizing and divestiture on displaced workers and their families. 7. Project Description. The proposed project would include: (a) technical and financial support for the preparation and implementation of privatization transactions; a public information campaign to promote and broaden public support for the Government's privatization agenda; the strengthening of PPA; and the strengthening of the capacity of the Undersecretariat of Treasury and Foreign Trade (Treasury) to manage the debt liabilities of SOEs to be privatized (63 percent of total project costs); (b) social safety net measures, including labor adjustment programs to determine the extent of labor displacement in individual SOEs, assess the demand for labor services, and provide counseling, retraining, and small business assistance through local institutions; the strengthening of agencies responsible for the labor adjustment programs; and studies to analyze the options for the reform of the social insurance/pensions systems, and develop a unique identifier system for Turkish citizens (31 percent); (c) the preparation of a regional development plan to diversify the economic base of the Zonguldak Region, where a high concentration of layoffs in steel and mining operations is likely (2 percent); and (d) studies to develop a regulatory framework for the privatization of the telecommunications sector and establish a coordinated strategy for the private provision of infrastructure services (4 percent).  -3 - 8. Project Costs and Financing Plan. Total project costs are estimated at US$129 million equivalent with a foreign exchange component of about US$81 million equivalent excluding taxes and duties. Of the total, the proposed Bank loan would finance US$100 million equivalent, and the Government would finance US$29 million equivalent. Detailed cost estimates and the financing plan are showni in Schedule A. Provision has been made for retroactive financing of up to US$7 million equivalent. The amounts and methods of procurement and disbursements are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations are given in Schedules C and D respectively. 9. Project Implementation. PPA would be responsible for the implementation of the privatization component, including the public information campaign. Treasury would be responsible for managing the SOEs' debt liabilities. The implementing agencies will need technical assistance, training, and equipment tailored to strengthen their capabilities to discharge their expanded or, in the case of Treasury, new responsibilities. Contract staff will need to be recruited to make absorptive capacity commensurate with the considerable workload implied by the privatization effort. 10. Treasury would develop and monitor the implementation of the labor adjustment program with technical assistance. It would also act as the channel for directing loan funds to lead agencies which would be responsible for delivering the labor adjustment services at the local level. The transfer and use of funds would be in accordance with criteria agreed with the Bank; would be based on protocols signed between Treasury and the lead agencies; and would be in response to local demand. Treasury would be responsible for the studies to be carried out under the project. The State Planning Organization would be responsible for the preparation of the Zonguldak regional development plan. it. Lessons Learned and Project Sustainabilitv. A Technical Assistance Project for State Economic Enterprises, financed by a US$7.6 million Bank loan in 1984 (Loan 2400-TU), was intended mainly to assist three SOEs to improve their operational and financial efficiency. This component did not, however, become operational. Three months after loan approval, a new Government issued a more sweeping decree on the privatization and restructuring of SOEs than the one existing at the time of Board approval. Because of the considerable uncertainty among the enterprises