China - Second Red Soils Area Development Project

Documt of The World Bank FOR OFICIAL USE ONLY Repott No. P-6177-CiA MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE IATEPNATIONAL DEVELOPMT ASSOCIATION TO THE EXCUTIVE DIRECRS ON A PROPOSED CREDIT OF SDR 108.4 MILLION TO THE THE PEOPLE'S REPUBLIC OF CHNA FOR A SECOND RED SOILS AREA DEvELOPM PROJECT JANUARY 1994 MICROGRAPHICS Report No: P- 6177 CHA Type: MOP 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 Bankl authorization.  CURRENCY EQUIVALENTS (As of August 31, 1993) Currency Unit - Yuan (Y) $1.00 - Y 5.78 Y 1.00 - $0.17 WEIGHTS AND MEASURES 1 meter (m) - 3.28 feet (ft) 1 cubic meter (cu m) - 35.31 cubic feet 1 kilometer (km) - 0.62 miles 1 hectare (ha) - 15 mu 1 ton (t) - 1,000 kg 2 ,205 pounds 1 kilogram (kg) - 2.2 pounds ABBREVIATIONS AID ACRONYMS COC - Government of China GVAO - Gross Value of Agriculture Output LG - Leading Group MHU - Ministry of Agriculture PMO8 - Project Management Offices FISCAL YEAR January 1 - December 31  FOR OMCAL USE ONLY CHINA SECOND RED SOILS AREA DEVELOPMENT PROJECT Credit and Proiect Summarl Borrower: People's Republic of China Beneficiaries: Provinces of Fujian, Jiangxi, Hunan and Zhejiang and Guangxi Autonomous Region Amount: SDR 108.4 million ($150 million equivalent) Terms: Standard, with 35 years' maturity Financint Plan: Local Foreign Total ---- -$ million IDA 60.7 89.3 150.0 Central Government 5.3 0.0 5.3 Provincial government 24.9 0.0 24.9 Prefecturelmunicipallcounty gov't 29.0 0.0 29.0 Township government 5.0 0.0 5.0 Agricultural Bank of China 36.0 0.0 36.0 Beneficiaries 46.2 0.0 46.2 Total 207.1 89.3 296.4 Poverty Category: Not applicable Economic Rate of Return: 24 percent Staff Appraisal Report: Report No. 12394-CHA Maps: IBRD Nos. 25120 and 25121 This document has a restricted distribudon 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 DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE PEOPLE'S REPUBLIC OP CHINA FOR THE SECOND RED SOILS AREA DEVELOPMENT PROJECT 1. I submit tor your approval the following memorandum and recommenda- tion on a proposed credit of SDR 108.4 million ($150 million equivalent) to the People's Republic of China to help finance the Second Red Soils Area Development Project. The credit would be on standard IDA terms with 35 years' maturity. 2. Countrv/Sector Backaround. China's sustained rural reform program has revitalized the agricultural sector and provided impressive growth and structural change through the introduction of the production responsibility system, increased producer prices and an enlarged role for market forcas. The gross value of agricultural output (GVAO) increased by 83 percent in real terms during the 1978-90 period (6 percent per annum), substantially faster than during the previous 25-year period (3 percent per annum). While signifi- cant growth in grain production was achieved in the early part of the period (peaking at 407 million tons in 1984), stagnating grain production was the Government's central agricultural concern during the late 1980s with produc- tion ranging between 379 and 405 million tons during the 1985-88 period as farmers substituted other crops for grain. However, production reached a new plateau in 1990-92, averaging 440 million tons. The Government's strategy to increase grain production included diverse measures, such as increasing state investment in agriculture, mainly in irrigation rehabilitation and expansion, and introducing increasingly fundamental reforms in grain procurement, distri- bution, prices and subsidies. With the recent reforms state control in grain marketing has been virtually eliminated, wheat and corn farmgate prices now approach world levels, and fledgling grain commodity exchanges for all major grains have been established in a number of Chinese cities, e.g., Zhengzhou, Changchun, Wuhan, Harbin and Changsha. 