regarding their future, they did not implement the component. Instead, the Government and the Bank agreed on the utilization of loan funds to commission privatization/restructuring studies precedent to privatization. Although the studies were well-received, the Government did not take action to privatize. Lessons learned include: the need for Government ownership of the planned initiatives; the need to develop effective means of gaining public support; the need to address socio- political concerns, specifically to develop effective labor adjustment programs; the need to ensure that the project scope is commensurate with administrative capacity; and the need for decisive corrective action if implementation is unsatisfactory. These lessons have been taken into account in the design and the implementation arrangements for the proposed project with the Government already taking crucial actions to strengthen institutions and build momentum in implementation. 12. Rationale for Bank Involvement. A major challenge facing Turkey today is to set the economy firmly back on the road to private sector-led growth. This will require the inplementation of an effective stabilization strategy. Sustained fiscal contraction and SOE reforms, including SOE privatization, are key to stabilizing the economy, improving efficiency, and accelerating growth. Thus, support for the Government's efforts to disengage from production activities and foster the continuing development of the private sector is a central theme of the Bank's assistance strategy for Turkey.  -4 - 13. To achieve the objectives of improved efficiency and sustained fiscal contraction, the Government is committed to accelerating the pace of privatization. To this end, the Government has requested Bank assistance to help prepare and implement privatization transactions; forge popular support for privatization; ensure an efficient and transparent privatization process, and strengthen the capacity of the various agencies to implement privatization; establish, in the case of the utilities, a regulatory regime that promotes competition and eff.ciency; and piovide an effective social safety net for displaced labor. 14. At the previous Government's request, the Bank completed a State-Owned Enterprise Sector Review In March 1993 (Report No. 10014-TU) and draft studies on the Labor Force Implications of SOE Reforms and on Turkey's Pension System. Building on this sector work, the Bank will help lay the basis for a more enduring public sector reform and fiscal contraction process. Under the proposed operation, the Bank will help ensure efficiency and transparency in the divestiture process and seek to ensure early successes through the provision of quality advisory support, the establishment of a well-designed social safety net, and the provision of a sound analytical base for Government decisions on the design of a social insurance system for Turkish citizens. 15. The proposed project is consistent with the strategic framework of the Bank's Country Assistance Strategy for Turkey approved by the Executive Directors on March 11, 1993. Accelerating SOE divestiture has been a central theme of our dialogue with tht Government for some time, and it is consistent with the Government's stated fiscal objectives. Recognizing the urgency, despite associated political difficulties, of implementing comprehensive SOE sector reforms, the Government has asked for Bank support for its strategy to implement the first phase of its privatization program and accompanying social safety net measures to alleviate the hardships of workers and their families. The Bank has responded on an accelerated timetable to the window of opportunity presented by the Government's request. Achieving early privatization successes will lend credibility to the Government's program, provide an impetus to proceed with speed and efficacy, and, over the medium term, help promote greater economic efficiency and stability. 16. Agreed Actions. Several actions have already been taken by PPA and Treasury. Progress on privatization is as follows: a contract for financial advisers for the privatization of one SOE has been awarded; all actions for the sale of two SOEs have been completed (the approval of the Public Participation High Council is awaited); and negotiations for financial advisory contracts for the privatization of three SOEs are ongoing. Treasury has invited bids for advisers for . )E debt management and the labor adjustment program. PPA is in the process of evaluating uids for in-house strategic and legal advisers and has invited proposals for public information advisers. 17. During negotiations, the following agreements were reached: (a) the Governmetft would provide adequate annual budgetary allocations to meet the counterpart funding requirements of the project, starting with the FY94 budget; (b) PPA and Treasury would furnish to the Bank for its review, by October 31 of each year, draft work programs with specific targets for the following year; and by November 30 of each year, confirm that programs satisfactory to the Government and the Bank had been approved; PPA and Treasury would monitor progress in the implementation of components for which they would be responsible and provide the Bank with quarterly progress reports; (c) a mid-term implementation review would be held by October 31, 1995, on the basis of agreed criteria, including inter alia, the privatization of at least one-half of the number of SOEs and affiliated partnerships in PPA's portfolio as of January 1994, with privatization defined as the sale of not less than 51 percent of PPA ownership or the transfer of management control, and the sale of at least one-half of PPA's share participations as of January 1994; (d) the disbursement of funds for labor adjustment services would be in accordance with criteria agreed with the Bank; (e) the conditions of loan effectiveness would be: (i) the award of contracts to financial advisers for the privatization of two SOEs; (ii) the appointment by Treasury of in-house advisers for debt management  -5- and the labor adjustment program; and by PPA for in-house strategic, legal, and public information advisers; and (iii) the execution of the Subsidiary Project Agreement between the Government and PPA. 18. Environmental spects. The Project has been classified as Category C in terms of impact on the environment. Provision has been made to conduct environmental liability assessments of SOEs with environmental issues prior to sale. The environmental liabilities of SOEs in sectors such as oil, petrochemicals, steel and mining will need to be addressed prior to privatization. 19. Program Qbjective Categories. The project would provide an impetus for private investment and would help improve public sector management. Through the social safety net components, the Government would achieve its objective of alleviating the hardships of layoffs for displaced workers and their families. 20. Benefits. The proposed project would set the stage for more significant Government action to downsize the SOB sector over the longer term. Reductions in the labor force and in subsidies to SOEs to be privatized will result initially in a modest improvement in the fiscal deficit, while the restructuring and divestiture of SOEs will increase productivity and efficiency, facilitate private sector development, atract direct foreign investment, help improve Turkey's competitive edge in world markets, and lay the basis for a longer-term structural reduction of the deficit. Finally, the provision of an effective social safety net will promote stability, increase labor force mobility, and improve public support for the Government's economic strategy. 