3. In the context of the preparation of the Bank Group financed Grain Distribution and Marketing Project, the Government of China (GOC) initiated the most comprehensive reform programs to date involving the further substan- tial elimination of grain consumption subsidies, the commencement of abolition of all grain procurement quotas and consumption subsidies in substantial parts of the country, the opening of the internal grain trade to all interested units and individuals, the thorough commercialization of grain wholesaling and retailing enterprises, and establishment of a futures market in grain, all of which is aimed at the eventual market-determined pricing of virtually all grain in China. Like other countries at a similar stage of development, grain has declined from about one half to one third of GVAO as production of fruits, vegetables, and animal products increased to meet changing consumer demand. Local governments in particular have placed high priority on investment in uplands, natural pasture, and water resources for expanding production and productivity of nonstaple food and commercial crops to meet growing demand for these commodities and increase local entity profits and farmer incomes.  - 2 - 4. Red Soils Areas. China's "red soils areas", so named because of their characteristic red or rellow subsoil colors, lie south of the Yangtze River and cover 2 million km , or 21 percent of China's surface area. Within this large area, the lowlands with alluvial soils and extensive dike and irri- gation systems have been developed primarily for paddy rice. In contrast, the red soil areas of sloping uplands and adjoining hills and mountains are much leos developed, with extensive areas of degraded, underutilized land. Centu- ries of deforestation and continuous firewood collection, communal grazing, or nonintensive farming have caused considerable soil erosion in these areas. About 10 million ha of underutilized land has potential for development of orchards, and other tree crops, feed crops, pastures and commercial forest plantations provided proper soil management and soil and water conservation techniques are introduced. Terracing, cultivating forage legumes, application of organic manures and chemical fertilizers, including micronutrients, are amongst the required measures. 5. Lessons Learned from Previous Bank ODerations. Lessons learned from the recently completed Red Soils Area Development Project (Credit 1733-CHA) have been used in the design of this project. In accordance with the findings of the project completion report and the performance audit report, greater emphasis is given to crop diversification and marketing aspects in order to avoid the risk of oversupply, particularly of citrus, and account is taken of frost risk in the choice of fruit crops (more emphasis being placed on decidu- ous temperate species) and the siting of orchards. The proposed project would build on the considerable success of the first Red Soils project but place more emphasis on conservation and sustainability. Long-term sustainability would be enhanced by assigning responsibility for project management to exist- ing institutions suitably strengthened, rather than creating a new management structure. More attention would be given to soil improvemont and soil and water conservation, particularly during land development and crop establish- ment. Development would be undertaken on the basis of complete small water- sheds enabling the extension of technology for red soil development over a wide range of soil conditions and topography. 6. Rationale for IDA Involvement. IDA involvement in the proposed project would assist the Government in its efforts towards sustainable devel- opment of degraded red soil areas in southern China. The project would also support the Bank Group's agricultural sector strategy to promote sustainaDle agricultural development in impoverished and environmentally vulnerable areas and increase and diversify agricultural production. The Bank's Country Assis- tance Strategy presented to the Board in August 1993 highlighted an intention to support interventions in the agriculture sector aimed at income enhancement and poverty alleviation in regions of concentrated absolute poverty. The