21. Bisk. The project faces several risks. The Government's preoccupation with political and security matters may preempt follow-through on the privatization agenda. There is a coalition government, nationwide elections are upcoming, and the security situation places major demands on the Government. Possible labor opposition to potential displacement, income losses, and unemployment presents another risk. Lacking a strong institutional base, the level of management and coordination effort required for a divestiture process may be difficult to sustain. 22. The Government's commitment is reflected in up-front action being taken as summarized in para. 16. The public information campaign would help improve the political and social acceptability of the program by initiating a dialogue on the costs and benefits of privatization. The provision of a social safety net as an integral part of the process would help broaden the support of labor. The design and timing of technical assistance is being carefully tailored to equip the agencies with requisite capacity. Treasury and PPA have already invited, and in some cases, are in the process of evaluating bids for in-house advisers. As conditions of loan effectiveness, Treasury will appoint debt management and labor adjustment program advisers, and PPA will appoint strategic, legal and public information advisers. Funding is being made available through a PHRD grant and an advance from the Project Preparation Facility (PPF). Provision has also been made for a mid-term review by October 31, 1995, on the basis of criteria agreed with the Bank. 23. 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 it. Lewis T. Preston President Attachments Washington D.C. March 3, 1994  -6- Schedule A REPIJBLIC OF TURKEY PRIVATIZATION IMPLEMENTATION ASSISTANCE AND SOCIAL SAFETY NET PROJECT Estimated Proiect Costs and Financing Plan (US$ million) Local Foreign -To Estimated Proiect Cost: Privatization Implementation 13.5 57.2 70.7 Social Safety Net 19.9 12.0 31.9 Zonguldak Regional Development 1.0 1.0 2.0 Studies 0.0 4.5 4.5 Refinancing of PPF advance 0.020 Base Cost 34.4 76.7 111.1 Physical Contingencies on Equipment 0.0 0.1 0.1 Price Contingencies 13.6 4 17.8 Total Project Cost 48.0 1.0 129.0 Financing Plan: Government 29.0 0.0 29.0 Bank 19.0 81X0 100.0 Total 48.0 0 120 Net of duties and taxes.  -7- Schedule B Page 1 of 2 REPUBLIC OF TURKEY PRIVATIZATION IMPLEMENTATION ASSISTANCE AND SOCIAL SAFETY NET PROJECT Summara of Proposed Procurement Arrangements (US$ million) Procurement Metnho Project Element ICB Other/a NBF Total Equipment, materials 2.4 4.3 6.7 and related services (2.4) (2.4) Consulting Services (a) Privatization Financial/Other Advisors ^ 32.9 4.4 37.3 (32.9) (32.9) Institutional Strengthening of PPA 5.3 - 5.3 (5.3) (5.3) Institutional Strengthening of Treasury - 3.6 - 3.6 (3.6) (3.6) Public Information Campaign - 11.8 8.3 20.1 (11.8) (11.8) Environmental Liability Assessment 4.4 1.1 5.5 (4.4) (4.4) (b) Social Safety Net Pro-Active Support 6.4 0.5 6.9 (6.4) (6.' Pension Reform Studies 5.8 - (5.8) (5., Unique Identifier System 2.1 0.8 2.9 (2.1) (2.1) (c) Zonguldak Regional Development Plan 2.4 - 2.4 (2.4) (2.4) (d) Studies 4.7 - 4.7 (4.7) (4.7) Labor Adjustment Services - 15.0 9.6 24.6 (15.0) (15.0) Training 1.2 - 1.2 (1.2) (1.2) Refinancing of PPF Advance 2.0 - 2.0 (2.0) (2.0) TOTAL - 100.0 29.0 129.0 (100.0) (100.0) /a Includes International and Local Shopping (US$0.7 million), plant reconfiguration (US$1.7 million), consultant and related services (US$73.8 million), labor services (US$15 million) and media time and space (US$8.8 million). Note: Numbers in parentheses are the respective amounts financed by the Bank loan.  