proposed project is a direct outgrowth of that strategy, delivering a tested watershed development package to farmers in the relatively poor red soils areas in southeast China and specifically targeting some of the poorest in these areas for assistance. The IDA-supported first Red Soils Project was largely successful in demonstrating the state-of-the-art technology on espe- cially favorable sites. The proposed project would introduce a small "water- shed" approach that would encompass a broader range of site conditions. A typical watershed would include the steeper sloping, shallower soil areas of the upper catchment, where the role of forestry would be more important, as well as the gentler sloping, terraced land more typical of the first project areas. The project design draws on the Bank Group's aggregate experience in  -3- watershad management. IDA involvement would stretgthen land use planning in the Ministry of Agriculture (MOA), promote the further development of technol- ogy for soil and water conservation and enhance environmentally sound agricul- tural development by improving current practices and introducing proven envi- ronmental protection methods. 7. Proiect Obiectives. The project's main objective is to increase production and productivity over a wide area of degraded red soils in the provinces of Jiangxi, Fujian, Huran, Zhejiang and the Guangxi Autonomous Region. The project would help alleviate poverty by increasing the incomes of currently underemployed farmers, many of whom have incomes below provincial poverty lines. The project would also benefit the environment by improving soil and water conservation, reducing erosion and promoting sustainable land use and agricultural practices. 8. Proiect Description. The project would support the integrated development of paddy, upland and forest areas totalling some 52,550 ha in 217 small watersheds. The main features of the project would be: (a) land devel- opment, including vegetative and structural soil/water conservation treatments end on-farm irrigation canals and pumping stations, rural electrification, roads and biogas units; (b) crop establishment and forestry, including fruit end nut orchards, mulberry, tea and paddy rehabilitation and fodder crops; (c) livestock and aquaculture, including dairy cattle, pigs and fish ponds; (d) agroprocessing and marketing, including feed mills, fruit and vegetable processing and packing lines, cold storage, and tea processing; and (e) sup- port for research, extension and training and institu.ional development tech- nical assistance. 9. Prolect Implementation. The governments of Fujian, Hunan, Jiangxi and Zhejiang provinces and the Guangxi autonomous region would be responsible for overall project implementation under the general supervision of MOA. A central project coordinating office would be established in MOA to provide interprovincial coordination. In each province, a leading group (LG) headed by a vice governor in charge of agriculture would be composed of members from the Planning (Economic) Commission and the departments of Finance, Agricul- ture, Water Conservancy, Forestry, Energy and Trade, Materials and the Agri- cultural Bank of China. The provincial LGs would formulate policy guide- lines, approve project plans and facilitate interagency coordination. Pro- vincial project management offices (PMOs) would be responsible for project design, planning and execution. The PMOs would be assisted by the provincial government technical bureaus in planning, organizing, executing, monitoring and evaluating project activities. Similar project management structures would be set up at county and township levels. 