Schedule B Page 2 of 2 REPUBLTC OE TURKEY PRIVATIZATION IMPLEMENTATION ASSJSTANCE AND SOCIAL SAFETY NET PROJECT Summary of Pronosed Procurement Arraneements (US$ million) Disbursements: Cateeory Amount % of Expenditures to be Financed (O) Equipment and 2.4 100% of foreign materials expenditures, 100% of local expenditures (ex-factory cost) and 90% of local expeaditures for other items procured locally. (2) Consultants' services 67.3 100% training and promotion services (3) Media time and space 8.8 1001% of foreign expenditures (4) Labor services 11.0 60% (5) Refinancing PPF 2.0 Amounts due pursuant to Advance Section 2.02 (d) of Loan Agreement. (6) Unallocated 8.5 TOTAL 100.0 Estimated IBRD Disbursements: FY94 EY95 FY96 EY97 FY98 Annual 5.0 28.0 31.0 21.0 15.0 Cumulative 5.0 33.0 64.0 85.0 100.0  -9 - Schedule C TURKEY PRIVATIZATION IMPLEMENTATION ASSISTANCE AND SOCIAL SAFETY NET PROJECT Timetable of Key Project Processing Events (a) Time taken to prepare: Five months (1) Prepared by: The Government of the Republic of Turkey with Bank assistance (c) Appraisal Mission Departure: December 13, 1993 (d) Negotiations: February 14-18, 1994 (e) Planned Date of Effectiveness: June 1994 (it List of relevant PCRs and PPARs: Turkey: Technical Assistance Project for State Economic Enterprises (Loan 2400-TU) PCR, Report No. 10326 dated February 11, 1992  - 10- Schedule D Page 1 o?2 REPUBLIC OP TURKEY PRIVATZAILON MPLEMENTATION ASSISTANCE AND SOCIAL SAFElY NET PROIEC The Status of Bank Group Ogerations in Turkey A. $tstament of Blk Loans and IDA Credit (As of December 31, 1993) Amocut (Smi1ilon) Fiscal (es eaellsticos) Loan No. Year Borow Purpose Bank MDA Undisbursed Eig-five lons. di B-loans and 14 credIt have bece fllJy disbud 6570.97 196.15 owhich SECALs. SALA nd Pregrm Loa: a/ I& 1818-TU 19S0 Republic ef tTusy SAL 200.00 0.00 L. 1915-TU 1981 Reuble of OuWy SAL 75.00 0.00 I.I 9S7-TU 19I Republic of ratey SAL 1 300.00 0.00 I& 21S8-TlU 92 Republic of Turkey SAL m 304.50 0.00 La. 2321-TU 1983 Republio of Turl y SAL IV 300.10 0.00 1L. 2441-TU 1984 Repubicof u* ry SAL V 376.00 0.00 *L. 25S-TU 195 Republc of Turkey AAL 250.19 0.00 * L. 2714-TU 1986 Republic of Turkey PSAL 1 300.00 0.00 * La. 2964-TU 198 Republic of Turey Finncal Sctor Adjusmeat l 400.00 0.00 La. BO1T 1987 Rpubc of Tur*ey 3-Lon for PSAL I 32.25 0.00 L. B0190T 1987 Rqeublie of Twukey B-Loan for PSAL I 20.00 0.00 La. B0220-T 1988 Republ of Turey B-Loan for ESAL 30.10 0.00 La. 30240-T 1989 Republic of Tukey B-Loa for PSAL U 29.68 0.00 Subtal 261L82 0.00 La. 2405-TU 1984 Republic of Trkey Agrie. Extension and Reseh 72.20 10.22 La. 2536-TU 1985 Republic of Twkey bdtral Schools 57.70 17.73 L. 2602-TU 1986 TEX: Power Sysems Opatios AL 140.00 857 L. 2655-TU 1986 Republiof Twkey KAyrkSepeI HYd e 200.00 17I8.8 la. 2663-TU 1986 Replic of Tukey Dnage & On-Fam Developmet 255.00 124.54 La. 2739-TU 1987 Repubic of Turoy Railways 1 185.00 15.59 La. 2776-TU 1987 Republic of Tu*ky Non-Fomal Vocaonal TrnIn 58.50 34.4J La. 2S1'-TU 1987 IZSU zmlr wate & Sewage 14.00 120.22 Ia. 28t-TU 19S7 Republc of Tudkey C rva Urban Development 28.50 2.65 L. 2856-TU 1987 RepubU of Trkey Ene Sctor Adjustent 325.00 12.29 IL 2US-TO 1988 ISKI tu Water suppy 21.00 63.70 1La 2901-TU 198 TSXB. S and listrIal xport Devlopment 286.32 0.67 Repubtk of Turkey La 2922-TU 1988 Republic of Turey Industrial Training U 115.80 50.43 La. 3057-TU 1989 Republic of Turbey Hedth 75.00 63.61 La. 3067-TU 1989 Republic of Twrey Smal- & MediumScale luthatry 1U 204.50 71.37 La. 3077-TU 1989 Republc of TWkey Ag-duy 150.00 103.57 LaL 3151-TO 1990 ASEl Anka Sewge 173.00 159.62 LA. 3177-TU 1990 Republlc of Twtey Second Agrieulual Eesion 63.00 38.02 La. 3192-TO 1990 Rqeublic of Twkey National Eduan 90.20 S5.78 La. 3296-TO 1991 Republic of Tudrey Technology Development 100.00 90.52 La. 3324-TU 1991 Republic of Twkey State & Provincial Roads 250.00 163.60 Ln. 3345-TU 1991 TEX TE Rau In 300.00 263.93 La. 3346-TU 1991 Republic of Turkey Private Investment Crei 200.00 176.42 La. 3472-TO 199 Republc of Tuerey Agriultual Research 55.00 54.47 LA. 3476-TU 1992 RepubUc of Turky Bake Hydropower 270.00 241.32 La. 3477-TU 1992 RpublIc of Turky Treauy Data Systems 9.20 4.04 LL 351l-TU 1993 Republic of Turkey Eahquae Recon uction 2S5.L0 255.67 La. 3541-TU 1993 Republic of Turky Employment & Trainit 67.00 65.48 Ia. 3565-TU 1993 Burn Water Supply & Seweae Bun Water & SanitatIon 117.00 115.90 Ln. 3566-TU 1993 Bum Metopoitan Munkipaly Buns Water & Sanitato 12.50 12.23 L. 3567-TU 1993 Republic of Turkey Eatom Antata Watershed Reiab. 