10. The project cost is estimated at $296.4 million equivalent, with a foreign exchange component of $89.3 million equivalent (30 percent), excluding taxes and duties. The Association would finance $150 million equivalent (51 percent of total project costs). To facilitate project st.rt-up, retroactive financing (up to a limit of $10 million equivalent) is recomr-inded for prein- vestment planning work and designs, earthworks, structures, irrigation works, power lines, rural roads, land improvement, afforestation, and small quanti- ties of machinery, equipment and materials for expenditures incurred from April 1, 1993 to the date of signing the Credit Agreement. A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of  - 4 - procurement and of disbursements, and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in China are given in Schedules C and D, respectively. Project maps IBRD Nos. 25120 and 25121 are also attached. The Staff Appraisal Report, No. 12394 dated December 20, 1993, is being distributed separately. 11. Project Sustainabilitv. Institutional sustainability is addressed through a comprehensive program of technical assistance, training, and study tours to strengthen existing capacity and ensure development of long-term management skills in PMOs, research and extension institutions, and project beneficiaries. Financial sustainability is addressed through an appropriate cost recovery program based on project taxes and charges. Water tariffs would recover full annual operation and maintenance costs beginning in the sixth year of the project, when orchard crops are beginning to bear fruit. Environ- mental sustainability is addressed through the emphasis on comprehensive land use planning, widespread use of vegetative and structural soil conservation measures, increased use of organic fertilizers, and strict controls on agro- processing effluents. 12. Agreed Actions. The main assurances obtained were as followss (a) provincial governments would grant exclusive land use rights to participating farmer households for not less than 50 years (in the case of uplands) and not less than 30 years (in the case of existing cropped lowlands); (b) all dams constructed or improved under the project exceeding 10 m in height or 2.5 mcm in storage volume would be subject to a dam safety review and such small dams, and any others serving the project, would be maintaiued and inspected period- ically under arrangements satisfactory to IDA; (c) provincial PMOs would ensure that water charges would be collected at rates sufficient to cover full annual operation and maintenance costs by not later than six years after com- pletion of project irrigation works; and (d) provincial PMOs would (i) notify IDA of any resettlement resulting from the watershed developments; (ii) sub- mit, prior to any resettlement, plans to IDA for its approval; and (iii) implement the agreed settlement and compensation plans. 13. Environmental Aspects. The project would have significant positive environmental benefits, including increased forest cover and reduced soil and wind erosion. The Agro-Environmental Protection Institute of China in MOA has carried out an environmental assessment of the project and has submitted a report which has been reviewed by IDA and found satisfactory. The project would provide training and technical assistance on appropriate use of pesti- cides and fertilizers. Adequate provision for waste treatment facilities, particularly for agroprocessing, has been included in the project cost and an Environmental Management Plan would be established under the project. 14. Program Obiective Categories. The project would help alleviate poverty by improving the resource base of currently underemployed farmers providing opportunities for sustainable increases in production and incomes. Women farmers would benefit from specific targeting in project related train- ing programs. The provision of fuel efficient stoves and biogas digesters would reduce the need for firewood collection and the work load of women. 15. Proiect Benefits. At full development, the project would produce on an incremental annual basis 316,747 mt of orchard crops valued at $1,179 mil- lion, 704,910 m3 of timber valued at $357 million, and 534,618 mt of grain and  fodder valued at $57 million. Incremental annual production of livestock, aquaculture and sericulture would total $52 million. Value added in agropro- cessing would amount to $104 million. The focus on watershed rehabilitation and afforestation would create significant environmental benefits, including reductions in soil erosion and river sedimentation, water run-off and flooding and overharvesting of natural forests. The project has an overall economic rate of return of about 24 percent. Per capita income in the project area would triple for 67,000 households, one quarter of whom presently live below the poverty line in resource constrained remote upland areas. Significant employment, especially for women, would be created in all components. 16. Risks. Project risks have been identified and measures incorporated in the project to minimize their effect. The risk of inadequate management capacity and poor coordination between provinces would be minimized since management is essentially in place at provincial and county level and would be strengthened under the project through provision of training at all levels. A central project coordinating office would be established in MOA before project start-up. The risk of frost damage in fruit crops would be minimized by care- ful site selection for citrus and other susceptible fruit crops. The potential marketing risk for fruit would be minimized by a high degree of diversifica- tion of fruit types and products and by investments in improved processing, packaging, handling and storage. Market information services are also being strengthened in the project area. 17. Recommendation. I am satisfied that the proposed development credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Lewis T. Preston President Attachments Washington, D.C. January 5, 1994  - 6 - SCHEDULE A CHINA SECOND RED SOILS AREA DEVELOPMENT PROJECT Estimated Costs and Financint Plan ($ million) Local Foreign Total Estimated Proiect Costs Land development 35.7 1.6 37.4 Infrastructure development 16.1 13.6 29.8 Buildings 16.9 4.9 21.8 Machinery and vehicles 0.0 13.4 13.4 Crop establishment 67.9 15.8 83.7 Livestock development 34.0 5.4 39.4 Rural energy 1.9 0.6 2.5 Agroprocessing 10.0 18.6 28.6 Research 0.6 1.7 2.3 Training and TA 1.2 4.6 5.8 Project management 4.0 0.0 4.0 Base Cost 188.4 80.2 268.6 Physical contingency 11.8 6.1 17.9 Price contingency 6.9 3.0 9.9 Total Project Cost la 207.1 89.3 296.4 Financing Plan IDA 60.7 89.3 150.0 Central Government 5.3 0.0 5.3 Provincial government 24.9 0.0 24.9 Prefecture/municipal/county gov't 29.0 0.0 29.0 Township government 5.0 0.0 5.0 Agricultural Bank of China 36.0 0.0 36.0 Beneficiaries 46.2 0.0 46.2 Total 207.1 89.3 296.4 /a Project is exempt from taxes and duties.  - 7 - SCHEDULE B Page 1 SECOND RED SOILS AREA DEVELOPMENT PROJECT Summary oi Proposed Procurement Arrangements ($ million) Procurement method Project element ICB LCB Other NBE Total Civil works - 11.1 66.2 - 77.2 (5.5) (20.3) (25.8) Equipment 8.0 8.1 4.4 - 20.5 (8.0) (8.1) (4.2) (20.3) Vehicles 9.4 - 0.1 - 9.5 (9.4) (0.1) (9.5) Construction materials 5.7 14.1 21.4 - 41.2 (5.7) (14.1) (13.0) (32.8) Agricultural inputs 12.3 - 14.6 27.1 54.0 (12.3) (14.1) (26.4) Livestock inputs 10.9 - 9.8 17.8 38.6 (10.9) (9.8) (20.7) Livestock maintenance - - 19.5 - 19.5 (5.9) (5.9) Domestic training and research - - 6.5 - 6.5 (5.5) (5.5) Overseas training and TA - - 1.9 - 1.9 (1.9) (1.9) Other - - 3.8 23.8 27.6 (1.1) (1.1) Total 46.3 33.3 148.1 68.7 296.4 (46.3) (27.8) (75.9) (150.0) Note: (1) Other includes force account work, shopping, and direct purchases and consultancy services. (2) NBF denotes non-Bank Group financing. (3) Figures in parentheses indicate Bank Group financing. (4) All amounts include physical and price contingencies.  -8- SCHEDULE B Page 2 CHINA SECOND RED SOILS A_EA DE.'LOPMENT PROJECT Disbursements Category Amount of credit Z of expenditures ($ million) to be financed Works 32.7 30Z of total expenditures for force account and livestock maintenance, 501 of total expenditures for other works Goods 108.0 Timber, sand and stone 602 of total expenditures. All other goods 1002 of foreign expenditures, 100l of local expenditures (ex-factory cost) and 752 of local expen- ditures other items procured locally Training and technical assistance 6.3 1002 Unallocated 3.0 Total 150.0 Estimated Disbursements IDA 1995 1996 1997 1998 1999 2000 2001 Annual 28 32 39 23 14 11 3 Cumulative 28 60 99 122 136 147 150  _ 9 _ SCHEDULE C CHINA SECOND RED SOILS AREA DEVELOPMENT PROJECT Timetable of Key Project Processing Events (a) Time taken to prepare the projects 30 months (b) Prepared by: Government with FAO/CP and Associa- tion assistance (c) First IDA mission: December 1990 (d) Appraisal mission departure: June 1993 ,e) Negotiations: December 1993 (f) Planned date of effectiveness: June 1994 (g) List of relevant PCRs and PPARs: Credit/Loan No. Prolect PCR Date PPAR No. Cr. 1733-CHA Red Soils I 02/25/93 12033 Cr. 1642-CHA Rural Credit 1I 06/23/93 - The project was prepared by the following: J. G. Stemp (Agriculturist/Task Manager), R. Scobey (Economist), J. Smyle (Land Resources Management Specialist), W. Zhou (Operations Officer), R. Deshpande (Principal Rural Credit Specialist), R. Grimahaw (Agriculture Advisor), R. Chisholm (Soil Scientist, Consultant), C. L. Cheong (Engineer, Consultant), A. Kelly (Economist/Marketing Specialist, Consultant) and B. Wakelin (Agroindustry Specialist, Consultant). Peer reviewers comprised R. Grimehaw (ASTDR), H. Eisa, J. Srivastava (AGRTN) and H. Wagner (AGRNR). The Division Chief is Joseph Goldberg and the Department Director is Shahid Javed Burki.  - 10 - Schedute 0 Page 1 of 3 STATUS OF BANK GROUP OPERATIONS IN THE PEOPLE'S REPUBLIC OF CHINA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of December 31, 1993) Loan/ Amount (USS miltion) Credit Bor- (net of cancellations) Number FY rower Purpose Bank IDA Undisb.(a) 19 loans and 36 credits have been fully disbursed. 1660.4 2097.6 Of Which SECAL: 2967/1932 88 PRC Rural Sector Adj. 200.0 93.2 ..... ....... .. 2501 85 PRC Changcun (Luan) Coal Mining 79.5 15.4 2540 85 PRC Railway It 220.0 13.4 1664 86 PRC Technical Cooperation Credit II 20.0 8.0 2678/1680 86 PRC Third Railway 160.0 (70.0)b) 54.3 2689 86 PRC Tianjin Port 130.0 - 25.3 2706 86 PRC Beilungang Thermal Power 225.0 - 6.6 2707 86 PRC Yantan Hydroetlctric 52.0 - 0.5 2723/1713 86 PRC Rural Health & Preventive Ked. 15.0 65.0 31.3 2775 87 PRC Shuikou Hydroelectric 140.0 0.0 278311763 87 PRC Industrial Credit IV (CIB IV) 250.0 C50.0)(b) 0.5 2784 87 PRC Shanghai Machine Tools 100.0 7.2 1764 87 PRC Xinjiang Agricultural Dev. - 70.0 3.0 2794/1779 87 PRC Shanghai Sewerage 45.0 100.0 37.5 2811/1792 87 PRC Bei3ing-Tianjin-Tanggu Expressway 25.0 125.0 21.1 2812/1793 87 PRC Gansu Provincial Dev. 20.0 150.5 45.1 1835 87 PRC Planning Support & Special Studies 20.7 7.9 2838 87 PRC Fertilizer RatIonalization 97.4 - 3.5 2852 87 PRC Iujing Thermal Power 190.0 - 25.0 1871 88 PRC Rural Credit III - 170.0 2.0 2877/1845 88 PRC Huangpu Port 63.0 (25.0)(b) 40.8 2907/1875 88 PRC Dalian Port 71.0 (25.0)(b) 5.1 1885 88 PRC Northern Irrigation - 103.0 23.9 2924/1887 88 PRC Coastal Lands Dev. 40.0 (60.0OXb) 4.7 1908 88 PRC Teacher Training - 50.0 0.1 2943 88 PRC Pharmaceuticals 127.0 - 4.9 2951/1917 88 PRC SSchuan Highway 75.0 (50.0)(b) 54.2 2952 88 PRC Shaanxf Highway 50.0 - 1.7 1918 88 PRC Daxing An Ling Forestry - 56.2 3.1 2955 88 Poo; Seilungang II 165.0 - 27.6 2958 88 PRC Phosphate Dev. 62.7 18.0 2968 88 PRC Railway IV 200.0 - 61.2 1984 89 PRC Jiangxi Provincial Highway - 61.0 13.4 1997 89 PRC Shaanxi Agricultural Dev. - 106.0 40.3 2006 89 PRC Textbook Development - 57.0 2.1 2009 89 PRC Integrated Reg. Health - 52.0 21.8 3006 89 PRC Ningbo & Shanghai Ports 76.4 - 22.5 3007 89 PRC Xiamen Port 36.0 - 16.8 3022 89 PRC Tianjin Light Industry 154.0 . 94.3 3060/2014 89 PRC Inner Mongolia Railway 70.0 C80.0)(b) 30.7 2097 89 PRC Shandong Agriculture Dev. - 109.0 9.7 3066 89 PRC Hubei Phosphate 137.0 - 107.1 3073/2025 89 PRC Shandong Prov. Highway 60.0 (50.0)(b) 26.4 3075 89 PRC Fifth Industrial Credit 300.0 - 144.6 2097 90 PRC Jiangxi Agric. Dev. - 60.0 22.2 2114 90 PRC Vocational & Tech. Educ. - 50.0 16.3 2145 90 PRC National Afforestation - 300.0 165.0 2159 90 PRC Hebei Agricultural Dev. 150.0 74.1 2172 91 PRC Mid-Yangtze Agricultural Dev. - 64.0 27.1 3265/2182 91 PRC Rural Credit IV 75.0 200.0 R9.0 3274/2186 91 PRC Rural Indust Tech (SPARK) 50.0 64.3 79.2 3286/2201 91 PRC Mediin-Sized Cities Dev. 79.4 89.0 94.1  - 11 - Schedule 0 Page 2 of 3 Loan/ Amount (US$ million) Credit 80r- (net of cancellations) Number FY rower Purpose Bank IDA Undisb.