77.00 76.42 Totl 11195.39 196.15 2711.87 Of which has been repaid 4107.52 54.33 Total n outstanding 7087.a/ 141.82 Amounts sold 3.55 of which has ben repaid 3.55 Total now beld by IBRD 70S4.32 Total undisbuned 2711.87 at AppWoveddu or after PY80 SECAL  Sehedule D Page 2 o12 S. StIt40n0 of IPC Ilvestmenu (As of December 31. 1993) Amowi (SmIlIlos) Date Borrower Purpose Loin Equity low 1966169sm172 SiU TexUIle 3.15 1.94 5.09 1973 Akdenk Tourism 0.33 0.27 0.60 1974 Ak. Textiles 10.00 0.00 10.00 1975 Asban Cement manufacturing 10.60 0.00 10.60 1975 Kraltepe Textiles 1.30 0.00 1.30 1975 San Reain & Plastic aufacturti 15.00 0.00 15.00 1974M Bonm IrOn & Steel 3.60 0.50 4.10 19mo/79 Aso Celi Mahiaesy & quIpmet 12.00 5.82 17.82 1979 Ego Mogaa Motorcycles & bicycles 2.15 0.00 2.15 1980 Mens Textiles 4.00 0.00 4.00 1982 Man Motors moto Vehicles 7.t9 0.00 7.89 1964167169r273f7sn6ml7sos3 TSIB DFC 60.00 5.93 65.93 1970718/8V83 vikig Paper manufturIng 2.50 0.87 3.37 1975t7VSSlS3 DoktAs Ir & Steel 7.50 2.85 10.35 19S4 Pinar Et Slaughtering 10.90 0.00 10.90 1985 Maus Motor Vehicles 6.47 0.00 6.47 1979/80/21S4S5 lsa Metals & motor vehieles S.85 4.59 13.44 1986 Cam Elyaf Glass manuacturg 7.94 0.00 7.94 1987 GUney TanIe 16.48 0.00 16.48 19SV93 lgina- Mfg. Non-Metallo Mineral PR 30.85 0.00 30.8S 1989 Coats plik Textiles Weaing Apparel & Le.ther 7.72 0.00 7.72 1989 Disbank CommercIal ban 60.00 0.00 60.00 19S9 DuS Textles 25.00 0.00 25.Q0 1989 bako TexIles 33.24 0.00 33.24 1989 Sanko (SIf TeXWis 6.37 0.00 6.37 1989 Sarivillo Restaurats & hotels 2.66 2.15 4.81 198189 KirkIaell alls manufcturfg 33.42 .00 33.42 1986f9 EkA TurIm Toudsm 9.08 0.00 9.08 1990 PS? (Kamelya) Reosanua& hotels 12.16 0.00 12.16 i990 Mera RsaUuts & hoteb 12.50 0.00 12.50 1990 Slmplot Food producte 9.40 0.00 9.40 1990 TKF Metchant bank 0.00 8.85 8.85 1990/94 Conrad Reauwants & botels 56.63 4.C0 60.63 l971n6I83/84/89/90 Na Mets manuacturIng 8.57 I.S5 1042 1986f90 SiDar Towism 24.17 4.91 29.08 198/90 Kids Hotel Restauants & hotls 13.03 0.00 13.03 1991 Kepcz Electric Utilities 25.00 0.00 25.00 1991 Kub Textiles 19.40 0.00 19.40 1979/81/83/84/59/91 Trkya Cam Olas manufacturg 88.63 15.73 104.36 1992 Abn-Ec2cibads Small- & Medium-Scda Entepdis 6.00 0.00 6.00 l97V/W6J87lw&9/90/92 ACS Glas Ols Manufactuing 20.79 3.84 24.63 1992 EMbo Stm & Hot Water Supply 25.44 0.00 25.44 1992 Finusbank Smal- & Medium-Scl Entcrprdcs 30.60 0.00 30.60 1992 Heller Factoring Expot FIinace 0.00 0.50 .50 1992 Korfozbua Small- & Mcdium-Scl Enterpdus 24.40 0.00 24.40 1992 Mis But Sanayl Daisy Products 10.00 5.00 15.00 1992 NASCO Tcxtils 20.00 2.50 22.50 1988191/92 intnrbnik Multipurpose bnab 130.00 0.00 130.00 1989/92 Ram D Ticarct Other 74.75 0.00 74.75 1991/92 Koy Tur Slaughtering 8.60 4.13 12.73 19s90/93 IQFK Leaig 5.00 1.05 6.05 1993 Cavii Bakir No-ferrous ore mining 75.00 0.00 75.00 1993 Eldor Radio/TV Communication 4.00 1.00 5.00 1993 Sime ye Cam Glass manufacturng 20.82 0.00 20.82 1993 Mcdya Printing Publishing & Allied Ind. 12.13 0.00 12.13 1994 Denirbank Sales & Export Finance Leasing 50.00 0.00 50.00 1994 Global Security 0.00 0.70 0.70 1994 Pinr Sut Manufactur of Daiy Poducts 7.50 0.00 7.50 1994 Tustlye Garanti Securities Mut Finacing Inati. 100.00 0.00 100.00 1994 CBS Holding Mfg. of pain. varnishes & lacq. 15.00 0.00 15.00 Total Ghross Commitmeuts 1308.52 78.98 1387.50 Less Caeclations. Termination Exchanges Adjustmens. Prepayments and Sales 51.66 43.27 894.93 Total Commitments now held by IFC 4s6.86 35.71 492.57 Total Undisburned IPC 54.91 0.23 55.14 Total Ousanding IPC 401.95 35.48 437.43  MAP SECTION  ii / b 0 >-- *, t A~~~~~~~~~r Na - { _<_ I r , _ \ W / ,_ A~~~~~~~~~~~~~~~~~~~~~~~~~~- ( Q? '\ , 'jf NT2 . X htW54X S Sr. ) E -l ;* .1 <)X,--z C-)A-I; gE