(a) 3288 91 PRC Shanghai Industrial Dev. 150.0 147.9 2210 91 PRC Key Studies Development 131.2 7Z.2 2219 91 PRC Liaoning Urban Infrastructure 77.8 21.3 3316/2226 91 PRC Jiangsu Provl. Transport 100.0 (53.6)(b) 75.9 2242 91 PRC Henan Agricul. Oev. 110.0 81.6 3337/2256 91 PRC Irrig. Agricul. Intensif. 147.1 187.9 196.0 3387 92 PRC Ertan Hydroelectric 380.0 115.3 2294 92 PRC Tarim Basin 125.0 96.1 2296 92 PRC Shanghai Metro Transport - 60.0 42.9 3406 92 PRC Railways V 330.0 263.2 3412/2305 92 PRC Daguangba Multipurpose 30.0 37.0 47.0 2307 92 PRC Guangdong ADP - 162.0 138.0 3415/2312 92 PRC Beijing Environment 45.0 80.0 109.7 2317 92 PRC Infectious and Endemic Disease Cont - 129.6 107.3 3433 92 PRC Yanshi Thermal Power 180.0 - 135.5 2336 92 PRC Rural Water Supply and Sanitation - 110.0 100.7 2339 92 PRC Educ. Development in Poor Provs. - 130.0 102.9 3443 92 PRC Regional Cement Industry 82.7 - 81.6 3462 92 PRC Zouxian Thermal Power 310.0 - 287.4 3471 92 PRC Zhejiang Provincial Highway 220.0 178.8 2387 92 PRC Tianjin Urban Devt. & Envir. - 100.0 95.7 2391 92 PRC Ship Waste Disposal - 15.0 15.6 2411 93 PRC Sichuan Agricultural Oevt. - 147.0 123.0 3515 93 PRC Shuikou Hydroelectric II 100.0 - 90.2 2423 93 PRC Financial Sector TA - 60.0 59.5 3530 93 PRC Guangdong Provincial Transport 240.0 226.1 3531 93 PRC Henan Provincial Transport 120.0 - 101.4 2447 93 PRC Ref. Inst'l and Preinvest. 50.0 46.2 3552 93 PRC Shanghai Port Rest. and Devt. 150.0 - 150.0 2457 93 PRC Changchun Water Supply & Env. - 120.0 122.4 2462 93 PRC Agriculture Support Services 115.0 113.0 3560/2463 93 PRC Taihu Basin Flood Control 100.0 100.0 182.7 2471 93 PRC Effective Teaching Services - 100.0 101.9 3572 93 PRC Tianjin Industry II (c) 150.0 - 150.0 3582 93 PRC South Jiangsu Envir. Prot. (c) 250.0 - 250.0 2475 93 PRC Zhejiang Multicities Devt. 110.0 112.1 3581 93 PRC Railway VI 420.0 - 420.0 3606 93 PRC Tianhuangping Hydroelectric 300.0 300.0 3624/2518 93 PRC Grain Distribution 325.0 165.0 493.1 2522 93 PRC Envirormental Tech. Assist. - 50.0 49.9 2539 94 PRC Rural Health Workers Devt. - 110.0 112.1 3652 94 PRC Shanghai Metro Transport It (c) 150.0 - 150.0 3681 94 PRC Fujian Provincial Highways (c) 140.0 140.0 3687 94 PRC TeLecommunications (c) 250.0 250.0 Total 9970.6 6972.8 7365.1 of which has been repaid 735.5 4.0 Total now held by Sank and IDA 9235.1 6968.8 Amount sold: Of which repaid Total Undisbursed 4670.3 2694.8 7365.1 (a) As credits are denominated fn SDRs (since IDA Replenishment VI), undisbursed SDR credit balances are converted to dollars at the current exchange rate between the dollar and the SDR. In some cases, therefore, the undisbursed balance indicates a dollar amount greater than the original principal credit amount expressed in dollars. (b) Credit fully disbursed. (c) Not yet effective.  - 12 - Schedule D Page 3 of 3 B. STATEMENT OF IFC INVESTMENTS (As of December 31, 1993) Inveat- Type of Loan Equity Totat ment No. FY Borrower Business - (USS Million) - 813/2178 85/91 Guangzhou and Peugeot Autwmobi to 15.0 4.6 19.6 974 88 China Investment Co. Investment 3.0 0.0 3.0 1020 88/92 Shenzhen China Bicycle 17.5 2.5 20.0 Bicycles Co. Ltd. Manufacture 1066 89 Crown Electronics Electronics 15.0 15.0 1119 89 Shenzhen Chronar Solar Solar (a) 2.0 1.0 3.0 Energy Energy 3423 93 Shenzhen PCCP Manufacturing 4.0 1.0 5.0 3150 93 Vantai Cement Cement 28.7 2.0 30.7 Not yet signed 93 JV Commercial Bank Banking - 7.5 7.5 Total Gross Commitments 85.2 18.6 103.8 Less canceltations, terminations 2.0 - 2.0 repayment and sales Total Comitments now Held by IFC 83.2 18.6 101.8 Total Undisbursed 28.7 5.8 34.5 (a) Loan subsequently cancelled. 12/31/93 EA2DR  IBRPD 25120 C H I N A 120